Gujarat Fisheries Central Co-operative Association Limited

COM 502 | Assignment -1

Executive summary

The Gujarat Fisheries Central Co-operative Association (GFCCA) is a pivotal entity in the
fisheries sector, playing a crucial role in the economic development of Gujarat. Established
to promote and streamline cooperative efforts in the fisheries industry, GFCCA has been
instrumental in empowering local fishermen and fostering sustainable practices.

The principal activity of GFCCA was selling high-speed diesel to owners of fishing boats.
Other activities were fish-seed production, nylon fishing, net manufacture and
construction of fiber-reinforced plastic fishing boats.

One of the activities that the association started was selling fish through mobile vans,
which was a tiny part of the overall functioning. Still, it helped build a retail presence in
Ahmedabad, which was necessary so people could get fresh fish at their doorsteps.

It has come to light that the mobile fish-selling vans project has not been generating
enough revenue and there is a deficit which has to be covered. After doing the necessary
analysis of the entire situation and evaluating all the possible options, it is recommended
that GFCCA should modify the mobile van selling project and consider the
recommendations that are suggested.
Situation Analysis

GFCCA is facing a difficult situation in Gujarat with mobile fish-selling vans. The project
has significant relevance as it increased the visibility of GFCCA and was the only retail
activity that the association dealt in.

If the project were to be continued, there would be many difficulties that the GFCCA
would have to deal with like Market and competition, costs, location etc. There have been
many other players small dealers who have entered the market, making it difficult to
increase sales and also the activity is showing a deficit every year.

Now, since this is not a welfare activity i.e, it’s not directed at fisherman - the governing
body wants this to generate a surplus. Regarding activities that directly benefited the
fishermen, they were not averse to making losses. When we talk about the
implementation of various activities, GFCCA has initiated several activities.

GFCCA has effectively implemented technology-driven strategies for modernizing fishing

practices, enhancing efficiency, and ensuring fair market access for local fishermen. This
has resulted in a positive impact on livelihoods. Furthermore, the association actively
engages in community-driven projects, providing training and facilitating financial
resources.

Despite these successes, challenges such as market fluctuations and environmental

concerns persist. These challenges necessitate ongoing efforts to ensure the resilience of
the cooperative and the well-being of its members.

GFCCAL stands at the intersection of progress and challenges in the Gujarat fisheries
sector. By leveraging its strengths and addressing existing challenges, the cooperative is
poised to play a pivotal role in sustaining the growth and development of the industry.
Problem Statement

Originally intended to provide fresh fish to people's doorsteps, the mobile fish-selling van
project has become a financial burden for GFCCA. Increasing expenses, alterations in
governmental regulations, and fierce rivalry from unlicensed vehicles are all contributing
factors. The Governing Body anticipates that Mr. Patel will put out a proposal that
addresses the ongoing deficits since it is worried about the project's viability.

The question that guides the problem statement is : If mobile fish selling is to be
continued, then what measures should be taken to turn it into a profitable venture?

The Options

​ 1. Proceed with the Mobile Vans Project:

​ -Consider tactical adjustments to improve bottom-line results.
​ -Put creative operational and marketing concepts into practice.
​ -Discuss client preferences, market competition, and cost control problems.
​
​ 2. Give the Mobile Vans Project a break:
​ -End the project and redirect funds into more successful endeavors.
​ -Determine whether it would be feasible to refocus efforts on initiatives that align
with the GFCCA's goals.
​
​ 3. Adapt the Project for Mobile Vans:
​ -Think about changing the locations, business hours, and pricing policies.
​ -Investigate working together with companies or local government agencies.
​ -Examine the possibility of incorporating technology to simplify processes and cut
expenses.
​
Criteria for Evaluation

​ Financial Viability:
● Evaluate revenue generation potential and cost reduction strategies.
● Assess the project's contribution to GFCCA's overall financial health.
​ Market Presence:
● Analyze the project's impact on GFCCA's visibility and reputation in the
local market.
​ Operational Efficiency:
● Consider the effectiveness of current operational processes.
● Identify areas for improvement in logistics, supply chain, and customer
engagement.

Evaluation of Options

1. Proceed with the Project for Mobile Vans:

Strengths: Preserves visibility and local store presence.

Corresponds with the fresh fish provision goal of GFCCA.

Drawbacks:

Persistent shortfalls in finances.

Fierce rivalry amongst unauthorized vans.

Suggestion: More investigation is required to pinpoint precise adjustments for long-term

financial viability.

2. Give the Mobile Vans Project a break:

Strengths: Directs resources toward endeavors that yield more profits.

Removes the deficit's financial weight.

Drawbacks:

Reduction of local store presence.

Possible retaliation from stakeholders and customers.

Suggested reading: Consider other initiatives that complement GFCCA's objectives.

3. Modify the Mobile vans Project:

Strengths: Facilitates modifications to improve financial outcomes.

Shows capacity to adjust to changes in the market.

Weaknesses: Possible internal organization opposition to reforms.

Uncertainty about the effectiveness of the changes.

It is advised that a thorough feasibility study be done for any prospective changes.
The Recommendations

Given the difficulties of the mobile fish-selling vans project, we recommend that the
GFCCA consider modifying the project. It means thoroughly reviewing the current
situation, market trends, and possible changes to improve the project's profitability. The
company should actively seek feedback from interested parties and develop creative
solutions to combat competition, reduce expenses, and increase customer satisfaction.

This means calculating the number of fishes every van needs to sell to make the entire
project profitable.

The Action Plan

Here are some action steps recommended:

This action plan seeks to provide GFCCA with a well-structured plan to address the issues
with the mobile vans project and move to a more sustainable and cost-effective operation.

The plan includes:

● A detailed financial analysis of the project’s revenue and cost structure.

● Identify the areas causing the deficits and the cost-saving measures that could be
implemented.

Market research and customer feedback:

● Analyze customer preferences and pricing sensitivity, as well as the level of

customer satisfaction.
● Explore potential market growth and partnerships.

Improve operational efficiency:

 ● Review and streamline the supply chain and processes.
● Explore technological solutions to streamline logistics and reduce operational
costs.
● Small-scale modifications: Implement small-scale changes based on the analysis
and monitor the impact of the changes on the financial performance.
● Communicate openly with the governing body, employees and customers about the
proposed modifications.

Gather input for continuous improvement:

● Identify concerns and gather input to create a feedback loop.

● Set KPIs to track the success of the modifications.

Efforts should be made to cut down the expenses in vehicle maintenance, insurance cost
of the vehicle and the drivers etc. Preventive measures such as keeping a regular check in
the outflow of confidential information from the company, stringent security measures
adn access to sensitive information etc should be undertaken.