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MODULE 3: MANAGING, GROWING AND HARVESTING THE VENTURE

Case 5: The Fruit Mart

The government of Caribbean territory launched the “Grow More Food” campaign in 2000 with the aim
of encouraging the export of non-traditional agricultural crops. Under this initiative, the government DO NOT WRITE IN THIS AREA
offered numerous fiscal incentives as well as financial support to farmers. In an effort to take advantage
of opportunities created by the initiative, Anthea established a company to produce and export a wide
range of fruits to the United States and Canada.

Before he commenced operation, Anthea prepared a business plan and was able to source financing for the
venture from a local commercial bank. During the first two years of operation, the revenue of the company
merely covered its operational expenses. However, between the third and fifth years, the company posted
robust profits due to the rapid growth in its sales revenue. From years six to nine the company’s revenue
levelled off and declined thereafter mainly as a result of competition from other suppliers who penetrated
the market for organic fruits in the United States and Canada. Given the lack of the anticipated growth in
the business, Anthea has taken the decision to dispose of the venture to the disappointment of many top
managers who hold stock options in the company.

5. (a) Based on the case above, list the FIVE stages of the venture life cycle (VLC).

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[5 marks]

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