On February 14. 1981. Hugo Schaeffer. frailty president of operations at the National Cranberry Cooperative ( NCC ) . called his helper. Mel O’Brien. into his office and said: Mel. I spent all twenty-four hours yesterday reexamining last fall’s procedure fruit operations at having works # 1 [ RP1 ] with Will Walliston. the overseer. and speaking with the co-op members [ agriculturists ] in that country. It’s obvious to me that we haven’t solved our jobs at that works. yet. Even though we spent $ 100. 000 last winter for a 5th Kiwanee dump truck at RP1. our overtime costs were still out of control this autumn. and the agriculturists are still upset that their trucks and drivers had to pass so much clip waiting to unload procedure fruit into the receiving works. I can’t fault them for being upset. They are the proprietors of this co-op. and they resent holding to rent trucks and hire drivers to acquire the berries out of the field and so watch them stand idle. waiting to unload.
Walliston thinks that the manner to avoid these jobs next autumn is to purchase and put in two new driers [ $ 40. 000 each ] . and to change over our dry berry keeping bins so that they can be used to hive away either water-harvested or dry berries [ $ 7. 500 per bin ] . I want you to travel out at that place and take a difficult expression at that operation and happen out what we need to make to better operations before the 1981 harvest comes in. We’re traveling to hold to travel rapidly if we are traveling to order new driers. since the equipment and installing lead times are in surplus of six months. By the manner. the agriculturists in that part indicated that they plan on about the same size harvest this twelvemonth as last. But it looks like the per centum of water-harvested berries this twelvemonth will increase to 70 % of entire procedure fruit from last year’s 58 % .
NCC and the Cranberry Industry
NCC was an organisation formed and owned by agriculturists of cranberries to treat and market their berries. In recent old ages 99 % of all gross revenues of cranberries were made by the assorted co-ops active in the cranberry industry. NCC was one of the larger co-ops and had operations in all the chief turning countries of North America: Massachusetts. New Jersey. Wisconsin. Washington. Oregon. British Columbia. and Nova Scotia. Postpone A contains industry informations for U. S. production and gross revenues of cranberries.
This instance represents a major alteration of the instance “American Cranberry Cooperative” written by J. Tucker. Certain day of the months and fiscal informations have been disguised. HBS instances are developed entirely as the footing for category treatment. Cases are non intended to function as indorsements. beginnings of primary informations. or illustrations of effectual or uneffective direction. Copyright © 1988 President and Fellows of Harvard College. To order transcripts or bespeak permission to reproduce stuffs. name 1-800-545-7685. write Harvard Business School Publishing. Boston. MA 02163. or travel to http: //www. hbsp. Harvard University. edu. No portion of this publication may be reproduced. stored in a retrieval system. used in a spreadsheet. or transmitted in any signifier or by any means—electronic. mechanical. run offing. entering. or otherwise—without the permission of Harvard Business School.