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