Question

Case Study: Gourmet Jams Inc.

Strawberry Delight

Gourmet Jams Inc. has been in the local Ontario food market for nearly six years. The company started in 2012 as a home-based start-­­up inspired by Nona’s mouth-­­watering jam recipes. Stephanie and Adam, a couple from Windsor in their early thirties, both lost their well-­­paying jobs in the automotive industry. Though, both received a substantial severance pay and an opportunity to go back to school to learn new skills, neither felt this would be something to consider. At the same time both were convinced that working in an automotive industry gave them solid understanding of what is needed to be successful and, more importantly, they realized that neither wanted to work for someone else ever again. Stephanie and Adam, as did the entire neighborhood, had something else in common: love of Nona’s delicious home-­­made jams. Granny Antonia, or Nona, as her grandchildren called her, was known in community for her home-­­made cookies, cakes, pastries and jams. Her culinary delights became a common feature at many weddings, birthday parties and family events. Nona was thrilled and very much willing to spread the goodies; but never, despite persistent attempts to share her recipes, especially for jams, was she inclined to reveal her secrets.

Stephanie, Nona’s youngest grandchild, grew up spending many hours watching her making jams. There were all kinds: plum, peach, pear, blueberry and her favourite, strawberry. On a rare occasion, Nona made a particular rare specialty, wild strawberry jam.

Sweet Opportunity

Today, Gourmet Jams Inc. is a successful small business, supplying gourmet shops across Ontario. Two new workers were hired to help with the operation and together with Stephanie, Adam and cousin Roberto, the Gourmet Jams Inc. today employs five people. All ingredients used in the process are natural, organic and fresh. Just as Nona’s. The annual sales for 2018 surpassed $700,000. That was quite an achievement. But successes didn’t stop there. The recent visit at the Philly Farm & Food Fest in Philadelphia proved to be great success. Many visitors stopped at the Gourmet Jams Inc. booth and as they tasted the jams expressed interest in ordering them. They had established distribution capabilities and were ready to order. Several specialty stores, including Whole Foods also indicated interest in carrying the Canadian jams and Stephanie and Adam were now convinced they have the opportunity to export their gourmet home-­­made jams to the US market. And then, global pandemic Covid-19 stuck.

What is next?

Stephanie and Adam don’t want to grow their business too fast. But, they also don’t want to miss the expansion opportunity. They are in favour of cautious but firm entry into the US market. As they are focusing on the niche market across the border, the lingering question remains. Can they ship the jams directly to the US without hiring a consultant? This is an expense they may not be able to afford. Nick, with a degree in Marketing, but limited experience in the field, was convinced that he can find the way to navigate the exporting process and manage supply chain internationally. He was confident he will find all relevant information online. Will it really be that simple?

Based on discussion with Stephanie and Adam, the following questions were raised:

1. Are there any product modifications needed?

2. How will the inventory be managed?

3. What kind of paperwork needs to be completed to cross the US / Canada border? What are regulations in terms of the product on either side of the border?

4. How will jams be shipped and transported?

5. Where will the jams be stored once they cross the border?

6. What are the risks for Gourmet Jams Inc.?

7. Will there be any external partners required?

8. What are Gourmet Jams Inc. financial requirements to launch the international expansion?

What government funding is available to Gourmet Jams Inc.?

9. There seems to be a specialty market interested in Wild Strawberry jams. Is production of wild strawberry jams something Gourmet Jams Inc. should consider? How to manage supply of these strawberries? Should we consider growing our own or outsource locally?

Note: wild strawberries are also known as Woodland Strawberries, Alpine Strawberries and Forest Strawberries (Fragaria vesca).

Note: Your analysis must address the questions above; however, do so in business planning format as follows.

Guidelines

Thoroughly answer the questions the Gourmet Jams Inc. elevated and incorporate them in you analysis. Your written analysis should include the following Table of Contents:

• Executive summary

• Introduction

• Supply Chain Management

o Supply chain maps and strategies

o Border clearance documentation and other regulatory compliance (i.e. FDA, CFIA)

o Sourcing and production

o Materials management, handling and delivery

o Product modifications (i.e. labeling) o Storage and warehousing space

o Order processing

o Shipping and transportation

o Inventory management and Quality Control

o After-­­sale service and customer satisfaction

o Risk management

o Human resources required

• Marketing Strategy

• External support partners

• Financial requirements

• Implementation schedule and recommendations and key success factors

( Highlighted questions 4 and also the above-italic terms are needed to be answered )

Answer 1

(Q-1,2,3) Inventory management and quality control- Inventory management refers to the management of the stock to be stored i.e storage of the excessive stock produced in order to fill the gap between its production and final sales to the ultimate consumer and quality control refers to the quality check of the stock for the business for whom it is mandatory in which the stock is checked at the time of production or at the time of distribution of the stock by comparing it with the standards.According to the given case their are some question that arises regarding inventory management and quality control that need to be answered,i.e the product modification is required as due to the prevailing covid situation the product need to be modified in term of packagaging and hygiene as the company need to be more careful with the effective packaging keeping in mind the consumer safety, The inventory or the stock need to be managed in the prevailing situation as their is the situation increasing number of cases and due to which the market activities are going limited so the stock need to be managed in order to maintain the effecient supplyi.e it need to stored in a cold storage warehouse in order to preserve the products from damaging, In order to export the goods to US and Canada the company need to require the following paperwork like the shippment bill, custom invoice, letter of credit, bill of ladding, custom packaging list etc are the required documents that need to be maintained in order to export The required regulation that need to be abide with are the prevailing tax laws, customs and export regulation, NAFTA rules etc are some of the mandatory requirement that need to be abide by.

(Q-4,5) After sale service and customer satisfaction- After sales services refers to the services provided to their customers by the company in order to provide them with ultimate satisfaction as the customer will only bee satisfied when they get their desired goods as and when demanded. The jams need to be shipped and transported by means of effecient transport mean as it can be shippe throdugh waterways or either by airways and need to be taken proper and effient care of the product to be transported in order to provide the goods in the desired condition to the ultimate consumer in order to ensure their satisfaction The transportation of goods need to be done as soon as the customer demands arises in order to fulfil it immediately and get their customer satisfied As soon as the product (jams) crosses the border they need a proper and efficient storage like the companys own store or any third party tie-up of the company in order to provide the goods to the consumer.

(Q-6) Risk management- As risk management refers to the management of all the factors of the risk that might arise in the course of its business. The risk factors for the Gourmet Jam Inc in the arisen situation of COVID-19 outbreak

• Sales of their product in the situation is quiet difficult as no new customers will be formed .
• Loss in case of inventory stock as the company has the stock of produced goods if not sold will result in loss of the inventory stock.
• Expansion of their business- in the situation of covid their is very little scope in terms of expansion of the business and that to in the global market.

(Q-7,8,9) Human resources required- Human resources refers to the requirement of the human staff in the performance of the activities involved in the business. As the human resources is required at various level

The external partner may be required at the time of inventory management and also at the time when the goods crosses the border in order to provide them to the ultimate consumer and in order to provide them with the storage until the final sales of the product. The financial requirement of the Gourmet Jams in case of international expansion as the company need to established its shops across borders in order to sell the goods in the international market by providing them to the consumer when demanded As the market seems to be specially interested in the wild strawberries jams which can be seen as an opportunity for the growing gourmet jams in order to win more customers and their demand and for the supply of those wild strawberries the company should consider growing at their own sources in order to minimize its cost at growing can be more cost effective for rhe company.

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