Question
Could you please answer question B There is answer A attached below can be consulted. QUESTION A : Determine the root cause of the problem?
Could you please answer question B
There is answer A attached below can be consulted.
QUESTION A : Determine the root cause of the problem?
ROOT CAUSE OF THE PROBLEM
We think the root cause of kingfisher's financial difficulties is its production process.
Incorrect production processes are the root cause of financial difficulties for this company.
1. Because all the seafood is in the same can, there is not enough space to place the fish.
2. Due to economic difficulties, the company extended the time of deep-ocean fishing and increased the amount of seafood received. However, this solution has made the company's financial difficulties more and more serious.
3. Fish processing usually refers to the process related to seafood, from receiving seafood to delivering fish shops and restaurants. But since 2015, fish processing and transportation procedures have become more complicated. These fish may have been damaged by traffic, weather or equipment during transportation.
4. This long-term transportation will cause the fish's freshness to drop and affect the taste.
QUESTION B: Develop and evaluate alternative solutions to the root cause of the financial distress problem at Kingfisher by using Force Field Analysis (with weight) ?
KINGFISHER SEAFOOD PLC On December 2018, Florida District court issued a fine of $385,000 to Kingfisher Seafood Plc (henceforth Kingfisher'). The decision by Judge Wilson of the Florida District court followed an investigation into unlawful fishing practices by Kingfisher which include fishing above its quota. The District court also has an ongoing lawsuit for loan repayment default filled-in by Kingfisher's bank - Wells Fargo. From the look of things, Kingfisher has one year to address its problems or file for bankruptcy. The expansion The seafood giant catches all manner of seafood however majors in three seafood markets: fish (Salmon, mackerel, tuna and Malungay cod), Shellfish (oysters, mussels, and squid) and Crustaceans (shrimp, crab All seafood product (including live Malungay Cods) are moved from the fishing net straight into fish tanks onboard the fishing vessel. Fish tanks are oxygenated and pH regulated. It takes three (3) hours for a vessel get to the Gulf of Mexico harbour. Until the end of 2015, fish tanks from vessels were transload into long trucks and sent straight to the fish stores. However, with more tons of Malungay cod now being harvested, fish tanks that are transloaded unto long trucks that transport the fish to the DC facility and transportation normally take longer about seven (7) hours. Once trucks arrive the DC, the fish tanks are offloaded, and fish is transferred from fish tanks into Aquarium wells where fish is stored until they are ready for dispatch to fish stores. Live Malungay cod are transferred from Aquarium well to small containers before sent out to different fish stores. Fish stores are located within about two (2) hour drive around the Gulf of Mexico harbour and the Malungay fish sell-out in few hours on arrival. Aquarium wells are equipped with oxygen control, pH regulator and temperature control. At the DC, live seafood (and fish) are stored in larger Aquarium well with clean water, while the weak, dead and other seafood are moved the processing unit of the DC for further processing. Kingfisher invested in its fish processing so that there are enough Fish tanks and Aquarium wells for live Malungay cod storage at the DC. All Kingfisher seafood use the same Fish tanks and Aquarium well. However, Fish tank oxygen equipment is smaller and designed to keep fish for a maximum of eleven (11) hours while oxygen while Aquarium wells can hold fish ten (10) times longer. Fish tanks are available for hire and outright purchase at equipment shops in Florida. As of 2016, Aquarium well is not available for hire, are more expensive and customise from Germany. Each Aquarium well takes 12 months to build and ship to the US. Figure 1: The fish Process at Kingfisher Plc 108 Fish vessel launches net Tanks Oxygenated & temperature controlled ESTA Fish harvested into Fish tanks H om Fish tanks transloaded to Trucks Fish delivered to fish stores in containers Fish transferred from Aquarium well to smaller containers for fish stores Fish transferred from tanks to Aquarium wells for storage at DC Fish Tanks transported & offloaded to DC facility There are Store persons that manage the inbound and outbound process of seafood in and out of the DC facility and a DC manager overseeing operations at the DC. All processes are set and approved by the CEO wholly based on the recommendations from the DC manager. 