Case Name :      Alliance Grain Traders Inc.: Moving Up the Value Chain (A)

Authors :           Mark B. Vandenbosch, Ken Mark

Source :             Ivey Publishing

Case ID :            W14544

Discipline :        Marketing

Case Length :    08 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

A stock market analyst was reviewing one of his fund’s holdings, Alliance Grain Traders Inc. (AGT). One of the world’s largest traders of pulse crops, AGT was in the midst of entering a new line of business and expanding its non-core operations. On one hand, AGT would have been able to use its dominance in pulse trading as an advantage in expanding up the value chain. On the other hand, it was moving into sectors that were already mature and highly competitive. The key question for the analyst was whether he should continue to hold AGT stock given its stated objectives.