Enature Greenhouses

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY 3

II. PROBLEM STATEMENT 4

III. SITUATION ANALYSIS 4

III.1. OBJECTIVES, BACKGROUND, AND KEY ASSUMPTIONS 4

III.2. INTERNAL ANALYSIS 5

III.3. EXTERNAL ANALYSIS 5

IV. ALTERNATIVES 7

V. RECOMMENDATIONS 9

VI. ACTION PLAN 10

VII. CONTINGENCY PLAN 10

VIII. REFERENCES 11

I. EXECUTIVE SUMMARY

​ eNature Greenhouses, a recent start-up company located in Ontario, and specializing in production of cucumbers, is expecting an increase in demand from 1.6 million cucumbers a year to 2.1 million cucumbers a year. In order to meet the expected demand, eNature must assess various options to expand its current capacity.

eNature competes through good location in Ontario, low cost and good supplier and distributor relationship, in the small growers market segment. Its main limitations are existing current capacity and new owner with no business experience.

There are several opportunities for growth and cost savings. In the short term, the current broker`s demand is expected to increase significantly. Overall market trend in the seedless cucumber segment is ascending. Furthermore, technological advances present cost saving opportunities. Some of the threats facing the business arise from local and international direct competition, resulting in pressure on margin, and the bargaining power of limited supplier of cucumber plants.

The company`s current capacity is does not meet the current demand, therefore a new greenhouse structure is required to replace the old one. The available options are glass, double poly shell, and double plastic.

The three options have similar design capacity, and expected contribution per plant. Although the double Poly Shell option is attractive through low cost, it does require periodic replacement, while the least expensive double plastic option is relatively new and therefore risky.

Given the long lifetime and proven effectiveness of the glass structure, and the criteria ranking,...