Ganong Bros Ltd.
Ganong Bros. Limited
Situation:
Ganong Bros. Limited (GBL) was founded in 1873 by two brothers in St. Stephen, New Brunswick and has gone through 4 generations of remaining a private family firm. The firm is an international company with exports to middle east and Japan. As well as a factory in Thailand. Over the past couple years GBL has shown a financial loss. GBL is a The board of directors consisting of 6 external members and 2 family members, have decided to give David Ganong, president of GBL, 6 weeks to come back with recommendations that would be able to restore the company to profitability and increase productivity.
Objective:
As David Ganong, president of GBL, I need to come up with a recommendation to pass on to the board of directors to be analysed and hopefully passed upon further review. These recommendation will bring the firm back to profitability, as well as develope a new $10 million block of business increasing revenue by 50%. So as president I would like to look at options that involve maintaining the goal of the company and doing my best to keep Ganong Bros Limited privately owned and in the town of St. Stephens.
Analysis:
Environment
PEST
Political: The Ganong company was doing fairly well before the free trade was involved in the industry. Before the free trade companies that wanted to come to Canada they had to pay a tariff as high as 15%. Where if a Canadian company wanted to move into the American market, they were able to do so on only having to pay a tariff of 5%-7%. With the free trade the Canadian industry lost that tariff differential. Economical: Ganong Bros. Limited has a big focus on the economy in and around St. Stephens. They are always trying to make sure their community is driving the company. Social: In the Canadian industry it has been effected by two social reasons. Those reasons are; a lower proportion of children in Canada, and that there is also a growing number of health conscious Canadians.
Situation:
Ganong Bros. Limited (GBL) was founded in 1873 by two brothers in St. Stephen, New Brunswick and has gone through 4 generations of remaining a private family firm. The firm is an international company with exports to middle east and Japan. As well as a factory in Thailand. Over the past couple years GBL has shown a financial loss. GBL is a The board of directors consisting of 6 external members and 2 family members, have decided to give David Ganong, president of GBL, 6 weeks to come back with recommendations that would be able to restore the company to profitability and increase productivity.
Objective:
As David Ganong, president of GBL, I need to come up with a recommendation to pass on to the board of directors to be analysed and hopefully passed upon further review. These recommendation will bring the firm back to profitability, as well as develope a new $10 million block of business increasing revenue by 50%. So as president I would like to look at options that involve maintaining the goal of the company and doing my best to keep Ganong Bros Limited privately owned and in the town of St. Stephens.
Analysis:
Environment
PEST
Political: The Ganong company was doing fairly well before the free trade was involved in the industry. Before the free trade companies that wanted to come to Canada they had to pay a tariff as high as 15%. Where if a Canadian company wanted to move into the American market, they were able to do so on only having to pay a tariff of 5%-7%. With the free trade the Canadian industry lost that tariff differential. Economical: Ganong Bros. Limited has a big focus on the economy in and around St. Stephens. They are always trying to make sure their community is driving the company. Social: In the Canadian industry it has been effected by two social reasons. Those reasons are; a lower proportion of children in Canada, and that there is also a growing number of health conscious Canadians.