Company Background
The Campbell Soup Company (CPB) is a good corporation that undertakes its operations worldwide. The headquarters of the company are based in Camden, New Jersey while realizes yearly sales of around $8 billion. The organization creates diverse high-quality means together with beverages, simple meals, packaged fresh foods, as well as snacks. The company’s activities revolve around its desire for realizing its purpose, which entails making real food that matches the moments of daily life (Campbell Soup, 2019) . For many years, persons have directed their trust to Campbell mostly because of the emphasis it directs toward offering authentic foods as well as beverages that link them together while ensuring to warm memories as well as focusing on what matters the most today. The organization follows its popular Campbell brand while its portfolio goes past soups to making foods, including Goldfish crackers, Pepperidge Farm cookies, and Royal Dansk biscuits among various beverages, dressings, and carrots (Campbell Soup Company, 2018) . Campbell also makes sure to offer organic foods with the goal of meeting the growing health needs of its consumers. The emphasis it directs toward quality and authentic foods has led CPB to gain increased competitiveness in the market while at the same time attracting customers from different parts of the world. In Japan, CPB operates as Campbell Japan Incorporated while serving as Campbell Soup Company’s subsidiary. CBP offices in Japan are situated in Tokyo Tatemono Hiroo Building (Bloomberg, 2019) . The performance of the company in Japan has realized major successes due to the focus it directs toward observing the culture of the country thereby allowing it to realize increased dominance in the country and surrounding nations.
CPB’s Strategy and Competitive Position
Regarding the strategy and competitive position of CPB in Japan, the organization has directed significant emphasis toward certain approaches to allow it to continue growing and meeting the needs of the population adequately. The organization has demonstrated its capacity for executive on as well as leveraging on the benefits that it realizes from its activities of reviewing its portfolio to make sure that it meets the needs of its client base adequately. The company also shows the capacity of differentiating the diverse products that it offers in line with safeguarding its position as a leader in its diverse product offerings, particularly the soup that it offers. In this vein, the organization has shown the capacity for completing together with realizing the forecasted benefits of the divestitures that it plans in line with other changes in its business portfolio. Furthermore, CPB has revealed its capacity for attaining its projected benefits, such as cost synergies attributed with the acquisitions that it has embarked on in the recent years (Campbellsoupcompany, 2019) . The company is also capable of realizing forecasted cost savings together with the advantages emanating from the efficiency in line with initiatives aimed at restructuring its operations to meet the emerging needs of the market.
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In addition, the indebtedness in line with the capacity by the organization in paying the indebtedness has made the organization capable of overcoming the various disruptions that impact its operations, especially its supply chain. In this vein, it has been capable of coping with issues related to inflation and supply fluctuations in line with packaging and raw materials’ costs. Moreover, the ability by CPB in managing the alterations in its organizational structure together with business processes, such as distribution, selling, processes, information management, and manufacturing have allowed its dominance in the marketplace to continue growing. In addition, the organization responds in a competitive manner to its efforts of taking advantage of the power of its brand through promotional initiatives, product innovation, and new forms of advertising. In this manner, it has managed to overcome various risks attributed with consumer and trade acceptance of improvements in products, new pricing and promotional approaches, as well as shelving initiatives (Campbell Soup Company, 2018) . Besides, CPB is able to cope with alterations in the demand by consumers for the products that it offers while making sure that customers perceive the brands by the organization as their favorite. CPB also has efficient practices for managing the changes in inventory by leveraging on its key consumers. Furthermore, the changing landscape of consumers together with the value attributed to the e-commerce platform, the organization is managing to grow its market presence whereas some of its major consumers are able to maintain the importance of the business activities by CPB (Campbell Soup, 2019) . CPB also ensures to lay significant emphasis on safety and quality issues, including product liabilities and recalls to ensure that its reputation in the marketplace continues being strong.
As a part of its future growth endeavors, the company is reshaping its operations in such a manner that they foster sustainable growth in line with boosting the value of its stakeholders. It is doing this by deploying a dual mandate aimed at advancing its key businesses while at the same time growing into markets that show high prospects for growth, such as new segments, categories, geographies, and channels. In addition, CPB is laying emphasis on building on its strengths as a top soup maker in line with growing into new segments and categories, including packaged fresh foods within the retail sector as well as simple organic meals that target children and fast-growing global markets (Bloomberg, 2019) . Here, even while “soup” serves as the company’s middle name, the company is embarking on measures aimed at allowing it to grow into diverse markets and in astonishing ways.
Organization’s Competitive Strategy Statement
For Campbell, it anticipates attaining competitiveness in the marketplace through a number of initiatives. One of the major ways that the company anticipates realizing this is through focusing on offering high quality and tasty food to its consumers. Based on the organization’ entire portfolio, the brands by the company will take advantage of the insights that customers offer together with emerging trends to ensure that its products remain relevant while at the same time ensuring to focus on wellbeing and health, convenience, and snacking (Campbell Soup, 2019) . The firm plans managing all of its brands through the establishment of a disciplined and focused framework that revolves around two key portfolio roles.
