CPA 117 exam case - Patties Foods Ltd (PFL)
1.Identify the industry, product segments and value chain (P34 Figure 1).
Industry: PFL is a leading manufacturer in Australia 's branded frozen food industry.
Intention of expansion overseas: less than 1% export sales. Move to US market with Four 'N Twenty products. Developed halal products in its Four 'N Twenty range with intention of growing sales in Asia.
Product segments: Frozen savoury, Dessert, Fruit products
Customer segments: retailers (supermarkets), foodservice outlets (sporting venues or cafes), Petrol and Convenience Channel (Reliance BP sites)
Overseas markets: US market, Asia market
Value chain: PFL doesn 't sell directly to consumers.
2.What is the current life cycle position of the industry? (industry life cycle, and demonstrate why?)
Maturity stage : The case mentioned that PFL has already achieved leadership in serveral markets. Besides, serveral other markets are very competitive. In addition, PFL is continuing to pursue conversion cost reduction, which is another character of maturity stage. So we conclude that this industry is in maturity stage.
3.What are the key issues that will affect historical/future industry growth? What is their likely impact and the overall assessment of the industry’s future growth? (TEMPLES)
Technology +
The technology development, especially information systems and manufacuturing systems, will improve the efficiency and effectiveness of this
Economy +
The potential growing sales in US and Asia may make the total industry grow by expanding to international markets.
The global financial crisis (Case doesn 't mention) may reduce the growth rate of the industry.
Markets +
The continuous exploration of new customer market will enable the industry to grow. The potential consumptions of overseas markets will give the industry another opportunity to grow.
Politics: N/A
Law: N/A
Environment: N/A
Society +
The celebrations of key events/days (eg. Herbert Adams 100 yrs, or Christmas day) may
Industry: PFL is a leading manufacturer in Australia 's branded frozen food industry.
Intention of expansion overseas: less than 1% export sales. Move to US market with Four 'N Twenty products. Developed halal products in its Four 'N Twenty range with intention of growing sales in Asia.
Product segments: Frozen savoury, Dessert, Fruit products
Customer segments: retailers (supermarkets), foodservice outlets (sporting venues or cafes), Petrol and Convenience Channel (Reliance BP sites)
Overseas markets: US market, Asia market
Value chain: PFL doesn 't sell directly to consumers.
2.What is the current life cycle position of the industry? (industry life cycle, and demonstrate why?)
Maturity stage : The case mentioned that PFL has already achieved leadership in serveral markets. Besides, serveral other markets are very competitive. In addition, PFL is continuing to pursue conversion cost reduction, which is another character of maturity stage. So we conclude that this industry is in maturity stage.
3.What are the key issues that will affect historical/future industry growth? What is their likely impact and the overall assessment of the industry’s future growth? (TEMPLES)
Technology +
The technology development, especially information systems and manufacuturing systems, will improve the efficiency and effectiveness of this
Economy +
The potential growing sales in US and Asia may make the total industry grow by expanding to international markets.
The global financial crisis (Case doesn 't mention) may reduce the growth rate of the industry.
Markets +
The continuous exploration of new customer market will enable the industry to grow. The potential consumptions of overseas markets will give the industry another opportunity to grow.
Politics: N/A
Law: N/A
Environment: N/A
Society +
The celebrations of key events/days (eg. Herbert Adams 100 yrs, or Christmas day) may