New Zealand King Salmon
Name
Institutional Affiliations
Executive Summary
New Zealand King Salmon rules in Sydney market with the best species ranks that one has never experienced. King Salmon have the ability of showing exceptionally strong results amongst the consumers which has caught attention of Aussie palates. However, the company has the dilemma of developing four new fish farms in the Marlborough sounds ever since they were faced with environmental and social factors from the community, despite the expansion being profitable. The major problem was that, the decision that were previously made by the Environmental Protection Authority to grant the four sites for salmon farming had prohibited zone of the Marlborough Sounds, hence posed some interesting questions for the Marlborough District Council and for the wider community. It is a recommendation for the New Zealand King Salmon to involve in the expansion of fish farming that will then improve the living standard of people through job opportunities.
Introduction
For many years New Zealand King Salmon has been dedicated to producing a top quality product which was achieved through good managing practices such as choosing a pristine and unpolluted rearing environment. The New Zealand King Salmon’s innovative farming, processing as well as distribution operations are integrated in single systems which allowed easier monitoring and controlling at all stages. The New Zealand King Salmon faces a dilemma in the salmon rearing in spite of it being the largest producer in the New Zealand. One of the dilemmas that face the company is the growth retardation of King salmon walbaum (Martin & Gillard, 2003). This is a major challenge facing the marine fish farming. Despite the sound understanding of the ecological rearing conditions for the king salmon in the seawater, the theory that leads to the growth retardation remains a dilemma. Collaborations have been made with leading New Zealand aquaculture companies to study the physiological state and the causal factors for the retarded growth. The retarded growth of the king salmon poses a major challenge to the company in meeting the great seafood demand in both New Zealand and the foreign markets. The delayed maturity means that the supply is less as compared to the demand leading to disequilibrium in the market. Thus, the company is carrying out a research on the conditions while trying to implement the control mechanisms for the prevailing dilemma (Sankaran, 2004).
Discussion
Relevant aspects of the business environment
In regards to various dilemmas affecting the New Zealand King Salmon the advancement of technology has formed an inherent part in the business environment of the New Zealand King Salmon company. And as a result, this has forced the company to adopt the most recent and developed techniques in the breeding, rearing, harvesting and processing of the salmon fish. In this, the companies tend to enjoy the benefit of effectiveness and efficiency while helping it to minimize the operational costs. The fish eating culture that exhibit the people of New Zealand as well favors the operations of the New Zealand King Salmon. Through this, the demand for their products is high and the company realizes a high revenue margin (Sankaran, 2004). To allow the company to continue gaining its competitive advantage from other competitors, the company should scan its environment by using the PESTLE analysis tools. The company has a rich consideration for its environments in terms of sustainability and preservation. Further, the company faces some political interference thereby hindering a smooth operation. In the recent past, the Environmental Management Authority had filed a Supreme Court challenge against the company to stop its bids for expansion. However, they were withdrawn successfully (Martin & Gillard, 2003).
The relevant aspects of the business environment of New Zealand King Salmon Company are that, the company markets four retail brands of sea food products. These include, Regal Salmon, Southern Ocean and Sea smoke. Regal salmon is available in a range of wide varieties of cuts and styles such as fresh and frozen fish (Regal Salmon, 2012). The southern ocean brand is natural, affordable and a convenient pack of smoked salmon. These are produced from South Island waters in the New Zealand. While the sea smoke is a traditionally smoked product, locally sourced and cured in a selective hardwood smoke, sea salt and some natural marinades to enhance its flavor. These are the products that keep New Zealand King Salmon Company in business. In carrying out the seafood business, the company is restricted to some environmental and legal factors that are meant to be complied with. For instance, the company is required to comply with environmental considerations for it to be allowed to expand its fishing farms (Sankaran & Research, 2007).
Stakeholder Interests
The New Zealand King Salmon is a top business performer in the Sydney market. The two major and key owners run the New Zealand King Salmon. These include Evergreen Holding Limited and Direct Capital. The Evergreen Holding Limited has a stake of 51% while the Direct Capital with a stake of 42%. The management and the directors with 7% stake hold the remaining stake. The annual turnover of the company is on average NZ$115 million with a total asset value of more than NZ$75 million (New Zealand King Salmon, 2013). This is realized from the company’s annual harvests of 8500 metric turns that account for 70% of all salmon production in New Zealand and 55% of the world production (Martin & Gillard, 2003).
The research also showed that, during the month of March, the fish sales tripled with an expected future-increased sale. In July 2013, the largest owner, evergreen holdings had 12,856,250 shares followed by Direct Capital Partners with a total of 3,192,513 shares. The main stakeholders interests in New Zealand King Salmon is to maximize profit given that the research showed that they own the business and at the same time are majorly concerned about the success as well as, the growth of the company. A good example is the Evergreen Holding Limited who tried their best in contributing to the growth and success of New Zealand King Salmon Company (Martin & Gillard, 2003). Other key stakeholders includes Pohutukawa Lambda Investments Ltd with 2,721, 682 shares (10.77%), and Direct Management Investments Ltd with 1,989,613 shares (7.87%) whose main interests is to see if New Zealand King Salmon improve what it offers as well as, coming up with entirely new solutions to the customer needs based on the demand of the customers (Larsen, 2011).
