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Essay: Restructuring Entrepid Farms: Strategic Market Reorientation

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In any given business, the most significant products have a thoroughgoing appreciation of the population tally of their target market .Hence, how markets communicate and most importantly what benefits them the most. The majority of businesses have a particular target market which extensively works hard to track down. Having an understanding of the market environment is vital because it provides businesses with the correct path to achieve and reach the desired millstones of advertising and marketing operations. Along with the uniqueness of the brand while simultaneously developing a connection between a business and its target market.

Entrepid Farm is facing a financial dilemma .The company has dropped almost by a 30 percent deficit in sales. Mainly due to its desire to emerge into a multifunctional company, providing 900 different products. This gave impetus to inconsistencies beyond its measures hence its goals and objectives. The lack of attention, to what they are known for has led them to this inadequacy .Adding to this, the lack of investing significantly in the market and advertising for the past four years has channeled them to an inability to coordinate between business units and the company.

Mr. Bertus Schmidt ,the CEO of Entrepid Farm plans to restructure , regain the interest of the consumers in order to improve the overall profitability .In order to achieve this ,business principles have to be implemented from the top level of the organizational structure , to the bottom level(subordinates).A management concept of planning ,organizing , controlling and leading must be coordinated between the company and its business units.

Question 1

The external environment consists of four sub-environments namely: the economic environment, social environment, political environment and international. These sub-environments are the factors of which organizations have got no control over. The macro environment can directly influence the market environment.

Economic Environment

The economic environment directly influences the organization. Pressures such as the interest rate and inflation influence the different levels of consumer spending, therefore affecting the performance of the organization. This has given impetus to fluctuations and a growth rate of the economy. Hence, the country’s economic growth is measured by the service and goods produced. The country’s Gross Domestic Product will either improve or digress. These fluctuations may have positive or negative effect to a certain degree of competitiveness, supply factors, various supporting structures of the national entrepreneurship culture of a country

Social Environment

The contributing factor to the social environment is the society the organization operates in. this strongly directs us to the mankind product of society, consumer trends, levels of education which have an impact on the societal values and norms depending on race, culture, language, laws and ethnicity. As a result this environment of any business can be integral to its failure or success, based on its given context in which can have implications for productivity. These effects are measurable and what is important is to create a harmonious environment for business.

In every country there are rules and regulations that society has to comply with. Political decisions directly influence business in such a way that it sets rules and regulations that business has to adhere to. These laws range from the simplest rules to the more complex, which can determine whether the business will be successful or not. Historical development of a country has impact on a business. In South Africa the BEE has been implemented for the people of color, to give them business opportunities and gestures that may deem fit for their development. A business needs to be kept aware of any political climate in which it operates because any changes will have a great impact on the organizations, hence, stabilities and instabilities of government. Failure to adhere to legislation may have a negative impact on the performance and operations of business.

International Environment

International relations are created through business, because globalization often results in duplication. International economic growth of various organizations has had an impact on the expansion of business in other countries; hence, relations with foreign government which may directly or indirectly create an attractive environment based on the type of service organizations offers, (merit) for investors.

Internationally if Entrepid Farms imports their poultry medicine for animals, the availability and delivery of those products may impact the farms production because they rely on those products to maintain the life of the livestock. This also determines the quality of goods. Any inconsistency for example the unavailability of the product abroad (sanctions) will have a negative impact because they are reliant on it. This decreases the quality of the brand because the preferred choice of supply has now been substituted.

Political impact

If any war erupts abroad, sanctions might be imposed and this will have a negative impact on business based on the idea that Entrepid Farms gets some of its products for manufacture abroad.

Social impact

The extensive products that Entrepid Farms offers may not directly appeal to the consumers who were used the original products Entrepid Farms is known for which are cold meats, honey and cheeses. Therefore, products that customers are not familiar with resulted in a deficient of income which leads to lack of sales and productivity. ‘Entrepid Farms known for gift baskets loaded with homemade cold meats, honey and cheeses, realized it was trying to be everything to everybody, and as a result, was losing market share’. Botha, S. Musengi, S. (2012) in a collective society, an inconsistency displayed by the farm may result in a lack of positive value consensus.


