Azalea Seafood

The Azalea Seafood Gumbo Shoppe

Executive Summary

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 corrected as the facility is updated. Distribution is less of an immediate problem and future growth will resolve many of these concerns.

In the end, the owners must agree and commit to a plan. If the owners stand firm with their decision and remain flexible and dedicated to the plan, success is imminent.

Problems and Issues

* Antiquated quality control techniques and processes - Unable to meet FDA and USDA standards. HACCP processes and inspections are incomplete.

* The current facility will not support growth and is not state-of-the-art. It is not customer friendly.

* Azalea's customer base and distribution is limited.

* Cash flow and debt issues inadequate.

* Sales and marketing initiatives must be implemented.

* More control of product placement is necessary.

* Negotiation power with value-added seafood producers needs to be strengthened.

Recommendations

The owners must first commit to becoming FDA and USDA approved. The Hazard Analysis Critical Control Point (HACCP) process must also be in place for monitoring and inspection. This process should be easily accessible and transparent. Customers must be able to trust quality control and be confident they are purchasing a superior product.

Azalea's current facility will not support growth and must be brought up to required specifications. It must appear attractive and appealing to customers. This is worth the initial investment and will be the largest expenditure.