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Based on the attached reports, analyze the strategy, structure, rewards, processes, people, culture and leadership of Acadiana Soy Products company http://www.acadianasoy.ca/. The PDF named “requirements” provides the specific requirements.
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acadiana_soy_products.docx

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Table of Contents
Executive Summary………………………………………………………………………3
External analysis……………………………………………………………………………………3
Internal analysis……………………………………………………………………………4
Strategy assessment……………………………………………………………………….4
Next step…………………………………………………………………………………..4
Introduction & Key Issue……………………………………………………………….5
External analysis………………………………………………………………………………………………….5
Potter’s five focus………………………………………………………………………………….5
Opportunities and threats………………………………………………………………….8
Pest analysis……………………………………………………………………………….8
Trend……………………………………………………………………………………………….9
Internal analysis…………………………………………………………………………………11
Resource-Based View……………………………………………………………………11
VRIO analysis……………………………………………………………………………12
Financial statement………………………………………………………………………13
Value chain………………………………………………………………………………14
Strength & Weakness…………………………………………………………………….14
Assessment of the Organization’s strategies……………………………………………..15
Functional-level strategy…………………………………………………………………16
Business-level strategy……………………………………………………………………………17
Conclusion…………………………………………………………………………..……18
Next Step…………………………………………………………………………………..18
Appendices………………………………………………………………………………..19
Appendix A………………………………………………………………………………..19
References………………………………………………………………………………..22
Executive Summary
Acadiana Soy Products built by Anna Anderson in 1994, which located in Annapolis
Valley community of Nova Scotia. The main business of Acadiana Soy Products that
making traditional style tofu. Acadiana Soy Products use the soybeans as the raw
material, which is certified organic, and non-genetically-modified. In addition, Acadiana
Soy Products provide supply the products from two channels, retail shops, and restaurants
which locates in the Nova Scotia, New Brunswick and Prince Edward Island. They have
the technology of cooking small batches of tofu with open cauldron-style cooking. And
then, they divide the soymilk from the soybean pulp and use a Japanese coagulant named
nigari to make tofu.
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The main purpose of this report that assist the readers realize Acadiana Soy Products, and
provide the recommendation for key strategic issues. We will use external analysis,
internal analysis, and strategy assessment to analysis.
External analysis
Our group will use Porter’s Five Forces to analysis the competitive force of Acadiana
Soy Products, and we get result that this business has high competitive force:
• Bargaining Power of Buyers – Low- Moderate. The bargaining power of
buyers depends on buyer size, switching costs and number of existing
competitors. Although the switching cost is low, there are only few soy-based
products companies in the industry.
• Bargaining Power of Suppliers – Low. The bargaining power of suppliers, since
soybeans has become the major field crop in Canada, there are tons of suppliers
that companies can choose from.
• Threat of New Entrants – Moderate. The threat of new entrants is moderate.
The low barriers to entry because there are so many small factories exist in the
industry. The moderate fixed costs because the initial capital expenditure required
is not large to launch the business. The low brand loyalty because there are only
few leading brands.
• Threat of Rivalry – Moderate- High. Depends on the competitors forces, exists
barriers and product differentiation. The high competitors forces and low product
differentiation make the rivalry degree high.
• Threat of Substitute Products – Low. The switching cost is low because of the
cost of switching from soy-based products to the substitutes depends on contacts
restricting the customers.
Three key macro-environmental trend include:
• Socio-cultural. More people becomes health conscious, demand for organic food
will be increased. In addition, there is a strong and growing vegan, non-gmo and
organic social movement in Nova Scotia.
• Regulation and policy. Laws and policies continue to be implemented,
companies need to sure that they comply with all the new policies. The
Agriculture and Marketing Act which enforce the Canadian Organic Standards
within this province.
• Economic. Soy food industries are driven by increased driven by increased
consumer and consumer disposable income. Canada is becoming a significant
soybean supplier and soybeans are becoming more important force in the
Canadian economy.
Internal analysis
Based on the resource analysis, we identified the internal resource of Acadiana Soy
Products that:
• Tangible. The main tangible assets are small factory that located in Annapolis
Valley, a vehicle for delivery tofu, all kind of machine, like Packing machine,
Label machine and Production Machine.
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Intangible. The reputation, innovative products and rich experience are
significant intangible assets for Acadians Soy Products.
Competencies. Acadian Soy Products has total three employees now. One of the
labor was chief before and has high productivity, another he has ability to develop
innovative production.
Competitive Advantage. The highly quantity products made by organicallygrown, local ingredients, and the soybeans are certified organic and not
genetically-modifies. The low product’s price based on the low cost of raw
material and operation.
Strategy assessment
• Functional-level strategy. They have acquired distinctive competency such as

high-quality production and quick response to customer, active innovation, and
unique business efficiency form those functional area.
Business-level Strategy. They use automated production process to deliver highquality product, and also organized business event to give customer coupon in
order to increase customer retention.
Next Step
In the next year, our group will list the strategic plan and recommendations to resolve the
current issues, which includes the hire immigrants for improving labor force, enter the
emerging market, and buy new equipment, and sell the company.
