What Products Should Lefils Capitalize on to Sustain the Family Business and Keep Family Happy?

Lafils Case

Problem Statement: What products should Lefils capitalize on to sustain the family business and keep family happy? (land stewards and values)

Opportunities Matrix:

                 Existing                                      New[pic 1][pic 2]

Exist     Mkt presentation                     development

New      Product development            diversification

Alternative 1: 2700 acres and sell 10,000 acre

        Issue: Objective not addressed very well, family can’t keep land and they want to keep it

        Financial: cost 27 million

        SWOT: S match O?- they weren’t matched up

                              Min W? Yes with profits, family and business would still have to workout issues

                              Avoid T? Natural disasters, competition, government and urban sprawl

Alternative 2: Conservation  Easement 2700 acres

        Issue: Family can keep land, but are limited on what to produce

        Financial: Over $9 million plus profit $9,112,500

        SWOT: S match O? tradition, take advantage of govn’t offer

                              Min W? profits increase, urban growth

                            Avoid T: conservation

        Assumptions: family doesn’t care too much about land fill

Alternative 3: 1700 acres, conservation easement, land, timber, cattle, dirt

        Issue: addressed very well, Family values and farm still sustained. Fill dirt any product that made a profit.

        Financial: $5,737,500 and profit from product mix

        SWOT: S match O: diversity of product, family values, CSR, match the government