Del Rio Foods Analysis Essay

1198 Words5 Pages
Del Rio was established in 1933, and it is located in California. Its owners are Bob and Maria. Del Rio is an agricultural business where processed canned products and fresh produce are sold. Both owners have the same agricultural background which is why they are doing this business. They are running Del Rio successfully. When the world was going through a great depression, many businesses had tough time to survive. However, Del Rio Foods, Inc. was in stable condition even though they did not make a lot of money. From 1987 to 1990, their Income Statement shows that they had a steady increase in their net income each year. The CEO’s objective is to expand his business as far as into east coast. Del Rio acquired a couple of farms…show more content…
Back in 1930s to 1960s, their sales rose. Each year they did better than previous year. During WWII, Del Rio got most of its business from the U.S military as well as from new migrants in California. Every company has some ups and downs, and so does Del Rio. According to consultants’ preliminary report, “During the past six years, net income has had no real growth. The overall income has in fact dropped during this period…, …the second quarter of this year, net income before taxes decreased by about 30 percent.” Basically, the company is going through financial crisis due to decrease in its sales. Is there any business that does not go through these difficult times? According to consultants in the case study, “We have found the output and also the input quality control inadequate and ineffective, substandard raw materials have been accepted from suppliers on fourteen occasions have repeatedly gone bad while in storage, inadequate supply of some items has either stopped or slowed down production, the morale among production workers is found to be very low.” The team leader is not performing his job well. The employees are being nonchalant at work which is destroying company’s image. As a result, the company will lose its business. In addition, consultants found out that “The production facilities are too old. About 6o percent of the machinery is semi-obsolete…, the facilities are maintained at
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