Business Case Study: Siam Canadian Food Co., Ltd
Introduction of the Company :
SIAM Canadian Foods, founded and managed by Jim Gulkin, is a Bangkok-based Canadian-owned company that has been involved in the seafood brokerage business for almost 10 years. It was started in April 1987 after Canadian Jim Gulkin quit his job in the oil industry and invested his life saving of Cdn$130,000 in the business. When first starting out , Gulkin was total inexperienced in the food brokering business. SC’s role as a food broker was to indentify overseas customers, usually food importers, and negotiate sales with them on behalf of food processors in Thailand. Siam deals with an extensive assortment of frozen, canned, and dehydrated products that include: frozen seafood, frozen poultry, canned and frozen fruit, canned and frozen vegetables, dehydrated fruit, and, lastly, juice concentrates. The company was founded in April, 1987 and first achieved profitability in 1991, and has continued to be profitable ever since. That same year Jim Gulkin’s exporting operations have expanded to Vietnam and Ho Chi Minh City. In 1991, Gulkin opened up new representative office in Vietnam with the help of Philippe Vo. Earned an average commission revenue of 1.25% on sales contracts, usually denominated in US dollars.
a) Jim Gulkin's dilemma to invest in Burma:
Jim Gulkin, the founder and managing director of Siam Canadian Food Co. is considering a business investment in Burma which would allow him to expand the frozen seafood side of his business. The dilemma he faces is deciding whether to invest in Burma now with the current political, economical, and geographical uncertainties.
Gulkin's knowledge and Experience in the Business he is doing Good relations and trust between Gulkin and local Processors Significantly large portion of Commission margin in the business Weakness:
Lack of reliable research
Lack of Professional mentor
Good percentage of renewable natural resources
Increasing growth and demand for food industry
Doi Moi (renewal) policy, Foreign Investment Law
Government implications on fishing
Economy and Infrastructure
Portor's Five Forces: Pic: a- Porter's Five forces
New Entrants: : There are many attractive reasons for the entrepreneurs to enter the market like high commission margin in business, less investment and other factors of production, availability of plenty of resources with huge coastal area and many more. The Impact of New Entrants related to sea food business is high which will increase the competition for Gulikn's Business. Suppliers: Micro business, Fishermen, contractors and etc., As there are ample number of small business suppliers and good percentage of availability of renewable natural resources (sea food) the power of suppliers is minimal. Furthermore, Gulkin has a good relations and financial capacity to hire his own personnel for suppliers under Laws. Buyers: Restaurants around the world, local and global food businesses, food processing Organizations, Government and etc., The Power buyers can be said as Low, as the food is the basic need for everyone and the food industry sector is developing day by day. There is a growing demand for the sea food from different parts of world. Substitutes: Vegetables, Meat, cereals, pulses, Fruits, stomach filling drugs, supplements, snacks etc., The list for the substitutes for sea food can be endless. Even in the absence of sea food, there are whole bunch of substitutes for sea food which can be preferred by consumers results in reduction of sale margin and the power of substitutes is high.. Competition: PL Corporation, Hong Kong- based Sun Wah and A sourcing division of the Japanese trading...
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