A rise in the interest rate might have an influence in the cost of capital. Hence, the extensive products which ultimately made it more expensive to borrow money from the bank to manufacture these products, therefore, losing 30% of their sales. This means that they wasted money. Entrepid Farms focused more on creating different brands instead of strengthening their brand. ‘New CEO Bertus Schmidt’s challenge is to regain consumer interest and improve the overall profitability at the company’ Botha, S. Musengi, S. (2012)

Question 2

Planning is the foundation of management, which leads to coordinated actions, proactive steps, cooperation. It allows the manager to reduce risks, which in turn will forecast the future, thus, directing the organization to its goals and objectives. To achieve this, the planning process has steps that the organization can follow namely:

Scope (Forecasting)

Developing a plan allows the manager to estimate and predict future conditions (‘think backwards’) on the organizations goal. It allows the manager to conduct a situational analysis, hence researching on the environment and SWOT. ‘A SWOT analysis brings together all the factors that management have to deal with in both the internal and external environment’ Musengi, S. Botha, S. (2012)

Develop goals and objectives (Key result area)

In an organization it is essential to define areas in which results can be attained. A systematic formulation of objectives must be implemented, that is why the ‘smart objectives’ should be followed. Objectives should be specific, measurable, achievable, realistic, and time bound.

Develop and implement a schedule (Schedule)

A manager needs to have in place, an allocation of proactive steps and coordinated action needed to be implemented. Therefore, the organization must use elements such as communication, delegating tasks, anticipating the future on the events must receive special attention. The manager needs to be able to allocate functions, delegate authority, assignment of responsibility and creation of liability. This can be achieved through effective communication such as interpersonal, formal, horizontal, downward and upward communication. For example, ensuring that recipients understand what manager has delegated and expects from them.

Monitor- Track, Update, and Adjust (Control)

This insures that set goals and objectives are monitored ‘having matters under control. Meaning goals and objectives are being achieved’. For example establishing standards of performance, evaluate deviations and taking corrective action. This then insures that activities of all levels of the organization are in accordance with plan goals.


The closing step allows the manager to identify deviations and takes steps to rectify them. It informs the manager where the activities are proceeding to plan or not. It takes control of activities in the different organizational areas at different levels. It is a reflection of how the organization has done and whether it has achieved or not. It helps the manager review the progress.


Scope – Entrepid Farms and the new CEO hopes to see cost reductions of up to R10 million as well as to regain consumer interest by producing top quality products that they are known for. Due to the company’s ‘extensive product offering of 900 different products, customers became confused’ Musengi, S. Botha, S (2013). The lack of investment in the market and advertising for four years had its negative impact. Furthermore there was no coordination between the business units in the company.

In Developing goals and objectives, Entrepid Farms CEO plans to reorganize the company streamline production and improve the brand in the market place in a period of three years. He plans on reducing R10 Million in costs and regain the reputation of top quality food and specialty gifts. To do this the CEO set up a special team to analyze the distribution channels as well as customer needs. With the knowledge obtained the company would like to evolve its brand, packaging and recipes. This goal is specific, measurable, achievable, realistic, and time bound.

Develop and Implement a schedule – Bertus, the CEO of Entrepid has set up a special team to analyze distribution channels and customer needs. Due to the fact that Entrepid Farms had not invested enough attention to its marketing of the products, the new CEO outsourced a national firm of ‘marketing consultants and experts in consumer research and design to help develop a new photography studio (https://www.lacefactorystudios.co.uk/services/photography-nottingham/), environmentally friendly packaging, a chic website and more advertising for social media’. ‘To highlight its concern for the environment, Entrepid Farms is promoting its range of organic foods and in the process also updating its packaging to use more recycling content ‘Musengi,S. Botha,S.(2013) In the process of developing the brand in a way that will be sufficient, Entrepid has introduced an organic range that will have recyclable packaging. This is a good way of keeping the brand and its products relevant. ‘The consultancy is building a marketing campaign around this’ Musengi, S. Botha, S. (2013)

Monitor-Track, Update and Adjust – ‘The brand had not evolved with the times in terms of visibility, descriptions, packaging and recipes’, however, many of the organizations objectives have been achieved. During the process of eliminating costs, ‘Entrepid Farms was able to eliminate redundant products, reduce the number of employees and outsource some of its functions’ Musengi, S. Botha, S. (2013)

Close – the three year plan has had much success in that the number of products has been reduced so that Entrepid can focus on the objectives of their company which is to produce top quality food products and specialty gifts. When they focus on the key products there is a

Generation of profit made rather than a loss due to the extensive attention on trying to be a multi-functional brand. It is advisable to make more money and be on a surplus than having insignificant products which will put us on a deficit. The reduced number of products has enabled Entrepid Farms to once again focus on the core products of the business.

SMART goals and objectives are:

  • Specific – This refers to the objectives being clear and well defined. This is when an organization communicates well on its goals and objective.
  • Measureable – This refers to the evidence that determines whether or not the objective has been achieved.
  • Achievable – Will the organization be able to achieve its objective. This refers to the organizations capability.
  • Realistic – This refers to the objective being possible. Will the organization be able to achieve the objective based on its current state? This objective would be the reduction of cost at Entrepid Farms.
  • Time bound – This refers to the time or deadline that has been set for the objective to be achieved. Such an objective would be a three year plan set by the CEO of Entrepid Farms.

