“I learned when I was very young that money could bring you happiness but as I got older I found out that money can’t bring you happiness. The only thing that can bring you happiness is family.” John Risley: A pickup truck and a load of ambition.
Case 1: Clearwater Fine Foods Inc.
Professor Nickolas Murray
August 1, 2011
Clearwater History (ADD OVERAL COMPANY)
John Risley had a clear objective when he co-founded Clearwater Seafoods with his brother-in-law, Colin MacDonald, back in 1976: He wanted to make money and put food on the table. “That was the driving force,” says Mr. Risley, the company's former chief executive officer and current chairman. His family's tough financial times while growing up in Nova Scotia made him determined not to be poor. “We started Clearwater Seafoods with a pickup truck and lots of ambition,” he says. Mr. Risley and Mr. MacDonald took the business from a small lobster distribution company, in a low-tech industry, to about $300-million in annual seafood sales by 2002, the same year that Mr. Risley was named one of Canada's top entrepreneurs by Profit magazine. Mr. Risley's strategy was to foster innovation by investing in the latest and best technology to improve the product and keep costs down, for example, something as simple as replacing Captain’s logbooks with notebook computers, while GPS tracks vessels and maps the ocean floor. Clearwater is the largest shellfish company in North America and its chairman believes integrated technology and innovation is what has given Clearwater an edge over the competition in the global seafood market.
The company, has ships around the world and has cashed in on growing demand for its shellfish. It has also devised new ways of shipping fresh seafood to global customers, creating new markets for its products, which we will discuss with you in the below analysis. The company primarily sells its products in Canada and exports to more than 30 countries, inclusively to the US, the UK, China, Japan and other countries. The company also holds a subsidiary in Argentina and 11 (plus) factory freezer vessels. Clearwater and the company is headquartered in Bedford, Nova Scotia, Canada. They have the bulk of their brick inIn late 2003 Clearwater Fine Foods announced the planned divestiture of its sizeable Lunenburg NS at Lunenburg Real Holdings which consist of eight wharves, 24 buildings and approximately 14 acres, taking up the majority of Lunenburg’s historic waterfront. http://www.thetelegram.com/Business/Economy/2007-11-15/article-1440827/Clearwater-likely-to-be-bought-back/1 Risley and MacDonald took the seafood company public in 2002 at $10 per unit, at a time when income trusts were a popular vehicle for tax savings. Clearwater's products include scallops, lobster, clams, coldwater shrimp, crab and other fishes. The company sources its assortment of seafood items from Canadian fresh water, North Atlantic regions and a few African regions. (http://www.food-business-review.com/companies/clearwater_seafoods_limited_partnership) Clearwater Seafoods is a leader in the global seafood industry recognized for its consistent quality, wide diversity and reliable delivery of premium seafood. Since its founding in 1976 Clearwater has invested in science, people, technology, resource ownership and resource management to sustain and grow its seafood resource. This commitment has allowed it to remain a leader in the North American seafood industry. (www.clearwater.ca)
Clearwater has consistent growing demand in the UK, Japan and North America and proven that they are secure and understand these growing markets. It is China, a.k.a “The Sleeping Giant” that we are going to focus on in the below analysis. China is a developing country in the world. In recent years, more and more foreign countries have recognized that China’s economy is growing. China's economy grew at an average rate of 10% per year during...
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