1. What is J. M. Smucker Company’s corporate strategy? What common strategy elements are shared across its brands? Did it make sense for Smucker to expand its business lineup beyond jams, jellies, and preserves? Why or why not? J.M smackers corporate strategy is basically forming 3 major goals: A) Grow existing brands.
B) Introduce new products.
C) Make strategic acquisitions.
These three goals are focused on the U.S Market. Across its brands Smuckers aims to be the number one product in all of the lines that they compete in. The reason they started to expand was to protect itself from becoming an acquisition of a larger company. By expanding the company it has made itself less of a target and harder to become an acquisition by increasing cash flow and size. Smuckers has been very successful in expanding, purchasing top brands and increasing both revenues as well as profits by a very large margin, and also increasing its stock price. In my opinion the decision to expand was the right one, and they have been very successful with it. 2. What is your evaluation of Smucker’s business lineup and its acquisitions since2002? How attractive is the processed foods industry? How well positioned are the company’s brands in each segment of the industry? What does a 9-cell industry attractiveness strength matrix displaying Smucker’s business units look like? Since 2002, Smucker’s business lineup evolved to include a variety of products including fruit-spreads, peanut butter, snacks, ice cream toppings, beverages and specialty items. Their strategy was to acquire successful brands with potential rather than to build new brands. These acquisitions proved successful as the company not only increased sales, but they were also able to execute their “center of the store” model. The industry is fairly attractive after suffering in the 90’s and early 2000’s with an increase in single parent homes, less females staying at home and household meals per year declining. However, with...
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