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Case Study: Shrimp Farming in Ecuador

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Shrimp Farming in Ecuador I. PROBLEM(S) 1. What can Xavier do to turn the economical and his entrepreneurial weaknesses into strengths? 2. What can Xavier do to turn the economical and environmental threats into opportunities? Sub-problems which will be answered in the recommendation: a. What investment alternatives can Xavier consider in order to expand his shrimp business in Ecuador? b. Would the problems of Ecuador prevent a joint venture with a foreign partner? II. SWOT ANALYSIS To get a full understanding of the case, first we need to put information into order. By understanding the strength, weaknesses, opportunities and threats to Xavier’s shrimp business, the greater picture will help us to get closer to a solution to …show more content…

It is difficult to say rather to disclose important method procedures in Xavier’s business to ensure the business secrecy or value the Japanese relationship. However by assessing and comparing cases, we can see that businesses like Microsoft, Bosch, Fastfood chains like McDonalds or KFC live from keeping their specialty ingredients and methods disclosed to public, especially to competitors. That is why it is recommended to withhold certain business information. With regard on what Xavier can do to turn economical threats into opportunities, it is important for his business to jump on the train of innovation. Through the process of including value-added parts to his shrimp business will open new markets. The expansion of varieties will give him the edge over his competitors. However, this step will involve substantial amounts of funds to buy the equipments. Therefore, I recommend Xavier to consider foreign investments although his business might be charged with higher interest rate. That is always a game and a risk in business, especially if you deal on international level. I believe that would be the better choice over a) asking for loans from a bank in Ecuador, since the economy and governance is known to be unstable and easily trapped in inflation, and b) getting loans from neighbor countries since it is known to be “blood money”, and in cases of being unable to repay, it might become quite uncomfortable to that person and eventually to his/her family. This

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