Hygeia International

Case Analysis
 Viewpoint

Henry Livingstone
- VP of the Africa/Middle East Region of Hygeia
International
 Time Context
• 1960
End of British Colony
Nigeria’s economic growth foreseen as base for all
sorts of expansion
 Problem Statement

• Would Hygeia integrate forward in Nigeria?

Forward integration in the production of eggs,
meat or to stop with fertile eggs or chicks to be sold
to the farmers.
 Statement of the Objectives

• To be able to identify problems likely to be

encountered by foreign company, like Hygeia,
operating in Nigeria
• To be able to identify the most appropriate strategy in
Hygeia’s expansion in Nigeria
 Areas of Consideration
Strengths Weaknesses

• Nigeria has much fertile land • Heavy traffic due to over

• Has shortage in protein foods population
• Production of peanuts is rising • Marketing channels are poorly
slowly developed
• Total population growth
 Areas of Consideration
Opportunities Threats
• National plan to increase • Mistrust among 3 major tribal
agricultural output – sugar & groups
cereals • Military coalitions
• National plans call for universal • The government should be
education and the improvement consistent in its agriculture
of hospitals, roads and airports, policies
electric plants and TV & Radio Ad
industry
• Train local farmers with their
poultry technology
 Alternative Course of Action

Backward Integration Forward Integration

• Hygeia can expand their • Hygeia can acquire local retailers

activities to include control of if they are highly profitable.
direct local suppliers.
 Analysis
Advantages Disadvantages
• Since Nigeria has a lot of fertile • Due to heavy traffic in it’s
land, Hygeia can have sugar & business center, delivery and
cereal production distribution can be delayed,
• Nigeria has shortage of protein products will be spoiled
foods which means there is a
high demand of chicken meat
and eggs
 Analysis
Advantages Disadvantages

• Peanut production can also be • To increase profit, products

considered should be known. If Nigeria’s
marketing channel is poorly
developed, information
dissemination will be a challenge
for Hygeia
 Plan of Action
• Hygeia will need to coordinate with Nigeria’s government
about their plan since one of their plans is to increase
agricultural output.
• Hygeia will have to train local farmers with their poultry
production technology.
• Hygeia will have to look further into those ventures in the 6
selected cities.