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MGT 401 SEU Saputo Roles of Directional Marketing Operations & HR Strategies Essay

MGT 401

Saudi electronic university


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I’m trying to study for my Management course and I need some help to understand this question.

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College of Administrative and Financial Sciences Assignment 2- Strategic Management (MGT 401) Deadline: 28/03/2020 @ 23:59 Course Name: Strategic Management Student’s Name: Course Code: MGT 401 Student’s ID Number: Semester: II CRN: Academic Year: 1440/1441 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/Out of 5 Level of Marks: High/Middle/Low Instructions for the three assignments – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Project: Strategic Management of the company ‘X’ Structure of the project This project aims to study the strategic management of your selected company ‘X’. It includes three main parts: - Part 1: Assignment 1= Environmental scanning & strategy formulation. - Part 2: Assignment 2= Strategy implementation. - Part 3: Assignment 3= Evaluation and control. Description of the company ‘X’ - It is a company from your choice; From real national or international market; - It is publicly traded company; - Produces and commercializes more than one product; Sufficient information about the strategies of the company, its functions, structures and product lines are available; This company should have at least one partnership with other company (es) (alliances, joint venture, arrangement…). - Note. If you face any ambiguity regarding the choice of the corporation, kindly feel free to ask more clarification from your instructor. Assignment 2: Part 2 of the project Strategy implementation Learning outcomes: 1. Understand the contribution of various functional areas e.g. production, marketing, purchasing and supply management to the overall well-being of the organization (Lo 1.2.) 2. Gain insights into the strategy-making processes of different types of organizations (Lo 1.7) 3. Identify appropriate strategies for different situations (Lo 3.1). Assignment Questions (5 Marks) Consider the same company ‘X’ that you have already used in assignment 1 and answer the following questions 1. Describe the roles of directional, marketing, operations and human resource strategies in the overall well-being of your selected company. (2 marks) 2. Classify the products of your selected company based on the BCG matrix. (fill out the table in the answer sheet) (1 mark) 3. Describe at least one partnership that your selected corporation has with other company (es). Is it successful? Justify. (1mark) 4. Describe the structure of your selected company. (1 mark) Assignment Answers: 1. Describe the roles of directional, marketing, operations and human resource strategies in the overall well-being of your selected company. (2 marks) Answer: ……………… 2. Classify the products of your selected company based on the BCG matrix. (fill out the following table) (1 mark) Answer: Table 1. BCG matrix of the company ‘X’ Stars Question Marks 1. 1. Market Growth Rate Cash Cow 1. Dogs 1. Relative market share 3. Describe at least one partnership that your selected corporation has with other company (es). Is it successful? Justify. (1mark) Answer: ……………… 4. Describe the structure of your selected company. (1 mark) Answer: ……………… Running head: STRATEGIC MANAGEMENT Strategic Management Student’s Name Institutional Affiliation 1 STRATEGIC MANAGEMENT 2 Company Profile and Background Saputo Incorporated Company was founded in 1954 as a family company. Its headquarters are in Montreal, Canada (Ibrahim, Lam, Soufani, & Poutziouris , 2011). It is categorized as a food processing company, in the food and beverages industry. The company has majored in dairy products processing. The company operates under two sectors, the dairy products sector and the grocery products sector. Today, the company has diverted into producing, marketing and distributing its wide range of products. The company’s products include cheese, yoghurt, fluid milk, snack-cakes and dairy ingredients The company is rated among the top dairy processors in the world. This has largely been necessitated through its expansion beyond the home region, by mergers and acquisitions (Ibrahim, Lam, Soufani, & Poutziouris , 2011). Saputo company operates in Canada, America, Australia and Argentina. Its products are also sold in over forty countries in the world. The company’s values of trust, competence, respect and loyalty of all employees are at the heart of the company’s corporate culture. This has also largely contributed to its successes and growth. SWOT Analysis Strengths Saputo company strengths include a wide range of products, which sell through the company’s great brand names; products are sold on a global scale, employ large numbers globally through direct and indirect employment, incorporate operational efficiency and excellence that incorporates various strategies and has high capital capabilities that have enhanced the rapid growth through acquisitions. Weaknesses STRATEGIC MANAGEMENT 3 Despite the company success, it has some weakness which includes increased cost revision in the market, the unfavourable market concerning the cost of raw materials and that of products, and highly competitive export market. Opportunities The company has an opportunity to increase its capital investments especially in highly appreciated products in the market, increase the sales volume of snack cake products, and can also increase sales with the speculations that Argentina export market will be better Threats The main threats the company is facing include frequent fluctuations in foreign exchange posing a threat to the company’s plan and goals, difficulty in acquiring raw materials at a price that is competitive with the products and decline in milk consumption may cause a decline in sales volume and returns. Social Responsibility and Competitive Advantage Saputo Company operates on a global scale. This has largely been necessitated by its social responsibility initiatives that promote peaceful coexistence with different communities and also acceptance of its products and services. The company is committed to establishing a sustainable community. The company gives back 1% of the income generated to finance various programs and initiatives (Ibrahim, Lam, Soufani, & Poutziouris , 2011). Some of the initiatives the company engages in on attaining a healthy living, water stewardship programs, financing education programs, empowering women and the youths, humanitarian and disaster relief programs. The company also sponsors most sports which help in nurturing talents. The company STRATEGIC MANAGEMENT 4 has also launched various campaigns by supporting university students hoping to become entrepreneurs. As a result of adopting a favorable corporate social responsibility, the company has established a strong reputation hence informing the high preference of its products. Additionally, this informs the company’s steady growth on a global scale. Saputo Company has grown to become among the most trusted food processing organizations in the world. This is majorly attributed to the company’s partnership with suppliers, non-governmental organizations, and leaders to positively impact the whole system. The company has established an objective to lead on the environmental, social and governance issues that are of importance to the community, shareholders, and customers. The company has also invested heavily in programs to help employees advance their career through funding their training programs and workshops. The company has also embarked on eliminating unethical labor practices at the supplier level. This has been achieved through assessing the company’s relation and also addressing risk attributed to social issues in the supply chain. This is informed by the company’s policy of strengthening the systems on which it operates. The company also supports disaster relief programs around the world (Painter, 2007). The company has realized as significant progress towards achieving its established goals. The company currently operates in different regions informed by its strong social responsibility programs. The company has also seen significant growth in terms of resources and returns. Additionally, the company has seen an increased market share informed by the increased preference and loyalty by customers. It is appropriate to assert that organization social responsibility is a win-win scenario for both the corporates and the communities. Power of Buyers, Suppliers and Substitutes STRATEGIC MANAGEMENT 5 Saputo Company targets entities that rely on food products for their operations. The frequent users of the company’s products include restaurants, chefs and housewives (Ibrahim, Lam, Soufani, & Poutziouris , 2011). Looking at the demographic nature of the world today concerning the Saputo Company targets, almost every homestead, restaurant, and chefs use milk products daily. Therefore, the company has a high number of consumer target. The company deals with foods and beverages, which needs vital care and processing. Therefore, people are selective of such products in relation to various aspects such as quality, flavour, and price. This informs the company’s high-quality products that meet global standards and the wide range of flavors and formats in its products. Saputo company has embarked on maintaining a competitive position in the market by producing, marketing and distributing its products on a global scale. This has enhanced beat the ever-increasing competitive local market. In the recent past, the company has realized tremendous growth in the international market. Its products are highly rated and are among the top ten dairy products producing company in the world. However, it has a low market share in comparison to its closest competitors such as Agropur (Painter, 2007). The company’s position is effective because it can understand customers’ needs, has a low cost of