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. Mike and John had to move the business due to lease issues and the since the new location was too isolated to support retail sales, they would have to focus on commercial accounts for future business.
The highest return on their investment depends on their ability to increase profits by about 5 to 10 times. Orientation towards substitutes raw fish, shrimps and others is excluded as it was described in the competitive forces section picture 3 in the appendix section.
A Case Analysis Essay 1.
Azalea having its product in over 1, supermarket has given it adequate exposure. The company changed hands once before Mike Rathle, John Addison, and Bill Sibley who would soon sell Azalea seafood gumbo shoppe business analysis part of the company to Mike and John took over ownership.
It is much easier to exit this industry by selling your operation to a larger corporation looking to be an industry leader.
If we look at the quart packaging for the gumbo we can assume that the cover is very old fashioned and not attractive for the eyes of the customer as well as for the sellers. Every retailer and food establishment in the country can potentially sell or make use of their whole line of products.
Describe what made you think that this issue was most important. This may influence the decisions of food brokers and distributors, and greatly factor whether or not they can land big accounts with corporate distributors.
Major weaknesses that the company faces are dependence on gumbo sales for the majority of its sales, loss of accounts due to poor quality control, and very low cash to fund future expansion and exploit new market opportunities.
This is a very profitable industry. 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.
Currently, Azalea has no effective way of ensuring that their products have favorable placements for all supermarkets, all the time. The Five-Forces model thoroughly exposes what competition is like in the market.
Specialization of the two partners plus employing a new employee. Within a period of only 12 years, Azalea Seafood Gumbo Shoppe transformed itself from a small local retail food shop to one of the largest producers of gumbo in the U.
It will provide Azalea with great advertising through word-of-mouth. Recommended Solution, Implementation and Justification o Be double spaced and the pages should be numbered o Have 1inch margins — top bottom left and right Answer Preview: Provide appropriate strategic and financial analysis to support above response to question by including the following.
They also successfully worked to market their product and establish relationships with their customers. Whenever they take on a supplier agreement, the risk of huge losses are always there. They now had a clear vision of where Azalea was headed. What are the 4 most important prioritize them key strategic issues facing Azalea, as they look to the future?
One of the most difficult possible solutions for the Azalea Seafood Gumbo Shoppe is the idea of new facility vs. Of course each increase in the product price can cause change in the customer preferences.
If another company were to enter the industry with its own gumbo, it could be potentially devastating to Azalea if this gumbo was better tasting and competitively priced. Another advantage is that they were among the first to start selling readily prepared seafood gumbo.
This solution does not have a disadvantage or negative effect for the company. If a competition with a larger business enters the market, the company may be eclipsed, resulting in loss of profits, and worse, bankruptcy. Same as the first issue, the facility and product expansion can be funded by banks, liquidation of certain assets, and personal investment.
As such, they should get a bigger production facility. How realistic is the first or second possibility depends on number of big customers. If we look at the picture 1 and 2 in the appendix section we can observe a constant increase in the demand for the seafood products which is bigger than supply and constantly increasing consumption of the seafood products.
Specialization of the two partners plus employ a new employee with good marketing skills can decrease production costs and increase sales. Changes in the long-term industry growth rate- A surge in long-term demand triggers a race for growth among established firms and newcomers attracted by the prospects for higher growth.
Strong advertisement will increase the sales of the company.We'll send you updates on price savings events, special offers, new items, in-club events, and more. At this time, registration for email is unavailable in Puerto Rico.
Azalea Seafood Gumbo Shoppe Introduction Found in approximately supermarkets and restaurants, Azalea Seafood and Gumbo Shoppe is among the largest producers of ready-to-eat gumbo with annual revenues in of more than $1 million.
• Analysis and proposal of possible options for Azalea Seafood Gumbo Shoppe Azalea Seafood Gumbo Shoppe and the Value-Added Seafood Industry Azalea Seafood Gumbo Shoppe was established in Mobile, Alabama in /5(1). Dedicated to providing services to improve overall board functionality, the ultimate collaboration tool that empowers boards to be great.
Azalea Seafood Gumbo Shoppe is in a stage when development of a complex business strategy is needed because of insufficient use of production capabilities, need for a bigger market share and financial results that cannot satisfy owners needs. Azalea Seafood Gumbo Shoppe wishes to develop a strategic plan to maintain long-term growth and sustain a competitive advantage.
For Azalea to accomplish this, they will need to consider the options presented here. Included is an analysis of Azalea 's problems and issues to address, along with.Download