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Case Analysis Sarah Tally

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Sarah Talley Farm Produce

Submitted by
Sudeshna Pande
FT14273

Character profile of Sarah * CEO of Frey Farms (family owned business) * Began selling pumpkins at the age of 8 * Negotiated deals with retailers like Wal Mart who were entering the produce business * Has good business acumen to identify the trend in retail. Able to maintain amicable relationships with Wal Mart * Able to manage distributed produce operations * Passionate about the farm business * Go getter – Was able to secure the initial deal with Wal Mart extempore * Ambitious and ready to go after the big-fish * Recognized her company’s shortcoming in operations (to competitors) and her inexperience in business * Needed the Wal Mart contract for her business * She is on the weaker side of the negotiation table
According to the case : * The business of watermelon * Seasonality – peak prices in May , June, early July (10-15 cents/pound) and off-season in July & August (4-5 cents/pound) * Adverse weather conditions and diseases seriously affect the produce of melons. * Watermelon prices are going up, but Wal Mart needed the prices to go down
Recommendations (strategies ): * Fey Farm as a single entity has less power . But so do all the other competitors. Hence Sarah can building a coalition with all the melon producers in the region. * Emphasize on the fact that if Wal Mart wanted to satisfy its customers by providing fresh produce, they do not have any other option apart from the new coalition. * Sarah and her coalition has the Distinct Value Proposition (DVP) in being the only suppliers of fresh farm produce in the region. They are were known and respected. * Eliminate the agent (mega supplier) by explaining to Wal Mart * the cost advantage of direct receiving from the

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