'Bitterfish Early 2016, there were a series of consumer complaints that Kingfisher's Malungay cod now tastes 'bitter'. Although Kingfisher cods are fresher, they didn't taste good anymore, which resulted in a sharp decline in the demand for Kingfisher Malungay cod as more customers notice the strange taste. Fish stores reacted by reducing the order for Kingfisher Malungay cod over time. Since the inception of Kingfisher Company in 1984, this is the first time the company is receiving this nature of complaints on any of its seafood. The company has thrived for 30 years of its existence, and these complaints are coming when the company is about being recognised as the largest seafood company in the US in terms of revenue. The Admin Secretary and Public Relations Officer - Mr Jason strongly suspects detractors and competitors are behind this. This is backed up by the fact that Kingfisher is snatching more fish market share from competitors like Florida seafood and Islamorada Fish Company. Just as the complaints about Kingfisher's Malungay cod make headline in the Media, the board of management at Kingfisher Plc had an emergency meeting to deal with the matter but meanwhile has mandated Mr Jason to respond to the allegations. In his reaction to the Press Mr Jason said: "We spent money expanding our fish processing operations in the Gulf of Mexico with more fish tanks and aquarium wells as such cannot comprehend complaints about the quality of our flagship seafood- Malungay cod. However, we are poised to get to the root of this matter." The decline Kingfisher recorded a 27% decline in revenue in 2016 and a further almost 37% decline in 2017, which put the company in financial distress. Operating expenses all through 2012 to 2018 has remained the same. In a quick response to its financial distress situation, Kingfisher moved a number of its vessels into fishing other seafood. This resulted in longer deep-water fishing operating hours, although more seafood was harvest. However, the harvested implied Kingfisher went over and above its quota for Shellfish. Kingfisher normally fishes its full quota each year, and any attempt to expand fishing operation for any of its seafood will result in going over the fishing quota. Revenue Net Profit (Net loss) 2012 $490m $350m 2013 $560m $420m 2014 $650m $530m 2015 $850m $612m 2016 $620m $428m 2017 $390m $269m 2018 $450m ($75m) Also, a Kingfisher fisherman lost his life onboard one of the company's deep-water vessels on the Gulf of Mexico at the start of 2018. The company is yet to pinpoint the cause of his death. However, the employee believes he died of cold having stayed on the deep-water longer than necessary. This wasn't a good time to lose an employee in the Seafood market, considering fierce competition in the market. Also, managers are required to have specialist knowledge requirement of the industry and its supply chain. As of 2015 onwards, it was difficult to find senior staff replacement. This is the first time the staff of Kingfisher dies onwards, it was difficult to find senior staff replacement. This is the first time the staff of Kingfisher dies while on duty. The vessel remained in the deep-water after the fisherman's dead. Kingfisher claims that the incident impacted the catch numbers and financial result in 2018. The CEO of Kingfisher - Ms Katty said in the 2018 Annual General Meeting: "We feel our revenue in 2018 satisfactorily improved from 2017 despite the setback of the incident at the Gulf of Mexico deep-water which resulted in the loss of $75m". KINGFISHER SEAFOOD PLC On December 2018, Florida District court issued a fine of $385,000 to Kingfisher Seafood Plc (henceforth Kingfisher'). The decision by Judge Wilson of the Florida District court followed an investigation into unlawful fishing practices by Kingfisher which include fishing above its quota. The District court also has an ongoing lawsuit for loan repayment default filled-in by Kingfisher's bank - Wells Fargo. From the look of things, Kingfisher has one year to address its problems or file for bankruptcy. The expansion The seafood giant catches all manner of seafood however majors in three seafood markets: fish (Salmon, mackerel, tuna and Malungay cod), Shellfish (oysters, mussels, and squid) and Crustaceans (shrimp, crab All seafood product (including live Malungay Cods) are moved from the fishing net straight into fish tanks onboard the fishing vessel. Fish tanks are oxygenated and pH regulated. It takes three (3) hours for a vessel get to the Gulf of Mexico harbour. Until the end of 2015, fish tanks from vessels were transload into long trucks and sent straight to the fish stores. However, with more tons of Malungay cod now being harvested, fish tanks that are transloaded unto long trucks that transport the fish to the DC facility and transportation normally take longer about seven (7) hours. Once trucks arrive the DC, the fish tanks are offloaded, and fish is transferred from fish tanks into Aquarium wells where fish is stored until they are ready for dispatch to fish stores. Live Malungay cod are transferred from Aquarium well to small containers before sent out to different fish stores. Fish stores are located within about two (2) hour drive around the Gulf of Mexico harbour and the Malungay fish sell-out in few hours on arrival. Aquarium wells are equipped with oxygen control, pH regulator and temperature control. At the DC, live seafood (and