University of The Cumberlands Establishment of Successful Global Business Model Essay

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Business Finance

University of the Cumberlands

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1. Abstract (75-100 words):on separate page

2. Introduction:

Overview of the organization

Identify the type of business organization and strategies

Key players

Competitors

Organizational Structure

Organizational Strategy (low cost; differentiation; etc.)

3. Body: (Label headings according to subject/content)

Identify problems, issues, variables, and relationships related to the case

Discuss problems and List symptoms

Isolate critical issues

Conduct SWOT analysis and discuss the components

Strengths

Weaknesses

Opportunities

Threats

4.Closing:

Summary

Discuss solutions and alternative solutions

Discuss Christian and ethical repercussions within the context of the case

Make recommendations

Offer a plan for implementation

Determine measurements for effectiveness and efficiency

Logical conclusion

5.References


Note: Include 5 Reference

Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font. Use APA format throughout and No plagarism.

Note: 6th edition of the APA. This assignment should be 15-20 pages excluding the title and reference pages. The paper should contain at least one graph, figure, chart, or table.

Note: I had uploaded sample paper Please have a look on it before you start.


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Running head: BUSINESS ANALYSIS CASE STUDY Business Analysis Case Study Student Name BA690 – Business Strategy 1 BUSINESS ANALYSIS CASE STUDY 2 Abstract The Campbell Soup Company was begun in the late 1860s as a partnership for canning vegetables, especially tomatoes. The company continued to grow, and it was an early adopter of radio and magazine advertising, which helped to promote Campbell Soup to new heights as one of the most well-known and loved American brands. After the turn of the millennium, there was a slowdown in growth. Over the past decade and more, despite the company’s giant size and revenues of $8 billion per year, revenues were lagging, losses were becoming the main return on investments in new strategies, and new products were failing. This situation did not occur overnight, but rather it was a changing environment along with discoveries of unethical behavior by the company. The turning point for Campbell Soup, and its downfall, was the repeated use of deception in marketing the taste, freshness and health of its products. This paper provides an overview and analysis of the case. BUSINESS ANALYSIS CASE STUDY 3 Introduction The Campbell Soup Company was begun in the late 1860s as a partnership for canning vegetables, especially tomatoes (Shea & Mathis, 2002). Anderson & Campbell set up their operations in Camden, New Jersey, where there was a significant manufacturing presence, but their marketing was focused on images of gardens and fresh food (Shea & Mathis, 2002). In 1876 Anderson left the partnership, and many of Campbell’s relatives joined the venture (Shea & Mathis, 2002). Canned foods were still an emerging product form in America, however their popularity was growing as was the capacity to transport and distribute products over a vast area, even nationally (Shea & Mathis, 2002). The company continued to grow, and it was an early adopter of radio and magazine advertising, which helped to promote Campbell Soup to new heights as one of the most well-known and loved American brands (Shea & Mathis, 2002). The company went public in 1956 (Shea & Mathis, 2002). Campbell Soup continued to grow and expand it s product lines int eh latter half of the twentieth century, including the introduction of meals that could be prepared using soup as a base, rather than just selling the soup for soup (Shea & Mathis, 2002). After the turn of the millennium, there was a slow down in growth. Over the past decade and more, despite the company’s giant size and revenues of $8 billion per year, revenues were lagging, losses were becoming the main return on investments in new strategies, and new products were failing (Wiener-Bronner, 2018). Shareholders, of which descendants of the original founders represented about half of all shares, were at odds with more focused activist investors, and efforts were diverted into board level debates and battles, rather than corporate needs (Wiener-Bronner, 2018). The turning point for Campbell Soup, and its downfall, was the repeated use of deception in marketing the taste, freshness and health of its products. BUSINESS ANALYSIS CASE STUDY 4 Organization Type and Strategies Campbell Soup Company is a multinational manufacturer of household products, with a focus on ready to eat soups. Despite its large size and the wide distribution of