Business Decisions
Regarding the dilemma that faces the New Zealand King Salmon Ltd, the company is tasked with the responsibility of making decisions ethically to handle the issue professionally. As discussed earlier, the dilemma that faces the company is the dilemma of dilemma of developing four new fish farms in the Marlborough sounds. To handle the issue in the professionally way possible, the company has joined hands with the major aquaculture companies in the New Zealand to carry out an intensive research regarding the dilemma. Conversely, the New Zealand King Salmon Limited is involved with corporate social responsibilities. The rearing and sea farming is said to contribute to environmental issues, however, the company has resolved to maintain a sustainable environment in a bid to expand its operations.
The company also plays a role in the improvement of the welfare of the community living around them. This is facilitated through donation to fund education for the needy children within the population (Scoop, 2013).The company also establishes social facilities such as schools, medical facilities and takes part in the environmental conservation programs. Through this, the New Zealand King Salmon Limited remains a responsible social entity in the administration of social welfare of the society and as it makes it decision in an ethical manner.
Applying the Solomon’s three C’s of business ethics in business has made good sense to the New Zealand King Salmon. In regards to Kantian theory, it is believed that some actions within the company should be prohibited. For example, New Zealand King Salmon Company has involved in ethical rather than unethical issues hence ensures that class of actions in accordance with their duty is distinguished from the class of actions performed from duty. The company’s major aim is to maximize the happiness and reducing suffering of the customers (Sankaran & Research, 2007). The company is involved with the CSR ensuring its customers with a good environmental status to facilitate a serene environment for the communities living in the New Zealand Cook Island. The waters as well are maintained to the freshest waters, to ensure that it is quite conducive for salmon and for the community. The main objective of the New Zealand King Salmon Company is to improve the welfare of the employees by providing working environment for the employees, proper scale wages and promotional strategies. They ensure to work with the employees while improving their skills and productivity (Larsen, 2011).
Conclusion
In conclusion, New Zealand King Salmon is a leading producer of salmon fish in both New Zealand and the world with a production of 8500 metric ton. These comprise 70% of the salmon production in the New Zealand and the portion of 55% of the world’s salmon production. However, the company is faced with a challenge that retards the growth rate of the salmon fish leading to underestimated supply. However, the company has joined hands with major fish industries in the New Zealand to reveal the causes of the retarded growth. The company is owned and run by two major shareholders; Evergreen Holdings and Direct Capital Limited. Their shares composition is 93% with the remaining 7% owned by the management and the board of directors.
The company has been influenced by some macro-environment factors such as political, environmental and socio-cultural factors. The company has adopted proper technological techniques that enable it to run both efficiently and effectively. The company is socially responsible to the main people around its operations. These are employees, society, shareholders and relevant stakeholders. The company has a high sales turnover that leads in the Sydney Market. Lastly, the company is also socially responsible to its stakeholder who provides the funds for the running of the business. The company pays good returns on investments to the shareholders (Sankaran & Research, 2007). These serve as a good return. Generally, the New Zealand King Salmon Limited is a responsible corporate body which appreciates the efforts to environment, employees, customers and its stakeholder.
References
Bell, E. (2006). New Zealand King Salmon: On Sustainable Salmon Farming. StarChefs.com – Index Chef Recipes, Restaurant Jobs, Food Photos, Chefs Congress, Rising Stars, Culinary Schools. Retrieved September 19, 2013, from http://www.starchefs.com/cook/features/new-zealand-king-salmon-salmon-farming
Guerin, K. (2003). Property Rights and Environmental Policy: A New Zealand Perspective. Wellington, New Zealand: NZ Treasury
Kantian ethics: Shaw, W., Barry, B. & Sansbury, G (2009). Moral issues in business, Pacific ed, pp 71-78
Larsen, D. S. (2011). Thermal treatment of New Zealand king salmon (Oncorhynchus tshawytscha): physio-chemical and sensory properties and the role of astaxanthin in lipid oxidation. London: University of Auckland, Business School].
Martin, R., & Gillard, A. (2003). Salmon & seafood. Auckland, N.Z: Concept Pub..
New Zealand King Salmon Company Ltd., (2013). Website: http://kingsalmon.co.nz
New Zealand King Salmon, (2013), Sea Smoke Brand, Retrieved from: www.seasmoke.co.nz
New Zealand King Salmon, (2013). Southern Ocean Retail Brand, Retrieved from www.southernocean.co.nz
Regal Salmon, (2012). New Zealand King Salmon, Top Brands. Retrieved from https://www.regalsalmon.co.nz
Robbins, P., & Publications, i. (2007). Encyclopedia of environment and society. Thousand Oaks: Sage Publications.
Sankaran, J. K. (2004). Value-chain innovation in aquaculture: insights from a New Zealand case study. Auckland, N.Z.: Dept. of Information Systems and Operations Management, University of Auckland.
Sankaran, J. K., & Research, S. (2007). Towards a diagnostic for innovating in the value-chain for aquaculture (Version 1.0. ed.). Auckland, N.Z.: University of Auckland, Business School].
Scoop News, (2013). New Zealand King Salmon Launches New Scholarship Retrieved 30th Aug 2013 from http://www.scoop.co.nz
Solomon’s 3C’s: Solomon, R (2009). Its Good business, pp 39-40
Utilitarian: Velasquez, M (2012) Business ethics concepts & cases 7th ed, pp 76-83
