Unicord Plc: the Bumble Bee Decision Case Analysis
Assignment 1
Unicord PLC: The Bumble Bee Decision
Case Analysis
Executive summary
A Thai based company established in 1978, Unicord’s main business involved the processing and canning of fresh tuna which were marketed worldwide.
The global tuna industry consisted of tuna fishing as well as canning. Worldwide, the United States was the largest importer of canned tuna.
In order to break into the US market and avoid costly tariffs Unicord acquired US based tuna company Bumble Bee for an amount that stretched the company’s financial solubility thin.
Once Unicord had entered the US market it was faced with external and internal challenges that included controversial fishing techniques, cultural barriers between US and Thai management, aggressive price wars in the US market, the tuna-dolphin controversy and division on major corporate decisions by top Thai management.
Due to Unicord’s inability to steer around these challenges the company fell into receiver ship in 1995.
The following case analysis will attempt to present the most feasible solution to the problem of how to resuscitate Unicord from its present state.
The recommendation includes the purchase and reorganization of Unicord by a private equity investment firm in order to make the necessary changes to allow Unicord to become a profitable company once again.
Problem statement
What feasible ways can be used to resuscitate Unicord. Although few options are still available, first we need to clearly establish what had gone so terribly wrong with Unicord in so short a time. A sophisticated grasp of events will be necessary.
Analysis
Unicord’s logic underlying the acquisition of Bumble Bee was to successfully counter growing trade protectionism imposed by United States which had its own tuna processors. Barriers to competition existed in various forms: tariffs, import duties, and quotas as well as environmental and food safety standards. The tuna processors in Thailand perceived
Unicord PLC: The Bumble Bee Decision
Case Analysis
Executive summary
A Thai based company established in 1978, Unicord’s main business involved the processing and canning of fresh tuna which were marketed worldwide.
The global tuna industry consisted of tuna fishing as well as canning. Worldwide, the United States was the largest importer of canned tuna.
In order to break into the US market and avoid costly tariffs Unicord acquired US based tuna company Bumble Bee for an amount that stretched the company’s financial solubility thin.
Once Unicord had entered the US market it was faced with external and internal challenges that included controversial fishing techniques, cultural barriers between US and Thai management, aggressive price wars in the US market, the tuna-dolphin controversy and division on major corporate decisions by top Thai management.
Due to Unicord’s inability to steer around these challenges the company fell into receiver ship in 1995.
The following case analysis will attempt to present the most feasible solution to the problem of how to resuscitate Unicord from its present state.
The recommendation includes the purchase and reorganization of Unicord by a private equity investment firm in order to make the necessary changes to allow Unicord to become a profitable company once again.
Problem statement
What feasible ways can be used to resuscitate Unicord. Although few options are still available, first we need to clearly establish what had gone so terribly wrong with Unicord in so short a time. A sophisticated grasp of events will be necessary.
Analysis
Unicord’s logic underlying the acquisition of Bumble Bee was to successfully counter growing trade protectionism imposed by United States which had its own tuna processors. Barriers to competition existed in various forms: tariffs, import duties, and quotas as well as environmental and food safety standards. The tuna processors in Thailand perceived