1. The production of fish from Aquaculture has become a major business, and it is an important solution to meet the world’s protein demand. It is a process of farming aquatic organisms such as fish, shellfish, aquatic plants, and others. It is the fastest-growing animal food-producing industry grown in the past decade reaching 120 million tons of fish in 2010 that represents around 30% of the world’s protein suppliers. Different species are cultivated through farming including abalone, finfish, crustaceans, mussels, oysters, cockles, clams, and scallops. It is an expanding industry, and it is forecasted to produce 180 million tons of fish in 2030 according to United Nation Food and Agriculture Organization. Aquaculture is the fastest growing industry in the world present in different countries, and China is the largest fish producing country. Some countries are dominating the production of major species like carp by China, shrimps and prawns by South Asia and India, and Salmon by Norway and Chile. The industry also faces many social-environmental challenges, and it needs to make consistent efforts to address them. Currently, the aquaculture industry is facing some critical issues like improper planning for the use of antibiotics and pesticides at farm sites that prevent fishes from parasites and disease. It is also the threat of disease in Aquaculture due to poor water quality and other problems that affect all fishes cultivated together.
2. Marine Harvest is the world’s leading farmed salmon producer and serving seafood in many countries of the world. It belongs to the fastest growing protein provider sector, and it is considered as the market leader in salmon farming. Marine Harvest has been able to cultivate Atlantic salmon in a suitable and cost effective manner, and it has the expertise to produce a large quantity of salmon. Marine Harvest has an expert team including more than 5,000 employees working in 21 countries. The company exists in different countries including Norway, Chile, and other countries. It approaches the Norwegian regulations limits about the domestic market share of one company. Marine Harvest hired expert CEO from a competitor company to add value to the company strategy and achieve the company’s goal.
Marine Harvest is a leading food industry expert in salmon farming and also the largest producer in Norway. It has a skilled workforce, vast knowledge of the industry, and huge revenues. Mostly, it is operating in the domestic market that helps the company to control its labor cost. An expert leader with a broad vision leads the company. Marine Harvest has high growth rate owned farms in many countries where there is no other competitor. Marine Harvest has become a reliable food company in the world and provides healthy food to consumers. The company is also facing some challenges due to the environment issues and impact of pesticides on human health. Salmon is a major product of Marine Harvest so if the price of salmon falls it can directly affect the company’s growth. The company’s productivity is also decreasing due to different diseases and parasites and its inability to completely control over them that is risky for its products and consumers. Due to the increase in human population, the demand for salmon is also increasing, and the company is unable to meet it.
Marine Harvest has a competitive advantage as it is the world’s leading seafood organization and largest producer of salmon. It can utilize its earnings to expand its operations and make it challenging for other companies to compete in the global market. Marine Harvest had a strong financial position and produced around 335,000 tons salmon out of the global production of 1,400,000 tons in 2011. The company’s CEO, Aarskog has a strong position as the leader of the company, and he is successfully directing all employees towards the company’s objectives. Currently, Marine Harvest is a trusted food company and produces value-added salmon products for their customers.
3. Aquaculture is the largest industry in Norway, and Marine Harvest is the leading producer of farmed salmon. On the basis of the given balance sheet and income statement of Marine Harvest, it could be suggested ratio analysis and common size analysis techniques are useful to evaluate the financial valuation. The ratio analysis will be a useful technique for the company to improve understanding of the company’s financial results and evaluate different aspects of the company’s operational and strategic plans and decisions. The ratio analysis will also help in comparative valuation to compare different industries in the same sector. Common size analysis will help Marine Harvest to convert financial data into easily comparable and measurable information as percentages on a YoY basis. It is useful to analyze the company’s financial results and compare it with peers.
4. Alf-Helge Aarskog’s strategy of increasing production is important for the development of the company. The demand for salmon is increasing in Norway and other countries so if production increases it will fulfill customers’ demand and add value to the company’s growth. It is good to increase the production in developed countries that will increase the company’s profit. Norwegian regularly practices are in favor of Marine Harvest that helps it to produce a large quantity of salmon that is consumed in the same region. Moreover, it helps to prevent over production in farms that can be harmful to the entire production. Marine Harvest also needs to expand its operations in different locations instead of getting a new license for every site. The continuity in producing a large number of salmon at different sites is favorable for the company’s growth. Canada can be a suitable country for Marine Harvest to create new farms and produce salmon to capture its market. Chile can also play an important role in the development of Marine Harvest because salmon demand is increasing in Chile. The huge production of salmon in the developed region makes the company’s business more sustainable and profitable.
5. Alf-Helge Aarskog has taken a good decision for salmon nutrition improvement to create a new company for feed production. It may play a vital role in the growth of the company and increase the production of salmon. It allows easy access to quality feed every time and reduces the feed cost. It also increases the buying the power of the company. Marine Harvest needs to maintain the quality of feed and produce a special type of feed that is most beneficial for salmon. It can control the feed prices easily by comparing them to salmon prices in the market and maintain the company’s growth. The high-quality feed will be beneficial for the health of salmon so production can increase, and also the company’s profit can further grow. Therefore, it will be an effective decision to produce a large quantity of quality feed and meet the feed demand in Norway.
6. Alf-Helge Aarskog needs to do strategic planning for the growth of the company and strongly focus on salmon production. He needs to focus on production in all regions and survey the current market situation of Norway and other countries. It will help the company to know about the customer demand and improvement technology for production of salmon. Aarskog needs to bring innovation in the company to meet the customer demand and achieve higher satisfaction level and capture the market. Alf-Helge Aarskog should take strategic decisions for improving the health of salmon and strongly focus on the use of suitable antibiotics and pesticides. It will prevent spreading of diseases and increase the production of Atlantic salmon in different environments. He needs to focus on improved learning capabilities of employees and apply them to salmon farming. Skilled labor will increase the production of salmon and have a positive impact on the business.
Works Cited
Bell, David E. and Ryan Johnson. "Marine Harvest: Leading Salmon Aquaculture." Harvard Business Review 9 June 2014: 1-23. Print.
