Strategic Management (MGT 482)
May 23, 2002
Organizations use strategies to impact their performance against competitors in their respective industries. The process by which managers choose a set of strategies for the enterprise is the strategic management process. (Hill & Jones, 2001, pg. 4) This report will discuss a business strategy report for Quaker Oats Inc.
Business Strategy Report for Quaker Oats
The Quaker Oats Company was officially formed in 1901 when several American pioneers in oat milling came together to incorporate the company. In Ravenna, Ohio, Henry D. Seymour and William Heston established the Quaker Mill Company and registered the now famous trademark. The Quaker Oats Company is based in Chicago, Illinois and is now a division of PepsiCo. As indicated in figure 1, Quaker's star products consist of Gatorade, Quaker Oatmeal, ready to eat cereals, grain based snacks, and Golden Grain products, such as Rice-A-Roni. (See Figure 1)
"The first component of a strategic management process is defining the major goals of an organization." (Hill & Jones, 2001, pg. 7) There are three guiding principles or "mission and goals" guiding Quaker Oats, " Simplicity- To succeed, our energy and resources must be concentrated on the areas where we can produce the greatest value. Innovation- To flourish, we must be an idea-rich organization, where innovation and creative spirit thrive in all aspects of our business. Passion- To win, we must have an uncompromising drive for success, individually and collectively." (www.QuakerOats.Com)
An analysis of the organization's external operating environment is the second component of the strategic management process, which includes, opportunities and threats.
Quaker has opportunities to target new markets with its product, Gatorade. Young children and the elderly population are not currently target markets for Gatorade products. Quaker has
References: 1. Hill, C. W., & Jones, G. R. (2001). Strategic Management, An Integrated Approach. Boston & New York: Houghton Mifflin Company. 2. The Quaker Oats Company. (2002). Press Releases. Retrieved May 11, 2002 from the World Wide Web: http://www.quakeroats.com/newsroom/ 3. PepsiCo. (2002). PepsiCo Annual Report. Retrieved May 10, 2002 from the World Wide Web: http://www.pepsico.com/ Figure 1. Quaker Product Leaders (Stars)