Background

Mr. Harris incorporates Harris Seafoods, Inc. in 1935 the company was situated in the United States. In 1958 after the disability of Harris his son Charlie Harris taken over the responsibility of the company. The company is considered as one of the largest producers of frozen shrimp in the United States.

In 1967 the company issued its shares to the public and become a listed company however 60% controlling interest in the company is still owned by the management of the company. In 1979 the outstanding shares and overall value of the company are 2million and $54million respectively.

The company has a fleet of 100 boats which includes a built-in freezer in them which piled the water between Mexico and Texas. A boat returns to the port in 45 to 60 days. The in-shore facilities of the company include packaging plants anda dock where the company unloaded the shrimp and graded them after analyzing their size and quality then the company unloaded this shrimp into the 5 lb. containers which unloaded these shrimps at the storage plant.
Harris Seafoods, Inc. Harvard Case Solution & Analysis

Approximately 40% of these shrimps sell to the wholesaler of the United States these wholesaler further sell these shrimps to the supermarkets chains, retail fish stores, cafeterias, hospital and etc. while the 35% of sale is made to the trading companies of Japanese while remaining sale is made to the processors who further convert them into finished products such as breaded or pre-cooked shrimps which were sold to institutionalestablishmentsand retail stores.

Harris Seafoods Inc. and the Shrimp Industry:

There are two main factors which drastically affects the Shrimp industry and hence increase the risk so significantly the first factor is theuncertainty of the supply chain while the other factor is theuncertainty of demand for the shrimps.

Most companies have three sources to acquire the shrimp which are beginning inventories, domestic production, and net imports.

With respect to domestic production,the shrimps go deep down in the water off Mexico and Texas and hence it’s become difficult to find the shrimps. Along with this, there are also some other factors which drastically affect domestic production and which are beyond the management control such as heavy rain because at the time of heavy rain affects the production of shrimps so significantly.

The other factors which increase the uncertainty in the supply chain of shrimpsare adramatic increase in offshore drilling activities due to these activities shrimping grounds are in danger and risk of destroying has been increased. Along with this, the major countries who produce the shrimps creates the barriers hence the foreign countries find difficulties in making atrading relationship with them.Moreover, with respect to the demand, the consumption of the shrimps are highly affected by the cyclic swings in the economy.

Due to all these uncertainties, most of the players in this market become bankrupt. However, Harris Seafoods Inc. maintains its position and never reports a loss in last 45 years. The main factors which maintain the position of the company areits brand name SHRIMP KING and relationship with the Mexican government....................................

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