New England Seafood Company

2897 Words Feb 10th, 2014 12 Pages
Case 16

New England Seafood Company

Prepared for:
New England Seafood Company’s Senior Management

Prepared by:
New England Seafood Company’s Senior Management

Adam
Jeff
Conner
Bryan

February 6, 2014

Executive Summary

New England Seafood Company executives face a potential two-stage plan to move into the freshwater catfish market because of the banned oyster harvesting along much of the Atlantic and Gulf Coasts, and increased competition from foreign producers. These factors have resulted in significantly lower yields for New England Seafood. In order to stay in business, New England Seafood Company needs to look at harvesting and processing something other than seafood. New England Seafood Company looks to
…show more content…
Lastly, we will evaluate how New England Seafood can best utilize existing land for the benefit of multiple division, ultimately showing through discounted cash flows that it is in New England Seafood’s Companies’ best interest to keep their existing land along the Pascagoula River for the new catfish division while also utilizing an option to secure the needed land for the future use of the Gulf Shrimp Division.

Summary of Facts

New England Seafood Company is a leader in the northeastern United States in harvesting and processing seafood. The company’s senior executives believe that there must be a change in the corporate strategy to maintain their competitive advantage, as foreign producers are affecting their current yields. Currently, New England Seafood Company operates in the Atlantic Ocean and Gulf of Mexico dealing exclusively in saltwater fish. Management feels that a move into the freshwater fish sector will provide the company with a new directive and future stability. The company is looking into a two-step strategic move into the freshwater catfish market. The stages will call for the construction of catfish ponds and a processing plant of limited capacity to go along with the ponds. The next stage involves the development of a major facility. This larger facility will house several divisions, including the entire fresh-fish processing division,