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Table of Contents TOC o “1-3” h z u INTRODUCTION PAGEREF _Toc516598447 h 3SECTION-1 PAGEREF _Toc516598448 h 4Fads, Trends, Megatrends and Wildcards PAGEREF _Toc516598449 h 4FADS PAGEREF _Toc516598450 h 4TRENDS PAGEREF _Toc516598451 h 4MEGATRENDS PAGEREF _Toc516598452 h 5WILDCARD PAGEREF _Toc516598453 h 5SECTION-2 PAGEREF _Toc516598454 h 6PESTEL ANALYSIS OF FISH FARMING PAGEREF _Toc516598455 h 6POLITICAL ANALYSIS PAGEREF _Toc516598456 h 6ECONOMIC ANALYSIS OF OPEN FISH FARMING PAGEREF _Toc516598457 h 7SOCIO-CULTURAL ANALYSIS PAGEREF _Toc516598458 h 7TECHNOLOGICAL ANALYSIS PAGEREF _Toc516598459 h 8ENVIRONMENTAL ANALYSIS PAGEREF _Toc516598460 h 8LEGAL ANALYSIS PAGEREF _Toc516598461 h 9SECTION-3 PAGEREF _Toc516598462 h 9Porter’s Five Forces Analysis of open water fish farming industry in BC PAGEREF _Toc516598463 h 101.Threat of New Entrants- PAGEREF _Toc516598464 h 102.Threat of Substitutes PAGEREF _Toc516598465 h 103.Bargaining Power of Buyers PAGEREF _Toc516598466 h 104.Bargaining power of Suppliers PAGEREF _Toc516598467 h 105.Industry Rivalry PAGEREF _Toc516598468 h 11CONCLUSION PAGEREF _Toc516598469 h 12References PAGEREF _Toc516598470 h 13

The purpose of writing this report is to develop and apply the knowledge of the strategic management. There will be adequate understanding of the processes, goals and initiatives of the strategic management in all the sections of the report. This paper will focus on the open water fish farming in British Columbia and it contains three sections.
First section will focus on the Fads, trends, megatrends and wildcards that impact future business strategies of the open water fish farming. Second section will put light on the PESTEL analysis for open water fish farming for Canada and British, the third part will reveal Five forces analysis of open water fish farming industry in British Columbia and the last part will provide a summary of the influential competitive forces of the farming industry in British Columbia.

SECTION-1Fads, Trends, Megatrends and WildcardsFADS- Government of British Columbia is concerned about protecting the Wild Salmon and even the migratory routes that are mostly in use by the people which indulge in the fish farming. According to my observation, the fad was during the 1997, the farming in British Columbia presented a low overall risk to the environment but by 1999 the high number of escapes from farming pens lead to the creation of the Salmon Aquaculture Policy Framework. It is also seen that even when fish become scarcer or harder to catch many people continued to assume that more fish were available. In the past decade or two this view of fisheries has been transformed. In addition to it, the Atlantic Salmon, species that is near extinction in the wild, the price of all the species have fallen because of increased market supplies.

TRENDS: It is noticed that Atlantic Salmon farming is a major ecosystem modified in coastal areas, with subsequent impacts on human activities. High amount of fish is produced in comparatively less room of water. Some of the fish farms are using the recirculation systems to recycle the water in which fishes must live and expand. These recirculation systems use 100 times less water per kilo of fishes than traditional land-based systems. Moreover, to decrease the risk of disease to the fishes the quality of the water is being monitored on regular basis. As an outcome of the today’s latest technology, a new sustainable way involves moving aquaculture out into those water bodies where the water is emasculated, and the wave currents are strong and steady. The oceanic currents in open ocean are enough for continuous flushing down the farms of fish waste such as sea lice. The fish farms are provided with more consistent way of life, as these are in efficient salinity and temperature. In accordance with these facilities fishes become less vulnerable to harmful diseases and their sensitive brains remain calm and peaceful which leads to promotion of better growth, reproduction and minimises the need for future medicine.

MEGATRENDS: The effects of climate change on the fishes and other aquaculture species is mostly observed in Canada. It is very easy to see and measure the impact of rising temperatures on sea ice, coastal erosion etc. As we all know that fishing is a major commercial industry and source of food for many people around the world, so it is necessary to take care of these species. Its very common in Canada, large amount of carbon dioxide is pumped into the oceans which makes the ocean water warmer and it puts devastating effects on the life of the aquaculture and marine life, so fishes start to migrate towards the cooler water near the poles for their better survival. According to one author named William Cheung, for every degree Celsius warmer, there can be loss of about three million tonnes of fishes from the ocean in terms of potential fisheries. The weather conditions becoming more intense and more frequent such as storms causing material damage and flooding of freshwater farms are affecting the growth and development of fishes and results in the physiological effects as well as increase in the diseases and infections among the aquaculture. The average warming of the British Columbia coast was minimal between 1901 and 1979 but occurred at rapid rate up to 0.25degree Celsius per decade between 1979 and 2004. In addition to it in the present scenario also much of the warming is occurring mainly in the month of June and July due to rise in the temperature of atmosphere which results in the relocation of the fishes and other marine life.

