Dynamic Strategy and Disruptive Innovation

Assessment 2

Organisation Case Study – D&H Foods

The Delicious Food Group, which commenced operations 50 years ago, changed its name to Delicious and Healthy Foods (D&H), recently. D&H is a holding company with five subsidiaries operating within the food and beverage industry. Following is a summary of each business unit. Munchy Biscuits The founders of D&H started with Munchy Biscuits 50 years ago. Since then, they have become the largest biscuit manufacturer and marketer in the country. The company manufactures and markets more than 30 types of biscuits with 40 brands. The biscuit market is a mature market with limited growth and fierce competition. Health concerns, the emergence of newer product formats, and niche regional players have contributed to the slowing and fragmentation of the industry. Pure Juice Pure Juice is a fully integrated fruit juice manufacturer with a sizable export market. 90% of the Orange and Apple juice produced by the company comes from their own ochards. Close to 50% of Pure Juice products are certified Organic and therefore, command a higher price in the market. Given the premium image of Pure Juice, the managers are extremely cautious about expanding volumes and getting into other types of fruit juices mainly, due to the fear of diluting the brand image. The company commands a smaller market share in the fresh juice catogary though brand loyalty is very high among the current customers. The shareholders of D&H wants the management to capitalise on Pure Juice brand strength and expand the operations further. A shareholder was heard saying “what is the point in having a good brand if you can expand or use that to increase profitability?” The brand promise of pure juice is “Pure juice from Pure Juice orchards.” Funville Chocolates D&H separated the chocolate business from Munchy Biscuits almost 30 years ago. Since then, the company has introduced a number of innovative products. However, over the last ten years, the company has lost market share to the multinational chocolate companies.

This is a hypothetical case study with hypothetical market situations. You are not expected to research the different industries mentioned in the case study. The focus should be on researching, analysing, and applying portfolio management related theories, concepts, and scholarly views.