Pei Preserves Case

2797 Words Mar 20th, 2011 12 Pages
Executive Summary
TO: Bruce MacNaughton, CEO, Prince Edward Island Preserve Co. Ltd.
FROM: Courtney Datema, Consultant
DATE: March 28th, 2011
RE: Whether to Expand Retail, Wholesale, or Mail Order

After a profitable year following the repossession of Prince Edward Island Preserve Co. Ltd. (P.E.I. Preserves), I have assessed a number of issues that need to be addressed in order to continue being profitable and come up with a feasible product-market strategy. The corporation as a whole lacks a clear strategy and includes a number of operations unrelated to their main focus of manufacturing and retailing preserves. Because of the wide range of operations, you are being overworked and not all segments can be properly attended to. Also, the
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The restaurant business alone consumes 40% of your time and is the cause of many headaches. You do not have enough time to spend on the customer service aspect of the business and few follow up calls on customer satisfaction have ever been done. I also understand you are concerned that products sold through wholesale are not being marketed in a manner that justifies the premium price. You do not, however, have the time to visit each location and monitor their promotion strategies. Lastly, while you are invited to a number of tradeshows, you do not have personal interest in participating, nor do you have the time available. These problems added to the everyday demands of the business, have disabled you from taking a vacation in years and leave you unable to pursue other ideas you may have for developing the business.

Seasonality Not Supported Within the Organizational Structure P.E.I. Preserves specializes in the preservation of top quality fruit. To achieve this, the fruit has to be processed as soon as possible after arrival, which causes for seasonal production. Also, because the town of New Glasgow has only a population of 100 citizens, they rely on tourist season for income from retail, restaurants, and the garden. Since nearly all portions of business revolve around seasonal work you may not be attracting and retaining the best quality