Humanities Commerce: Types of Business – Case Study: Salty Fish Finds Sweet SuccessThailand is one of the world's leading countries in producing rice. The Thai public, especially the poor eat rice with salty fish, a delicacy. They find this dish cost and taste efficient. This simple dish has turned into a multi-million baht business. Many marine firms have turned their eyes on this field and have started producing salty fish. Although it is hard to be successful and create a market with some risk involved, P.N. Marine owned by Mrs Nusara Thawornthawewong is an example of successful firm in this operating environment. This essay will study and explore, a) the origin of P.N. Marine, b) the development of the firm, c) how it was affected by the government, d) the positive and negative effect of the business on the local community and economy, e) the firm's negative impact on the local environment. These concepts will be assisted by a number of business terms and concepts.
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An efficient firm can only be set up if the owner has enough land, labor, capital and entrepreneur-ship skills. But along with these four factors of production, motivation and inspiration towards the business is also essential. Mrs. Nusara had all the factors of production. She had enough money (invested 12 baht which was lots 30 years back), had land (her house would be her factory), had labor/partner (her mother helped her) and also she had entrepreneur-ship skills (experience from working at a salty fish making plant).
Mrs. Nusara Thawornthawewong had motivation to her business too. The article states that, "...more concerned about earning money to help her parents and siblings." Her motivation was there. Her background and situations were her motivators. She wanted to help her parents and siblings (brothers and sisters) financially.
Mrs. Nusara has been involved in her business for around three decades and in these three decades her firm has developed quite a lot. In Figure one, this development can be easily seen. This data has been analyzed and concluded from the 'Salty Fish finds sweet success' news article. We can also conclude from the figure that in last 10 years, the development of the firm was sophisticated and fast.
P.S. Note that the timeline has been drawn diagonally going up since the business has been getting higher profits every year (like a profit graph). "Even so turnover grew steadily" and "The group earned at least 10 million baht a year," these quotes prove the statements I made above.
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P.N. Marine was blessed from every angle and side. Even the government was a help to them not a hindrance. Mrs. Nusara would agree with me if I say the government played a major role in increasing her firms control over the market. The government first of all, gave them a FDA certificate for their good and hygienic quality of food. Then the government certified them as Halal food for Muslims. These two certificates from the government surely increased the company's USP (Unique Selling Pont image) enlarging the company's control over the market and capturing a place in the hearts of the public.
The Invigorating Thai Business programme organized by the government also provided essential feedback to increase efficiency and develop the company further. When P.N. Marine, "...sought assistance from the Industrial Promotion Department through the Invigorating Thai Business programme created to help companies increase effeciency in their operations," they agreed to help them. In brief the government overall has had a very positive impact on the business thus being supported strongly in the "General Business Environment" poltically.
P.N. Marine, now a private limited company, has had negative and positive impacts upon the economy and community.
The impacts upon the economy are not very big. This is because the business is running in a country where a mixed economy is used and it is running in a Monopolistic Competition (since a) there are many sellers and buyers, b) they are price takers, c) there are no barriers to entry and, d) firms produce differentiated products). Yes, there are effects on the economy. These effects apply only to the Operating Environment. One negative effect is that it is a threat to its competitors since its USP is very high and the company is very experienced (Intensity of Competitive Rivalry).
The firm has positive impacts upon the economy too. A positive impact to the economy would be that since it, "sells (marine fishes) to feed mills or pet food factories," P.N. Marine would have a positive impact on the mills. Since P.N. Marine runs in a monopolistic competition, there are a numerous amounts of sellers (in this case supplier of marine fishes) and these mills thus have a wide variety of suppliers to chose from. To get control over the market P.N. Marine would sell quality fish at low prices. Here we can see the positive impact in the Operating Environment for the buyers/firms who receive the supplied marine fishes (Power of Suppliers).
Another positive impact of the firm on the economy is that its presence would increase Thailand's production of marine fishes and seafood's. Also they are traded all over the world and hence high money flow will happen in the country. Also since P.N. Marine is making higher profits each year and is a private limited company, the profits are taxed twice by the government. This has a positive impact on the economy too.
Other than these positive impacts, the company also provides employment to over 150 workers, and provide cheap food for the poor (decreasing death rates and increasing health rates).
These were the positive and negative impacts of the firm on the economy and society and business environment the firm works in.
P.N. Marine works as a marine corporation. This has direct negative impacts on the environment. First of all it destroys marine life in the coastal areas. If we think carefully, Thailand is a favorite tourist spot for its beautiful marine life and coastal regions i.e. beaches. The firm may destroy Thailand's marine life decreasing tourism and negative impact on the economy and the environment. Along with this the company also increases pollution having a negative impact on the local environment.
These were few negative impacts the firm has on the local environment.
My essay has now studied and looked at all the factors I had stated in my thesis statement. In brief, here is a summarized version of the essay's analysis. Mrs. Nusara's motivator was her family financial problems i.e. she wanted to earn money and help her parents and siblings.
We also got to know through this essay, the progress and development of P.N. Marine over the years i.e. right from its start to now. The development of the firm was fairly slow but as turnover grew quickly, more capital was available for expansion of the business.
The government was overall had a positive remark for the firm. It helped develop the firm efficiently and also give a USP boost/reputation boost to the company, which increased turnover and control over the market.
The firm has had a fairly very positive impact on the local economy, business environment and community providing money flow into the country, employing people, and allowing pet food industries to produce high quality products at low prices. The negative impact is that it is a threat to other firms in its operating environment since P.N. Marine has high reputation and USP rating.
The firm overall has had a very negative impact on the wider environment although the local environment is not suffering as much.
My essay hence has studied and explored, a) the origin of P.N. Marine, b) the development of the firm, c) how it was affected by the government, d) the positive and negative effect of the business on the local community and economy, e) the firm's negative impact on the local environment. These concepts were assisted by a number of business terms and concepts. In conclusion, my essay has studied all factors efficiently getting fairly good conclusions and analysis.