Case Study: Gourmet Jams Inc.

Strawberry Delight

Gourmet Jams Inc. has been in the local Ontario food market fornearly six years. The company started in 2012 as a home-basedstart-­­up inspired by Nona’s mouth-­­watering jam recipes.Stephanie and Adam, a couple from Windsor in their early thirties,both lost their well-­­paying jobs in the automotive industry.Though, both received a substantial severance pay and anopportunity to go back to school to learn new skills, neither feltthis would be something to consider. At the same time both wereconvinced that working in an automotive industry gave them solidunderstanding of what is needed to be successful and, moreimportantly, they realized that neither wanted to work for someoneelse ever again. Stephanie and Adam, as did the entireneighborhood, had something else in common: love of Nona’sdelicious home-­­made jams. Granny Antonia, or Nona, as hergrandchildren called her, was known in community for herhome-­­made cookies, cakes, pastries and jams. Her culinarydelights became a common feature at many weddings, birthday partiesand family events. Nona was thrilled and very much willing tospread the goodies; but never, despite persistent attempts to shareher recipes, especially for jams, was she inclined to reveal hersecrets.

Stephanie, Nona’s youngest grandchild, grew up spending manyhours watching her making jams. There were all kinds: plum, peach,pear, blueberry and her favourite, strawberry. On a rare occasion,Nona made a particular rare specialty, wild strawberry jam.

Sweet Opportunity

Today, Gourmet Jams Inc. is a successful small business,supplying gourmet shops across Ontario. Two new workers were hiredto help with the operation and together with Stephanie, Adam andcousin Roberto, the Gourmet Jams Inc. today employs five people.All ingredients used in the process are natural, organic and fresh.Just as Nona’s. The annual sales for 2018 surpassed $700,000. Thatwas quite an achievement. But successes didn’t stop there. Therecent visit at the Philly Farm & Food Fest in Philadelphiaproved to be great success. Many visitors stopped at the GourmetJams Inc. booth and as they tasted the jams expressed interest inordering them. They had established distribution capabilities andwere ready to order. Several specialty stores, including WholeFoods also indicated interest in carrying the Canadian jams andStephanie and Adam were now convinced they have the opportunity toexport their gourmet home-­­made jams to the US market. And then,global pandemic Covid-19 stuck.

What is next?

Stephanie and Adam don’t want to grow their business too fast.But, they also don’t want to miss the expansion opportunity. Theyare in favour of cautious but firm entry into the US market. Asthey are focusing on the niche market across the border, thelingering question remains. Can they ship the jams directly to theUS without hiring a consultant? This is an expense they may not beable to afford. Nick, with a degree in Marketing, but limitedexperience in the field, was convinced that he can find the way tonavigate the exporting process and manage supply chaininternationally. He was confident he will find all relevantinformation online. Will it really be that simple?

Based on discussion with Stephanie and Adam, the followingquestions were raised:

1. Are there any product modifications needed?

2. How will the inventory be managed?

3. What kind of paperwork needs to be completed to cross the US/ Canada border? What are regulations in terms of the product oneither side of the border?

4. How will jams be shipped andtransported?

5. Where will the jams be stored once they cross the border?

6. What are the risks for Gourmet Jams Inc.?

7. Will there be any external partners required?

8. What are Gourmet Jams Inc. financial requirements to launchthe international expansion?

What government funding is available to Gourmet Jams Inc.?

9. There seems to be a specialty market interested in WildStrawberry jams. Is production of wild strawberry jams somethingGourmet Jams Inc. should consider? How to manage supply of thesestrawberries? Should we consider growing our own or outsourcelocally?

Note: wild strawberries are also known as Woodland Strawberries,Alpine Strawberries and Forest Strawberries (Fragaria vesca).

Note: Your analysis must address the questions above; however,do so in business planning format as follows.

Guidelines

Thoroughly answer the questions the Gourmet Jams Inc. elevatedand incorporate them in you analysis. Your written analysis shouldinclude the following Table of Contents:

• Executive summary

• Introduction

• Supply Chain Management

o Supply chain maps and strategies

o Border clearance documentation and other regulatory compliance(i.e. FDA, CFIA)

o Sourcing and production

o Materials management, handling and delivery

o Product modifications (i.e. labeling) o Storage andwarehousing space

o Order processing

o Shipping and transportation

o Inventory management and Quality Control

o After-­­sale service and customer satisfaction

o Risk management

o Human resources required

• Marketing Strategy

• External support partners

• Financial requirements

• Implementation schedule and recommendations and key successfactors

( Highlighted questions 4 and also the above-italicterms are needed to be answered )