Prince Edward Island †Essay Essay

Executive SummaryPrince Edward Island Preserve manufactures and produced high- quality, high priced speciality food products. P.E.I.P.C. experienced rapid growth in its short history. In the first a few(prenominal) years of its existence, founder Bruce MacNaughton expanded his order from one manufacturing and retail sales outlet in 1989, following a second retail outlet in 1991. The company also diversified and opened 2 restaurants in 1989 and 1990 respectively. It is anticipate that P.E.I.P.C. will continue to grow, with projected sales for the year devastationing January 1992, to egest one million dollars. In August 1991, MacNaughton, contemplated on future amplification. The two cities under consideration were in Toronto and Tokyo. Options under consideration include adding retail outlets in the aforementioned regions.Also under consideration is to step-up wholesaling, and the map of distributors (hotel and airlines). Expanding the mail order business is also an alterna tive. Although MacNaughton has weighed some or all in all options to diversify P.E.I.P.Cs operations, it is unequivocally discharge the company lacks clear vision, scheme goal and objective. MacNaughtons business had been built on gut and emotion rather than depth psychology. However, this approach may prove to be insufficient for the future. It is ticklish to execute a strategy if goals argon not specific, cant be described or understood. However, guided by the proper analytic thinking of the external environment (SWOT), together with the firm-level analysis (VRINE Model), MacNaughtons can amend P.E.I.P.C.s long term hawkish business position.Key ProblemsThis fount highlights various strategic challenges MacNaughton face while contemplating en big(a)ment, and how to complete this objective successfully. The worry is to know when to close the gap between the firms object and its current capabilities, mental imagerys and market position. The core issues identified in thi s case be1. Future Expansion2. Product imitation3. Product promotion falter to seek the use wholesale and distribution networks4. Financial Constrains unable to sterilise suitable financing, experienced period of cash flow shortages5. Managerial constrains6. seasonal worker Staff inability to attract and retain quality staff collect to the seasonal nature of the businessAnalysis and EvaluationP.E.I.P.C.s strike resource is its geographic location. Prince Edward Island is most notable known for its pastoral beauty, poky pace of life, North Shore beaches and global image of Anne of Green Naples. Prince Edward Islands well known reputation for the high quality of strawberries is the basis of P.E.I.P.C.s marketing strategy and product differentiation. As the company grew, P.E.I.P.C. developed and achieved a diverse product line. This resource availed the company to establish a free-enterprise(a) favor. In addition, P.E.I.P.Cs higher prices did not compete with low end product s charges by competitors. However, this marketing strategy to differentiate their brand, introduced P.E.I.P.C to a variety of competitors. another(prenominal) separate resource is financing. Although previously listed as a core issue, the company has the ability to raise $100,000 of addition capital to finance future expansion by issuing preferred stock. P.E.I.P.C.s manufacturing plant is another key resource.Currently, P.E.I.P.C.s action capacity is underutilized. The manufacturing plant operates five month a year, on a single, five days per week. Productivity levels can increase from fifty per cent to one hundred per cent by extending the hours of operation. Automating the bottling lick could increase productivity substantially. The final key resource is its customers. Prince Edward Island and P.E.I.P.C. attracts thousands of tourists from over the globe. In additional to local marketing efforts, the reliance on tourists could increase P.E.I.P.C.s global presence and raise cons umer awareness of its products. A strategy must(prenominal) be formulated for the purpose of gaining and sustaining competitive advantage. MacNaughton should critically evaluate P.E.I.P.Cs performance measure for resources and capabilities by utilizing the VRINE model.The VRINE ModelValue A resource is valuable if it enables P.E.I.P.C to exploit opportunities to establish competitive advantage or nullify threats. lacquerese tourist comprises a large number of visitors to Prince Edward Island and Prince Edward Island Preserve, Co. outlets. The popularity of P.E.I and P.E.I.P.Cs products are well known to Japan. Essentially, the high level of spending by the Japanese, their enthrallment with P.E.I., traditions of gift giving and the amount of disposal income available to them, indicates that opportunities in Japan tycoon be successful. Rarity P.E.I.P.C can enjoy temporary competitive advantage, so long as the content of ingredients used to make its specialty preserves remain ra re and scarce relative to it competitors. Inimitability/Non-substitutability Other firms in P.E.I. has begun to retail specialty preserves in hopes to profit from P.E.I.P.C.s success. Competitors might be able to imitate or substitute the value and resources quickly, at a low cost.Exploitability With a solid vision, financial base, coupled clear strategy formulation and implementation of its objectives, P.E.I.P.C. can exploit their brand and products domestically and manufacture their products globally with the resources available. P.E.I.P.C can protect and increase competitive advantage by expanding its wholesaler and distribution network in Toronto. Initially, MacNaughtons divert in Toronto was due to its size and local awareness of P.E.I. Successful expansion in Toronto can prove to be quite profitable for the company. dodge planning for P.E.I.P.C. must also include a SWOT analysis in order to identify its internal and external factors that are favorable and/or unfavorable in achieving its objective. SWOT Analysis of Prince Edward Island Preserve Co.StrengthsWeakness inciter LoyaltySeasonal Business StructureProduct DifferentiationAttract and Retain Quality Staff topical anaesthetic ReputationLimited AdvertisementBroad Product MixCash Flow ShortagesAbility to Raise not bad(p)OpportunitiesThreatsExpansion in Japan and TorontoProduct ImitationExtensive Distribution ChannelsVariety of doable Substitutes Ability to meetCompetitive PricingSupplier Power to CompetitorsRecommendationsP.E.I.P.C can also explore expanding its marketing reach in efforts to bring brand awareness by dint of e-commerce and web based advertising. Additionally, plans should include hiring a sales and marketing group to assist in strengthening the companys brand reboot and appeal. Emphasize on mail order sales by astir(p) the quality of the catalogue and distribution reach. P.E.I.P.C. should consider automating the bottling process to increase production capacity and annual volum e. The company should also analyze the profitability of large scale orders with wholesalers, hotels and airlines, and perhaps consider opportunities to expand in the U.S.ImplementationMacNaughton should aim into consideration the use of additional key strategy formulation concepts such(prenominal) as, the strategy diamond, the five forces model off environment threats and the PESTEL model to help his firm establish and sustain competitive advantage.