Case Study Broiler Farming
Broiler farming, profitability and environmental conservation
University Student
University of the People
Abstract
The paper shows the dilemma business persons face when they invite the public to buy shares in their hard-earned companies. Due to financial constraints, the broiler farming business invites shareholders who take over 75% of the company shares. As the owner of the company, I now have limited powers in decision making. My major concern of protecting the environment as a Corporate social responsibility of the company is compromised by the new shareholders who are capitalizing on maximizing profits. The 5-year strategic plan highlights the targets and how to reach them.
Broiler farming, profitability and environmental conservation
Case description
This case study addresses the challenges managers face in business management and their social responsibility towards the environment. After completing MBA and gaining the necessary experience, I begin a business with the intention of implementing what I have learned in class, to conserve the environment. The business starts well for the first 3 years but it is not competitive enough to win contracts against other big companies. To increase the company’s financial base, I go public and the new shareholders emphasize on profitability.
Major issues in the case
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The main requirement is to recruit a competent BOM who will coordinate the three farms and have competent managers. All the set targets above have been achieved before and we can perform better. If we produce a kilogram of meat at KES 165 and we sell it at the current market price of KES 250 in 35 days, that translates to KES net profit. The Net Profit Margin (NPM) is 35% which is obtained by dividing net income by net sales (Jan, 2013). This business is therefore profitable and we can also invest in environmental conservation. Therefore, come and invest in the profitable
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