Hygeia

International
Case Analysis

Viewpoint
Henry Livingstone
- VP of the Africa/Middle East Region of Hygeia
International

Time Context
1960
End of British Colony
Nigerias economic growth foreseen as base for all
sorts of expansion

I. 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.

II. 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
Hygeias expansion in Nigeria

III. Areas of Consideration

Strengths

Weaknesses

Nigeria has much fertile

Heavy traffic due to over

land
Has shortage in protein
foods
Production of peanuts is
rising slowly
Total population growth

population
Marketing channels are
poorly developed

III. Areas of Consideration

Opportunities
National plan to increase
agricultural output sugar & cereals

National plans call for universal

education and the improvement of
hospitals, roads and airports,
electric plants and TV & Radio Ad
industry

Train local farmers with their

poultry technology

Threats
Mistrust among 3 major
tribal groups

Military coalitions
The government should be
consistent in its agriculture
policies

IV. Assumptions
Thinking of ten ventures in the environs of the following
cities: Lagos (3), Ibadan (2), Benin (2), Kaduna, Kano, and
Makurdi.

V. Alternative Course of Action

Backward Integration
Hygeia can expand their activities to include control of direct local
suppliers.

Forward Integration

Hygeia can acquire local retailers if they are highly profitable.

VI. Analysis
Advantages

Since Nigeria has a lot of fertile land, Hygeia can have sugar &
cereal production
Nigeria has shortage of protein foods which means there is a high
demand of chicken meat and eggs

Disadvantages

Due to heavy traffic in its business center, delivery and

distribution can be delayed, products will be spoiled

VI. Analysis
Advantages

Peanut production can also be considered

Disadvantages

To increase profit, products should be known. If Nigerias

marketing channel is poorly developed, information
dissemination will be a challenge for Hygeia

VII. Conclusion
Poultry outnumbers all other forms of livestock in Nigeria.
Development of commercial poultry production can be
facilitated by public private partnership. This would
ensure sustainability of poultry enterprises, provision of
capital subsidy by government in form of periodic grants
to poultry farmers and core infrastructures. And Hygeias
both cash and net income break even by end of first year
and, with tax rebate, full recovery of equity early in third
year.

VIII. Plan of Action

Hygeia will need to coordinate with Nigerias 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.