BENDERSON CONSULTINGã
As a junior analyst for Benderson Consulting (Benderson), you were looking forward to an
exciting career. You imagined assignments evaluating new technologies in far-off, exotic
locations. As your bus traveled through the heartland of U.S. cornfields, you wondered about
your job choice.
Your background research, however, has changed your first impression of being assigned to an
agricultural consulting engagement. You have discovered that farming is no longer a small
potatoes operation. Perhaps, given the changes in the size of farming businesses in the U.S.,
agribusiness might be a lucrative consulting specialty.
Belgrove Farms Inc. (hereinafter referred to as Belgrove Farms) is an old, family-owned business
that has acquired various smaller farms over the years and has managed to maintain a profitable
business enterprise through economies of scale. So far, the firm has specialized in the
production of Grade AA yellow corn. Kevin Thorp, Operations Manager for Belgrove Farms, has
proposed replacing the current production of AA yellow corn with a new genetically modified (GM)
variety of yellow corn (see Exhibit 1).
Robert Belgrove, CEO of Belgrove Farms, engaged Benderson to evaluate Mr. Thorp’s proposal
and make recommendations. The firm’s research staff has pulled together information regarding
the new product (see Exhibit 2) and the past two year’s income statements for Belgrove Farms
(see Exhibit 3). Your team has a few days to review the materials and prepare its preliminary
analysis before meeting with the client.
Required
Prepare a business report to the client setting forth your team’s analysis and recommendations.
In the report, address any risks associated with the recommendations. The team will also deliver
its analysis and recommendations in a formal, personal presentation to the client. You may wish
to review microeconomics concepts 1, 2, and 4; management accounting concept 8, and
statistics concept 8.
The Exhibits follow on the next pages.
CASE # 2 BY TEAM # 1
BENDERSON CONSULTING
Prepared for
Prepared by
Team #1
United Nation of Northridge
Consulting Firm
September 27, 2009
MEMO OF TRANSMITTAL
United Nation of Northridge Consulting Firm
18111 Nordhoff Street, Northridge, CA 91330
September 15, 2009