production and strategic leadership. The market, in general, is characterized as highly competitive. To overcome this obstacle, any investor needs to set his or her standards in line with their capabilities and customers’ needs. This involves consideration of the quality and pricing which subsequently informs the value of the product. Looking at the Armstrong natural cheese product, it has a value proposition of “our value for cheese is strong” (Ibrahim, Lam, Soufani, & Poutziouris , 2011). Three aspects that the product has embarked on guide this. They include strong on heritage, sturdy on values and robust on cheese. The founders of the company had a strong love for dairy farming. The company was STRATEGIC MANAGEMENT 6 also found in a region that widely practised dairy farming. Since its foundation, Armstrong cheese has stood the test of time hence, and secluded space in the market built on its position of strong cheese. The other aspect that is strong on cheese informs the natural quality, the range of flavour and formats. This enhances the production of natural cheese without compromising the taste and quality and is still made with similar care and passion as that when the company was founded. Strong values also inform the company’s value position. To provide great cheese, the company ensures its products are made from high-quality milk, from healthy and well cared for animals (Painter, 2007). It also has community involvement, by empowering, caring and offering opportunities to those that are passionate in making a difference in the society. This is realized through contests, offering internships, youth conferences, clubs and associations. Competitive Strategy Saputo Incorporated Company has maintained a good reputation since its foundation. Despite encountering market dynamics, stiff competition from its closest competitors Nestle, Unilever and Danone, and other challenges, the company have still realized success (Painter, 2007). This has largely been attributed to the company’s strengths. One is the wide variety of products the company produces. Despite being a successful company, it has some weaknesses that prevent it from realizing maximum potential. The revised milk price formula in California has made the company to encounter higher milk costs, which subsequently eat into the company’s profit. An increase in promotional and other costs has also negatively affected the company’s returns for some time (Puechagut, Malvido, & Gastaldi, 2016). Unluckily most of the cost reviews are not under the company’s control. This dictates their terms of operation and has to adhere to the changes. The export market is highly competitive hence affecting the selling STRATEGIC MANAGEMENT 7 price of its products. However, this common weakness characterizes the export market. This reduces the company’s returns significantly. Unfavourable market conditions have also affected the company’s potential (Puechagut, Malvido, & Gastaldi, 2016). The cost of cheese about that of milk as a raw material is biased which prevent the company from realizing its maximum potential. As a result, the company has employed a strategic move by diversifying in its products. This creates an opportunity to focus on increasing the snake-cake products sales volumes. Since it has established a brand in this category, there is a need to maximize sales volume for high returns and also global market share. The company also has a golden opportunity to increase its sales and returns in Argentina export market (Bolotova & Novakovic, 2014). There are speculations that there will be an increase in demand and prices of milk product in Argentina. Conclusion Saputo has come from a humble beginning to a large growing company in the international market. The company has exercised its strengths in capital investments and increased its coverage through acquisitions. The company’s biggest challenge is the uncertainties associated with increased cost reviews. Frequent fluctuations in the foreign exchange market possess a great threat to the company’s returns. However, as a recommendation to the management, the company must embark on increasing its market share through increasing sales volume to outdo its competitors in the existing markets. This can be achieved through expanding its market geographical coverage, where competition may below. STRATEGIC MANAGEMENT 8 References Bolotova, Y., & Novakovic, A. M. (2014). An Analysis of Pricing in the United States Dairy Industry. 201-329. Ibrahim, A., Lam, J., Soufani, K., & Poutziouris . (2011). Longitudinal case research of a large family firm: Saputo INC. International Journal of Management Cases, 13(1), 67-88. Painter, M. J. (2007). A comparison of the dairy industries in Canada and New Zealand. Journal of International Farm Management, 4(1), 41-60. Puechagut, M. S., Malvido, P. C., & Gastaldi, L. B. (2016). An empirical analysis of producer prices in the dairy sector in Argentina: what can we expect from milk processing cooperatives? ...
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