Question

The Industry and the external environment of this firm.

Look at the external environment of this business firm. Describe the Industry of this firm including the NAICS code.

1. Discuss the trends that operate and affect a firm within this industry. To simplify your analysis use P.E.S.T. to discuss the industry trends.

Technological -Any technological changes that may influence this industry?

Sprout Creek Farm is a 200-acre nonprofit working farm and education center in Dutchess Country. The farm contains three entities which all symbiotically work together to form the farm known as Sprout Creek Farm.
The first entity of the farm is the animal breeding portion of Sprout Creek farm. This portion specializes breeding animals such as free-ranging cows, sheep goats, turkeys, chickens and pigs. A major economic value proposition in favor of Sprout Creek’s Farm socially conscious business model is that a pound of free-range beef on average costs $7.83 per pound in comparison to conventional beef which costs $4.95 per pound
Hence, with the adequate and effective marketing mechanisms set in place to let the beef consuming demographic be aware of the long-term health benefits of the consumption of grass-fed beef, Sprout Creek’s revenue and potentially grow.
Another segment of the operations of Sprout Creek Farm is that the farm acts as a farmer’s market. At the market, the farm sells its internationally award-winning cheeses, milk, eggs and other agricultural produce. Finally, Sprout Creek Farm serves as an education center in which its function is to educate and inspire the principle of environmental stewardship within the local community.
Another entity and revenue generator for the farm is its Day Camps and educational center. The camps and educational center that the farm offers serve entertaining and athletic facilities for individuals during vacation periods
According to their website, Sprout charges $395.00 per child per week to participate in its summer camps.
Additional notes:
One of the main issues of the farm is that is not generating enough profits to sustain itself for expansion in the long-term. Hence, one of the major solutions to this problem could harnessing its summer camps. Maybe having contracts with schools to supply x number of students at a discounted price? We need further information

Answer 1

Greetings,

I believe Sprout Creek farm is located in Dutchess County(in the case it’s written Dutchess Country)

Sprout Creek Farm has the following entities and services under it

1.Animal Breeding-Cows, ships, goats, turkeys, chickens and pigs. NAICS Code 115210 which supports Animal Production activities

2.Farmer’s Market- selling internationally award-winning cheeses, milk, eggs and other agricultural produce. NAICS Code 115114- Postharvest Crop Activities

3.Education entity-Day camps and education Centre. NAICS Code 611620: This industry comprises establishments, such as camps and schools, primarily engaged in offering instruction in athletic activities to groups of individuals. Overnight and day sports instruction camps are included in this industry.

Please find the PEST Analysis below

Political

Entity 1- Breeding

Grazing Land

Recent assessments expect little increase in pasture land). Some intensification in production is likely to occur in the humid–sub humid zones on the most suitable land, where this is feasible, through the use of improved pasture.

Climate

Climate change may have substantial effects on the global livestock sector. Livestock production systems will be affected in various ways and changes in productivity are inevitable. Increasing climate variability will undoubtedly increase livestock production risks as well as reduce the ability of farmers to manage these risks

Entity-2

We should look at the following points for farmer’s market for us and competitors

• Political stability and importance of Grocery Stores sector in the country's economy.
• Risk of military invasion
• Level of corruption - especially levels of regulation in Services sector.
• Bureaucracy and interference in Grocery Stores industry by government.
• Legal framework for contract enforcement
• Intellectual property protection
• Trade regulations & tariffs related to Services
• Favored trading partners
• Anti-trust laws related to Grocery Stores
• Pricing regulations – Are there any pricing regulatory mechanism for Services
• Taxation - tax rates and incentives
• Wage legislation - minimum wage and overtime

Entity 3

• A government initiative creates the risk
• Changes to the skills required to be a trainer

Economical

Entity 1

The rest of the market is selling the meat at a lower cost while the meat from spout creek is expensive

Entity2

We should look at the following key aspects

• Government intervention in the free market and related Services
• Exchange rates & stability of host country currency.
• Efficiency of financial markets
• Infrastructure quality
• Inflation rate
• Interset rates

Entity 3

People would go for more cheaper camps available and would prefer one affiliated to schools

Social

Entity 1

People prefer organic meat rather than meat from cow,pig who are fed on injections, chemicals

So spout creek has upper hand in that

Entity 2

• Demographics and skill level of the population
• Class structure, hierarchy and power structure in the society.
• Education level as well as education standard in the Sprouts Farmers Market, Inc. ’s industry
• Culture (gender roles, social conventions etc.)

Entity 3

A trend and lifestyle is to enroll in such camps

Technological

Entity 1

Other competitors are looking forward to technology to increase their livestock production

Entity 2

• Impact on value chain structure in Services sector
• Rate of technological diffusion

Entity 3

New technological advances and new play equipment will have an impact