Azalea Seafood Gumbo Shoppe wishes to develop a strategic plan to maintain long-term growth and sustain a competitive advantage. For Azalea to accomplish this, they will need to consider the options presented here. Included is an analysis of Azalea's problems and issues to address, along with recommendations to grow the business. The recommendations are based on the status of the current market and forces that drive the industry.
Azalea has a great product that will perform very well in the market. Marketing and sales are areas that will also need improvement. Management is very capable and should easily be able to adjust to competition in the market. A great deal of opportunity lies ahead in the many unfulfilled niches to be filled and explored. Azalea will need to expand and diversify its customer base. This can easily be accomplished by focusing on marketing and sales efforts. The company needs to concentrate on, not only providing a quality product, but also creating a well-known and trusted name. Azalea can easily become a household name!
Currently Azalea's average ROA is at 68%. As compared with industry norms this is wonderful. However, debt for the company is at 87% and needs to be much less. This too can be corrected with time and effort. The quick ratio is at 1 and short-term credit remains safe. Cash flow will also need to be improved by implementing a gradual price increase and initiating key retail locations.
Azalea has not been able to attract business due to the state of their facility, which must be updated to allow for growth. A major roadblock that must be addressed is the fact that the company has not been able to meet FDA or USDA standards. This must take priority and be resolved as quickly as possible. This is crucial to creating a trusted name in the market place.
Production and distribution issues will also be addressed. Many production issues will be...