Introduction to Neptune Gourmet Seafood

Introduction to Neptune Gourmet Seafood Neptune Gourmet Seafood (NGS) is one of the top three upmarket players in the high-end seafood business in North America. The company has for the last forty years earned a big reputation for being able to process and produce the best seafood in the region.Advertising We will write a custom report sample on Introduction to Neptune Gourmet Seafood specifically for you for only $16.05 $11/page Learn More Being a huge achievement that has involved a lot of resources, time and dedication, the company has decided invidiously to protect its status and first-class facilitate among its customers by all means. In order to overcome the challenge of safeguarding the reputation of the company, the decision making organ is supposed to study its business environment and come up with strategies to boost chances of the company being able to overcome the fierce competition among many powerful competitors in the business. So as to tackle comfortably the many challenges in the business world and place itself strategically, Neptune Gourmet Seafood is supposed to formulate both short term and long term business strategies. According to McDavid Laura (2006, p.354), a strategy is usually an approach, established on understanding of the broader situations in which a firm operates, its own potency and limitation. Depending on the situation facing an organization, the decision making organ of such an organization is supposed to come up with approaches of handling such a situation. To handle both current and future challenges, the management of Neptune Gourmet Seafood have to formulate both short term and long term strategies. Short Term Strategies Price Cut Under this strategy, Neptune will be forced to cut down the price on almost all their products by half or forty percent. Though the idea may face plenty of resistance from other stakeholders, going by the current inventory problem the company is facing, the strategy may be the only option to salvage the comp any from experiencing heavy losses. According to Berends (2004, p.43) price cut, helps to reduce stock backlog and increases sales. In addition, he added that price cuts helps to large firms to enjoy benefits of scale production. In the end the company will have solved it pressing problem and from then can once again rectify the price to meet its needs.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, Jones Hill (2007, p.142) note that, since there is no single company that can exist in isolation, there is plenty of chances that other companies will retaliate and similarly try to lower their price. Here, Neptune should be aware of such challenges and come up with options of countering them. Increasing marketing segments and distribution channels Increasing the number of marketing and distribution channels may as well be another solution to the current problem facing Nept une Gourmet Seafood. Neptune should first determine the market section it can supply best. The firm should develop a cheap brand to target the small and medium income earners local. David (1995, P.355) emphasizes on the need to clearly evaluation of market needs before producing the product. Also, the firm should launch oversees markets to help ease the large inventory at their disposal. The two market segments will help deal with the current problem by mitigating loss from damages as well as establish market for future produce. Market segmentation arises from positive reception of the fact that market is assorted and thus each diverse group or portion of the grouping requires a special approach (Kazmi, 2008, p. 275). Market segments when well curved out will provide a wide catchment of customers, while an elaborate distribution channel will enhance a smooth distribution of the companys product from the store to different markets located widely in the larger North America. Similarly new market outlets will in the process entice new customers while at the same time retain the older ones. Another positive attribute associated with this approach is the fact that marketing cost will significantly be reduced. Competition would equally be reduced in the short run and in the process sale and revenue will increase in addition to profit. Rebranding and product diversification Neptune Gourmet Seafood has had several products in the market for quite a long period of time. Although, the company’s brand name is still impeccable, the firm needs rebrand some of its products to entice new customers. A good way to rebrand its product is by developing a special mixture of seafood. This brand should be made slightly different from the existing brands to avoid confusing customers.Advertising We will write a custom report sample on Introduction to Neptune Gourmet Seafood specifically for you for only $16.05 $11/page Learn More The second way would be generating a new product line such ready to consumer seafood. The ready to eat would target travellers and oversees customers who cannot be served by the by the existing distribution channels. Although, new products demands heft promotional campaign, a low price penetration strategy can prove effective especially where Neptune brand name is well established. Product differentiation is mostly defined by the degree to which products differentiate companies or firms (Peng 2008, p.49). Peng (2008, p.49) in addition observes that when competition is negligible, there is a higher probability of a firms profits increasing or growing intermittently. This is highly enhanced by the fact that if one brand