Campbell Soup Company
1. Company overview
2. Case introduction
3. Plastigon developing process
4. Problem & Soultion
1. Over view
Campbell soup company /2006
Operation profit: $1151 million
Headquater: Camden, New Jersey
Emloyees: 23000 people
Market share: about 80%
Vision: “Together we will build the world’s most extraordinary food company by nourishing people’s lives everywhere, every day” Value: “We will passionately pursue our mission with Character, competence, and teamwork”
2. Case Introduction
Our case is in 1987~8.
Its saales of $4.5 billion(75% U.S and Canada and 25% overseas) came from soup products, (where Campbell's U.S market share was approximately 60%) spaghetti products, canned vegetable juices, forzen dinners, bakery products, and new enterprises in 1987. With $1.6 billion of its 1987 revenues coming from soup products, Campbell dominated two of the three primary segments of that market. condesed soup, ready to serve(RTS), dry soup.
By the late 1970s the technology had improved to the point where prices were falling rapidly. Formerly found only in large industrial applications, microwave ovens (often referred to informally as simply "microwaves") were increasingly becoming a standard fixture of most kitchens. The rapidly falling price of microprocessors also helped by adding electronic controls to make the ovens easier to use. By the late 1980s they were almost universal in the US and had taken off in many other parts of the globe. So, McGovern, CEO of Campbell, also championed Campbell's move into new products and markets especially microwavable products. While the total market for such production in the U.S. was only $650million in 1987, it was expected to be over $3billion by 1992. Although Campbell's initial push in the early 1980s was into the frozen segment of this market, McGovern felt strongly that developing microwavable shelf-stable soups was not only a major opportunity but a necessity if Campbell were to retain its leadership of the soup business.
1.consumers were demanding convenience.
2.convenience stores were increasing their share of the total food market. 3.Japanese firms had created a new market segment, dry ramen noodle 'soups'.
3.Plastigon developing process
The corporate research and development organization comprised three groups: the CIRT and two department under the CCID. CIRT was responsible for both long and short term research and product development, including process concept development,
CCID focus on engineering and packaging development across a broad range of activities. These fell into three department: real estate, packaging, and engineering systems.
Engineering systems was responsible for developing advanced manufacturing process for new food products and providing more traditional efficiency improvements in existing processes for all of Campbell's divisions. It also developed and/or purchased the plant equipment for new lines and provided special engineering support to the regional manufacturing plants.
The engineers in the CCID often worked closely with the professinals in CIRT. CIRT had primary responsible for product, packaging had primary responsible for the package, and engineering systems had primary responsible for the production process.
In the beginning of the development period, Plastigon prototype line was done by hand. CIRT had difficulty getting consistent results. But in the late 1983, the company agreed that the production line should be a continuous process operation running at a rate of 200 units per minute. And the line that engineering systems designed was very similar to a canned soup line, broken down into six sections. 1. blending, where the soup ingredients were...
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