Pei Preserves Case
Executive Summary
TO: Bruce MacNaughton, CEO, Prince Edward Island Preserve Co. Ltd.
FROM: Courtney Datema, Consultant
DATE: March 28th, 2011
RE: Whether to Expand Retail, Wholesale, or Mail Order
After a profitable year following the repossession of Prince Edward Island Preserve Co. Ltd. (P.E.I. Preserves), I have assessed a number of issues that need to be addressed in order to continue being profitable and come up with a feasible product-market strategy. The corporation as a whole lacks a clear strategy and includes a number of operations unrelated to their main focus of manufacturing and retailing preserves. Because of the wide range of operations, you are being overworked and not all segments can be properly attended to. Also, the seasonal nature of manufacturing preserves and retailing in tourist season causes for difficulties in finances and employment. The alternatives for review are the following: expand retail, expand wholesale, expand mail order, hire a sales representative, increase vertical integration of all operations, extend product lines and rent out the factory. I recommend you hire a sales representative to take on wholesale operations, that you drop mail order operations, and that you invest the majority of your time and efforts towards retail, while increasing the vertical integration of the remaining segments. You should also try to rent the factory out during off-season and maximize manufacturing capacity in-season. I am confident that implementing these changes will cause the P.E.I Preserves to see continued profits and growth.
TO: Bruce MacNaughton, CEO, Prince Edward Island Preserve Co. Ltd.
FROM: Courtney Datema, Consultant
DATE: March 28th, 2011
RE: Whether to Expand Retail, Wholesale, or Mail Order
Introduction
Prince Edward Island Preserve Co. Ltd. (P.E.I. Preserves) has recently experienced some difficult times after going into receivership in 2007. Since your repossession of the business, however, fiscal year
TO: Bruce MacNaughton, CEO, Prince Edward Island Preserve Co. Ltd.
FROM: Courtney Datema, Consultant
DATE: March 28th, 2011
RE: Whether to Expand Retail, Wholesale, or Mail Order
After a profitable year following the repossession of Prince Edward Island Preserve Co. Ltd. (P.E.I. Preserves), I have assessed a number of issues that need to be addressed in order to continue being profitable and come up with a feasible product-market strategy. The corporation as a whole lacks a clear strategy and includes a number of operations unrelated to their main focus of manufacturing and retailing preserves. Because of the wide range of operations, you are being overworked and not all segments can be properly attended to. Also, the seasonal nature of manufacturing preserves and retailing in tourist season causes for difficulties in finances and employment. The alternatives for review are the following: expand retail, expand wholesale, expand mail order, hire a sales representative, increase vertical integration of all operations, extend product lines and rent out the factory. I recommend you hire a sales representative to take on wholesale operations, that you drop mail order operations, and that you invest the majority of your time and efforts towards retail, while increasing the vertical integration of the remaining segments. You should also try to rent the factory out during off-season and maximize manufacturing capacity in-season. I am confident that implementing these changes will cause the P.E.I Preserves to see continued profits and growth.
TO: Bruce MacNaughton, CEO, Prince Edward Island Preserve Co. Ltd.
FROM: Courtney Datema, Consultant
DATE: March 28th, 2011
RE: Whether to Expand Retail, Wholesale, or Mail Order
Introduction
Prince Edward Island Preserve Co. Ltd. (P.E.I. Preserves) has recently experienced some difficult times after going into receivership in 2007. Since your repossession of the business, however, fiscal year