OURO FINO SAÚDE ANIMAL CASE

Abstract

The present teaching case illustrates a decision-making by company executives, on entry into a new market of vaccines for cattle. Faced with the need to take a major step toward sustainable growth, Ouro Fino Saúde Animal could not fail, as long as it represented more than half the market  of veterinary products. However, it was a risky step. The main issue of the case is to evaluate wether to buy third-part vaccines or to produce  internally their own vaccines. The case company is Ouro Fino Saúde Animal, a Brazilian industry of veterinary products, located in the State of São Paulo, with sales over R$ 100 million annually. The two main characters of this case are the financial and industrial directors. The  situation is set in 2005. As a teaching tool, the case was designed for teaching Strategy in post-graduate in management, leading students to assess the advantages and disadvantages of each alternative. As a secondary objective, the case provides some elements for an estimate of  the viability of the option to start a new production unit and the possibility of reflecting on a decision already made, to enter the new market. Finally, the case has a lot of information about the Brazilian and the global market for veterinary products. It is possible, based on these data, work  on segmentation and positioning topics, left to the discretion of the teacher such use.