Smucker’s in 2011: Expanding the Business Lineup

Powerful Essays
Smucker’s in 2011: Expanding the Business Lineup

The J.M. Smucker Company was founded in 1879 in Ohio. By 1920 it began building a complete line of jams, jellies, and preserves, leading to national distribution of in 1942. The company went public in 1959 and from there, began several different acquisitions of other food companies to diversify itself. Paul Smucker retired in 1987 and as a result, his two sons became responsible for the company’s operations, representing the fourth generation of Smucker family management. Smucker’s has faced continued success due to a number of reasons, including its corporate strategy. This strategy is composed of three main components: grow the market share of its existing brands, introduce new products, and make strategic acquisitions. Since Smucker’s has many brands, it must have common strategic elements in order to achieve competitive success. To do this, it creates a portfolio of attractive products, strives to achieve organic sales growth for existing brands, and expands its product line through acquisitions.
The decision to expand its product line beyond jams and jellies through these various acquisitions has proved to be successful. It protected the company against an acquisition by another company and increased its net sales, gross profit, operating income, and EPS by large margins. Additionally, the company’s net cash increased an impressive 74% in the span of two years, from $182,918 in 2008 to $713,478 in 2010.
The J.M. Smucker Company has made smart strategic choices in its acquisition decisions. Rather than build new brands from scratch, the company has acquired well-established brands in order to ensure success for Smucker’s. Its acquisitions of International Multifoods, P&G, and White Lily have given it brands such as Jif, Folgers, Pillsbury, and Crisco. As a result, Smucker’s brands are strongly positioned in each industry segment since they are all market leaders in their respective

You May Also Find These Documents Helpful

  • Good Essays

    Smucker's Essay

    • 917 Words
    • 4 Pages

    Smucker’s Case Study 1) Smucker’s corporate strategy is to build a portfolio of brands that are sold in the center of every grocery store. They plan to execute this strategy through the organic growth of their products, the development and introduction of new products, and by acquiring brands. The majority of Smucker’s brands share two strategy elements. First, they are ‘middle of the store’ processed foods. Second, they are often high margin products. Another common element among the brands…

    • 917 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Expanding your business

    • 830 Words
    • 4 Pages

    Expanding Your Business A financial plan is a must for any business that wants to succeed; this is what turns goals into reality. The financial plan, or budget as it is also called, helps guide the day-to-day decision making of the business. Comparing forecast numbers to actual results, important information about the overall financial health, and overall efficiency of the business. (Scarborough, 2011) When it comes to creating a financial plan for my driving…

    • 830 Words
    • 4 Pages
    Good Essays
  • Good Essays

    companies have moved into other countries because they saw huge growth opportunities there. Recent interviews of top international executives by the Myrddin Group in San Antonio have revealed they thought they could create value by transferring their business model and American style of product and marketing to foreign markets. Many initially treated foreign markets much like the United States but soon found that this was not the correct approach. Many American products drew big yawns in Europe and Asia…

    • 724 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Expanding your Business

    • 1810 Words
    • 8 Pages

    Starting a business typically involves going through the notions of planning, marketing, making fundamental financial decisions and completing any necessary legal activities. Many people have their own concepts about choosing the right route to go in starting a small business. However it is simply up to the business owner and depend on the type of business. It is said that the top five reasons why businesses fail are due to; “1. Insufficient start-up capital, 2. Lack of managerial experience, 3…

    • 1810 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Expanding Your Business

    • 948 Words
    • 4 Pages

    Expanding Your Business Weston’s Place will be a family oriented restaurant located at 212 Main Street Wendell, North Carolina. A financial plan is “a vital tool to help an entrepreneur manage their business more effectively, steering their way around the pitfalls that causes failures”, (Scarborough & Zimmerer, 2012, page 194). The financial plan section is the section in the business plan that determines whether or not the business idea is feasible. The financial plan consists of three financial…

    • 948 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Adidas—Will Restructuring Its Business Lineup Allow It to Catch Nike? Overview Adidas’ 1998 acquisition of diversified sporting goods producer Salomon was expected to allow the athletic footwear company to vault over Nike to become the leader of the global sporting goods industry. Salomon had several businesses that adidas management viewed as attractive—its Salomon ski division was the leading producer of ski equipment; TaylorMade Golf was the second largest seller of golf equipment; and Mavic…

    • 551 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    and Growth Rate- The processed food industry has grown exponentially over the past few decades. With people more on the go and looking to prepared products rather than making it themselves there has been a giant increase in the growth rate of this business. Number of Rivals- There are many competitors in the processed food industry. Many of the largest have recently acquired other businesses in order to remain at the top of the “food chain”. Scope of competitive rivalry- Competition among the industry…

    • 1526 Words
    • 7 Pages
    Best Essays
  • Best Essays

    Expanding Business Networks and Connections Marc Amorantoa and Patricia Ngsuyb a BS Advertising Management, College of Business, De La Salle University, Manila marc_amoranto@dlsu.ph b BS Management of Financial Institutions, College of Business, De La Salle University, Manila patricia_ngsuy@dlsu.ph Abstract. This document contains the networks and connections of businesses. The document focuses on the different networks and connections of three types of business namely a…

    • 4535 Words
    • 19 Pages
    Best Essays
  • Satisfactory Essays

    Lineups in criminal investigations has been the traditional form of identification for putting the focus on a specific suspect in a criminal case. Law enforcement agencies typically use three different types of lineups: field lineup, photographic lineup, and physical lineup. Field lineups take place shortly after a commission of a crime and the officers a have a suspect in custody and an eye-witness that is whiling to identify the suspect. The witness goes to the suspect’s location and asked if the…

    • 274 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Adidas: Will Restructuring Its Business Lineup Allow It to Catch Nike? I. CASE OVERVIEW For almost two decades throughout the 1960s and 1970s, Adidas became the best-selling brand of sporting goods in the world. Founded in 1920 in Herzogenaurach, North Bavarian, Germany by Adolph (Adi) Dassler, Adidas then well known for pioneering athletic footwear with kind of revolutionary invention in athletic footwear and equipment in which Adi Dassler alone accumulating 700 patents and property rights…

    • 1057 Words
    • 5 Pages
    Good Essays