Reference no: EM133918561

Assignment:

The Kabarole Fresh Foods Cooperative (KFFC) is a farmer-owned business in Western Uganda. It produces fresh vegetables, milk, and processed fruit juice for both local and regional markets. Recently, KFFC received a low-interest loan from a development bank to expand operations. They plan to:

• Invest in greenhouse farming to stabilize supply during off-season ..
• Introduce a delivery app to reach urban consumers directly.
• Partner with hotels in Kampala for bulk supply contracts.
• Offer branded packaged juice targeting middle-class consumers.

However, the cooperative is facing challenges:

• To present the work in 2 weeks from the date received.
• Input prices for fertilizers have increased by 20%.
• A new competitor from Kenya is offering cheaper juice products in Uganda.
• Consumer tastes are shifting towards organic produce.
• The government has introduced a tax incentive for exporters.

Question

Using relevant concepts from Introduction to Microeconomics, Demand Analysis, Supply Analysis, Consumer Behavior, Production Theory, and Market Structures, analyze KFC's situation and recommend a strategic plan to improve its market performance over the next three years, in your answer.

• Identify the economic problem KFC is facing, including scarcity and opportunity cost considerations.
• Apply demand and supply analvsis (including elasticity) to assess the effect of price and non-price factors on their products.
• Examine changes in consumer behavior and preferences and how these affect product positioning.
• Use production theory to suggest efficiency improvements, considering costs, economies/diseconomies of scale, and the law of diminishing returns.
• Evaluate the cooperative's position in the market structure, considering local and regional competition Propose a coherent strategy that integrates all the above elements, with supporting economic reasoning.