WILDCARD- Oceans are becoming acidic at faster rate which is threatening disaster for marine life. Moreover, the hurricanes and earthquakes also damage the aquaculture. When earthquakes are of high magnitudes like 7 or 8 then its offshore causes great submarine landslides and it badly damages the aquatic life. Underwater landslides, earthquakes and volcanic eruptions can all cause tsunamis by dislocating gigantic waves that are sustained by gravity lead to destruction of coral reefs under the ocean and damaging the sea life. Growing fish in open water facilities is very risky and fish farms can be the enormous source of pollution to the environment. Diseases in fish farms can spread rapidly among fishes grown in close captivity and this also may result in spreading the infections among wild populations. It can also devastate the fish farming industry itself when farms are spread thousands of miles apart. In addition to it the antibiotic and hormone laden feed used in the fish farms also give rise to pollution in the fish farms.

SECTION-2PESTEL ANALYSIS OF FISH FARMINGPOLITICAL ANALYSIS- Several native leaders and other Government pioneers came together outside the Vancouver Convention Centre recommending the State to break down all the Salmon farms along the BC Coast. According to the native people of Canada and other politicians these Salmon farms pose a danger to the wild fish populations. Some of the people also debated that the priority of the state government is to certify and assure safety to much of wild Salmon populations of Canada.

Moreover, it is also argued that Government of BC gives the right to First Nations people to allow or refuse the aquaculture activities in their stated traditional territories. This problem will not end in the short time, but the solution should be in the favour of both the people of British Columbia as well as the Government of Canada.

Many types of aquaculture take place in Canada and its all the ten provinces which includes production of Atlantic Salmon and many other species. The favourable growing conditions and provides the basis for growth of Atlantic Salmon production in British Columbia. The Gross Domestic Product of aquaculture add its value in the purchased inputs like feed and utilities. The Fist Nations rivals inherently tied this discourse into the treaty claims which is their primary objective. The BC aquaculture has grown its GDP in case of production of fish farming especially Atlantic Salmon from the last two decades. The open water fish farming is also affecting the employment level of the BC as more and more people gained jobs and earning their livelihood from this field. The province of British Columbia has the highest proportion of production of fish in the entire Canada. The decline in price for Atlantic Salmon in the global marketplace has been accompanied by an increase in the value of the Canadian dollar. Canada is highly dependent on the US market for its aquaculture growth and even the exports of the Canada rely on the strength of the US market. The Salmon farmers of the British Columbia are global leaders in achieving the certifications for raising the Atlantic Salmon. Moreover the demand of the farm raised Salmon has also increased from last three years and this demand is coming from both the traditional markets and the US markets.

SOCIO-CULTURAL ANALYSIS- The open water fish farming is affecting the society of British Columbia and also of whole Canada. The Salmon farming industry also impacts the stocks of the food fish worldwide which is used to make feed pellets. Moreover, the production from Salmon farms is growing rapidly even under the restrictions of BC government. According to the First Nations the farms are threatening the traditional lifestyles of the British Columbia by impacting the wild Salmon and herring stocks. In addition to it, it can be seen from the information of last 2-3 years that no new tenure permits for fish farms have been approved by BC but still these farms are present and working well and are continuing their production of fishes, serving the community and also impacting the life of the people of Canada.

TECHNOLOGICAL ANALYSIS- The pace of developing the technology is faster so the issues under Salmon farming can be approached by the latest and innovative ways. The three new ways which are currently in the research are MFB (Marine floating bag system), Land based saltwater flow through system (LSF), and the last is land based freshwater recirculating system (LFR). All these new technical systems revealed good results in making fish escapes, predator interaction and disease transmission non-existent and also lower the feed input. Moreover, the BC salmon farmers association is also trying their best to build the coastal communities and the First Nations are also trying to monitor the approach which can be helpful in decreasing the environmental damage and other hazards to the surroundings.

ENVIRONMENTAL ANALYSIS- Almost all the aquaculture operations are present in the oceans in Canada, so they are prone to risks caused by weather, temperature, predation etc. Aquaculture is so poorly maintained and controlled at the national and global level and it put disastrous and negative impact on natural environment. Further-more the process of fish farming also liberates the nutrients such as phosphorous and nitrogen from the fish feed and they mix up in the aquatic and marine environment which results in the growth of aquatic waste and marine algae making all the aquatic surroundings polluted. Moreover, farmed Salmon are vulnerable to the infections of the parasitic sea lice that can cause mental harm like increasing stress level among the fishes. Sometimes the industry of the fish farming also uses some kinds of chemicals for preventing the sea lice that can be proved toxic and harmful for the marine life.

