Gascoyne Gold

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Gascoyne Gold case study

1. Outline how Porter’s value chain has been used by Gascoyne Gold and the advantages that have resulted from its implementation.

Porter`s value chain model looks at the primary and secondary activities with in the internal environment of an organization. From the case study it is shown that Gascoyne Gold has used porter`s value chain to reduce costs and to increase customer satisfaction. Primary activities:

* Inbound logistics: It includes all the activities sourced from outside the business. * Plants
* Fertilizers
* Transportation vehicles
* In field vehicles
* Suppliers for Gascoyne Gold
* Growers were left to concentrate on the growing of best quality tomatoes while the advanced packing shed would take care of the grading and packing of tomatoes. * Outbound logistics: It includes all the activities involved in getting the product to the customers. * Australia wide delivery of tomatoes.

* Due to computerized grading, tomatoes reach all parts of Australia according to state`s requirements of redness and sizes of tomato. * Marketing and sales: It involves all the activities related to marketing and sales. * Gascoyne Gold employed a full time marketing middleman which ensures that Gascoyne gold gets the best price for its tomatoes Australia wide. Before Richard Bloomfield (marketing broker) farmers had to send their tomatoes interstate and then wait to hear the best price from the broker, this way brokers sitting far way were cutting profits of the farmers, but now sharefarmers get the best price for their crop. Secondary activities:

Gascoyne Gold only used Technological development as their secondary activity. They built a packing shed which is the largest packing shed in Carnarvon. Key success factor for Gascoyne Gold is using latest technology. Tomatoes are graded using computer which is done in seconds, speeding the process of packing and shipping tomatoes. In old times, each tomato was graded manually by eye, which never gave perfect results and the process was really slow.

2. Prepare a ranked SWOT analysis for Gascoyne Gold.

Strengths a) Factor: New generationConsequence: Tony Varnkovich and Robbie Kuzmicich are two new generation farmers, they have seen their ancestors growing and now they are in business which gives them an edge. Robbie went to university to study business law and economics which means he can look after business more efficiently. b) Factor: Seven share holdersConsequence: Seven share holders invested $1 million each to build the packing shed, making it small investment to gain high profits. c) Factor: Share farmersConsequence: Share farmers don’t own the land but they work on these lands which are owned by share holders. This gives share farmers 40% profit where as share holders get 60% profit. d) Factor: Latest technologyConsequence: state of the art packing shed is equipped with latest technology for grading and packing tomatoes. Grading is computerized which is more accurate and more over it is done in seconds, saving time an resources. e) Factor: Geographical locationConsequence: Packing shed and tomato fields are near Gascoyne river, which gives growers plenty of water even in the dry season. f) Factor: marketingConsequence: Gascoyne Gold employed a fulltime marketing broker who looks for the best price for Gascoyne Gold.| Weaknesses a) Factor: Geographical locationConsequence: Due to high cyclone zone, location of Gascoyne Gold is a weakness. Recent floods costed growers millions of dollars. b) Factor: Casual labourConsequence: Relying on casual labour is their weakness. Rather than casual labour, they can hire permanent labour to reduce their chances of not having enough labour when needed. c) Factor: One marketing brokerConsequence: Relying on one marketing broker is a weakness.Its is possible that this person start playing with prices of Gascoyne Gold as he is the only one...
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