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Introduction & Key Issue
According to Acadiana Soy Products official website (n.d.), the Acadiana Soy Products
built by Anna Anderson in 1994. The business located in Grand Pré, where is an
Annapolis Valley community of Nova Scotia. The main business of Acadiana Soy
Products that making fine, traditional-style tofu, and they also provide variety and good
quality soy foods to Nova Scotia citizens. Figure 1 to Figure 3 (Acadiana Soy Products,
n.d.), illustrates that the sample of products tofu, smoked tofu, veggie burgers, tofu pot
pie, and silken tofu. In addition, Acadiana Soy Products provide supply the products from
two channels, retail shops, and restaurants which locates in the Nova Scotia, New
Brunswick and Prince Edward Island. Figure 4 and Figure 5 describe the main clients of
the business (Acadiana Soy Products, n.d.).
Acadiana Soy Products use the soybeans as the raw material, which is certified organic,
and non-genetically-modified. In sometimes, they will use the local, organically grown
ingredients to making products. They have the technology of cooking small batches of
tofu with open cauldron-style cooking (Figure 6, Acadiana Soy Products, n.d.). And then,
they divide the soymilk from the soybean pulp and use a Japanese coagulant named
nigari to make tofu.
Although Acadiana Soy Products has a good operation, they still some issues. Firstly, the
business has a lack of productivity. According to Anna, she provided the information on
business productivity, and weekly productivity is 1200 pounds. However, they cannot
satisfy all of the customer requirements at the same time, and some of them have to wait
in the list. Secondly, Acadiana Soy Products faces the issue of lack of labor. The
company has the total of three employees, who spend three days on produce tofu, one day
for the package, and one day to integrating the delivery of the products. Thirdly, the
company faces a lack of capital. Anna told us that the business is trying to upgrade the
machine to improve productivity but do not have enough capital to upgrade. In our group
opinion, Acadiana Soy Products needs to create a strategic plan to overcome the issues.
External analysis
Potter’s five focus
Bargaining Power of Buyers – Low- Moderate
The bargaining power of buyers depends on buyer size, switching costs and number of
existing competitors. Although the switching cost is low, there are only few soy-based
products companies in the industry, the overall bargaining power of buyers is low to
moderate.
Buyer Size – Low
Producers hope the claim will have an out-sized effect on a slow-growth industry that
remains relatively paltry despite Canada’s large population of immigrants from places
where tofu has been consumed for centuries, such as China, Korea and Japan. However,
the entire Canadian soy market — which includes tofu, soy meat alternatives and soy
cheese — is still only worth almost $100 million annually, according to Nielsen market
research data (Financial Post, 2016, para.2). Tofu remains a bit of a mystery to people
who didn’t grow up eating it. About 17 per cent of Canadian households (and 26 per cent
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of Quebec households) purchase tofu, citing Nielsen market data. But the average
household only spends $9 annually on tofu, according to Statistics Canada’s annual
household spending survey (Financial Post, 2016, para.5).
Switching Costs – Low
Similar products provided by each soy- based companies available to customers, and for
individual customer who purchase soy products from markets directly, switching costs
are negligible since there is no contract restriction. For customers like restaurants, if the
contracts are short-term, there is also not much impact on the switching decisions.
Number of Competitors – Low
There are only few soya products companies existing in the industry. They all produce
similar soy-based products as Acadiana Soy does. The top competitors are Superior Tofu
and Sunrise Soya Foods which constantly competing for market share and revenue.
Sunrise Soya Foods’ tofu dominates Canada’s at least two-thirds of the market share
(Financial Post, 2016, para.8).
Bargaining Power of Suppliers – Low
Since soybeans has become the major field crop in Canada, there are tons of suppliers
that companies can choose from. In this case, the bargaining power of suppliers is low.
Number of Suppliers – high
Soybeans are now the third largest field crop in Canada in terms of farm cash receipts. As
production and processing grow, Canada is becoming a more important soybean supplier
and soybeans are becoming a more important force in the Canadian economy. In 2017,
soybean production totaled 7.7 million metric tons in eight provinces (Ontario, Manitoba,
Quebec, Saskatchewan, Prince Edward Island, Alberta, New Brunswick and Nova Scotia)
(Soy Canada, 2018, para.5). Following a doubling of production during the last decade,
rapid advances in technology are projected to support yet another doubling of Canadian
soybean production during the next decade.
Supplier Independence- high
Nearly two-thirds of the soybeans grown in Canada are destined for export markets,
either as raw soybeans or processed for end use. The Canadian industry works closely
with customers around the world to ensure their needs for quality and composition are
met. The soybean suppliers can choose whether export or not.
Switching Costs – Low- Moderate
The switching costs in this industry are fairly low due to the rare initial capital
expenditure and investments in the raw material to operate with. So, in order to switch
suppliers you don’t need to sell the current soybean inventory. However, if the contract
have many years left on it making the switch difficult. You may spend extra capital on
new supplier to replace the current one since some suppliers charge a fee to cancel a
current plan.
Degree of Rivalry – Moderate- High
Depends on the competitors forces, exists barriers and product differentiation. The high
competitors forces and low product differentiation make the rivalry degree high.
