Fish and Management Case Study
They do want to maintain ties with the local fresh fish markets, but sales have been steadily decreasing since the sudden influx of cheaper Scottish salmon on the market. They know their stock Is of higher quality and could be exported abroad quite profitably. Aslant has contacted the government and enrolled In small business export initiatives. This has enabled the company to attend aquaculture conferences abroad and offered them the opportunity to network and make contact with Dandifies, a Dutch importer. Plenty more fish in the sea?
Dandifies was eager to negotiate a contract for 2 tones of Finnish salmon to distribute to a number of clientele throughout the country.
Payment of credit was arranged by a Dutch bank. The documents required were a commercial invoice, the insurance policy, a marine bill of lading, and a certificate of quality. Aslant has arranged to have their fish inspected by a nationally accredited standards organization. Both parties agree in their contract that Aslant will pay freight to Rotterdam and will also Insure the shipment.
Once the salmon has been delivered, Dankness will assume all responsibility.
The Finish Food Inspection Agency reports to Aslant that the fish to be exported is of superior quality, with a fat content of 11 percent. The certificate of quality includes a code for superior quality and also states a color code that is standard to the Salmon scale. Color coding is a common practice in the fish industry and provides a method of standardization for something as subjective as color. Both in reduction and sales, color is the most important quality parameter for salmon.
Salmon buyers can request information on the color of a delivered lot in the form of a number corresponding to a color number on the Ruche scale.
Another salmon color reference is the color number on the Salmon scale. Sultana’s bank, acting as their export advisor, contacts the FIT company to tell them that the letter of credit has fallen though because the certificate of quality is vague and it cannot be ascertained if the shipment has passed TTS quality certification. Something is fishy…
The documents were delivered directly to the buyer for payment.
Dandifies insists on inspecting the shipment upon arrival. Dandifies is not an experienced salmon importer, and usually deals with Spanish Blue Fish and Irish Char. They are not in disagreement that the salmon shipment has passed quality inspection. Upon Dandifies inspection, they claim that the fat content of the stock is much higher than is claimed in the quality inspection. They reject the sale and will accept bustiest goods, but are claiming damages for loss of profit.
Aslant management wonder if they need to rethink their exporting strategy.
O FIT 2 Case Study Discussion Questions 2. Which shipping vessels would be most appropriate for Aslant to ship their product to Rotterdam? 3. Describe the purposes for each of the export documents that Aslant need to provide to secure documentary credit. 4. Which Nicotine would best represent the terms of sale between Aslant and Dandifies? Would Aslant nave Detent 3 tea Trot employing a Treat NT Outerwear:’ Explain.