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Mkt501 mod1case

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Edgardo Donovan (a.k.a. Eddie Donovan) is a CIO for the Department of Defense. Previously, Edgardo was the Director of Web Marketing/Design in Dublin, Ireland for the financial services division of First-e Group PLC one of Europe's largest e-Banks valued at 1.6 billion euros at the time.

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Mkt501 mod1case

  1. 1. . . . . . . . . . . Hand-Crafted Cheese from Georgia: A Unique Approach . . . . . . . . . . Edgardo Donovan Touro University International MKT 501 Dr. Alf Walle Module 1 – Case Analysis Monday, April 25, 2005
  2. 2. . . . . . . . . . . Hand-Crafted Cheese from Georgia: A Unique Approach "She found she had a knack for cheese making, though, and that they had pretty good milk, with a rich, distinguished flavor, to work with. [Desiree Wehner] began to plant the idea in Al's mind that because they had such good milk, they should consider expanding into cheese making. He finally agreed and in 2000, Desiree started making a few goat cheeses and selling to passers-by from a shed on the Sweet Grass farm a few minutes outside Thomasville."(Walker) Ex.1 – Happier Goats (DocNews.com) 2
  3. 3. Jeremy and Jessica Little represent a wonderful success story of the small American business that happened almost by accident. This is not to say that Jeremy and Jessica do not have talent, experience, and have not made wise decisions in managing their specialty cheese producing business out of Georgia. Both having impressive academic backgrounds as well as years of experience in the dairy business have been able to leverage those talents into building a $350K plus a year business that has won large critical acclaim. Ex. 4 – Modern Milk (CartoonStock.com) “That vision was beyond the horizon when this couple met at the University of Georgia back in the late 1970s. Both were studying dairy science with the goal of becoming veterinarians. Yet dairy farming was Al and Desiree's destiny. For years, they managed and, at times, co-owned large dairy operations in Florida and South Georgia. In time, they tired of corporate farming, with large herds of cattle that spent more time on concrete than grass and required a great deal of care. They also found the whole enterprise less than desirable as a profession and as a way of life for the family, which grew to include three children. So, in 1993, they created Green Hill Dairy on 340 acres near Quitman and switched to a New Zealand style of farming called rotational grazing. They also started selling the Holsteins and buying Jersey cows and a few other breeds and slowly began to build their business. In 1995, they purchased another 140 acres, which is now home to the Sweet Grass Dairy and the cheese-making operation.” (Walker) 3
  4. 4. . . . . . . . . . . The Littles, upon becoming parents of three children, intended to live a less hectic life by managing a small farm rather than continue their careers in the industrial dairy industry. At the time this would have been seen as a trade-off given that a less hectic lifestyle managing a small dairy farm implied a period of uncertainty as with the launch of any new business. Perhaps the risks of such a move were mitigated by the level of experience in knowing how to produce high quality milk. Regardless, there was no guarantee that the market would demand their product or that they would be able to create the distribution network necessary to market their milk effectively. They ended up achieving their goal of living a seemingly less hectic life mostly because the stresses involved in their current endeavors are the result of a labor of love as opposed to being strictly professional duties as in the case of their previous industrial careers. It seems that the milk production side of their business achieved their intended business objective as well. "When Desiree started the business four years ago, she never thought she'd be selling her handmade farmstead cheeses to chefs and specialty stores across the country. Nor did she anticipate that what started as a kitchen hobby would grow into a $350,000-a-year business."(Walker) The unintended success that they did not plan turned out being their successful entry into the specialty cheese production business. Although this was not planned it was obviously facilitated by their skills and experience in being able to produce high quality cheese which is an essential component in that business. By adapting themselves to the opportunities they were presented with they managed to assimilate the knowledge from a variety of sources necessary to compete. The fact that they sought the advice from artisan cheese makers from Europe is an example of this. 4
  5. 5. "In fact, American artisanal cheeses --- those made by small producers using classic European techniques and, in some cases like the Wehner operation, on the same farm where the milk was produced - -- were enjoying rising popularity. And it's a trend still going strong. Though handmade artisanal and farmstead cheese still makes up a tiny proportion (exact figures unavailable) of the $2.9 billion annual cheese sales, the number of producers has mushroomed from just a few dozen in the 1990s to more than 200 across the country today."(Walker) Ex. 2 – Milking Expertise (CartoonStock.com) 5
  6. 6. . . . . . . . . . . Ex. 3 – Intangibles (CartoonStock.com) Regardless of their current critical claim from a business standpoint the Littles are by no means assured continued financial success in the future. When you break down $350K a year and consider the costs necessary to run a farm, support a large family, and pay for an additional three employees it is easy to see that they must continue to pay close attention to their finances and be weary of any over aggressive expansion that could cripple their entire operation if things go wrong. Furthermore, like any business the Littles are prone to drastic changes in market opportunities as they will continue having to compete with both domestic and foreign cheese producers. Whereas their milk business may be a little more insulated by the need to have high quality milk available on a local level, the specialty cheese market may close them out despite their critical acclaim if larger domestic dairy operations start utilizing their same techniques while leveraging economies of scale or international currency fluctuations make foreign specialty cheeses cheaper and therefore more desirable. 6
  7. 7. Ex. 3 – Mystery Feed (CartoonStock.com) Jeremy and Jessica Little represent a wonderful success story of the small American business that happened almost by accident. This is not to say that Jeremy and Jessica do not have talent, experience, and have not made wise decisions in managing their specialty cheese producing business out of Georgia. Both having impressive academic backgrounds as well as years of experience in the dairy business have been able to leverage those talents into building a $350K plus a year business that has won large critical acclaim. 7
  8. 8. . . . . . . . . . . BIBLIOGRAPHY I. Works Cited Walker, Reagan. Handcrafted CHEESE from Georgia? Ask the Wehner Family If You’re Dubious… Or Better Yet, Sample the Nationally Acclaimed Products Made from their Own Goats and Cows. The Atlanta Journal-Constitution, 2004 NewsDoc.com. Happier Goats. NewsDoc.com, 2005 CartoonStock.com. Milking Expertise. CartoonStock.com, 2005 CartoonStock.com. Intangibles. CartoonStock.com, 2005 CartoonStock.com. Mystery Feed. CartoonStock.com, 2005 CartoonStock.com. Modern Milk. CartoonStock.com, 2005 II. Works Consulted NewsDoc.com. Happier Goats. NewsDoc.com, 2005 Walker, Reagan. Handcrafted CHEESE from Georgia? Ask the Wehner Family If You’re Dubious… Or Better Yet, Sample the Nationally Acclaimed Products Made from their Own Goats and Cows. The Atlanta Journal-Constitution, 2004 CartoonStock.com. Milking Expertise. CartoonStock.com, 2005 CartoonStock.com. Intangibles. CartoonStock.com, 2005 CartoonStock.com. Mystery Feed. CartoonStock.com, 2005 CartoonStock.com. Modern Milk. CartoonStock.com, 2005 Allen, Gemmy. Introduction to Marketing. Mountain View College, 2005 Gladwell, Malcolm. The Science of the Sleeper: How the Information Age could blow away the blockbuster. The New Yorker, 1999 Grove, Andy. Only the Paranoid Survive. Simon and Schuster, 1995 Gates, Bill. Business at the Speed ot Thought. Warner Books, 1999 Ries, Al – Trout, Jack. Marketing Warfare. Bantam Books, 1978 8

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