PROBLEM Task 1 Ampomah Group is a large is large Ghanaian consumer products company with origin in Nkawkaw in the Easter
Posted: Thu May 26, 2022 8:42 am
PROBLEM
Task 1
Ampomah Group is a large is large Ghanaian consumer products company with origin in Nkawkaw in the Eastern Region. The company primarily specializes in Shampoo, Diapers, Baby food and Cold medicine. Ampomah Group has business operations in over 50 cities in Ghana.
The Company has been following the economic trends since 2020 and has found that after the COVID-19 pandemic, low income households have been growing two times as quickly as other consumer segments. The preliminary report of the recent 2021 Population and Housing Census indicates a further extension of this trend in the next decade. Low income is defined as families with income at the poverty level or below.
1
Ampomah Group has always had a premium product strategy. It sells its products in grocery stores, convenience stores, mass retailers, etc., but its products are always priced at the high-end of their respective categories. It has never targeted the low income segment before and doesn’t have a low income strategy, but given the growth of this segment, the Company is considering entering the low income segment. The Group CEO has three questions for you as a GIMPA MBA graduate.
You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below
a. Should Ampomah Group have a low income strategy and why? (10 points)
b. If it should have a low income strategy, what tactics should it deploy? (25 points)
c. What are some of the risks that Ampomah Group may face? (15 points)
Task 2
Kantanka Limited is a family-owned automobile manufacturer with origin in Agona Swedru in the Central Region of Ghana. Kantanka Limited manufactures and sells saloon cars, trucks, SUVs, and trailers with related accessories.
The Company is the current market leader, but is considering outsourcing their automobile production to increase margins. A large scale outsourcing move would be a first for the industry, and the Company wants to know if this is a worthwhile proposition.
There are two options being explored: (i) full outsourcing an automobile manufacturing plant in China; (ii) outsourcing final production in Ivory Coast with parts provided from China.
You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below
a. What could be the problem(s) justifying the outsourcing decision? (10 points)
b. Should the Company outsource their automobile production and why? (15 points)
c. Which outsourcing option is the optimal choice? Your response should engage with the
criteria for evaluating the options and how the final decision is made. (25 points)
Task 1
Ampomah Group is a large is large Ghanaian consumer products company with origin in Nkawkaw in the Eastern Region. The company primarily specializes in Shampoo, Diapers, Baby food and Cold medicine. Ampomah Group has business operations in over 50 cities in Ghana.
The Company has been following the economic trends since 2020 and has found that after the COVID-19 pandemic, low income households have been growing two times as quickly as other consumer segments. The preliminary report of the recent 2021 Population and Housing Census indicates a further extension of this trend in the next decade. Low income is defined as families with income at the poverty level or below.
1
Ampomah Group has always had a premium product strategy. It sells its products in grocery stores, convenience stores, mass retailers, etc., but its products are always priced at the high-end of their respective categories. It has never targeted the low income segment before and doesn’t have a low income strategy, but given the growth of this segment, the Company is considering entering the low income segment. The Group CEO has three questions for you as a GIMPA MBA graduate.
You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below
a. Should Ampomah Group have a low income strategy and why? (10 points)
b. If it should have a low income strategy, what tactics should it deploy? (25 points)
c. What are some of the risks that Ampomah Group may face? (15 points)
Task 2
Kantanka Limited is a family-owned automobile manufacturer with origin in Agona Swedru in the Central Region of Ghana. Kantanka Limited manufactures and sells saloon cars, trucks, SUVs, and trailers with related accessories.
The Company is the current market leader, but is considering outsourcing their automobile production to increase margins. A large scale outsourcing move would be a first for the industry, and the Company wants to know if this is a worthwhile proposition.
There are two options being explored: (i) full outsourcing an automobile manufacturing plant in China; (ii) outsourcing final production in Ivory Coast with parts provided from China.
You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below
a. What could be the problem(s) justifying the outsourcing decision? (10 points)
b. Should the Company outsource their automobile production and why? (15 points)
c. Which outsourcing option is the optimal choice? Your response should engage with the
criteria for evaluating the options and how the final decision is made. (25 points)