Analyse de la compagnie Novagro (document en anglais)

Analysis Of Novagro

NOVAGRO’s situation in its environment –

Mr. Leon, director and founder of NOVAGRO, markets and manufactures agricultural machinery divided into five product families.

1. VIGN- Tractors for upscale wine and vine

2. HORT- Specific Machinery for Horticulture

3. CHIM-Supplies of Fertilizers (Chemical)

4. NATU- Trailers for spreading natural fertilizers

5. NEGO-Materials to aid negotiation

It currently employs 400 people and sells 2,700 machines per year. Its turnover is grossed at 33 million euros. Mr. Leon wants to pursue his case based on controlled growth. But the high mutation adversely affects agriculture. NOVAGRO had a 50 % estimated loss in its turnover in the short-term. The company has shown that they could adapt to a changing market by diversifying its product range. In addition, the company finds itself in a highly competitive environment where supply exceeds demand and where there is a strong need to meet customer expectations. The company must respond to these changes by diversifying its offer, and the constant desire to adapt to markets, modes and new distribution channels.

Summary of the balances / imbalances of Novagro:

Internal balance:

- No social problems

- Good relationships between hierarchies

- Turnover has risen

- Motivated Workforce

- Can adapt easily to its environment

- Turnover has risen by 17% in 2 years

Internal imbalances:

- Health problems of the director (Mr. Leon)

- Export sector that fails to anticipate the needs of its customers

- Financial instability

- NATU is in Loss

External Balances:

- Good reputations with other companies

- Their products are quite promising

- Faithful Customers

External imbalance:

- CAP (Common Agricultural Policy) which destabilizes the market constantly

- Strong competition in certain products

TOIS+E

Analysis of Novagro in its Environment:

Political environment:

• Novagro is a subject to the rules the Common Agricultural Policy. The CAP is a system of organization of agriculture in Europe, decisions are taken in Brussels and concern the entire European Union.

• The international context is also a source of concern for the company, strained relations with the United States may affect the group who should by all means find new customers who are not affected by the CAP.

Legislative environment:

• The Agricultural sector requires an ability to adapt and react quickly to change.

• Standards and laws governing this sector vary quickly (environmental norms)

The barriers they may encounter

• The company is very reliant on its suppliers

Technical and Economical –

• Novagro would need to invest in Research and Development

• The salesmen in the HORT sector are not very good

• Stocks are far too important and represents a burden for the company

• Optimization of industrial management and marketing resources.

Internal Strategy (Organization)–

• Classical Organization functional with two directors (Leon and Terrin)

• Allows employees quite a lot of autonomy

• Participation at all levels regarded as a factor to success.

Individual & Social

• The workforce is motivated, as there are bonuses.

• Employees have a feeling of belonging to the company

• The company still remains very paternalistic

• The future of the company after Mr.Leon is unclear

First diagnosis of the situation in its environment NOVAGRO:

Key variables in the environment:

- CAP (Common Agricultural Policy) that constantly threatens to be reduced or eliminated, which will affect agricultural investment

- Increased price of raw materials such as Cereal.

- Increased competition on NATU and CHIM, but opportunities in HORT and VIGN.

- The transformation of the agricultural world obliges the company to diversify to compensate for the decline in some sectors (NATU and CHIM).

- There has been a good territorial coverage regarding the activity of the vine (regions of Bordeaux, Nantes and Burgundy, and Italy).

- The balance of power is for CHIM and NATU.

Vocation and culture:

Novagro is a company that has adapted

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