1. What are some distinctive characteristics of the aquaculture and salmon farming industry? How is the aquaculture industry changing?
2. How is Marine Harvest performing within the industry? What strategic actions influence its success?
3. Which of the three options mentioned in the case should CEO Aarskog choose? Why? What other recommendations would you suggest for Marine Harvest?
Write-ups should be around 5 pages (around 1500 words) maximum, 10 point font, double-spaced, in addition to exhibits. Please also use exhibits and charts as necessary to support your text answers.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.The case protagonist, Alf-Helge Aarskog, is the CEO of Marine Harvest Group, a Dutch aquaculture firm. He views the firm as approaching a necessary strategy transition and must decide which strategy will best continue to increase the firm value. Here we first review the aquaculture and salmon farming industry as well as Marine Harvest’s past performance within the industry. We then turn to consider Aarskog’s strategic options given their strengths and weaknesses within the context of the current industry environment.
The aquaculture and salmon farming industry
Aquaculture involves the cultivation of a variety of marine life (including fish, shell fish and plants) under controlled circumstances. Marine Harvest is a leader in global salmon farming, which is a subset of the aquaculture industry. Overfishing leads to the “collapse” of wild fishing stocks and therefore aquaculture is seen as a viable solution to the problem of meeting the world’s growing need for protein. As a result of this need, the supply of farmed marine life is the fastest growing source of the world’s protein. Due to several distinctive industry characteristics, the growth of the industry however must be managed carefully...