2.2.2 Entrepid Farms smart objective to reduce costs before February 2017

Activity / Milestone / Person responsible / Indicator of success / Deadline

  • Re-invest to a specific target market To supply both the market and macro environment Board of Directors Positive feedback from markets 05/12/2014
  • Advertise and market to a broader community Extensive recognition in the macro environment Marketing Director Rapid orders and high
    demand from clientele niche 05/03/2015
  • Coordinate proactive steps between business units/models Departmentalize, and disperse product to key segments of the macro environment Project Manager Gradual reduction of cost 06/08/2015
  • Terminate products that do not appeal to the target market. Physically and by selling Reduce redundant products subordinates (labor workers) and service providers Reduction of costs as well as products available to specific target market 06/12/2015
  • Evaluate Weigh whether the objectives have been achieved Board of Directors, CEO, and the Team Profit made. Reduced costs 31/01/2016

What makes a business unique is its ability to satisfy customer needs. Important for organizations to know their customers, what they need and how to satisfy them. There are four business-level strategies that will be discussed name: Cost leadership, Growth strategy, Market Strategy, and the Differentiation Strategy.

Cost Leadership

Every business wants to maintain the lowest prices possible without the loss of profit. In the process of Entrepid Farms quest to produce as many products as they could, they were losing market share. By reducing the number of products they have now ventured into, they will be able to reduce costs and focus on the core of the business. Products that the farm is known for are products worth being invested into. Due to the lack of profit, some of the products have to be discontinued and recycling is always good because it reduces costs.

Growth Strategy

Growth is important in any organization and it is vital to consider introducing new products that will be appealing to the consumers and that will increase the target market such as the range of organic foods that Entrepid Farms has ventured into. This will grow their client base as it will be beneficial for Entrepid and the customer catered to.

Market Strategy

It is easy for a product to lose the market interest if promotional strategies are not utilized as much as possible. This is the ‘driving engine’ of the product as it keeps it up to date. The Market strategy keeps it up to date with the consumers of the product and what is to be done for the brand to stay relevant. It is also vital to stay within the market’s needs. Knowing the demand of products helps the business to consistently cater to the consumer in the best way possible.

Differentiation Strategy

This strategy refers to being different. Introducing products that will be different in one way or another helps stay ahead of fellow competitors. Introducing products that are up to date and making sure that Entrepid Farms natural resources are of quality, will determine whether their brand will stand out or blend in with the rest. Being original and using quality production will give Entrepid Farms competitive advantage.

Question 3

Every enterprise uses one or more forms of organizational structures. For an organization to run smoothly there are various organizational structures that are interdependent on each other. The Functional organizational structure, Product departmentalization, Location departmentalization, Customer departmentalization, and the Matrix organizational structure are some of the few parts that make up an organization.
The Functional organizational structure can be used in any enterprise/business and is said to be the most basic method of grouping the specialties of employees. For example, the CEO of Entrepid Farms gives orders and instructions that need to be performed to his employees accordingly to their ability and skills. This type of organizational structure is not confusing as some might be. It is easy for staff to understand as there is one person who gives commands. There is also speedy decision making. Although this structure is easy to understand, it can complicate things in a large business entities.
Product departmentalization allows specified attention towards the product and allows in depth knowledge of the products effectiveness, however, managers tend to solely focus on one aspect rather than the bigger outcome. In this organizational structure, tasks are grouped for goods and services produced according to their relation. This improves the quality of service as each department gives special attention into bringing the best out of the product and service. This arrangement offers the organization the gain of emerging personnel with an increased level of proficiency and gaining in-depth knowledge for each of its products. It also helps with the improvement of the product. ‘For example, a firm that makes leather, another dyes it, and a third sew the coat together. Such specialization enables employees to do a better job because they can focus on a few, critical skills’ Advantages and disadvantages of departmentalization.(2013) The disadvantages of this type of organizational structure would be that managers tend to lose the core focus of the business like Entrepid Farms has done in losing focus on making quality goods instead of quantity. The quality of a product goes beyond the quantity.
Location departmentalization refers to goods and services broadened through different areas, as well as their availability to other geographical areas. For example this kind of organizational structure would be utilized by Entrepid Farms if they were to expand into other countries. This structure works well with big organizations that appeal to customers that are dispersed. The availability and the demand of the goods and services are important in determining expansion.
Customer departmentalization refers to specialized focus on a specific target market. This structure looks at the specific needs of the customer the organization caters to. These needs or services might require staff that have specialized skills in offering them. For example the makers of Ferrari have their target market that would prefer to keep Ferrari as exclusive as possible. To make and market cars like Ferrari, would require staff that have specialized skills to firstly manufacture the luxury car and then try to market it to the target market which are those that can afford it. Some restaurants cater food that might not appeal to the consumers with large pockets but is aimed at the customer that do not necessarily want the straightforward everyday kind of meal. Whereas a business such as McDonalds aim at being more to all segments of consumers. ‘Our mission is to be our customer’s favorite place and way to eat’ (McDonalds brand mission 2014) they want to be affordable and have a large target market which is not necessarily narrowed. Furthermore, an organization such as Entrepid Farms could have a selection of products only supplied to restaurants or franchises such as McDonalds.
The Matrix organizational structure brings together the advantages of the other organizational structures and upholds projects of a specialized nature. It is used to the advantage of the other organizational structures. ‘This structure works well in organizations with limited resources and many products’ Musengi, S. Botha, S. (2013). Employees of a specialized field come together to share knowledge for a specific task. As soon as their task is complete they return to their respective functions. In this structure, employees report to more than one manager, effectively having two or more supervisors at a given time. Entrepid Farms CEO could have used this structure in his quest to producing more products. This organizational structure helps in maintaining the standard of the business whilst allowing room for growth. It is also suitable for services or goods that are meant to be offered only for a short term, for example the World Cup.
The concept of organizing is important because it allows the manager to effectively work with people, controlling their behavior to achieve goals. Through the use of human, information, physical and financial resources help to achieve goals and objectives. Organizing will enable Entrepid Farms to tackle the issues of sales and market share. To do this there is a comprehensive analysis of work that must be done. Secondly the braking down of workload to subordinates is an effective way of improving the business brand as different expertise will be applied accordingly. It is easier to allocate and outsource necessary skills needed to ensure that the objective has been achieved. This helps avoid the deviation of tasks.

