H.J. Heinz

Group E: Balmaceda, Henry Montez, Monea Parra, JorgeTjia, Clarie H.J. Heinz

Mission Statement: As the trusted leader in nutrition and wellness, Heinz the original Pure Food Company is dedicated to the sustainable health of people, the planet and our Company.

Five ValuesTeam Building & CollaborationInnovationVisionResultsIntegrity

FocusGrow the Core PortfolioAccelerate Growth in Emerging MarketsStrengthen and Leverage Global ScaleMake Talent an Advantage

William R. Johnson President, CEO, Chairman

Europe, North American consumer products, Asia/Pacific, US foodservice, and the rest of the world

External Environment FactorsIndustry Top competitors are Kraft Foods and Nestle H.J. Heinz holds over 50% market share in the U.S.

Socio-Cultural Attitudes, culture, and tastes vary greatly by country

Government & Political Not being able to meet guidelines in quality, procedures, or requirements that might disrupt the supply chain

Economic Conditions People look for cheaper alternatives

Technology Company is using the latest technology in supply chain management using Manugistics

Raw Materials Material cost inflation Increase in costs

Evaluating the Company 10.7 billion in sales Top 15 brands generate 70% of revenue Heinz focuses on three categories: ketchup & sauces, meals & snacks and infant/nutrition

Past ChallengesRecalls Baby food recall in Canada, couldve impacted their ability to expand to China since they have trust issues with baby food suppliersLawsuits Expensive lawsuits can cost them the opportunity to use those funds to expand globallyWorkforce Problems Strikes in the UK shows Heinzs inability to meet workers demands Future confrontations can lower productionGaining Market Share There are many external environment factors and challenges that the company has to consider in order to successfully expand globallyMajor Challenges Present DayHeinzs heavy reliance on Wal-MartProduct recall damages brand imageIntense competitionStringent regulationsIncreasing labor costsShift in consumer preference

Management Scope Introduce lower-priced productsUse emerging market branchesUse foreign exchange rate currencyLower raw-materials costsStrict control over quality assurance & quality standardsShift products to follow consumer preference

Making GainsHeinz Plans to grow in different countries by purchasing 80% stake in a Brazilian sauce company.Brazil generates 15% of Latin Americas GDP and is vastly growing.Purchasing Quero (Brazilian Sauce Company) Heinz will be well positioned in key emerging markets of Brazil, Russia, India, China, and INDONISIA.Heinzs Long-Term Strategy to grow the core portfolio is to invest more into their Research and Development Department.

Looking Outside the Box As companies grow they will need to look into other means of resources. HJ Heinz has made major gains in the US but is now moving into emerging company's giving them an opportunity to grow the company.Planning and researching other means of growth has given HJ Heinz a major advantage in developing countries. Queros is a well known brand and well trusted in Brazil and Heinz will use that to their advantage to gain revenue.Heinz products are well known and they have quickly realized that they will need to develop and market them better. (Heinz ketchup bottle is a good example) Investing millions into their developing department is enabling them to develop their current products and making them more appealing to the public.