is not performing well in a certain market segment, the brand can be tried in other segments. Similarly there may be issues with a certain region of the market, say for example poor performance of a certain product brand due to the culture of people in that region. In such a case the compa ny will simply divert the brand to another part where its accepted. Resource requirements for implementation of chosen Short Term Strategies Price cutting In order to be able to implement the price cut strategy, Neptune will need to be prepared with enough resources to counter the consequence of the price cut. Among the likely consequence of price cut that Neptune need to be prepared to face is increased demand for its products resulting from lowering the price. The necessary resources here may include additional distributors and markers. Similarly more financial resources may be required to ease the necessary flow of inventory to the market. Increasing marketing segments and distribution channels In order to ease implementation of this strategy, several resources are paramount. To start with, Neptune will require a workforce of competent staffs, who will be responsible with rebranding, carrying out elaborate research on the best distribution channel and market segment. New staffs a nd transportation facilities will be required to handle increased inventory. In the same capacity, the company will also be in dire need of enough financial resources to undertake the whole exercise with easiness. Apart from the above two resources, the company will in addition be forced to deal with competent and trusted distributors in order to retain their customers loyalty.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Rebranding and product diversification In order to implement the rebranding and product diversification strategy, the company will as well be in need of several resources. Among the most necessary resources the company will be in need of are financial resources, competent and experienced staffs as well as up-to-date technological devices and machineries. Before rebranding their products, the company will need to carry out an extensive research in order to gain access to the necessary information concerning the way forward on how to rebrand. This means that the staff to be used must be competent enough to provide the company with the necessary and accurate information. Targets and Timescales for achievement of the chosen strategies First short term strategy From the first strategy, the company will be seeking to reduce or regulate the amount of inventory in the store to a manageable level in order to enhance more productivity. Through price cut strategy, the other target of the compa ny will be to reduce the amount of idle financial resources lying unutilised in stocked inventory. The time scale for the price cut strategy is expected to take less than year, for it to achieve the expected results. Second short term strategy The main target of the second short term strategy is to secure a large segment of the already available market, in order to enhance the sale of its excess inventory. The time period expected to lapse for the strategy to achieve its required result is roughly less than a year. Third short term strategy The aim of the third short term strategy is to increase the number of Neptunes products in order to facilitate more sales and avoid instances of neck break competition. Similarly, the strategy is required to take less than a year. Monitoring and Evaluation First short term strategy The first strategy can be monitored through constant analysis of the market reaction on the price. In case of evaluation, the management can try to evaluate the price depending on the tendency observed. In case the price is faring well, there is no need of altering it, but if the price is not responding as expected, then measures can be put in to action on how to make the necessary amendment. Second short term strategy To monitor the second strategy, the company will be forced to make a follow up on the way products are fairing in each of the market segments. In case the company wishes to assess the progress of the strategy, then the actual turn over can be compared with the expected turn over, and if they are in the region expected, the strategy can be adopted. Third short term strategy Rebranding and products diversification strategy can easily be monitored by having a close look on the market trend. To evaluate the value added by rebranding, the company can consider the revenue generated since rebranding and if the revenue is acceptable, the strategy can as well be adopted. Long term strategies Growth In an attempt to maintain a competitive ad vantage as well as consolidate its market position Neptune Gourmet Seafood is obliged to embark on transformational growth. The growth strategy is a multifaceted approach that comprises of expansion of production capacity, venturing in maiden markets, developing new product lines and carrying out market segmentation. According to Apgar (2006, P.130), growth is the best way of arresting risks related to upcoming competitors and uncertainties. NGS management should focus on diversifying its operation to avoid future stock over surge while increasing its revenues and efficiency. Strategic Management The current crisis has emanated from short sighted vision and coupled with lack of stable operation mechanism. By restructuring the management mechanism NGS stands a chance to avoid surplus production. Joyce and Woods (2001, p. 16) suggested that strategic management require thorough