products, manufacturing takes place in the United States, and the primary market is the domestic American household consumer market (Shea & Mathis, 2002). The most popular products, chicken noodle soup, tomato soup and cream of mushroom soup, account for a majority of sales (WienerBronner, 2018). The industry is currently undergoing a massive upheaval driven by cultural change and emerging preferences (Cardello, 2018). While overall the ready-made food market is growing in America and globally, multinational food manufacturing companies are getting a smaller and smaller share of this market while emerging small producers of fresh or non-mass produced foods are taking this share while expanding the market (Cardello, 2018). Assumptions have held for decision makers in the food manufacturing for decades, such as the idea that people go to supermarkets, and to some extent “blindly toss their products into the grocery cart” (Cardello, 2018, n.p.). This true of Campbell Soup Company, but also their major competitors One important reason for the failure to adapt is that the competencies of ready-made food manufacturers is mass producing food, and this cannot work with the distribution needs of fresh prepared and small-batch ready-to-eat food (Cardello, 2018). The industry is in crisis, with most of the chief executive officers (CEOs) including the CEO of Campbell Soup Company, terminated in just the last few years (Cardello, 2018). BUSINESS ANALYSIS CASE STUDY 5 Table 1: Sales trends in decline (Singh, 2018) Key Players and Industry There were many kinds of stakeholders in the ready-made and condensed soup market. These include regulatory bodies like the Federal Trade Commission and the Food and Drug Agency, consumers of soup, competitors, distributors and retailers. Organizations that are not usually considered central to the industry that have been gaining importance are the public health agencies and authorities and non-governmental organizations (NGOs) involved with health concerns (Phillips-Connolly & Connolly, 2017). The industry itself is becoming less dense, and less dominated by established multinational players (Phillips-Connolly & Connolly, 2017). There is an increasing number of very small niche market soups with small regional distribution, and many of these become new entrants at the national level. The main approach has been the use of fresh foods, with some of BUSINESS ANALYSIS CASE STUDY 6 these requiring refrigeration of the soup and higher spoilage risks for retailers and consumers. Because of this, the other large multinational such as Progresso and Lipton continue to be major competitors, but the real threat has been the local and niche market substitutes. Figure 1: Market share dominance in a declining market (Scout Finance, 2016) The Campbell Soup Company was begun in the late 1860s as a partnership for canning vegetables, especially tomatoes. The company continued to grow, and it was an early adopter of radio and magazine advertising, which helped to promote Campbell Soup to new heights as one of the most well-known and loved American brands. After the turn of the millennium, there was a slowdown in growth. Over the past decade and more, despite the company’s giant size and revenues of $8 billion per year, revenues were lagging, losses were becoming the main return on investments in new strategies, and new products were failing. This situation did not occur overnight, but rather it was a changing environment along with discoveries of unethical behavior by the company. The turning point for Campbell Soup, and its downfall, was the repeated use of deception in marketing the taste, freshness and health of its products. Competitors Competition in the domestic ready-made soup industry includes corporate giants such as General Mills, Unilever, Nestle and Kraft Heinz, as well as smaller producers that have becomes established in niche areas, often with a health focus. One example of this is Amy’s Kitchen, which has been making clean food with green characteristics such as vegan and GMO free for about three decades. General Mills is the maker of Progresso soup, a leading canned brand that competes directly with Campbell’s Soup brands. These companies also compete on the basis of ready to eat snacks. Kraft Heinz is another major player in the ready to eat food category, although it is dwarfed by the market share of General Mills, which is only a fraction of the size BUSINESS ANALYSIS CASE STUDY 7 of the Campbell Soup Company market share. Unilever is a company based in Europe, with dehydrated soups that compete as a substitute canned soups. Nestle is somewhat similar to Unilever in that the soup brands are focused on a European market, and dehydrated. New niche markets have developed in relation to canned soup, including the organic, GMO free line of Amy’s Kitchen, which