Farmpros Limited is a medium-sized food-processing company situated in the south industrial area Accra. The company, which is still owned and managed by its original founders, has a diversified market and produces a wide range of processed, semi-processed, and raw packaged agriculture products. The company has its own packaging plant and produces several food lines under its own label, two of which are for dessert foods, which is a segment of the food market it entered eight years ago. The company has a good reputation and distributes over 80% of its products through five large supermarket chains. Twice in the last three years, the directors of the company have managed to avert acquisition threats from large competitors. The 1990s were not good for the company. It faced competition and the directors divested from some of their product lines in order to increase overall profitability and reduce inefficiencies. However, promotional activity from competing companies caused enormous problems and the company began to lose shares in its hitherto secure markets. Furthermore, the company is now facing considerable pressure from imports, particularly from the European processed food market in recent years. Although input and labor costs steadily increased over the past few years the competitive nature of the market resulted in a period of relatively low increases in market prices, and as a result, Farmpros products were marginally over-priced, and its profit margins are down. Indeed several months ago a senior buyer from an important supermarket chain did intimate that his company, although satisfied with the quality standards of the companys food lines was concerned over the recommended selling prices on some lines. He said that his company was beginning to review medium-term contracts. As previously stated the company is operating in highly competitive segments of the food market since it is competing with other small producers and with national and international firms who have well-established brands. Several of its competitors squeezed by rising costs and static prices have been taken over by larger firms, mainly to acquire their production plants, since food-producing capacity and location are significant factors in the industry, particularly in Accra. Furthermore, the company has been financially cautious, avoiding large-scale expenditures that would require borrowing. (The latest processing plant which came on stream in 2006 was financed out of retained profits.) However, it is clear that significant changes are occurring in the industry and Farmpros has commissioned a survey of its market segments from YEM Management Ltd, a firm of management consultants. The main findings were: Forecast market growth likely to continue at the rate of 8% per annum. Forecast of increased competition after 2012 with firms seeking to establish European brands, and tastes. Continuing trend to healthier and natural products, including low sugar/sugar-free, and additive-free food. Increased dominance of supermarket chains selling own label as well as branded products. Faced with such developments. Farmpros Ltd is developing a strategy to see it to the end of this decade aimed at preserving its independence and increasing both its profitability and sales. You are required to assume the role of an independent management consultant and prepare a report for the directors of Farmpros Ltd covering the following areas: a) the strengths and weaknesses of Farmpros Ltd in light of the forecast trends and developments. b) The opportunities and threats of Farmpros Ltd. c) the strategic options open to Farmpros Limited. d) the strategy you recommend, and proposals for implementation.