Analysis of Performance of Goya Foods - Essay Example

Goya Foods During the 75th anniversary of Goya Foods, it was eminent that the company had been doing well. The presentation of the company products and the market share of the company are some of the facts that can attest the prowess of the company. Business analysts usually look at factors that promote business products at a profit. These factor would influence the marketing objectives of the business it overall performance. Businesses that are unable to factor viable products in the market usually fail. Management is a critical factor that influences the success of the business. The company CEO is a figure that influence, growth and success of the business. Policies adopted a business would influence it behavior in a competitive market. In designing business policies and marketing objectives, the management evaluates all possible factors that dictate business performance in different environment. This paper intends to evaluate the performance of Goya Food. Company overview Goya Food Company distributes and manufactures a wide range of food products. Goya Food Company has its headquarters in New Jersey. The Company command large market share, which springs to Latin America among other destinations. The products of company borrows a lot from the traditions of various communities it serves especially the Hispanic foods (Liberman 84). Most of foods products of Goya Food Company constitute the traditional taste of Hispanic foods. The company marketing strategy adopted the trend of producing and distributing Hispanic foods because of the customer culture that influence market stability. It is also important to note that Goya Food Company relies on the market information in developing viable products that respond to changes in market demands. The company began its operation in 1936. Goya Food Company import food products Spain in order to manufacture products, which would meet the needs of the Hispanic people whom it serves. Goya Food Company is one of the largest family owned companies in the United States. The company CEO is Bob Unanue who has a duty of steering the company to higher heights. Goya Food Company is among the few family companies that have sufficed all odds to remain viable in the market. Leadership of Goya Food Company Management is a vital element in company business. Management of the company is a pillar that has kept the company in market for more than seventy years. The leadership style applied by Goya Food Company has been a critical factor that has steered the company to the current level it has reached. Since the company is family owned, board of directors of the company are family members. This is quite appealing because the members have been able to make difficult management decisions, which has influenced the progress of the company. For instance, the former company CEO Joseph made many decision of the company without involving the board members a fact that led to his ousting. Agreement among the members of the body during annual meetings of the company influences the management operation of the company. Largely, the decision of the board influence top management of the company. It is also important to note that, family members of the company founder form the shareholders of the company. This is in accordance to private company establishment act. Success of the company lies on the strategic leadership approaches adopted by the company. Research reveals that the company management body solves its disagreement through conversation. The CEO of the company alludes that court is the last option that the company would seek for intricate issues that affects its management (Goya). The leadership of Bob Unanue has ensured that the company develops new products and expands its market share. It is unique for family companies to develop several distribution outlets and products without facing challenges that threaten the growth of the company. Bob has been able to coordinate and make strategic decisions, which influence the overall performance of the company. Bob describes the use of technology (phone) as essential gadget that enhances communication between the company headquarters and the other outlets. The company has been able to retain some of its workers for more than 45 years because of its leadership style. Arguably, Goya Food uses family policies to influence the management of the company. Retaining of employees for many years is a show of good employer employee relationship. Customer satisfaction is a factor that the management of the company addresses through developing wide range of products according to the customer demands. The approach aims at making the company viable in the dynamic market. Market image of the company Goya Food Company commands a large market share in United States and Latin America. This is evident from numerous products that the company has developed. Goya Food Company has more than 1000 products, which it distributes to different markets (Goodman). Market segmentation is a strategic approach that the company uses in order to distribute its product. For instance, market niche is a situation where the company supplies a given type of product to the market according to the demands of the consumers. Response to consumer culture is very vital in to the company because it influence product branding, product strategy and marketing mix. It is eminent that the company is able to command a large market share because it cannot develop over 1000 products without a good market command. Market share influence the income of the business. In most cases, high sale turn over is a recipe of consumer response to company products. Promotion of Goya Food Company in the local and international market helps the company to introduce new products in under exploited markets. Another factor that influences the image of the company is its corporate responsibility in the society. The company donates its food products for charitable courses thereby promoting the image of the company among the community. Corporate responsibility of a company usually influences the association of the company to the public (Goodman). Business analysts believe that corporate responsibility helps in marketing the company. Many consumers learn of new products through promotions. Whenever the company engages in corporate activities, it donates its products. This move usually helps it to introduce it products to the new markets. Other than corporate responsibility of the company, company workers portray a lot to the society. The employees of the company contribute to the success of the company. Poor presentation of workers in the market affects the image of the company. Notably, the company boost of workers who have served the company for very many years. It is a common trend for companies to retain their employees because of the contribution to company image. Goya Food Company has numerous competitors such as ConAqra, Kraft Foods, and Del Monte Foods among others. These companies manufacture products, which satisfy the same needs i.e. substitute products. For instance, a product like Extra Virgin Olive Oil and Dark Kidney Beans are substitute products, which face competitive demand. In this case, an increase in price of the above product will influence the demand of the substitute product. Goya Food Company has several competitors, which manufacture similar products. Competition among these companies influences pricing strategy, product strategy, and promotion of the business. Pricing of products