Page 122 - THE CARIBBEAN ADVANCED PROFICIENCY EXAMINATIONS
P. 122

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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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