Island Abbey Foods External Forces

Four of the external forces that may have impacted Island Abbey Foods are competitive, technological, global and societal forces. As it was mentioned by Karakowsky and Guriel in the book of The Context of Business: Understanding the Canadian Business Environment (2015) competitive forces are “The domestic and foreign competitor influences on organizational decisions.” (page 8). Competitive forces had a significant impact on Island Abbey Foods by forcing the company to innovate to gain competitive advantage and be successful on the market. The market for honey is relatively big and to gain a major share of the market the company has to provide products to the consumers that are cheaper, better in quality and more unique than those of competitors’

products. As it was mentioned by Karakowsky and Guriel (2015) “To compete effectively, organizations must continually create new and better methods of serving customers.” (page 9) Competitive advantage was gained by Island Abbey Foods by introducing a unique product to the market, Honibe products. As it was mentioned by Atlantic Canada Opportunities Agency (2010) “...entire line of Honibe products- are made unique thanks to an innovative process that removes moisture so they keep their honey look, taste and sweetness without the sticky mess.” (par.3). Also as it was mentioned by Quentin Casey (2012) “ “ We literally have the world’s only all-natural drug delivery mechanism”” (par.8 ). Island Abbey Foods have limited their competition by introducing a differentiated product to the market. Competitive forces has forced Island Abbey Foods to constantly develop their products as to keep the major share of the market and also to be able to expand into different markets.

Technological forces have played the most significant role in the story of Island Abbey Foods. Technological forces as mentioned by Karakowsky and Guriel (2015) are “ The technological environment that exerts influence across industries, playing a central role in how an organization functions, obtains resources and competes.” (page 9). The first reason as to why technological forces have contributed to the success of Island Abbey Foods is that the innovation of the product could only be possible with the technology. As it was mentioned by Atlantic Canada Opportunities Agency (2010) “It took John years of experimenting, and custom engineering his production equipment, but the results was the world’s first natural, non-sticky honey product…” (par. 5). The development of the product was surrounded by technology. As it was mentioned by Quentin Casey (2012) “ ...the pair eventually hired scientists from the PEI Food Technology Centre at the University of Prince Edward Island (UPEI), an arrangement that transformed Rowe’s honey technology from a homegrown novelty to a commercial product.” (par.6). Second reason as to why technological forces have contributed to the success of Island Abbey Foods is that the expansions of facilities and technology have helped to produce greater output quantities at a faster rate. Evolution of technology over time has helped to progress the output quantity and quality of the product. It was mentioned by Atlantic Canada Opportunities Agency (2010) that “‘When our sales began to grow quickly and it was apparent that we were outgrowing our pilot plant, ACOA then helped fund our move to our own facilities where we could have all aspects of production and sales under one roof.”(par.7). Bigger facility allowed producing greater output quantities and also having a greater and faster communication between production, research and development, and sales department. Atlantic Canada Opportunities Agency (2010) continued “She says the assistance for ensuring a factory-fit up specific to their needs was essential to the growth of the company, which now produces ten times the volume they did in their old facility”(par.8). Correlation between expansion of facilities and an increase of the output quantities demonstrates how significant technological forces are, as to grow and expand technology has to be involved. As for the future plans of continuing the story of success, technology has to also be involved. Quentin Casey (2012) mentioned that “The new plant, with its additional space and new packaging equipment, will eventually tenfold, allowing the 30-person company to stockpile inventory for the first time.”(par.7). Technological forces also have helped Island Abbey Food to gain popularity on the market as exposure of the company on television has helped to advertise the product. As it was mentioned by Quentin Casey (2012) “ Before Rowe’s 10-minute appearance on Dragons’ Den, his company was shipping product to 1,000 retail outlets across Canada; that number quickly doubled following the prime-time spot.” (par.5).Constant expansion of technology also prevented other companies from entering the market as they would not be able to outperform Island Abbey Foods in terms of quality and quantity as John and Susan Rowe’s company is technologically advanced. As it is mentioned on Island Abbey Food’s website “ We see the future of the natural health care industry growing through our platform technologies.” (par.2). Therefore, technological forces have helped Island Abbey Foods to create, advertise and secure continuous growth of the product.

Global forces may have contributed to the success of Island Abbey Foods as well.

Global forces as described by Karakowsky and Guriel (2015) are “ The global influences on organizations that could be considered as part of the general economic, political, technological, competitive, or societal forces, but are international in nature.” (page 10). Globalization may have significantly contributed to the success of Island Abbey Foods as it provided an opportunity for Island Abbey Foods to sell their products internationally, enter the markets of foreign countries. Globalization as mentioned by Karakowsky and Guriel (2015) is “... a process involving the integration of world economies” (page 9). International trade helped Island Abbey Foods to expand their consumer market. As it was mentioned by Atlantic Canada Opportunity Agency (2010) “ Island Abbey Foods is distributing its diverse product line to over 80 countries around the world, and parlaying the limelight of the Global SIAL D’or award into additional partnership that promise to help them expand their markets and product lines internationally.” (par.10). Without international trade Island Abbey Foods would only be able to sell their products domestically that would reduce their growth and profits. International market also has helped the company to prosper as Global SIAL D’or award helped them to obtain necessary funds to expand and produce their products. International trade agreements that Canada has with a lot of

countries around the world, especially the United States of America, have also contributed to the expansion of the product as there are no trade barriers to prevent the product from succeeding on foreign markets.

Societal forces could have also contributed to the success of Island Abbey Foods.

Societal forces as described by Karakowsky and Guriel (2015) are “ A wide range of influences in society in general, including, for example, changes in public opinion on ethical issues that affect all organization and to which business must respond” (page 10). First of all, the product was thought of because of societal needs, having honey without it being sticky and messy. The idea came to John Rowe after he has broken a jar of honey in his backpack. It was mentioned by Atlantic Canada Opportunities (2010) Agency “ While hiking in Western Canada, company owner John Rowe discovered that a glass jar of honey had shattered in his backpack. The gooey mess sparked an idea, making solid, no-mess honey.” (par.4). Second of all, in the past years concerns of health have been raised and more people have started to look after their health. Island Abbey Foods helps to provide healthy products that contribute to the well-being of people. As it was mentioned on their website “... natural food and health products to launch one of a kind products that help to promote better living and healthy and active lifestyle.”(par.1). A lot of products that are available on the market are filled with different types of chemicals that damage health and the rise of health concerns amongst the public have triggered to innovate all natural health promoting products. It was mentioned on their website by Carson Seeber MD

“ They relieve your sore throat symptoms which helps you function better while your body fights off upper respiratory tract infections.” Therefore, the need of society to have natural and health promoting products could have helped to gain popularity to Island Abbey Foods’ honey that has the same taste and sweetness as the original honey, but without the sticky mess.