Business - Smucker's Case Assignment Example | Topics and Well Written Essays - 1500 words

Business - Smuckers Case - Assignment ExampleIt expanded itself beyond jams and jellies so that it can shield itself from becoming an acquisition of any of the large firm. The company has been successful at expanding its operations, enhancing its sales and revenues by greater margins and increasing the price of the stock (Gamble, J. E., Smuckers in 2011 Expanding the Business Lineup). The products of J. M. Smucker Company table serviceed it to get through its long-term goals. The companys brand demonstrates strategic fit in the sense that all its brands are performing quite well. Smuckers expected its terminal sales to augment by 6 percent annually by increasing the sales growth to 2-3 percent resulting from future acquisitions, and increase in sales by 1 percent from the introduction of the new product. It is identified that in the year 2010, the company was capable of becoming the market leader in 11 of its food categories such as fruit spreads as well as dessert toppings, ro asted and ground coffee, health and natural beverages, peanut butter, cooking crude and condensed and evaporated milk. It can be stated that it is feasible for the company to expand its operations beyond its core competencies in order to fight the competition that it confronts from its rivals. This will help the company to generate high sales and revenues, along with that it will also assist the company to increase substantial market share. Question Two ane of the portions encroachmenting the successful operations of Smuckers is taxation. Changes in the tax rates and laws have a significant influence upon the company. Competition is the other macro environmental factor which hampers the sales and profitability of the company. Nestle and Kraft Foods are the main competitors of the Smuckers in United States. Economic slowdown and recession in the USA has an impact upon the operations of the firm. It is observed that the jump three months of the year 2011 seemed to be promising de spite the persistent impacts of economic downturn in the United States. The revenues of the company were equal for the period i.e. first three months in the fiscal year 2010. However, there was rise in the operating income by 5 percent in the first quarter from $185 million of the year 2010 to $195 million in the very first quarter of the year 2011. When the USA faces with the issues related to currency and interest rates fluctuations, the companies analogous Smuckers may have to face significant problems since these companies have its branches in many of the foreign nations. There has been change in the consumption pattern of the citizenry of the USA during the period of recession and as a result the organization had to focus upon the budget cuts and concentrate more upon the home made meals rather than readymade meal as sold by Smuckers. Sudden change in the consumption habit has a significant impact upon the company. Therefore, it is quite significant for the company to memo rize certain initiatives so that it can minimize the negative impacts of such threats and help in the enhancement of the sales and revenues of the company. If such issues are not paid overdue attention, then the companys profitability will be hampered to a great extent. Question Three There are many subsectors of processed food industry and each subsector has different growth expectations, competitive intensity, profit margins and business risks. The industry can be identified as attractive in the