Prince Edward Island - Essay
Prince Edward Island Preserve, Co
Patricia D
March 26, 2012
Executive Summary:
Prince Edward Island Preserve manufactures and produced high- quality, high priced specialty food products. P.E.I.P.C. experienced rapid growth in its short history. In the first few years of its existence, founder Bruce MacNaughton expanded his company from one manufacturing and retail outlet in 1989, following a second retail outlet in 1991. The company also diversified and opened two restaurants in 1989 and 1990 respectively. It is anticipated that P.E.I.P.C. will continue to grow, with projected sales for the year ending January 1992, to reach one million dollars.
In August 1991, MacNaughton, contemplated on future expansion. The two cities under consideration were in Toronto and Tokyo. Options under consideration include adding retail outlets in the aforementioned regions. Also under consideration is to increase wholesaling, and the use of distributors (hotel and airlines). Expanding the mail order business is also an alternative. Although MacNaughton has weighed some or all options to diversify P.E.I.P.C’s operations, it is unequivocally clear the company lacks clear vision, strategy goal and objective. MacNaughton’s business had been built on gut and emotion rather than analysis. However, this approach may prove to be insufficient for the future. It is difficult to execute a strategy if goals are not specific, can’t be described or understood. However, guided by the proper analysis of the external environment (SWOT), together with the firm-level analysis (VRINE Model), MacNaughton’s can improve P.E.I.P.C.’s long term competitive business position.
Key Problems: This case highlights various strategic challenges MacNaughton face while contemplating expansion, and how to complete this objective successfully. The difficulty is to know when to close the gap between the firm’s aspiration and its current capabilities, resources and market position. The core issues
Patricia D
March 26, 2012
Executive Summary:
Prince Edward Island Preserve manufactures and produced high- quality, high priced specialty food products. P.E.I.P.C. experienced rapid growth in its short history. In the first few years of its existence, founder Bruce MacNaughton expanded his company from one manufacturing and retail outlet in 1989, following a second retail outlet in 1991. The company also diversified and opened two restaurants in 1989 and 1990 respectively. It is anticipated that P.E.I.P.C. will continue to grow, with projected sales for the year ending January 1992, to reach one million dollars.
In August 1991, MacNaughton, contemplated on future expansion. The two cities under consideration were in Toronto and Tokyo. Options under consideration include adding retail outlets in the aforementioned regions. Also under consideration is to increase wholesaling, and the use of distributors (hotel and airlines). Expanding the mail order business is also an alternative. Although MacNaughton has weighed some or all options to diversify P.E.I.P.C’s operations, it is unequivocally clear the company lacks clear vision, strategy goal and objective. MacNaughton’s business had been built on gut and emotion rather than analysis. However, this approach may prove to be insufficient for the future. It is difficult to execute a strategy if goals are not specific, can’t be described or understood. However, guided by the proper analysis of the external environment (SWOT), together with the firm-level analysis (VRINE Model), MacNaughton’s can improve P.E.I.P.C.’s long term competitive business position.
Key Problems: This case highlights various strategic challenges MacNaughton face while contemplating expansion, and how to complete this objective successfully. The difficulty is to know when to close the gap between the firm’s aspiration and its current capabilities, resources and market position. The core issues