Unicord Plc & Bumblebee

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The factors that were controllable by Unicord were:1. Aggressively cutting prices to displace incumbents.2. Investing 189 million bahts to increase its (annual) Thai production capacity of processed tuna by 33%. The company was confident of further market share gains eventhough industry profitability remained low due to price wars involving powerfulcompetitors.In hindsight Unicord could have done the following differently:1. Unicord could have been more flexible in its cross cultural relations with themanagement at Bumble Bee. By this I mean that Dumri could have been moreopen or more focussed on breaking down cultural barriers. These cultural barrierseventually played a role in the downfall of Unicord. For example, when themanagement at Bumble Bee was instructed to sell the plant in Puerto Rico andrepatriate the revenues to Thailand they refused. Had more focus been placed onbreaking down cultural differences from the beginning of the relationship thiscould have been avoided.2. Unicord could have been more conservative in its objective of increasing marketshare in the US. Although the US was the largest tuna market it was still only oneof the markets Unicord operated in and was extremely competitive with slimprofit margins. Starting a price war may have hurt Bumble Bee’s competitors butit also hurt Bumble Bee and Unicord.3. Unicord could have been more conservative in its purchase of a US basedcompany and maybe looked at buying number four or five instead of number three. This still would have allowed them to accomplish their goals of enteringthe world’s largest tuna market without stretching their financial solubility so thin. Discussion of alternatives Below are several feasible alternatives that can be utilized to solve the problem of whatcan be done to resuscitate Unicord:1. Do nothing, ie liquidate all assets and pay any revenues to creditors.2. Look for

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