Foods Business

Published: 2021-09-10 10:10:09
essay essay

Category: Business

Type of paper: Essay

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Mary Alice McKenzie is facing numerous issues in growing her Vermont-based fresh-prepared foods business. She must address immediate operational problems-such as bottlenecks and capital equipment decisions-as well as decide on a long-term strategic position. This case investigates how she can structure her operations today to take advantage of the continued growth in the home meal replacement market.
The present status of business generated at Fresh Connections is 50% from the retailers, 25% from the restaurants, and 25% from co-pack companies. However, from 1985 to 1995, the food market showed an 80% growth in the area of restaurant business and only 11% in the area of grocery stores. Restaurant business is a growing industry and opens a lot of door for new clients and growth for a company like Fresh connections. Based on this, the target market for Fresh Connections should be redirected from retailers to restaurants. The smart distribution that will be more profitable is up to 50% of business focus on the restaurant business, up to 30% on the co-pack business, and 20% or less on the retailers. This new business distribution will increase contribution margin and sales revenue for the company. Revamping the focus of the business will also make the company more innovate in research, development, and employee training, therefore making them more solid in their field of business.

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