Kasapreko Company Case Study

KASAPREKO COMPANY LIMITED (KCL)

Kasapreko Company Limited (KCL) is one of the leading and successful alcoholic and non- alcoholic beverage producers in Ghana. The company, which was first set up in the garage of the owner and businessman Dr. Kwabena Adjei in 1989 at Nungua has now grown into a multinational company with state-of-the art automated factory located off the Spintex road in Accra, Ghana. KCL currently employs a total of 573 regular and contract workers. It is currently undertaking an expansion project which will increase its production capacity by almost three times to meet the growing market demand from other African countries and beyond (Kasapreko-Company-Limited).
External business environment has being defined differently by

The main policies used were trade liberalization and a custom union. The government also added reduction or total removal of taxes on products of local manufacturing companies and also the promotion of foreign investment in local companies. In short, tariffs and taxes were removed to ensure free flow of goods and services across borders. Trade liberalization policies in developing countries are usually the result of a requirement by the World Trade Organization (WTO) and the General Agreement on Trade and Tariff (GATT) (WTO Decisions; 2006).The trade liberalization policy was therefore to remove all restrictions on imports and encourage export led growth activities that would lead to Ghana’s integration into the global economy.
The implementation of the trade liberalization policy injected strong competition into the domestic Ghanaian market. In responding to this development, the managerial, marketing and operations activities of KCL have been modified over the

Adjei decided to formalize the operations and systems of the company. He hired professionals to review the business and put in place structures including a board, a professional management, technical team, good operational human resource system and financial management systems. These policies were to help the industry meet international demands and to be able to survive in external markets. The introduction of policies; backed by government actually supported the smooth expansion of the company and promotion of local products to meet international standards. the campaign of the Ghanaian government on “buy made in Ghana goods” was a step in the right direction. This development was also made possible by International Finance Corporation support for private-sector small-medium scale enterprises (SMEs) in Ghana and built on earlier entrepreneurial development support from EMPRETEC Ghana Foundation (www.gipcghana.com). In summary, increasing international economic integration was a timely intervention for KCL because it was facing keen competition from local and external alcoholic beverage