is small, but it has been growing for several decades. Problems and Issues False health claims The American Heart Association (AHA) earns revenue to support their cause by selling product endorsements (Messerli, Rimoldi and Bangalore, 2017). These endorsements are intended for products that meet the criteria of heart healthy foods or meals (Messerli et al., 2017). In 2013 the endorsement of the AHA resulted in claims of fraudulent activity and deception by both organizations (Messerli et al., 2017). The issue was the sodium content of the soups (Messerli et al., 2017). The AHA requirement for endorsement as a low sodium meal required a maximum level of 140 milligrams (mg) of sodium, but the Healthy Request soups which were endorsed under the program had over 400 mg per serving, and non-endorsed Campbell Soup products had more than 800 mg of sodium per serving (Messerli et al., 2017). Campbell Soup Company was developing a distinctly sinister character in terms of the repeated themes of deception and marketing false claims. Previous deceptive practice scandals This was not actually the first time that Campbell Soup Company had been caught in the act of deception. In the late 1960s it was Campbell Soup Company that was targeted by the FTC in relation to the use of marbles in the soup during marketing photography (Thorson & Duffy, 2015). The marbles were used to prop of the ingredients in the soup, which would otherwise fall to the bottom. By having the ingredient chunks sit on the marbles, they were lifted out of the BUSINESS ANALYSIS CASE STUDY 8 soup making it look healthier and heartier (Thorson & Duffy, 2015). This event was considered a major turning point, and a landmark case in marketing standards and the identification of deception marketing practices (Thorson & Duffy, 2015). The Campbell Soup Company had also been caught before in relation to false health claims, as previously this had occurred in the late 1980s. As part of their marketing efforts, the company began making claims in relation to its soup as part of a healthy diet, and a means of avoiding heart disease and cancer (Andrews, Burton & Netemeyer, 2000). In fact, these claims angered the National Cancer Institute, who had never approved or endorsed the products but were quoted in marketing material related to the description of a healthy lifestyle and diet (Andrew et al., 2000).This caught the attention of the Federal Trade Commission (FTC), who further investigated the claims in relation to preventing heart disease. Campbell Soup Company had claimed that since the soups were low in fat, the soup met the healthy lifestyle guidelines that were stated as part of a diet to avoid cancer and heart disease (Andrews et al., 2000). The FTC did not agree, and specifically pointed to the high sodium content of the soup as evidence that the soups were not healthy, and not part of healthy diet. This was in 1989, almost twenty five years before, and yet the company was still continuing to try the same tricks and games. Consumers, however, are far more sophisticated today, and they have a better understanding of nutrition and nutrition labels. Negative health impacts of product Public health agencies such as the Centers for Disease Control and Prevention (CDC) and local public health authorities have increasingly promoted healthier lifestyles, including a healthier diet, as a means of promoting health and wellness (Rehm, Monsivais & Drewnowski, 2015). Campbell Soup Company products contain high levels of salt, monosodium glutamate BUSINESS ANALYSIS CASE STUDY 9 (MSG) which has been implicated in allergies, sensitivity, blindness and child hyperactivity, and often simply the word flavoring without further information. Campbell Soup products do not, however do much to meet a persons nutritional needs, with no nutritional value being more than 5%, and that criteria being fat (Campbell’s, n.d.). Vitamins and minerals for nearly all soups are zero, with the best ones having as much as 2% of the daily requirement for iron (Campbell’s, n.d). This is not a product that can meet anything more than the calorie needs of an individual. This is especially important in the context of the products that are marketed to children, of which there are many, most of them adorned with Disney cartoon characters and attractive packaging (Campbell’s, n.d). Table 2: Nutrition information for Incredibles 2 soup Nutrition Facts About 2.5 Servings Per Container Serving size Amount per serving Calories Total Fat Saturated Fat Trans Fat Polyunsaturated Fat Monounsaturated Fat Cholesterol Sodium Total Carbohydrate Dietary Fiber Total Sugars Includes 0g Added Sugars Protein Vitamin D Calcium 1/2 Cup (120mL) Condensed Soup 2g 0.5g 0g 0.5g 1g 5mg 480mg 8g
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Running Head: BUSINESS ANALYSIS CASE STUDY

