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Del Rio Foods Analysis

1271 words - 5 pages

Del Rio was established in 1933, and it is located in California. Its owners are Bob and Maria. Del Rio is an agricultural business where processed canned products and fresh produce are sold. Both owners have the same agricultural background which is why they are doing this business. They are running Del Rio successfully. When the world was going through a great depression, many businesses had tough time to survive. However, Del Rio Foods, Inc. was in stable condition even though they did not make a lot of money. From 1987 to 1990, their Income Statement shows that they had a steady increase in their net income each year. The CEO’s objective is to expand his business as far as into east coast. Del Rio acquired a couple of farms and built them as its main facility and a distributor. Joint venture was formed with few wholesalers and retail stores. Additionally, Cape Fear and Wilmington plants were bought to increase productivity. The mission statement, SWOT analysis, and action plan are discussed further.
The vision of the CEO is to go as far as into east coast. Bob is planning to buy additional farm lands to grow more fresh produce to increase the sales. This will welcome new customers, suppliers, retailers, and wholesalers. Also, there will be more job openings to public. People will find positions in various departments or whatever post they are capable of doing it. More people there are to work, faster the jobs get done. Of course, Del Rio will get more business from its customers, retailers, and wholesalers when they see that this company is the only one that gets the job done quickly. Bob also wants to remodel, repair, and keep his plants neat and clean. After making some improvements, it will build company’s image.
Del Rio Foods Inc. is doing great so far. Bob and Maria kept the plant and facilities under their supervision to make them better working places. Back in 1930s to 1960s, their sales rose. Each year they did better than previous year. During WWII, Del Rio got most of its business from the U.S military as well as from new migrants in California.
Every company has some ups and downs, and so does Del Rio. According to consultants’ preliminary report, “During the past six years, net income has had no real growth. The overall income has in fact dropped during this period…, …the second quarter of this year, net income before taxes decreased by about 30 percent.” Basically, the company is going through financial crisis due to decrease in its sales. Is there any business that does not go through these difficult times?
According to consultants in the case study, “We have found the output and also the input quality control inadequate and ineffective, substandard raw materials have been accepted from suppliers on fourteen occasions have repeatedly gone bad while in storage, inadequate supply of some items has either stopped or slowed down production, the morale among production workers is found to be...

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