Evaluation of the business strategy of employing relatives instead of crew members to reduce costs.

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The salmon fishery on Vancouver Island has historically been one of the world’s richest. Over the past few years, poor returns of salmon to the island and competition from farm-raised salmon have reduced the profit realized by the fishermen. One response to lower revenues has been for fishermen to use family members instead of hiring crew “in order to reduce their costs.” What do you think about this business strategy? Will employing relatives really keep profits from falling? Under what conditions will this a good strategy?

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Chapter 11, Problem 3P

To determine

Evaluation of the business strategy of employing relatives instead of crew members to reduce costs.

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