Class or Mass

1881 words 8 pages
Jason Hwang
MGMT 430 A

Class – or Mass?

Executive Summary

Neptune Gourmet Seafood is an $840 million corporation that provides premium seafood in North America. They are the 3rd largest seafood producer in the market, and have been around for 40 years, continuously providing the highest quality of product. Despite their success, they are having issues with what appears to be a temporary problem of excess inventory. Due to new coastal laws, investments in new freezer trawlers and fishing technology, Neptune’s trawlers have been able to move further out to sea to fish and maintain the quality the company has been known for. By going further out to sea, they have been bringing back larger than normal catches due to richer fishing grounds,
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If Neptune were to start a mass brand such as Neptune Silver, they may find that it doesn’t do well with the ASPD, and their Gold seal may be revoked. Neptune may donate their excess supply to charity and receive tax benefits, however, this option would most likely result in loss in revenue, and there are losses for potential opportunities. Neptune may being a line of restaurants that utilize the excess premium fish as their main ingredient, however, it would require much restructuring and logistical change that may bring in more costs than profits.

External Factors/Research

According to the Food and Agriculture Organization, fishing communities have been transition from supplying regional markets towards more export-oriented approaches. Price structures have become an important factor of external commodity markets (Witter, 2012). Larger commercial operations have more leverage, providing the ability to bargain more effectively with large seafood purchasers.
Government regulations and requirements are a major supply regulator. Regulations on fishing gear and fishing areas are made in hopes to maintain a long-term sustainable eco system. These regulations and laws have become an obstacle for many fisheries.
Along with price, seafood consumption and disposable income measures how much seafood the average American is able to consume in a given year.

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