Case Notes/Answers
Case Solutions for Cervus Equipment Corporation
Harvesting a New Future
Discussion Questions:
1. Assess the internal and external strategic factors that matter most in understanding Cervus
Equipment’s ability to execute an aggressive growth strategy.
2. Build an internal and external strategic factor analysis of these factors. Which factors score highest
and thus must be addressed by the growth strategies for Cervus Equipment?
3. Based on your analysis, what strategies/options are available to Cervus Equipment to meet its $2.5
billion growth target?
, W13413
Teaching Note
CERVUS EQUIPMENT CORPORATION: HARVESTING A NEW FUTURE
SYNOPSIS
Cervus Equipment Corporation (Cervus Equipment) has grown its business substantially over the past 10
years through regional acquisitions and strong organic growth. The board of directors is now looking for
Graham Drake, the new CEO, to chart a new growth strategy that will see the company triple in size over
the next five years. The market fundamentals to support this growth are quite strong and realistic;
however, the growth opportunities in the company’s traditional Canadian markets are not sufficient and
its customers’ requirements are being driven to new levels of complexity due to a technology revolution
happening within the industry. Drake needs to come up with a new growth plan that puts Cervus
Equipment into non-traditional markets or new industries while addressing the changes happening in the
industry.
ISSUES
The case was designed for undergraduate and MBA strategy classes to illustrate:
1. The nuances and difficulties associated with successfully growing a business via acquisitions.
2. Challenges associated with early stage international growth.
3. Related challenges associated with an industry that is very vibrant, yet in the midst of a revolutionary
change due to technological evolution.
4. Internal challenges that usually accompany an aggressive acquisition-based growth strategy.
TEACHING OBJECTIVES
This case provides an opportunity to use strategic analysis tools and external market assessment in a
growing business through the following broad objectives:
Case Solutions for Cervus Equipment Corporation
Harvesting a New Future
Discussion Questions:
1. Assess the internal and external strategic factors that matter most in understanding Cervus
Equipment’s ability to execute an aggressive growth strategy.
2. Build an internal and external strategic factor analysis of these factors. Which factors score highest
and thus must be addressed by the growth strategies for Cervus Equipment?
3. Based on your analysis, what strategies/options are available to Cervus Equipment to meet its $2.5
billion growth target?
, W13413
Teaching Note
CERVUS EQUIPMENT CORPORATION: HARVESTING A NEW FUTURE
SYNOPSIS
Cervus Equipment Corporation (Cervus Equipment) has grown its business substantially over the past 10
years through regional acquisitions and strong organic growth. The board of directors is now looking for
Graham Drake, the new CEO, to chart a new growth strategy that will see the company triple in size over
the next five years. The market fundamentals to support this growth are quite strong and realistic;
however, the growth opportunities in the company’s traditional Canadian markets are not sufficient and
its customers’ requirements are being driven to new levels of complexity due to a technology revolution
happening within the industry. Drake needs to come up with a new growth plan that puts Cervus
Equipment into non-traditional markets or new industries while addressing the changes happening in the
industry.
ISSUES
The case was designed for undergraduate and MBA strategy classes to illustrate:
1. The nuances and difficulties associated with successfully growing a business via acquisitions.
2. Challenges associated with early stage international growth.
3. Related challenges associated with an industry that is very vibrant, yet in the midst of a revolutionary
change due to technological evolution.
4. Internal challenges that usually accompany an aggressive acquisition-based growth strategy.
TEACHING OBJECTIVES
This case provides an opportunity to use strategic analysis tools and external market assessment in a
growing business through the following broad objectives:
