Summary
The article “ Asleep by a frozen sea ” explains the early history and origin of Hudson’s Bay Company (HBC) that dates back to the 18 th century. HBC’s management before the Seven Years War between 1756 and 1763 had varied reviews ( Wagner, 2014) . The most significant criticism was HBC’s lack of initiative in North America in comparison to their French rivals. The article re-evaluates the company’s operations according to its British managers. It analyzes what they desired to achieve in addition to how their managed their cash flows, controlled costs, and generated revenues. The comprehensive analysis revealed that although they faced fierce competition from their French rivals, HBC was still successful through prudent cost management and unique and innovative approach to the company’s financial management. Through the prudent financial management, HBC was able to protect its stakeholder’s interests as well as offering operational flexibility ( Wagner, 2014) . The research paper will analyze the article “ Asleep by a Frozen Sea or a Financial Innovator?” by Mike Wagner.
Contrary to the French who sent their Coureurs des Bois inland for business and trading, HBC focused on building posts on Hudson Bay while waiting for Indians to bring trade commodities particularly furs to them. When the HBC finally abandoned the policy and decided to move inland, it turned the company into a kind of informal government in western Canada and also influenced the confederation of eastern and western Canada. Initially, HBC sent various explorers inland for many decades before they established their first inland post in 1774 ( Wagner, 2014) . After HBC set up the six posts on Hudson Bay, the French made several attempts to capture the posts. Additionally, HBC faced various challenges as they attempted to expand inland. First, HBC were coastal traders and had little woodland experience. Secondly, although English goods were cheaper, Indians preferred trading with inland traders because it saved them weeks of travel.
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Discussion
The article complements the information received from lectures and course materials. The article paints an image of a company that struggled to retain its original image as a coastal trader as well as a company that persisted through many challenges such as competition from the French ( Wagner, 2014) . Regardless of the challenges, the British had a competitive advantage because of their superior manufacturing technology in the fur trade. Regardless of HBC's small size, the company achieved remarkable success in the fur trade. Since HBC existed on the French Empire's northern flank, it presented a business threat that the French believed should not have gone unchallenged. The French challenged the English advances in Hudson Bay by launching variously armed skirmished in James Bay and Hudson Bay between 1682 and 1712 ( Wagner, 2014) . Despite the fact that the French were more successful than the English during the skirmishes, they were unable to completely kill competition from HBC. Ultimately, the French's military success against the English did not matter because the HBC was awarded entire control in the northern maritime region after the Treaty of Utrecht in 1713 ( Wagner, 2014) .
Furthermore, the article emphasizes the significance of the fur trade. The fur trade played a key role in Canada's history. The fur industry used to be the region's biggest industry after fishing. The great explorers such as des Groseilliers and Radisson traveled from New France to search for new sources of fur west and north of the Great Lakes. The two explorers were significant in charting a northern trade route that extended that passed through Hudson Bay. HBC's activities in North America have been important for historians studying how interactions between native peoples and European fur traders influenced the development of Canada ( Wagner, 2014) . The discoveries had a significant role in the founding of HBC, and through the success of the small company, the development of modern-day Canada.
The article is significant in explaining the challenges experienced by HBC as they expanded into the interior. First, HBC were coastal traders and had little woodland experience. Secondly, birch trees that were essential in building canoes did not grow along Hudson Bay ( Wagner, 2014) . Because HBC focused on trading at the posts, they experienced lower transportation costs than their main rivals, the French. Although English goods were cheaper, Indians preferred trading with inland traders because it saved them weeks of travel. In as much as the goods were cheaper, they lost significant market share to the French because HBC was not aggressive when trading with the Indians, unlike the French who took their business to the Indians ( Wagner, 2014) .
Ultimately, the struggles and success of HBC emphasize the significance of proper financial management in business. HBC was mainly formed to invest in the fur trade. The trade was mainly based on the need to satisfy two significant but different sets of customers: European merchants and the First Nations. The First Nations sold the prime belts for various trade goods while the European merchants purchased the pelts to manufacture into hats. The success of HBC was dependent on the ability of both sets of customers to trade. Although most critics argued that the company was profiteering at the expense of developing the colonies, HBC justified its innovative financial management through its success. Unlike other companies such as the Levant Company that was helpless against French competition, HBC became self-sufficient and competed favorably against the French ( Wagner, 2014) . In as much as the accusations that HBC slept by the edge of the sea were true before the Seven Years War, the company was a financial innovator that allowed it to withstand various challenges.
References
Wagner, M. (2014). Asleep by a Frozen Sea or a Financial Innovator? The Hudson’s Bay Company, 1714-63: Canadian Journal of History , 49 (2), 179-202.
