caseism

By-the-Sea Biscuit Company: A Decision in New Venture Analysis Case Solution & Answer

By-the-Sea Biscuit Company: A Decision in New Venture Analysis Case Solution

Introduction

This case is about two good friends named Paul Finney and Pat Jobe who wanted to be the business partners. They proposed to establish a new venture which involved operation for the manufacture of frozen biscuits and start a Clear water plant for seafood. Then a private organization named Cape Breton Innovation and Research Council (CBIRC) which owned the plant, was willing to establish and built a local venture by introducing a medium within. Both the friends introduced their venture idea to CBIRC and appealed to them in their business, as the plant owners thought that it would be a great opportunity. Although Paul and Pat were excited about this venture and they were even confident about the opportunities involved in that product, but they still needed to answer some questions about the viability of their investment. They were still reluctant to start this venture as they both had a full-time job, and to start a new business they had to resign from their jobs so that they could focus on  the venture, but this was not an easy decision to make for both of them. Then this case also provides the market insights of a biscuit/ frozen bakery items industry, market insights like consumer base, manufacturing activity models and supply and demand.

Problem Identification

Both Finney and Pat were long time good friends and their idea of starting a new venture of frozen biscuits production seemed possible by collaborating with the Lenus at North Sydney, Nova Scotia. Although their proposed venture seemed to be a good opportunity with reasonable return promises, but there were still some complications that needed to be addressed by both the friends. The first issue that arose was that before starting this venture; they were required to conduct a thorough analysis on the breakeven, returns and profits of the suggested investment opportunity, alongside fulfilling the requirement of determining effective strategies to carry out the venture activities, such as: marketing, manufacturing and supply of their product, so that they could efficiently compete with their business rivals and gain maximum market share. To do so, they needed to analyze the market potentials(Finney, 2015).

Situational Analysis

Internal Analysis

To survey the internal business environment; the accompanying vital models can be used:

SWOT Analysis

The main reason for the SWOT analysis of Fitbit is to have a better understanding of the company’s strengths and weaknesses. The company needs to have continuous innovation in its products in order to stay ahead of its competitors. The key for the company is to keep on enhancing, which could mean adding new highlights and expanding profits. The SWOT analysis of the By the Sea Biscuit Company is as follows: (See Appendix 1)

Strengths

The primary strength of the organization is its competitive advantage, for example: the organization differentiates itself from others through embracing the differentiation strategy for product making and development. The company provides frozen biscuits at relatively lower prices so that all classes of people could afford their consumption. This can increase the company’s competitive advantage as well as its net profit.

Weaknesses

Asfor the number of qualities; there are various shortcomings related to the organization which however can be turned into opportunities if addressed effectively. The principal shortcoming of the organization is its national chain supply of frozen items, which is past the capacity of the organization and its key personnel. Moreover, the company’s promotional campaign can be more costly because of the expensive food trade shows globally.

Opportunities

The organization can have more opportunities of being beneficial in Canada as compared to the USA since the Canadian market furnishes top-notch wheat alongside lower sugar and energy cost, which reduces the cost overhead. It also provides great financial plans forthe future as the prices in Canada are increasing as compared to other nations.

Threats

The main threat of the company is its lack of data reliability in the atomization process. This places a question mark on the company. The severe dieting trends in Canada tend to decrease the consumption of frozen and fried foods.

VRIO Analysis

To dissect the organization’s assets, capacities and upper hand;the VRIO structure is used. (See Appendix 2)

External Analysis

To investigate the external climate of the association; the accompanying vital model is utilized:

Porter’s Five Forces Model

Bargaining Power of Supplier

The bargaining power of suppliersis low for “By the Sea Biscuit Company a Decision in New Venture Analysis” since the organization has an enormous client base, so the providers wish to support their relationship with the brand name, because of the dependent benefits and profits.

Bargaining Power of Customers

The customer’s bargaining power seems to be quite low for the company as it provides differentiated products as compared to its competitors, Canadians love to have different kinds of frozen products. This creates great importance and strength for the company.

Threats of New Entrants

The gamble of new participants in the market appears to be high due to an enormous development possibility in the food business and the advancement of technologies.

Competitive Rivalry

The competitive rivalry for the company is quite high due to the rivalry from existing organizations in the US market, who can create challenges for the organization.

Threat of Substitutes

The threat of substitutes is moderate as the company provides differentiated products ata low cost as compared to its competitors. This makes the company highly competitive and worthy in the market, but the key objective is to sustain this differentiation strategy to achieve success in future. (See Appendix 3)

PESTLE Analysis

By the sea biscuit company is a highly diverse and differentiated company operating in the US and Canada. The company is planning on expanding its venture but it is faced with external challenges. To analyze the external climate of By the Sea Biscuit Company a Decision in New Venture, Pestle system is used. (See Appendix 4)

Alternatives

Solution of Alternate 1

In order to manufacture very hygienic products like Omega 3 dough; the firmis required to invest extra capital of about $ 10,000 in its research and development (R&D) department for the initial 6 months of the venture. Based on the various assumptions considered for this case’s analysis; it was forecasted that in the upcoming years; approximately twenty-five percent of the Canadian population would spend about 50% on organic products. So after considering this assumption and analysis; the company has decided to manufacture the Omega 3 from the 7th month of venture initiation, and then sell the product and catch about twenty-five % of the Canadian population demanding organic products………………………..

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

 

 

 

Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY