Business Strategy Report for Quaker Oats
Abstract
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.
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...lation. Increased marketing and promotional efforts in the Latin American countries and Asia could have great results as Quaker continues to operate more efficiently.
Quaker's net sales increased 1% from 2000 to 2001, I think that Quaker, along with PepsiCo, can continue as an industry leader by heavily concentrating on the most critical areas of their business and continuing their operational efficiency.
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)
John Harvey Kellogg wanted to cure “Americanitis”, which was the stomachache caused by the typical American breakfast. This breakfast consisted of sausage, fried ham, beefsteak, bacon, with whiskey and salt added on top. He decided to build a tiny health center that helped American improve their heath. In that center, he provided tips for healthy eating, and exercises. He did not allow fats, salt, or sugar in his clinic. In 1894, he took a trip to Denver, where he met an entrepreneur who invented a cereal made of shredded wheat. This inspired Kellogg to take this idea back home, and share with his brother, Will. Kellogg and his brother began to experiment, and created many cereals. They then met C.W. Post, and decided to collaborate and were eventually called themselves The Big Three. They invented 108 different brands of cereals. In the 1940s, they began adding a candy coating to the cereal. The Big Three controlled about 85% of the cereal market. The public’s enthusiasm for cereal grew drastically because women, who had children, had more time in the morning. Although convenience was the key to starting the day, the Big Three could not control the breakfast table without being finessed.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
The Company was founded in 1869 by Henry J Heinz called Heinz and Noble Company. In the 1870s during the depression the company went into voluntary liquidation. The company was started up again in 1876 by Henrys relatives John and Frederick the company was called F & J Heinz. In 1888 Henry bought the company back, in 1905 Henry bought the first Heinz British factory. British made backed beans first came of the lines in 1928 and spaghetti followed in 1930.
Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text & Cases (6th Ed.). New York, NY: McGraw-Hill.
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps...
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. Pepsi Co. and Coca Cola have been the industry leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors, regardless of size. First, let's take a look at Pepsi Co. to determine profitability, there are several ratios utilized.
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: planning for domestic & global competition (13th ed.). New York: McGraw-Hill/Irwin.
Kraft Food Group has some areas in which it can grow. The company needs to fix its debt-to-assets and debt-to-equity ratios. The profit margin has been sporadic for the last five years. This is not a good trend for the company. This industry has some very external factors that can devastate the profit margin such as drought and other Asian market trends that can hurt the bottom line for this industry and company. Weather cannot be controlled. This company has a lot of different products which can be good by not putting all of your eggs in one basket approach. This can also lead the company to be stretched and pulled into many directions. The food industry can be a very up and down market because of external forces. Kraft Food Group has some problems with putting chemicals in some of their products that are now prohibited by the government. Kraft Food Group has food scientists, engineers and chemists to combat these chemicals and to develop new products and provide consistent quality of products so they can grow through sales and profits. Kraft Food Group has a high standard of quality and respect from its customers. Kraft Food Group could lose financially by food contamination. This company will continue to grow in the future if they continue to make improvements, make investments, and produce quality
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage (16th ed.). New York: McGraw-Hill Irwin.
• Hitt, Michael A; Hokisson, Robert E.; Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio: Souht. Wester 2005.
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
Wheelen, T. L., & Hunger, D. L. (2008). Strategic Management and Business Policy: Concepts and Cases. New York: Pearson.
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...
Strategic management is the process where organization managers reach the goals and aspirations of the organization on behalf of its owners. This is done through formulation and implementation of ways and methods to fulfill the organizational goals and objectives (Brian, 2011). This is done with in-depth consideration of both the internal and external environments that the organization operates in, in order to allow the organization make the right decisions. Strategic management is an important element that firms must put together through strategic thinking as well as strategic planning (Nag, R., Hambrick & Chen, 2007).