BUSINESS ANALYSIS CASE STUDY
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: BUSINESS ANALYSIS CASE STUDY
Abstract

Amazon Inc. is an American multinational technology company that is located in
Washington. Jeff Bezos, the CEO of the company founded it in 1994. His decision to locate it in
Seattle was influenced by the technical talent that Microsoft attracted since it is also located in
the same state. Amazon Inc. become a public organization in May, 1997. The organization began
by selling videos and music in 1998. Amazon’s international business began in 1998 when it
acquired online sellers of books in Germany and in the United Kingdom. In 1999, apart from
selling music and videos, the organization included video games, electronics such as home
appliances and toys.
Amazon launched Amazon Web Services in 2002. Amazon Web Services was intended
to provide data to its users about weather, traffic updates, and other relevant statistics about
developers and websites. When Elastic compute and simple cloud service were made available,
AWS expanded its portfolio. This paper gives an analysis and an overview of this case.

: BUSINESS ANALYSIS CASE STUDY

3

Introduction
Amazon started as an online marketplace whereby prospective customers could peruse
and choose books that they want to buy. Afterward, Amazon Inc. expanded later to sell other
commodities such as electronics and furniture. In 2017, Amazon was rated ahead of Walmart as
the largest retailer in the United States. In the same year, Amazon acquired World food Market.
The acquisition increased the acknowledgement of Amazon in the market as a physical buyer.
When the CEO announced a two day delivery service across the world, Amazon surpassed one
hundred million subscribers across the world.
Amazon is acknowledged worldwide for of industries that have been established via mass
scale and technological innovation. Currently, the organization is rated the leading artificial
intelligence provider, and the largest online marketplace ahead of companies such as Kilmall and
Jumia. By revenue, Amazon is rated the largest internet company. Amazon distributes and
downloads and streams music via twitch, prime video and other subsidiaries. Amazon own a
publishing arm and a radio and television company. The company has a very competitive and its
work culture is highly competitive.

: BUSINESS ANALYSIS CASE STUDY

4

Organizational Type and Strategies
The organizational structure can be classified as hierarchical. The company has three
Chief executive officers and three vice presidents who are responsible for running some essential
aspects of the organization. The vice presidents report directly to Jeff Bezos. Amazon’s
hierarchical structure has developed as a result of the huge size of the business. Amazon in large
and it has over 647,000 employees across the globe. This is because amazon is one of the leading
retailers in world.

Although Amazon in one of the biggest organizations in the world, it is highly flexible
unlike many other large organizations. Amazon maintains flexibility as a requirement owing to
the frequent changes in the marketplace in which it operates. Since the company deals with
online retail, it has led to disruptive innovation in ecommerce. Amazon Inc. has cause a lot of
disruption in ecommerce and it aspires to cause a global disruption in the global logistic industry.
The characteristic disruption of Amazon is due to the efficient and visionary leadership of the
CEO and founder, Jeff Bezos. Amazon organizational structure brings together many small
teams that work on different aspects of business. Meetings in the organization are held in small

: BUSINESS ANALYSIS CASE STUDY

5

teams to ensure all the team members contribute as much as possible. The CEO directed that
meeting in the organization should be held in small groups that can be fed by only two pieces of
pizza (two pizza rule).

Apart from flexibility, stability is a key feature of amazon. Amazon is the largest internet
company and it experience minimal turnover among its important players and it has manages to
keep most of its employees (especially at the executive level) for many years (Amazon, 2012).
Scholars have argued that since the company has adhered to business diversification strategy
actively, Amazon’s organizational structure is dynamic and can be influenced by some changes
in a regular manner.
Amazon’s organizational structure can also be considered to be functional. A team of
skilled personnel are allocated to every critical business function. The teams also have a senior
manager who is in charge of overlooking the operations of all members in the group. This
functional structure enables Amazon to carry out its e-commerce operations and management
across the whole organization. Amazon is currently undertaking a global expansion strategy.
The organization’s growth in the market is has been propelled by its corporate structure.
Amazon’s has geographic divisions based on the region of operations and business related goals.

