Case Study

Westdene Fruiterers is a family-owned business run by brothers Carlos and Francisco Achadinha situated in the Free State's capital city, Bloemfontein. The business started out as a conventional fruit and vegetable store located in a residential area, which provided fresh fruit and vegetables to the end consumer market. After 18 years of operation, the managers began to realise that many of the larger franchise competitors

(such as Pick n Pay, Checkers, Spar and Fruit&Veg City) were dominating the market.Local competitors also served as a threat, wanting to take advantage of the growing healthy lifestyle trend. In addition, the location in which the business was situated hadtransformed from a residential area into a business centre hub.Taking all this into account, the managers decided to adapt their initial business strategy and model to suit the modern consumers' needs for organic, healthy and cultural-based cuisine goods. The owners shifted away from being a conventional fruit and vegetable

store into a business that specialised in natural, good-quality offerings. The businessthen expanded further to offer bakery and deli sections as well as convenience goods.A variety of speciality goods were added to the business's product range. These

included:

• Greek desserts
• South African, Spanish, Italian, Greek and Portuguese olive oils
• Cold meats and fish including delicacies such as Parma ham, cod fish and tuna fish
• Imported cheeses such as Gorganzola and mozzarella balls
• Local and imported spices and seasoning
• Specially made in-house pastries, such as freshly baked bread, steak and kidney pies and sausage rolls, which were a local favourite

The partners brought this new strategy to life through their customer-centred employees, supplier relationships and hands-on approach to management.One strategy will not stand the test of time, as industry change is inevitable. The Westdene Fruiterers management team have developed a culture of continuous research in order to identify gaps in the market and, in turn, strengthen their competitive

advantage. The brothers study newspapers and journals, consult with suppliers,customers and employees and monitor their competitors' actions. This research nature has helped the business spot additional business opportunities that have resulted in new strategies, including the following:

• Taking advantage of being situated in the business-city hub. WestdeneFruiterers caters to many working-class consumers from surrounding office areasby offering lunch-time specials and snack meals.
• Catering to the growing need for convenience. More people are leaving the rural surrounding areas to work and study in the Bloemfontein region. Limited time isavailable to these individuals, owing to full-time work/study obligations. Westdene Fruiterers has therefore decided to offer ready-made meals in their deli. In addition,washed and sliced fruit and vegetables have been pre-prepared in smaller packages aid in meal preparation for the health-conscious market.
• Incorporating technology into their business strategy. The business has used various technological advancements to assist in product manufacturing, store security and stock control and to connect and communicate with their Bloemfontein audience.

Carlos and Francisco state that it is vital to remain humble and always willing to adapt where necessary. Although the original vision and mission set by Carlos Achadinha Srhas evolved over the years, one aspect has remained constant: the pursuit to keep their customers happy.

Source: Adapted from http://westdenefruits.co.za/ (accessed on 27 August 2014)

Case study questions

1. Identify which macro-environmental variables triggered the creation of Westdene Fruiterers' new business strategies.Justify your answer from the case study.
2. Classify the stakeholders which have contributed towards Westdene Fruiterers' success. Motivate your answer by referring to the case study.
3. Explain which micro-environmental variables have been implemented by the company.
4. Discuss the sources and approaches used by Westdene Fruiterers in order to stay abreast of the environmental changes.

5.Conduct a SWOT analysis for Westdene Fruiterers.

PLEASE QUOTE REFERENCES USED