Force of competitors – Moderate- High
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The number of competitors in the Canadian soy industry is relatively high as the barriers
to entry are very low. However, the top competitors such as Superior Tofu and Sunrise
Soya Foods are constantly competing for market share and revenue. With manufacturing
plants in Vancouver and Toronto, and product availability across the country, Sunrise
Soya Foods’ tofu and soy products dominates Canada’s tofu industry with at least twothirds of the market share.
Exit barriers – moderate
The exit barriers in the soy industry are moderate, depending on the company size. The
larger companies requiring higher non-transferable fixed assets, along with employees
will have higher barriers to exit. Additionally, depending on the current situation and
what contract contingencies the companies have with suppliers, buyers and penalties
from cutting short tenancy agreements.
Product differentiation – low
The product differentiation within the soya food industry is very low as the products are
all made by the same material (soybean) through similar process. Each soy product
company produces similar soy-based products such as fresh tofu, smooth tofu, soft tofu,
silken tofu, pressed tofu and soy milk.
Threat of Substitute Products – Low
Switching cost- low
The cost of switching from soy-based products to the substitutes depends on contacts
restricting the customers. For individual customer who purchase soy products from
markets directly, switching costs are negligible since there is no contract restriction. For
customers like restaurants, if the contracts are short-term, there is also not much impact
on the switching decisions.
Number of substitutes:
There’s no true substitute for these products. Since soy has been considered a substitute
for animal protein, the main substitutes are plant-based protein alternatives such as soy
cheese and meat alternatives. In the case of both substitutes, the prices are similar to tofu
and soy-based products.
Threat of New Entrants – Moderate
Barriers to Entry – Low
The soy industry is not a very competitive industry, and there are so many small factories
exists in the industry. So the threat of new entrants into an industry not increase the
degree of rivalry a lot. Also, the learning curve in soy foods production is relatively low,
which means not much experience need to be gained through producing soy products.
Fixed Costs – Moderate
For new entrants consider participate in soy production industry, the initial capital
expenditure required is not large to launch the business.
Brand Loyalty – Low
Brand loyalty in this industry is not a huge barrier to entry as almost all companies are
small-sized and unknown, and there is only few leading brands.
Opportunities and Threats
Opportunities
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Firstly, the rising adoption of the vegan lifestyle will be one of the primary drivers for
market growth.Technavio’s market research report predicts that the global tofu market
will grow at a CAGR of about 4% during the forecast period (technavio, 2017,para.2).
People are increasingly accepting vegan diets due to the growing concern towards animal
rights and for a better environment. Tofu has increasingly gained acceptance over the
years particularly as a vegetarian and vegan approved source of protein. Moreover,
people are also switching to a vegan diet since meat-based food pose as significant threats
by increasing the risk of cancer and the awareness towards the damages to kidney due to
the consumption of excess of protein. This will drive the growth of the tofu market since
vegan diet followers will increasingly prefer plant-based protein alternatives such as
tofu(technavio, 2017,para.2).
Also, the introduction of new products by tofu manufacturers will be one of the major
trends that will drive the tofu market’s growth during the next few years. Due their
functional advantages, the recent years witnessed a significant increase in the demand for
soy-based foods such as tofu. To attract the health-conscious consumers, tofu
manufacturing companies are introducing several tofu products. Besides, well-established
restaurant chains such as McDonald’s are also focusing on including tofu dishes to their
offerings.
Threats
The threats related to food safety. Firstly, soy is higher in phytoestrogens than just about
any other food source, which are plant-based estrogens that mimic estrogen in our bodies.
Independent research has clearly shown that consuming phytoestrogens is downright
dangerous for the human body (Food Renegade, 2018, para.1&2). On the other hand,
some studies have suggested that certain components of soy might be linked to common
food allergies.
PEST Analysis
There are four factors have effects on the soy food industry, including policy, economy,
social, and technology respectively.
Frist of all, there are certain policy benefits for organic product company. Federal
government have payroll compensation for company whose main products are organic
products. In another word, on the same level of salary payment, organic company can pay
less from the organization itself, hence the labor cost will be lower, compared with regular
company in the industry. Government will also support on equipment, factories, and other
fixed asset and with the favorable policy, company making organic products can also get
bank loan more easily. In terms of yearly income, the organization tend to have longer
deferred tax period. Canadian food manufacturers, producers and distributors are regulated
by federal, state and local governments. Strengthening the supervision of food policies is
conducive to ensuring the quality and safety of food.
Secondly, in the perspective of economy, the food industry may work well when consumers
have high income levels and a prosperous economic outlook. With production and
processing grow, Canada is becoming a more important supplier of soybeans, and soybeans
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are becoming a more important force in the Canadian economy. In 2014, the activities of
the soybean industry generated total revenue of $5.8 billion (Statistics Canada, 2018).
Besides the economic effect, social element can affect an organic company’s value as well.
Nowadays, more and more people realized the goodness of organic products and decided
to switch their receipt from regular to organic. This will increase the demand of organic
products and therefore, increase the price and supplier’s revenue. In long-terms, market’s
activity will drive up corporate value indirectly.
Last but not the least, the development of …
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