Fresh Flower Grower, California
Under its second generation of
ownership, this company was one of the top five rose
growers in the country. However, from 1999 through
2002, dominant low cost cut
rose imports increased over 44%, while unit costs on
foreign production dropped 15%. As a result, 2001
annual sales decreased 9%. To prevent further
erosion of
sales and start a more diversified product offering
management elected to maintain level employment,
which resulted in widened operating losses.
The company with the assistance from the University
of Southern California’s Western Trade Adjustment
Assistance Center (Western TAAC) became certified as
trade impacted by the US Dept. of Commerce, Economic
Development Administration (EDA) in April of 2002.
Western TAAC and the company's management developed
a strategy focusing on differentiating itself from
lower cost suppliers of cut roses based on expanded
product offerings, quality and service. This
strategy capitalizes on opportunities to expand
high-end wholesale florist, retail florist and
mass-market channel sales.
The company has successfully completed its 5th year
in the implementation phase of the TAA Program.
During this period the company, with Western TAAC
assistance,
implemented three of its general management
projects. These projects focused on enhancing senior
management’s strategic focus and improving the
Company’s Mass
Market operations. Since beginning its
public/private sector partnership with the TAA for
Firms Program, sales increased 70% to $9M,
productivity improved 113%
to $150,000 sales per employee and net income has
increased substantially.