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Smucker's in 2011: Administrative Policy - Case Study Example

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 This paper aims at analyzing the key issues regarding the Smucker company and providing recommendations. The company aims at achieving its corporate strategy by making strategic acquisitions, introducing new product lines, and growing the company’s existing brands. …
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Smuckers in 2011: Administrative Policy
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Download file to see previous pages Through acquisitions and expansion of the company’s product lines, Smucker’s has attained to increase its size and cash flows. However, as late as 2011, a section of analysts still remain apprehensive over the size and market contribution in the processed foods industry.  
Smucker has faced an increase in price competition in the processed food industry. Branded manufacturers such as Smucker experience pressure in agreeing with rival brands and retailers over profit margins (Adrian & Rieple, 2007). The slow growth rate the food sector coupled with the speedy consolidation of retail chains enhances the buying power and shelf space allocation by supermarkets. Supermarkets have achieved to provide effective market and attractive prices for their product brands. As private label goods increase their market share, the competition on product price and cost increases for branded manufacturers.
The Smucker Company appears to limits its target market and has not focused on expanding globally. The company focuses majorly on its markets in America and Canada. Limiting the company’s trading potential to North America could prove detrimental to the company’s overall business objective. For instance, the economic downturn of 2008 profoundly affected the US compared to other parts of the globe (Adrian & Rieple, 2007). This provided a vast dent on the company’s finances since it does not have a higher market share outside North America. It is vital for the company to avert such risks by looking at markets and resource outside North America.
Another issue arises from the acquisitions carried out by the company in its objective to become the leading brand in the market.   ...Download file to see next pagesRead More
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