Bus223 Sanford Limited Case Study Report

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Category: Business and Industry

Date Submitted: 09/28/2012 01:30 AM

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The three main categories are:

Economic Sustainability

Sanford Limited’s 5 year (2006 – 2010) financial summary, Economic Value Added (EVM) i.e. an estimated indication of how much the amount earnings varies from the targeted rate of return against comparable risk, earnings per share, ordinary dividends per share, share price, others results from other financial instruments, renewal & growth plan, & supply chain management were reported. It showed that:

• Year 2008 generated the highest profit (NZ$53m), reason for this great increase in profit is because there was growth in market prices for most seafood species (Sanford Limited 2008 SDR);

• EVM was positive in year 2008 whereas the other years were negative;

• An average of 22.6 cents ordinary dividends per share was being paid to the shareholders yearly in these 5 years;

• The share price was at its highest (approximate NZ$6.20 / share) in year 2008;

The intention of the renewal & growth plan, & supply chain management is to ensure operational efficiencies by upgrading the company’s facilities & technologies aspect & manage from raw materials suppliers to stakeholders by looking & analyzing of each aspect respectively. Example is development of automated mussels opening machine & the procurements requirements respectively.

From the company’s annual reports, it reveals that it’s making profits. Hence they are competent to have partnership with other entity, invest in R&D to value add, acquire new entities to strengthen or as vertical integration to their existing businesses in which they have been practicing all the while. The recent acquisition of Pacifica Seafoods business is a complementary to the aquaculture business.

Environmental Sustainability

As stated in Sanford Limited 2007 SDR report,

“The environmental policy objectives are:

To support sustainable use of marine resources; Minimizing impacts on water & energy supply;...