With agricultural products such as pineapples, there are high chances of fluctuations in market supply since the growing conditions are not constant from one season to the next. Demand on the other hand can shift from winter to summer due to various factors such as consumer preference (Wilson, 1948, p. 293). It is always important for the producing company to understand these changes. In short, the company should understand how these factors changes will affect the price levels in the market (Py, Lacoeuilhe & Teisson 198, p. 570). At a time when the supply curve is being constructed, one assumption often made is that the factors that impact this curve are usually constant. On the part of demand determinants are a future expectation, consumers’ preferences and tastes, other related goods and buyers’ income. When a change occurs to any of the aforementioned factors, this will in effect have an impact on the supply curve. Consequently, the equilibrium quantity and price of a product in question shall be affected as well. This can either be increase or decrease or increase of prices or quantity.
At equilibrium, both the demand and the supply of the pineapple corporation are equal as shown in the diagram below. While calculating the supply and demand variants, this could in effect impact the equilibrium of the curve.
This paper looks at changes in the level of supply holding other factors constant. If supply increases, for example the company may be expected to hire more land to grow the pineapples during this season. Then this means there will be more land for growing pineapples hence the supply taken from the market will increase. If the company at the previous period it took 5000 pineapples in the market at 6 dollars. Then an increase in this supply of up to 8000 pineapples will lead to a shift of the pineapple supply curve will shift to the right. This is due to an increase in supply and assuming that the demand does not change then the there will be excess supply in the market. Pineapples are perishables and only the royal consumers will buy the more expensive fruits while others opt to buy other products and the excess will rot at the company stores (Py et al, 1987, p. 560). Only with the reduction in price will we have more consumers buying hence will not have the pineapples spoiling.
Suppose on the other hand that the growing areas were affected by bad weather conditions. This would then have a negative effect on the production of pineapples. Hence the company will have fewer pineapples to take to the market. This means that all other factors kept constant the demand will be more than the quantity supplied (Haggar, 2009, p. 45). Suppose at the same price then of 6 dollars which 5000 pineapples were supplied. At current market equilibrium the demand will be 5000 consumers due to the weather conditions that affected supply level. Let us assume that the Hawaii Company will only be in a position to supply 2500 pineapples. This means that only 2500 consumers will manage to get the pineapples (Will son, 1948, p. 331). The only way to gain equilibrium is by increasing the price and therefore only the consumers who value pineapples will be willing to buy them at an increased price hence when supply decreases in the market then the price increases (Robert, 2007, p. 55).
There are other steps that Hawaii can take apart from increasing or decreasing the supply. These are the strategies that Hawaii Company can take in order to stimulate demand (Gomes, 2009, p. 66). Demand cannot only be increased through decrease in prices; there are other steps that the corporation can take in order to stimulate demand. Suppose the corporation undertook a promotion activity showing that the pineapples are useful heath-wise against certain diseases. This would help create more awareness among consumers and hence an increase in demand. The corporation can also target the competing products (Wilson, 1948, p. 321). If the corporation also produced other fruits that are less profitable than pineapples would then reduce the production thus leaving the consumers with no option other than to increase the consumption of pineapples.
Sales also affect the demand and supply. Sales involve creating awareness of the product, distribution and also promotion activities (Haggar, 2009, p.77). Therefore the Hawaii Corporation should ensure that effective pineapple awareness is created to ensure that everyone is well informed about the product. Effective channels should be established to ensure that the perishable product gets into the market at the right time to avoid spoilage. Without the components of sales then it will affect the demand and supply (Gomes, 2009, p.21). With effective distribution channels more pineapples are ferried to the market more efficiently hence an increase in supply. With the increased promotion activities the consumers are made aware of the pineapples hence increase in demand (Bender, 2005, p.18). Pineapples are also produced for export sales. This means pineapples are not only consumed locally but are also produced for export therefore the company should also hold overseas promotions hence creating bigger market for their product.
In conclusion we find that the demand and supply influence the sale of pineapples (Rohrbach, 2002, p. 3). The main goal of the company is to maximize wealth. Various contributing factors help in the performance of the company. From the above findings, the company should ensure that the demand is stimulated and also there is enough supply to the market. This ensures that the consumers to be loyal to the product since they can meet their demand to satisfaction. The company should also create awareness of the product both locally and internationally this will help a lot in increasing their sales. Better transport means to the market should use, for examples refrigeration technology that ensures that the product gets to the market when fresh and avoid loss through spoilage. Other than concentrating on the demand and supply the corporation should also consider another factor, it should develop corporate social responsibility in order to maintain an image of being a good corporate citizen. On cost of production it should try to cut on cost to maximize the profit of the corporation. For the company to keep performing and accomplishing its goals then it should focus more on its sales this means how to deal with the demand and supply.
Reference
Bender, D. A. (2005). A Dictionary of Food and Nutrition. Encyclopedia.com. Web.
Gomes, A. (2009). State Department of Agriculture, Advertiser research. A growing Niche: New growth for pineapple farming. Web.
Haggar, R. J. (2009). The Journal of Agricultural Science. Web.
Py, C., Lacoeuilhe, J.J. and. Teisson, C. 1987. The pineapple, cultivation and Uses. Paris, Maisonneuveand Larose, Web.
Robert, K. (2007). Canned fruits. Food service pricing rates: Statistical data. The Food Institute Report.
Rohrbach, K. G. (2002). Pineapple cultivation in Hawaii. Web.
Wilson, J. N. (1948) Pineapple Industry of Hawaii.Massachusettes, Clark University. Web.