Danish Crown Analysis

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Danish Crown
-How to secure Danish Crown’s future?

By
Konstantin Tsonev
3 December 2012

Danish Crown
-How to secure Danish Crown’s future?

The AP Degree in Marketing Management Author: Konstantin TsonevSupervisors: Helle Eskesen, Jes Holten LützhøftAssignment: Project A – Danish CrownCharacters: 33157Submitted: 03.12.2012|

Table of Contents Page

1.Project description3
1.1.Background description3
1.2.Purpose4
1.3.Problem formulation4
1.4.Delimitations4
1.5.Choice of models and methods5
2. Organization5
2.1. Supply chain management (SCM)5
2.1.1. Suppliers5
2.1.2. Producer5
2.1.3. Distributors6
2.1.4. Retailers6
2.1.5. End user6
2.1.6. Conclusion6
2.2. External environment6
2.2.1. Conclusion6
3. Communication7
3.1. Web site analyses7
3.2. Rhetoric and persuasive strategies7
3.3. Hofstede dimensions8
3.3.1. Power distance8
3.3.2. Individualism8
3.3.3. Masculinity/ Femininity8
3.3.4. Uncertainty avoidance8
3.3.5. Long term orientation9
3.4. Conclusion9
4. Business Law9
4.1. Case 19
4.1.1. Conclusion10
4.2. Case 210
4.2.1. Conclusion10
5. Economics10
5.1. Annual report analysis10
5.1.1. Profitability10
5.1.2. Earning capacity11
5.1.3. Capital structure11
5.1.4. Conclusion12
5.2. Market structures12
6. Marketing12
6.1. Partial PEEST12
6.1.1. Political/legal12
6.1.2. Economic13
6.1.3 Ecological/physical environmental13
6.1.4 Social/Cultural13
6.2. Porter’s 5 forces13
6.2.1. New entrants13
6.2.2. The bargaining power of suppliers13
6.2.3. The bargaining power of buyers14
6.2.4. Threat of substitutes14
6.2.5. Industry competitors14
6.3. Conclusion14
7. Conclusion14
Bibliography15
Appendix 1 – External environment15
Appendix 2 – Web Chart18
Appendix 3 – Features of the four market structures18
Appendix 4 – List of approvals by country:19
Appendix 5 – Team work21
Appendix 6 – Ratios calculations23

1. Project description
2.1. Background description
Danish Crown is a company with a long history starting from 1887. It was created in Horsens by 500 farmers who decided to join forces to form co-operative meat company. Nowadays Danish Crown is one of the biggest pork companies worldwide exporting to more than 100 companies and own by 9500 farmers. The company is B2B oriented selling its products mainly to its subsidiaries.

2.2. Purpose
The main purpose of this project is to evaluate the current situation of the company and secure its future by using different internal and external analyses.

2.3. Problem formulation
The main question for this project is How to secure Danish Crown’s future. And in order to find a solution to this problem there are some sub questions to be asked and answered. -What is the external and internal environment of the company? -Does Danish Crown differentiate from its competitors?

-How does Danish Crown communicate with its suppliers, distributors and retailers/clients? -What is the financial situation of the company?
-Business law questions.
2.4. Delimitations
In order to evaluate the current situation of the company and find a way to secure its future our group has decided to use the follow theories and analyses: -PEEST analyse – evaluate the external situation of the company in Denmark -Porter’s five forces- to understand the role and strength of the competitors, to create greater value than them and predict future threats -SWOT – to get a better picture of the Danish Crown internal and external situation and evaluate the strategic position of the business. -Supply chain- to evaluate the Danish Crown’s relationships with its suppliers, distributors, retailers and the end user -External environment- to analyse the domain of the...
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