Post on 13-Jan-2015
description
Case Study : Pure Fiji Exports Ltd.Group 2
Archana SinghS99000405
Maxine Valentine S97002304
Stuart Gows11100919
Scope
• Background• Products• Company Structure• Financial Structure• Operations
• Marketing & Suppliers• Sustainability Policy• SWOT & Issues• Solutions &
Recommendation
BACKGROUND
Background
• 2000 – Company formed as Home Business– Initial Primary Clients- Airlines & Hotels
• Primarily an Export Company to USA• 2001 - Kitchen to Factory• 2004 – Extension of Factory
PRODUCTSPure Fiji & Reniu Ranges
Brands
• Branded body care products• 3 Brands–Reniu brand–Mana‟ia –Pure Fiji
COMPANY STRUCTURE
Pure Fiji Exports Ltd
• Fully Fijian Owned• Limited liability company• Family owned, managed and operated : – Ms Gaetane Austin– Ms Andree Austin
FINANCIAL STRUCTURE
Financials
• All financials estimates– Private Company not req’d to publish
• Total estimated value of investment : FD$5,000,000
• Equipment Value : FD$1,000,000• Initial Establishment Costs 1995 – FD$8,000
OPERATIONS & QA
Operations
• New Factory large• Runs only 1 shift daily• Very manually
managed• No proprietary
processes
Just in Time Ops
• JIT operations management is used• Suppliers assisted for
consistency• DHL coordinated by
company to ensure fast delivery
Quality Assurance
• Extremely important• High End products• Customer very fussy• Eye for detail• ISO and USA FDA approvals needed
MARKETING & SUPPLIERS
Marketing Strategy
• Exclusive Distributors• Word of Mouth• Gift Items- Grammy &
Emmy awards• Factory outlet• E-Commerce - Website
Distributors
• Exclusive distributor agreements
• Well established, loyal
• Boutique spas• Not mass marketed
SUSTAINABILITY & CSR
Social Responsibility
• Education: Student scholarships• Community Suppliers: –Paper makers–Cold pressed nut oils–Basket weavers
Sustainability
• Locally sourced Raw Materials
• Local Pacific Nuts• Local Virgin
Coconut Oil• Drying process
Solar
SWOT
Strengths
• High quality standard & quality control
• Just in time management• Human resource management• Supplier relationships• Skilled and efficient labour
Strengths cont.
• Exclusive distributors– well established, loyal
• Established high-end brand• E-commerce• Multi Award winning
Weaknesses
• Suppliers unreliable• Inconsistency of coconut oil• Current MD/CEO is aging• Family based structure, no succession
planning
Weaknesses cont.
• Company does not “want” to expand• Factory very “manual”– Needs automation &
technical upgrade
Opportunities
• Products for men• New geographic distribution
areas –China!
• Diversification of Spa offerings
Opportunities cont.
• Sell the company for a profit• Public offering (IPO) on SPSE• Tax free zones in Fiji for
expansion• Acquisition of Competitors for
Regional Expansion
Threats
• Competition from lower price items – Vanuatu, Fiji, Samoa, Tahiti…
• New fashions in skin care• Distance from customers– Fiji a long way away from USA
ISSUES
Issues…
Lack of Succession Planning• Current management aging• Small board, not broad experience• To remain family owned?
Issues…
Limited Production Capacity• Current factory– no space for expansion
• Workforce– Need to double to add a full shift
Issues…
South Pacific Copycat Competition• New Caledonia, Tahiti, Vanuatu, Samoa• Products not unique or difficult to reproduce
POSSIBLE SOLUTIONS
Succession Planning
• Restructure the company• Add middle management• Expand current Executive to a Board
Expand Operations
• Add another shift• Look at another factory location• Possible to buy out neighbors?
Sell Company
• Possible to maximise profit to owners–Launch on SPSE –Possible Private Investors–Possible buy-out by larger firm
RECOMMENDATIONRecommendations for Pure Fiji’s next 5 year plan….
Recommendation
To make next step in Company Growth• Restructure & Rejuvenate Management
Structure
• Achieved at same time as attracting further investment/funding through one of 2 methods
InvestmentRecommendations
Launch on SPSE• Current owners maintain
majority share of company• Attract major investment in
country• Enlarge Board of Directors• Achieve personal income
from share sale
Private Investors• Search locally• Possibly same bodies as
SPSE• Maintain confidentiality• Maintain controlling share• Enlarge Board of Directors
Pure Fiji Export Limited
A Skin Care Company In Harmony With Nature And Culture
Case Study : Pure Fiji Exports Ltd.Group 2
Archana SinghS99000405
Maxine Valentine S97002304
Stuart Gows11100919
References
• Austin, A. Director. Pure Fiji Export Limited, Suva. Personal Communications• Frodey, C., Naidu, Y., 2008, Pure Fiji Export Limited: A Skin Care Company In Harmony With
Nature And Culture, Journal of Business Case Studies – February 2008, Volume 4, Number 2• Chaudhari, A. 2002. Harnessing Local Skills. The Review, February, 18.• Gremler, D.D., Gwinner, K.P., Brown, S.W. 2001. Generating Positive Word-of Mouth
Communication through Customer-Employee Relationship. International Journal of Service Industry Management. Vol. 12, No1, Pg. 44-59.
• Kavaliku, L.2000. Culture and Sustainable Development in the Pacific, In Hopper. A. (ed.), Culture and Sustainable Development in the Pacific. The National Centre for Development, Canberra.
• Kuratko, D.F., Hodgetts, R.M. 2001. Entrepreneurship – A Contemporary Approach. 5 th Edition. Harcourt College Publishers, Orlando.
• Pure Fiji Limited, Pure Fiji Home Page http://www.purefiji.com (2013)• Yoffie, D.B and Michael, A.C. 1999. Judo Strategy – The Competitive Dynamics of Internet Time.
Harvard Business Review, January –February, Pg. 71-81