Agua Fish Cma

Aqua Fish Canada Inc.

Prepared for: Guy Mills, CEO

Prepared by: Adam Rice, CMA

Date: June 15, 2009

Executive Summary

Aqua Fish Canada Inc. (AFC) is faced with several strategic alternatives and operational issues that will be addressed in this report. As north American fin fish market is reaching maturing level and the increase cost of fin fish due to the strong Canadian currency, the company is contemplating few alternatives to improve the company’s profitability..

The three main alternatives that were analyzed are:

1. Project Blue Wave 2. Blue Mussels Farm 3. American Oysters Farm

Both acquiring the Blue Mussels Farm and American Oysters Farm are recommended as they align with the company’s mission statement, satisfy the board of directors and some of the other key stakeholders’ preferences, prevent environmental concerns over genetic engineering, and lead to a positive NPV with an after-tax return of 10%.

In addition, the implementation of employee training and management control techniques will help AFC keep its gross margins over the bank requirement of 20% and thus be able to finance these investments.

More money invested into sales and promotional advertising internationally will lead to higher sales.

Lastly, AFC will invest into IT for its computerized systems to stay competitive with the currently more technologically advanced competition.

Introduction

This report identifies AFC’s strategic alternatives for increasing profits after the 2009 decline, along with recommendations on these alternatives and operational issues. The report includes a situational analysis with a financial assessment, qualitative and quantitative evaluations of each alternative, an implementation plan, potential operational issues, and a conclusive recommendation for AFC’s future direction.

Situational Analysis

Mission- To provide a sustainable source of fresh, disease-free fish to domestic and export markets through aquaculture farming. AFC...