LEGAL ANALYSIS- In the present Scenario, both the federal and the provincial levels of Government of Canada are desiring and are eager to make the more powerful and productive regulatory framework for preventing and preserving the environment and for protecting the fisheries. All the provinces of Canada have their separate legislations to control and supervise the aquaculture industries. All the legal activities like planning, site leasing, promotion of fish and aquaculture products, aquaculture training, licensing and approval of aquaculture sites are maintained by the provincial government of Canada in an effective manner. The Government of Canada also govern and handle the food safety measures because there is high amount of fish consumption among the residents of BC. In addition to it, there are three provincial agencies in BC which administer and inspect the aquaculture industry, these are: Ministry of Agriculture and Lands, Ministry of Environment and the Integrated and Land management Bureau. Among these, the Ministry of Agriculture and Land is most important and useful because it covers the aspects related to issuing commercial aquaculture and seafood licenses and permits. Moreover, all the aquaculture facilities in British Columbia must meet the requirements of Aquaculture regulations for managing and preserving the marine life effectively.

SECTION-3Porter’s Five Forces Analysis of open water fish farming industry in BCThreat of New Entrants- Growth and development of the fish industry mainly rely on the quality of the fish that is sold on the daily basis, so it can be said that usage of new equipment in the fish farming can lead to coming of new entrants and moreover the technological systems that can improve the quality of the production of fish can become the threat to new entrants in the field of fish farming in BC.

Threat of Substitutes- There are some substitutes to Salmon of British Columbia like Atlantic Salmon, Tuna and many more and moreover if we consider as whole then variety of fish can be substituted by the other sea species like trout, oyster, snails and others. But the residents of BC mostly like to consume the Pacific Salmon so there is less threat of substitutes in BC.

Bargaining Power of Buyers- According to the sustainability level of the farming the power of buyers is affected. When farming done with the new techniques then it provides the high quality of the fish output by which more and more people desire to buy more fish and hence it can result in increasing the profits of the fish farmers in British Columbia. Moreover, the development in the fisheries sector and the improved nutritional diet of the fish produced from the new techniques of production helps to attract the buyers of the fish and hence enhance the economy of the fish market in British Columbia.

Bargaining power of Suppliers- It is noticed that all the powers related to the fish output and the profits of the production of the fish farming is with the buyers because quality level, employment level and the nutritional level is determined by the buyers not by the suppliers. There are optimum number of suppliers of Salmon fish in BC which are fulfilling the purpose of the residents and the local people of the British Columbia, but they cannot come forward to make progress in the economy of the province.Industry Rivalry: The Salmon fish farming is very common in the British Columbia from so many years and it is determined that most of the economy of the BC is rested upon the aquaculture. Due to increase in demand of the Salmon the fishing industry suffered the competition from last five years. Moreover, there are less number of suppliers of Salmon as compared to its demand which give rise to more competition in the fishing industry in British Columbia.

CONCLUSIONThe concept of the open water fish farming in BC is not the new concept for the residents of BC and the local people of Canada, this industry introduced in BC Coast before three to four decades. This report mainly focused on the role of federal, provincial levels of government of Canada of the fish farming. All the political, social, legal, environmental impacts of the fish farming in BC and Canada are discussed in this report.

The main Idea of the report is to inform the reader about main motive of the fish farming industry in BC which is to protect the wild Salmon in BC. In this report it is also discussed that how the economy of the British Columbia and other provinces of Canada is impacted by the open water fish farming and it is also included that main food consumption of the BC people is Salmon fish which cannot be substituted by any other seafood which means that the local residents of BC mostly prefer to consume the pacific Salmon than any other.

ReferencesAzpiri, J., ; Aylesworth, L. (2017, December 14). New study shows B.C. wild salmon are being infected by virus coming from fish farms. Retrieved from, J. (2017, September 08). First Nations leaders rally in support of B.C. salmon farm occupation | CBC News. Retrieved from
Little, S. (2018, May 09). Time to end open-water salmon farming, says Pacific Salmon Foundation. Retrieved from
Linnitt, C. (2018, March 16). BC Is the Outlier on Open-Net Salmon Farms. Retrieved from, A., ; Victoria Times. (2017, December 04). Fish farms in B.C.: Occupied by protesters. Retrieved from, M. (2016, September 25). The government wants more offshore fish farms, but no one is biting. Retrieved from

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