Describe what they should do and how they should implement it. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. This was largely due to the vision of Addison and Rathle of moving from retail sales to that of focusing on commercial accounts for future business. Why did this problem emerge? Discuss them in the following order: a. Azalea had invited all her friends to her house.
Discuss short term and long-term effects. The competitive threat of new entry is also relatively weak. The company needs to concentrate on, not only providing a quality product, but also creating a well-known and trusted name. Recommendation 4: The Most Important Recommendation for the Issue of Finding Good Brokers for Product Distribution i. Included is an analysis of Azalea 's problems and issues to address, along with recommendations to grow the business.
C: The Most Common Driving Forces of the Industry Reductions in Uncertainty and business risk- Emerging industries are generally characterized by unproven cost structure, much uncertainty over potential market size, how much time and money will be needed to surmount production problems and what distribution channels to emphasize. A high leverage ratio means that they have large debts. Everyone in the seafood industry could be described as a competitor for the Azalea Company. Please offer us the requirements of your Glazing, Packin. Azalea also needs to continue to purchase processed vegetables and seafood to reduce waste and allow for shorter clean up periods and reduced labor. The new production capacities which would come with new producers would not be sufficiently used because the already existing producers have a lot of free capacities in case of Azalea Company it is more than 30 %. If no change is implemented, their profits can be at the mercy of supermarket managers who may or may not give them the optimal shelf spots for consumers buying.
The product became a hit due to its uniqueness in taste made using a 100 year old family recipe , high quality, sold in ready to eat packages and is value for money. Strengths Azalea Seafood Gumbo Shoppe has a competitive advantage of producing one of the best tasting, high-quality gumbo. One possible con is since a huge amount of money is involved, the return of investment may take a while. The strongest of these forces is the competitive force of potential entry. Another step that Azalea must take to improve the quality of the product is to change their packaging method. 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 improved efficiency will add to the bottom line of the company. Recommendation 1: The Most Important Recommendation for the Issue of its Small Company Size i. It wasn long before Azalea was producing more than 45 tons of gumbo and other seafood products each month. Many production issues will be corrected as the facility is updated. Azalea has not been able to attract business due to the state of their facility, which must be updated to allow for growth. For Azalea to accomplish this, they will need to consider the options presented here. But it found difficult to compete when fad players and other toy manufacturers were giving them stiff competition in a market that already was supposed to be giving lesser returns every year.
Their earning potential will not be maximized and if this goes unchecked, they may end up with a considerable amount of unbought products. What is competition like in the value added seafood industry? In order increase its profitability, the company needs to consider options to improve its business strategies. This, however, can still greatly increase if they can get those companies to grant them a nationwide distribution. Presently, Azalea uses boil-in bags only for half-gallon and gallon packages and the fill-in process for quarts and pint containers. Another factor that is not influencing the market situation of the Azalea Company very markedly are suppliers.
This issue is not mutually exclusive with the other ones—if the company pushes through with their expansion, more food brokers will now be willing to ensure that their products have good product placement. Competition becomes a contest of who can capture the growth opportunities and become an industry leader. Insufficient attention of the food brokers and unfavorable product placement in the distribution networks lowers the sales. Currently there are few gumbo products on the market that hold the reputation of this product. The recommendations are based on the status of the current market and forces that drive the industry. Azalea will need to expand and diversify its customer base. Currently, Azalea has no effective way of ensuring that their products have favorable placements for all supermarkets, all the time.
They acknowledgee that their largest competitors are all the other food items in the store that can be purchased. Since the ratio is near the value of 1, it means that they can pay most of their debts at any given time, although they may require a small loan to pay all. The recommendations are based on the status of the current market and forces that drive the industry. And although there is indirect competition provided by other supermarket products, Azalea has proven that their product sells. As such, they need to expand their production capabilities. Currently there are few gumbo products on the market that hold the reputation of this product.
Although the company can meet current product orders, they are still being limited by their current facilities with regards to accommodating huge volumes. Moving to a new facility and training for new equipments may slow down production for a while. I got the recipe from a great cookbook. While Azalea does direct sales through catering the bulk of its revenue is derived from wholesaling its foods Appendix A. Based on all the analysis mentioned, recommendations were made on the best course of action for.