Question 4

A leader guides, directs, supports, and motivates people. For people to want to achieve and work hard their leader has to set an example for them to follow in those steps. Two of the leadership theories to be discussed are the trait theory and the behavioral theory. The trait and behavioral theory differ significantly from each other.
The trait theory is considered a historical leadership that refers to the individual characteristics of leaders from those of non-leaders. During the time of the 1930s, the standard of leadership was determined by inheritance as well as physical appearance such as height, mass and intelligence. The theorists of the 1930s believed that leadership was inborn. In connection with this theory, for development and improvement to occur, management should begin within. ‘Enthusiasm, ability to recover from failure or setbacks and the determination to strive for excellence are some of the qualities a leader should possess’ Musengi, S. Botha, S. (2013)
The behavioral theory came into existence in the 1940s and 1950s. The behavioral theory is the opposite of the trait theory in that it states that leaders lead by example. They are made and not born. In this theory the appearance has no relevance in determining a leader but rather the signs a person displays make he or she a leader. Theorists believed that if a person is motivated, determined, people centric, can make decisions quickly and is inspired. Then they can lead. A vital appeal about the behavioral theory is that, it is possible for people to be taught leadership as long as we know what leaders do. Hence that if leadership is learned properly then anyone has the will power to become a leader in theory.
Question 5
Leadership is an executive function which gives power and authority to an individual. This individual is able to control the behavior of his fellow colleagues. This leadership is guided by determinable boundaries. When a leader recognizes himself as well as other individuals as members of the organization, it leads to achievable goals because a value consensus and conformity has been administered. The following are the components of the leadership function that Mr. Bertus Schmidt can follow in leading his organization.
As the CEO of Entrepid Farms you have the authority to give instructions and to do this, you must know exactly what you want to say to recipients. The power vested in you to influence the behavior of subordinates is also determined by ensuring that recipients understand the message and what is expected of them. In as much as it is the employee’s responsibility to carry out duties, it is also your responsibility to make sure all tasks are attended to. Repetition is a good form of reinforcement. When delegating tasks and responsibility it is important that employees understand the task at hand. Formal communication is important as well as downward, upward and horizontal communication. Frequent meetings help keep everyone informed. As the CEO you are accountable for the performance of the subordinates. Use the feedback given to determine the pace in which the tasks are being attended and the employee’s performance. Respect and analyze all response coming from the subordinates.

Reference list and bibliography

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    Futter, B. (2008).Secrets of Success: Learning from others lessons from China.SA Pharmaceutical Journal, pp.52-53.Rhodes University. Grahams Town
  • Manning, T. (2002).Discovering The Essence of Leadership. Zebra press. Cape Town
  • McDonalds brand mission, 2014.Available from: www.aboutmcdonalds.com/mcd.html Accessed: 14 June 2014)
  • Musengi, S. Botha, S. Introduction to Business Management, 2nd edition. Person Higher Education. United Kingdom [30/06/2013]
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In order to effectively run and coordinate all the business activities carried out by the team of subordinates and still have an ultimate vision and mission for its products .A leader has to take charge and channel the business in the right direction. Through the use of effective planning, organizing, controlling and leading .This will help transform Entrepid Farm in future and it’ll make Mr. Bertus a happy man.

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