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Amazon aims at using its geographic divisions to allow management of its ecommerce business
based on the prevailing economic conditions in different geographical markets. Its operations
have been divided into two main geographic areas; international and North America.
Key Players and Industry
The main players of amazon can be classified as either internal or external. Internal
stakeholders of Amazon include its directors, officers, employees, and its shareholders.
Amazon’s top officers are the President, the CEO, senior vice presidents and its worldwide
consumers. Besides, amazon also has a number of directors. Amazon considers its shareholders
to be the greatest stakeholders in its operation since they have the ability to influence their
operations either positively or negatively. The CEO maintains control of the large corporation by
maintaining a large percentage of ownership of shares. Many shareholders have criticized the
company for not providing it’s employed with necessary safety measures and precautions in the
United States on America.

External players in Amazons operations include customers, the federal government and
the local community in which it operates. Spending habits of customers online has made amazon
what it is today. Amazon takes complaints from customers very seriously and any seller may be

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7

suspended temporarily following complaints from a customer. Competitors in the market can
also be considered as players in its industry. E-bay is Amazon’s biggest competitor in
ecommerce while Google Cloud Platform (GCP) can be considered the biggest competitor in
web services industry. Disney plus, Hulu and Netflix are Amazon’s greatest competitors in the
streaming industry (Aeker and Adler, 2001)
.

Many seller actively conduct their sales on amazon. The different vendors offer amazons

customers with what they need. However, statistics have shown that may companies go away
from the platform very early since the organization does not offer a lot for them.
According records released by Forbes, amazon had surpassed Walmart to become the
largest retailer in the world. Ecommerce is a web platform for promoting commodities and
shopping for commodities. Amazon has dominated not only the E-commerce of the United States
of America, but across the whole world. It has gained global recognition for its world-class
customer service and its competitive enlargement.
Competitors
Amazon competes for market share with some of the biggest organizations in the world.
Although when amazon was a retailer for books when it was set up, it has grown to become the
leading e-commerce organization worldwide. Apart from being big in ecommerce, Amazon is
also growing steadily in other sectors such as web services and physical retail stores. In its online
stores, the organization makes sales of digital media. In this segment, amazon faces competition
from overstock.com, Etsy and Vishop Holdings ltd. Although most of the revenue generated buy
the company is from online sales, the company has also established many physical stores across
the globe. The main step to this was acquisition of an organization known as Whole foods

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Market. Apart from this, amazon also operates their types of retail shops such as Amazon books,
Amazon Pop-up and Amazon star. In this category of physical store, Amazon faces competition
from large organizations such as Walmart Inc., Costo and Best Buy. Research has shown that
Amazon prime has access to approximately 2000 towns and cities across the United States of
America. Third part sellers use Amazon platform to sell their commodities (Aeker and Adler,
2001)
Since Amazon is one of the most popular e-commerce platforms, amazon’s popularity
enable third party vendors to reach many potential consumers across the world. Amazon give
third party vendors and opportunity to expand the base of their businesses. Amazon charges
some fees in terms of shipping fees, and commission for the services offered. The main
competitor for this service is auction site-eBay. Amazon deals in selling of subscription services.
According to statistical records, the most popular paid subscription service offered by Amazon is
known as Amazon Prime. As at January 2020, amazon prime had 150 million subscribers across
the world. Apart from Amazon Prime, Amazon sells subscription for audiobooks, digital music
and digital videos. The main competitor for Amazon in subscription services is Apple’s iTunes
and Netflix.
Amazon has a cloud platform that is known as Amazon Web Services. AWS offers many
services in computing storage and communication. The most common services offered by
Amazon Web Services are artificial intelligence, machine learning and business analytics.
Consumers of Amazon’s cloud service include government agencies, individual and
organizations. The main competitors for Amazon in Cloud services include Microsoft’s Azure
and Google’s Google Cloud Platform. Amazon is a company that has been established well and
it generates a lot of income from many different investments. The company is keen in disruptive

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innovations and since it has a strong capital base, Amazon can manage can implement its
strategies in a new market and scare away its competitors by gaining market share.
Organizational Strategy
Amazon has grown a lot since it was started as a book selling shop. Amazon diversified
itd portfolio to other marketable sectors such as consumer technology, machine lear...


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