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

Resumen

Objective: to conduct an internal and external diagnosis of groups of avocado producers –which for reasons of confidentiality are hereinafter referred to collectively as The Organization– in order to identify problems and opportunities through a problem tree, to determine their type of strategy designed, its implementation and its consequences on organizational performance.

Design/methodology/approach: problems were identified through 25 semi-structured interviews with the actors involved in the value network and the analysis of the environment was performed. The prevailing strategy type was determined and an ERRC matrix [Eliminate-Reduce-Raise-Create] was created to reformulate a new strategy.

Results: a value network analysis of The Organization highlighted the relevance of non-partner suppliers, almost as relevant as partners. We found The Organization has two sales channels of similar importance for avocado sales, the fresh market and processed avocado; the latter has registered an eight-fold growth plus in the period 2013–2022. Despite this, a vision prevails that bets on the first channel despite lacking the capabilities to position that market with an advantage, in addition to the intense competition that exists among 97 packing houses. In order to leave a red ocean, The Organization should leverage through their experience and strengths by designing a value-added product for Mexico´s national market.

Limitations/implications of the study: the implementation of a new line of business with a differentiated product would allow The Organization to participate in a blue ocean.

Findings/conclusions: the people who lead The Organization do not systematically implement the analysis of their environment in order to formulate a strategy that considers internal opportunities and capabilities.