Firstly, CPB plans realizing profitable growth. The company plans doing so by emphasizing on exciting and power brands, which it anticipates categorizing disproportionately relative to the brands that rival its product offering. These comprise of key brands, including Goldfish, Cape Cod, Lance, Kettle Brand, Late July, Pepperidge Farm Farmhouse, Pacific, and Milano cookies. The other products that the company targets leveraging on to allow it to grow is competitiveness in the marketplace comprise of Snyder’s of Hanover and Prego (Campbell Soup Company, 2018) . The firm will emphasize on investing in consumer engagement and innovation to allow the company grow its brands in such a manner that they take advantage of the advancing consumer trends as well as tastes.
Secondly, the company will emphasize on maximize on cash flow and its margin with the goal of advancing its competitiveness within the marketplace. For these at-scale products, CPB plans managing them through making sure that they generate consistent cash flow and profits. These will comprise of key brands, including Pepperidge Farm, Campbell’s soup, V8, Spaghetti OS and other key brands, which the organization anticipates growing in order to boost its relevance in the marketplace. For these brands, the organization will manage them by adopting a disciplined emphasis while at the same time aligning the investments to allow the organization to grow its position in the market place (Campbellsoupcompany, 2019) . In doing so, the organization will optimize its cash flow and margins, which will contribute toward realization an equally crucial role in the company’s portfolio.
In addition to the two major approaches stipulated in the company’s competitive strategy statement, the organization will also ensure to diversify its operations in other non-core business operations, which will facilitate in reducing the organization’s debt tremendously. The organization plans instituting a process that will allow it to diversify its Campbell businesses in a way that will allow it boost its value to consumers and in the market. The organization will make sure to coordinate its international operations with those of Japan in order to make sure that the operations that it undertakes are harmonized. In this manner, the organization will have the capacity for undertaking its operations in a streamlined manner thereby allowing it to reduce its debt significantly mostly due to unified operational efforts. The organization anticipates realizing its overall sales from its diverse operations, thereby making it possible to reduce its debt tremendously (Campbell Soup, 2019) . A reduction in the overall debt by the company will allow it to operate in an efficient manner while growing its competitiveness in the market place significantly.
An additional means through which Campbell will grow its competitiveness in the marketplace will revolve around emphasizing on means of reducing its costs of operation significantly. Since the organization is focusing tremendously on its portfolio, it will be able to realize major cost savings. The organization anticipates realizing the increased savings on cost by ensuring that it streamlines the nature of its organizational structure. It also plans growing its zero-based efforts for budgeting while at the same time ensuring to optimize its network of manufacturing. By realizing these savings together with the target synergies that it has put in place, the company will be in a position to integrate its operations, which will contribute toward increased savings. The organization will be able to realize an overall reduction in costs of operation, which will contribute to reduced costs of its products that will then lead to an increased customer base (Campbell Soup Company, 2018) . This way, the company will reduce costs, increase revenue and profitability, and realize overall competitiveness in the market.
Organizational Financial Performance
Figure 1 depicts the annual income statement for Campbell Soup Company from 2015 to 2018. The annual income statement reveals the manner in which the company has performed financially during the period hence an ideal means of understanding how the organization should operate in line with the strategies that it should deploy to allow it to grow its competitiveness in the marketplace. A financial analysis of company is essential when it comes to fostering increased understanding on the financial health of a company to determine its future prospects within the marketplace.
From the figure, the overall revenue of the company has been increasing steadily from 2015 to 2018. It rose from $8,082,000 in 2015 to $8,865,000. The cost of revenue has been rising from 2015 to 2018. It increased from $5,300 to $5,869,000. With the increased costs, the overall profitability of the company declined from $2,782,000 in 2015 to $2,816,000. From the company’s financial performance, therefore, it is evident that the profitability of the company declined due to increased costs (Nasdaq, 2019) . As such, it should consider diversifying its operations to allow it realize increased profitability, which would then result to a rise in its competitiveness within the marketplace.
References
Bloomberg. (2019). Company overview of Campbell Japan Incorporated. Retrieved from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=36571169
Campbell Soup. (2019). Campbell Soup. Retrieved from https://www.campbellsoup.co.jp/
Campbell Soup Company. (2018). Campbell Soup Company. Retrieved from http://investor.campbellsoupcompany.com/phoenix.zhtml?c=88650&p=irol-newsArticle&ID=2365442
Campbellsoupcompany. (2019). About us. Retrieved from https://www.campbellsoupcompany.com/about-campbell/
Nasdaq. (2019). CPB company financials. Retrieved from https://www.nasdaq.com/symbol/cpb/financials?query=income-statement
