1 Even’ Star Organic Farm By Chasedream The Association for Accountants and Financial Professionals in Business

Case Overview Three Proposals Long-term Strategy Process Restructure Risk Control Content

Case Overview 3 Demand & Supply Lower yields than planned Larger potential customers Sales & Service Restaurants Community-supported agriculture Farmers’ market Production 10 Acre of land High-quality organic vegetables

Profit maximization (best market share) Proposal III Case Analysis Profit maximization (best cash flow) Proposal II Profit maximization Proposal I

Restaurant profit CSA profit Restaurant Customers CSA subscribers Proposal I— profit maximization When serving 6 restaurants 87 CSA subscribers, the farm get the HIGHEST PROFIT.

6 Net Incremental in Profit $ /channel

CSA subscribers Restaurant profit CSA profit Restaurant Customers Farmer Market (Sunday) When serving 3 restaurants, 90 CSA subscribers and Sunday farmers’ market, the farm can get highest profit under the precondition of highest cash flow Proposal II— Cash Flow

Restaurant profit CSA profit Restaurant Customers Farmer Market (Sunday) Farmer Market (Sunday & Saturday) CSA subscribers Proposal III— Sales Channels When serving 2 restaurants, 83 CSA subscribers and both farmers’ markets, the farm can get highest profit under the precondition of three channels

9 Three Proposals— Summary These three proposals are our strategy to overcome the low yield and high demand problem in the short-term. We prefer the second proposal for its abundant cash flow and relatively high profit. Additionally, three channels have been covered in this way.

10 CSA and farmers’ market can generate high cash flow for restaurant’s development. Restaurant 10 customers to 20 Profit proportion is about 57%,which is high. BCG long-term development We should increase the market share for restaurants in the long run.

11 Market riskFuture ContractFinancial riskCSA ChannelEnvironmental RiskLegal protection How to solve? Even’ star can sign future contract with restaurants to reduce market risk. Subscription from CSA channel can relieve cash flow pressure. Seeking legal protection is the best way to defense contamination. Risks Market demand fluctuates and may not consistent with production. Low demand will lead to cash flow problems. Adverse weather and potential pollution will reduce production.

12 Case Analysis PackageCommunication Product Delivery 12 HIGH LOW Process complexity HIGH LOW Strategic importance Harmon’s Matrix Technology improvement--irrigation Production expansion Product Environmental protection On-line sales order processing Automatic reply Communication Manual regular check Automatic delivery reminder Outsourcing to logistic companies Delivery Experienced staff to increase efficiency Regular contact with order and delivery system Package

13 Social responsibility Organic farm Providing more job opportunities Crop rotation, intercropping can benefit the land. Landscape for Recreation for the public Ecological balance —no harm to hilly land and soil and water conservation

14 Advice & Tips Provide a more free choice platform for customers. Utilize the unused land. Adopt more accurate weather forecast.

Thank You!

By Chasedream