fish) are stored in larger Aquarium well with clean water, while the weak, dead and other seafood are moved the processing unit of the DC for further processing. Kingfisher invested in its fish processing so that there are enough Fish tanks and Aquarium wells for live Malungay cod storage at the DC. All Kingfisher seafood use the same Fish tanks and Aquarium well. However, Fish tank oxygen equipment is smaller and designed to keep fish for a maximum of eleven (11) hours while oxygen while Aquarium wells can hold fish ten (10) times longer. Fish tanks are available for hire and outright purchase at equipment shops in Florida. As of 2016, Aquarium well is not available for hire, are more expensive and customise from Germany. Each Aquarium well takes 12 months to build and ship to the US. Figure 1: The fish Process at Kingfisher Plc 108 Fish vessel launches net Tanks Oxygenated & temperature controlled ESTA Fish harvested into Fish tanks H om Fish tanks transloaded to Trucks Fish delivered to fish stores in containers Fish transferred from Aquarium well to smaller containers for fish stores Fish transferred from tanks to Aquarium wells for storage at DC Fish Tanks transported & offloaded to DC facility There are Store persons that manage the inbound and outbound process of seafood in and out of the DC facility and a DC manager overseeing operations at the DC. All processes are set and approved by the CEO wholly based on the recommendations from the DC manager. 'Bitterfish Early 2016, there were a series of consumer complaints that Kingfisher's Malungay cod now tastes 'bitter'. Although Kingfisher cods are fresher, they didn't taste good anymore, which resulted in a sharp decline in the demand for Kingfisher Malungay cod as more customers notice the strange taste. Fish stores reacted by reducing the order for Kingfisher Malungay cod over time. Since the inception of Kingfisher Company in 1984, this is the first time the company is receiving this nature of complaints on any of its seafood. The company has thrived for 30 years of its existence, and these complaints are coming when the company is about being recognised as the largest seafood company in the US in terms of revenue. The Admin Secretary and Public Relations Officer - Mr Jason strongly suspects detractors and competitors are behind this. This is backed up by the fact that Kingfisher is snatching more fish market share from competitors like Florida seafood and Islamorada Fish Company. Just as the complaints about Kingfisher's Malungay cod make headline in the Media, the board of management at Kingfisher Plc had an emergency meeting to deal with the matter but meanwhile has mandated Mr Jason to respond to the allegations. In his reaction to the Press Mr Jason said: "We spent money expanding our fish processing operations in the Gulf of Mexico with more fish tanks and aquarium wells as such cannot comprehend complaints about the quality of our flagship seafood- Malungay cod. However, we are poised to get to the root of this matter." The decline Kingfisher recorded a 27% decline in revenue in 2016 and a further almost 37% decline in 2017, which put the company in financial distress. Operating expenses all through 2012 to 2018 has remained the same. In a quick response to its financial distress situation, Kingfisher moved a number of its vessels into fishing other seafood. This resulted in longer deep-water fishing operating hours, although more seafood was harvest. However, the harvested implied Kingfisher went over and above its quota for Shellfish. Kingfisher normally fishes its full quota each year, and any attempt to expand fishing operation for any of its seafood will result in going over the fishing quota. Revenue Net Profit (Net loss) 2012 $490m $350m 2013 $560m $420m 2014 $650m $530m 2015 $850m $612m 2016 $620m $428m 2017 $390m $269m 2018 $450m ($75m) Also, a Kingfisher fisherman lost his life onboard one of the company's deep-water vessels on the Gulf of Mexico at the start of 2018. The company is yet to pinpoint the cause of his death. However, the employee believes he died of cold having stayed on the deep-water longer than necessary. This wasn't a good time to lose an employee in the Seafood market, considering fierce competition in the market. Also, managers are required to have specialist knowledge requirement of the industry and its supply chain. As of 2015 onwards, it was difficult to find senior staff replacement. This is the first time the staff of Kingfisher dies onwards, it was difficult to find senior staff replacement. This is the first time the staff of Kingfisher dies while on duty. The vessel remained in the deep-water after the fisherman's dead. Kingfisher claims that the incident impacted the catch numbers and financial result in 2018. The CEO of Kingfisher - Ms Katty said in the 2018 Annual General Meeting: "We feel our revenue in 2018 satisfactorily improved from 2017 despite the setback of the incident at the Gulf of Mexico deep-water which resulted in the loss of $75mStep by Step Solution
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