Prince Ewards Island Preservers Company case stud

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Case Study for Prince Edward Island Preservers Company Ltd
Every company has a set of segments that almost and always contribute to either their
success or failure. It is natural to have such outcomes in businesses, and although the positive
outcome is more or less the most welcomed. The Prince Edwards Island Preservers went into
receivership for a number of factors that were contributed by several unique domains in the
business. The foremost reason was the managerial agility. There was inadequate management
prudence across all businesses diversifications in the company. Mac Naughton assumes all the
top positions roles across the businesses and this greatly wares him down. Another reason is the
untimely and continuous rotation of staff members (Lupton,2008). It is always costly to hire and
train new employees in terms of both financial expenditure that will be involved and time
wastage.
Receivership beckoned on for PEI preserves when the cost for the promotion of the
products heightened. The advertisement through mail order cataloging together with giving of
free samples to foreign consumers strained the productivity and the financial ability of the
company. The company spent a lot of its finances to finance promotions both locally and abroad.
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It has to be noted that the Japanese local distributors may have also contributed towards the poor
marketing strategy of the business. Another factor to look at is the product pricing in the local
market. The PIE preservers products were highly priced locally making it difficult for the local
consumers to buy them and therefore obliging them to foreign consumers who came in in hardy
only during the peak season (Lupton,2008). This minimized sales as compared to production.
The financial viability of The Pie Preservers Company, in the beginning, was expendable.
There was constant growth as many wings of businesses were opened up as well as many people
being employed. The gardens were catered for through donations and volunteers who
volunteered to work in the gardens until 2008 when Mac Naughton hired a caretaker. Financial
viability in the Japanese market segment s minute as most of the expenses was taken care of by
the import pricing methods. Later in 2008, the Japanese distributors took care of the pricing
choices. The Mail order business was robust until that period when there was the need to change
on the printing of the catalog designs (Lupton,2008). To add on Japanese export, the Company’s
products were highly appreciated and this largely generated income. The café and the wholesale
might not have had prudent financial viability over the years because most of their business
picked up in the peak seasons when many tourists were visiting the Island.
The main advantage that was derived from Mac Naughton’s growth alternatives was the
economy of scales. He was able to control the market share within Prince Edwards Islands. This
is indicated by the number of consumers that increasingly flocked into his company for products.
However, the growth alternatives engineered some disadvantages (Lupton,2008). The Mac
Naughton was strained as a manager and sometimes failed to attend vital meetings that he could
have used to market his products and largely promote his company (Lupton,2008). The growth
mechanism exploited financial viability by creating pressure in the financial assets.
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I will arguably advice Mac Naughton to choose on the export product line. That is striving
greatly in business with the Japanese Company. This is because of the specificity of the product
line, and the profit that it can generate and the minimal risks that can be realized in this business
especially after shipment. The organic line business is the dynamite in boosting the financial
viability for Prince Edwards’ Island Company.
The Japanese export has to be exploited necessarily to develop a viable market that can grow
robustly across Asia. The management of PEI should hire international marketing personnel who
will cognitively promote the products provided by the company. To top that, the company should
channel it funds in funding their own branches in Japan that will help in distributing their
products at lower prices than those that are charged currently by the indigenous Japanese
distributors. This will allow them to create overwhelming job opportunities for the Japanese
while at the same time granting themselves an overwhelming promising market share. A one on
one touch with the customers will also be valuable and influenced in this situation.
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Work cited
"Advantages And Disadvantages Of Growing Your Business." nibusinessinfo.co.uk. N.p., 2018.
Web. 29 May 2018. ("Advantages And Disadvantages Of Growing Your Business")
Lupton, Nathaniel C. "The Prince Edward Island Company." Ivey (2008): 1-18. Print.

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