The role of strategy in organizational performance: a case study of an avocado producer organization

Abstract

Objective: Conduct an internal and external diagnosis of the organization², identify the problem/opportunity through a problem tree, and determine the type of strategy developed and implemented and its impact on organizational performance.

Methodology: The problem/opportunity was identified based on 25 semi-structured interviews with actors involved in the value network, and the environmental analysis was performed. The type of prevalent strategy was determined, and a matrix Eliminate-Reduce-Raise-Create was created to reformulate a new strategy.

Results: The value network analysis highlights the relevance of suppliers that are not partners, almost equally as the partners. In addition, the organization has two sales channels of similar importance: fresh market and processed avocado. The last recorded a growth of eight times in 2013-2022. However, the organization has a vision focused predominantly on the first channel, even though they cannot position themselves with an advantage due to the lack of their capabilities, aside from the high competition that makes them fight with 97 packinghouses. The organization must leverage its experience and strengths by designing an added-value product to leave the red ocean.

Implications: Implementing the new business line with a differentiated product would permit the organization to participate in a blue ocean.

Conclusions: The organization's leaders do not consistently conduct environmental analysis to formulate strategy, noticing opportunities and internal capabilities.

Keywords: Strategy, processed avocado, added value

²From here on it will be referred to as “La organización” for confidentiality reasons.