in competitive demand is quite tricky because an increase in price would translate to a decrease in sales (Pederson 271). The company has devised competitive pricing strategy, which seek to keep the company products in competitive demand in the market. Uniqueness of the products in the United States market is a crucial factor that influence the volume of sales that the company records. Competition strategies of the company include introducing genuine products. This strategy is very critical since it influence the demand for the company products. Notably, many consumers would go for products that offer genuine quality. Financial performance of the company Goya Food Company has a good financial performance, which reflects the number of products that it presents to the market. Products manufactured and distributed in the market reflect the company ability financially. In many cases, the quantity of products presented in the market depends on the ability of the company to command a large market share. Large market share influences revenue collection of the company. In the past five years, Goya Food has posted good financial statement, which indicates the prowess of the company in the United States and other destinations. For instance, the financial statement of company in the year 2010 indicated a sale turn out of 1098.9 million pounds. This figure translated to a growth percentage of 13.3 (Deutsch). Usually financial stability of the company influence the number of activities the company would conduct. Evidently, financial statement of Goya Food Company shows a great growth. A growth of 13.3% indicates that the company commands a large market share. Further, the growth rate indicates that the management of the company has identified a strategic tactic, which influences consumer culture to the products of the company. Financial analysts attribute financial growth to strategic market penetration behavior, which is a function of the company management. Factors, which influence cost of production usually, influence growth. In this case, the company is able to balance this factors leading to high growth rate. In addition, financial statement of the company indicates a growth in consumption of company products following market segmentation. The company has developed several products, which suit customer demand. Consumption rate constitute the profit margin of the company. High consumption rate indicates high profit margin and vice versa. Financial record of the company also shows a steady growth in profit over the past five years. The stock of Goya Food Company product is pleasing since the company has a steady distribution and manufacturing outcomes. Company Products Moral responsibility of various companies is to introduce goods, which are genuine in the market. Business ethics dictates that a business enterprise should supply genuine products in the market without cheating the consumers. Government usually intervenes by regulating the quality of products supplied in the market. Goya Food Company supplies genuine products in the market. Moral responsibility of the company also influences pricing of these products (Czinkota & Ronkainen 469). Businesses, which supply low quality products at a price of genuine products, lack the moral will to the consumers. Breaching business ethics usually attract legal suit. The business has endeavored to avoid practices that would create unfavorable business environment. Business ethics usually influence operation and progresses of various businesses. Communication in Gaya Food Company is critical elements that influence the success of the business. Research indicates that communication channels in Gaya Food Company promote exchange of information, which is crucial to company’s growth. In many cases, open communication channels provide an opportunity for the company top management to identify issues at the grassroots. Arguably, company response to market demand depends on comprehensive information flow within the company. The company uses modern communication technology to monitor the activities within various outlets. Relaying of the company information among the company executive has been crucial to its growth. Communication is a vital element that influences decision making in the company. For example, body of directors of the company usually deliberates on information, which affects the progress of the company. This approach to communication is very critical for the company because it helps the company to make timely decisions for its products. I am pleased with the company policies and management style. I think I can work in this company since it offers good services to the society. Hispanic products supplied by the company promote Hispanic tradition. Management of the company shows a lot of passion for its workers. This is very important because it influence employee relationship. It is evident that Goya Food Company has employees who have served the company for very many years. This shows the level of importance vested on these employees by the company. In addition, working environment of the company is good. I am pleased with the marketing strategy of the company. In many cases, companies that perform poorly in the market pose serious challenges to their employees because of the risks associated with lose. An employee would consider the viability of the company before accepting an employment offer. In conclusion, Gaya Food Company is a distributer and manufacturer of various food products. The company has more than 1000 products that it manufactures and distributes in the market. Goya Food Company fall under family owned companies and it has served for over 70 years. The company management relies on board of director’s decision in implement crucial project of the company. The company commands a large market share in United States and other destinations. Largely, product design of the company aims at meeting the needs of the Hispanic people. Financial performance of the company over the past five years indicates a growth. The market image of the company is another vital element that promotes the company products in various markets. Company products help in painting the image of the company. Goya Food Company has various competitors who influence product pricing, branding, and product distribution strategy. These competitors offer substitute products in the market. Communication is a crucial factor that influences the success of the company. Communication channel of the company promote information exchange, which is crucial in developing marketing strategies for the company’s products. Business ethics influence the operation of the company since it leads to supply of genuine products. Work Cited Czinkota, R. Michael & Ronkainen, A. Iikka. International marketing. Mason, OH: Cengage Learning. 2007. Print. Deutsch, H. Claudia. Goya Braces for a Challenge From the Food Giants. Retrieved on 13 Dec, 2011 from http://www.nytimes.com/1991/02/24/business/goya-braces-for-a-challenge-from-the-food-giants.html?pagewanted=all Goodman, K. Cindy. Goya Foods executive shares recipe for success. Retrieved on 13 Dec, 2011 from http://www.aarp.org/work/self-employment/news-02-2011/goya_foods_executive_shares_recipe_for_success.html Goya. About Goya Food. Retrieved on 13 Dec, 2011 from http://www.goya.com/english/about.html Liberman, Sherri. American Food by the Decades. California: ABC-CLIO. 2011. Print. Pederson, P. Jay. International Directory of Company Histories, Volume 91. Michigan: St. James Press. 2008. Print. Read More