Name: KATRINA BOSTARDI, DEBAJYOTI CHAKRAVARTY & ALEX GASCA Group 3

Ch4 Case Discussion

Hain Celestial case: (15min)

1. What are the major external environments segments that Hain Celestial correctly analyzed ?

The main external element analyzed was the social variable: interest in organic food. This consumer
trend was crucial in delivering a product with great consumer interest. With this, they managed to
capture a captive market at the time and fast growth.

2. What are the major resources, capabilities and core competences of Hain Celestial?

One of the capabilities that the company has developed is productivity, through the reduction of
business complexity, taking into account its global scale, to operate with lower costs and efficiently,
without harming or rather strengthening its ability to expansion. This review has included and continues
to include streamlining manufacturing plants, co-packers and the Company's supply chain.

3. Just briefly discuss the strategy that Hain Ceslestial pursues.

Hain Celestial's strategy is classified into a differentiation strategy based on brand positioning. These
brands seek to represent the diversity of consumers in the middle of a market with commonality of
consumption but with particular differences. The central axis of the mercas strategy is the phrase
"Better for you".
For this strategy to be successful, they accompany it with investments to relaunch the brands and create
small business acquisitions and incubate them until they reach the scale required to migrate to the
central company. To strengthen the strategy, you should also get rid of businesses and brands that are
less profitable or that do not fit into the “Best for you” concept.

JCPenney case: (15 min)

1. What strategy was the new CEO at JCPenney seeking to implement given the generic
strategies found in chapter 4?

2. What was the strategy a disaster for JCPenney?

3. What does it mean to be “stuck in the middle” between two strategies (i.e., between low cost
and differentiation strategies)?