Prince Edward Island Preserve Company

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Case Study:

Prince Edward Island Preserve Company

Prince Edward Island Preserve Co Ltd (P E I Preserves) manufactures high-quality, high price point specialty preserves and related products—vinegars, sauces, etc. It has to choose from a variety of expansion options including retail outlets in Toronto or Tokyo, automated bottling and increased production. It is recommended that the company increase production and emphasize its competitive advantage—its reputation for natural quality.

Current Strategy

Prince Edward Island Preserve Co Ltd (P E I Preserves), is anticipating annual sales of one million dollars for the first time in its short history. Over the first four years of its existence it has expanded from one retail outlet at its manufacturing plant in New Glasgow to include a second retail outlet and two restaurants. It is anticipated that expansion will continue in the future. Consideration is being given to a wide range of options for future growth. P E I Preserves retail outlets in Tokyo and Toronto are possibilities. Increased wholesaling and use of distributors is an alternative. Expansion of the mail-order business has also been proposed. As well hotel chains and major airlines have expressed an interest in single serving sized jars and large volume purchases (300,000 units). Overall, the company is poised to expand but has little focus. Essentially, it is considering any and all of its diverse operations for expansion. This lack of focus is not surprising considering the ad hoc manner in which the company was born and has grown. P E I Preserves was founded when Bruce McNaughton, having lost $25,000 on a failed restaurant decided to convert his sole asset, 100 kilograms of strawberries, into Christmas gifts. Gradually, as opportunities presented themselves the company expanded. It was hoped that it’s most recent venture, a retail outlet in the CP Prince Edward Hotel in Charlottetown, would increase...
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