However, I will choose the first recommendation i along with expanding their product range—I believe that investing in a bigger facility will have a better pay-off in the end. National distribution can now be possible, and they can be established as a big brand. In addition to that, chain buyers are comfortable with their pricing.
As such, they should get a bigger production facility. Of course each increase in the product price can cause change in the customer preferences. In order increase its profitability, the company needs to consider options to improve its business strategies.
Degree of Vertical Integration: Growth in the first moths may be a little slow due to the possibly steep learning-curve, but I expect that production will stabilize in the long run. Discuss short term and long-term effects. Once Azalea has reduced perceived risk levels and established itself financially, it needs to introduce new products in efforts to differentiate itself from the competition and increase its customer base.
Short term plans realized during less than 1 year period: Their products were sold in many local restaurants, supermarkets such as Wal-Mart, and other types of food retailers. The additional quality assurance procedures may also lengthen the production process.
While this may increase their revenue, I believe that the increase would not be as large as that of the first recommendation so I would pick the former.
Discuss short term and long term effects. Whenever they take on a supplier agreement, the risk of huge losses are always there.
If they move to a bigger facility, they could get USDA certification and add products that they can sell at a lower price point, translating to bigger, better profits. Describe what made you think that this issue was most important Although the company sells other seafood-based products, gumbo was by far the best-seller, making up approximately 90 percent of their profits.
Its first decisions should lead towards an increase of finished goods and decrease of the raw materials in the inventory.
There are many different products out there in the value-added seafood industry, but Azalea has their own niche of this industry with their tasty gumbo. In the short term, the move and restructuring will disrupt their operations, but production can be stabilized and expenses recouped once they land more corporate contracts.
While this may increase their revenue, I believe that the increase would not be as large as that of the first recommendation so I would pick the former. Although Azalea has a competitive advantage with its tasty gumbo, Azalea is looking to maintain long-term growth and obtain a sustainable competitive advantage.
Because of this type of compensation scheme, the brokers may be more inclined to look after their products. Here, they can sell shrimp and crawfish when gumbo sales are not that good. Food brokers ensure that their products get good product placements in supermarkets, and with the absence of reliable ones, they cannot always expect that their products are getting prime shelf space.
The Five-Forces model thoroughly exposes what competition is like in the market. In the year it is already more than necessary to create a new section in the company responsible for the internet and e-commerce activities. If they stay in that current direction, they could still experience growth but it will be limited.
For Azalea to succeed, they need to consider valuable options presented in the following report. The product placement issue would also not be addressed as a result of this, and as such, Azalea will be on the losing end.
They could also sell some of their assets to get additional funds. There are several key success factors Appendix D although some are more successful than others. Need essay sample on "Azalea Seafood Gumbo Shoppe in A Case Analysis"?We will write a custom essay sample specifically for you for only $ /page.
Azalea Seafood Gumbo Shoppe. Essay by redfalcon, April download word file, 5 pages, Downloaded 91 times. Keywords Business, Risk, White House, producers, standpoint.
0 Like 0 Tweet. 1. What is competition like in the value added seafood industry? What competitive force seems to have the greatest effect on industry attractiveness. Azalea Seafood Gumbo Shoppe and the Value-Added Seafood Industry Azalea Seafood Gumbo Shoppe was established in Mobile, Alabama in The company changed hands once before Mike Rathle, John Addison, and Bill Sibley (who would soon sell his part of the company to Mike and John) took over ownership/5(1).
Free Essay: The Azalea Seafood Gumbo Shoppe Executive Summary Azalea Seafood Gumbo Shoppe wishes to develop a strategic plan to maintain long-term growth and.
A thorough examination of Azalea Seafood Gumbo Shoppe was done to provide a strategic plan that will enable Azalea to maintain long-term growth and a sustainable competitive advantage.
For Azalea to succeed, they need to consider valuable options presented in the following report. Included in the analysis is the following information. Azalea Seafood Gumbo Shoppe and the Value-Added Seafood Industry Azalea Seafood Gumbo Shoppe was established in Mobile, Alabama in The company changed hands once before Mike Rathle, John Addison, and Bill Sibley (who would soon sell his part /5(9).Azalea seafood gumbo shoppe essay