research to develop superior Knowledge Information System (KIS) and Material Requirement Planning (MPR) that effectively handles all the processes, sub-processes and activities undertaken by the company. Charles and Gareth (2007, 65) argues that strategic management not only increases revenues but also ensures the firms remains focused both to the long term and short term objectives. Information leadership The modern world is rapidly transforming in all aspects. In this post-industrial era, information has remained the bedrock of business world. Lack of stable information supply has led NGS into the dilemma on how to handle overproduction. Lack of proper knowledge and information management leads to lack in proper early warning systems and effective benchmark information (Dyer, 2008, p.65). A successful assumption of information leadership will help NGS to understand the actions of its main competitors and prospect of new markets. Resource requirements for implementation of long term strategies Growth Neptune Gourmet Seafood will require high trained management leaders to propel the firm into new growth. Well elaborate distribution channels and production plants will need to be installed to cope with the increased productivity. Moreover, new staff will be employed to deal with new products lines and overseas branches. Strategic Management For this strategy, the firm will need competent management and to install new system to help streamline operations of the firm. Regular maintenance will need to be done to enhance smooth operation. Information Leadership Neptune will require new staffs to help gather, analyse and interpret the finding of the information to ensure timely decision. The firm will also need to acquire specialized systems to handle the data gathered. Targets and Timescales for achievement of long term strategies Growth While growth is a cross cutting strategy, more time needs to be allocated to accommodate all its phases. Due to the rigorous activities involved a time span of three years will be require, during this time the firm will restore all its ph ases and developing new product brands and venturing in ne market niches. Strategic Management In order to achieve this strategy, a time scale of not less than a year is required. Strategic management is holistic management operation that entails evaluating the firm’s aims and objectives to determine the most appropriate approach. During this time the Knowledge managers will evaluate the firm’s short terms and long term goals accompanied by specific targets and indicators. Information Leadership The time required to fully effect this strategy should be one and half years. During this time stake holders such as the producer, software programmers, suppliers, retailers and consumers should be invited for a brainstorming session to design the information system to learn the firm. To come up with an efficient system numerous trials should be done too ascertain its functionality (Diorio, 2002, p.146). Monitoring and Evaluation of Long Term Strategies Growth Monitoring the fi rm’s growth is not an easy job due the sensitive nature of growth indicators. The existence of numerous indicators such as revenue, customer retentions rates, brand name strength, and competitive position among others sheds a dark cloud on the whole process. Nevertheless, monitoring the highly elaborate details requires specialized business analysts working with sophisticated systems. Strategic Management On this strategy, the firm will be required to, relying on competent personnel, come up with strategy monitoring and evaluation teams. Such teams will evaluate the efficiency of the different strategies adopted by the strategists in NGS. Although, observing lapses in a complex system is difficult but still attainable. Since strategic management uses computerised systems routine evaluation should be done to avoid obsolescence (Joyce Woods, 2001, P. 86). Information Leadership Neptune Gourmet Seafood will have to engage competent information specialists to carry out informati on monitoring and evaluation. Owing the sensitive nature of the information that the firm deals with, individual of high integrity will be required to avoid information leakage to the competitors. Therefore the firm will be forced to remunerate information analyst dearly to retain their privacy. Again, adopting of information technology in scanning for information and storage of information will go a long way in making a difference. References Apgar, D., 2006. Risk Intelligence: Learning To Manage What We Don’t Know. Harvard Business Press: Massachusetts. Berends, W., 2004. Price and Profit: The Essential Guide to Product and Service Pricing and Profit Forecast. Berends Associates: London Charles, H., Gareth, J., 2007. Strategic Management: An Integrated Approach. Houghton Mifflin Publishers: California David, F., 1995. Concepts of Strategic Managements. Prentice Hall Publishers: New York Diorio, S., 2002. Beyond E: 12 Ways Technology Is Transforming Sales And Marketing Stra tegy. McGraw-Hill Professional: New York Dyer, K., 2008 International Journal of Accounting Information Science Leadership. Intellectbase International Consortium: New York Henry, A., 2008. Understanding Strategic Management. Oxford University Press: London Joyce, P., Woods, A., 2001. Strategic Management: a Fresh Approach to Developing Skills, Knowledge. : Kogan Page Publishers: London Kazmi, A., 2008. Strategic Management and Business Policy. McGraw-Hill: New York Peng, M., W., 2008. Global Strategy. Cengage Learning Publishers: Mason