A business report: Cargill Inc. April 2014
Outline
Executive Summary 3
Introduction 4
Cargill 's supply chain approach 5
Cargill 's targeted markets: the Western and Asian perspective 6
Cargill 's market entry customs and channel strategies 7
Cargill as an American company and and supply chain provenance 9
References 12
Executive Summary
The following business report considers Cargill, a company operating in commodity and direct-consumer distribution markets. Cargill is a company that employs more than 180 000 employees and exports 25% of US wheat and supplies most of the worlds produce like meat, oils and other food
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With strong R&D centers, the company designed a lessened sugar chocolate “Truvia” (Marketline, 2013), which it sold intensively in retail chains of the USA, discussed in the next section of the report.
Cargill targets commodity markets in Asia, yet it prefers the Western markets for experimental and marketing oriented commerce.
As a commodity company, Cargill targets resource markets, however its marketing activities tend to concentrate in the West because in USA or Europe Cargill has a better foothold. Instead its commodity and mass produced goods are spread in the rest of the world with an exception of Sri Lanka, where the company holds a retail chain (Seas of Change, 2010).
Marketing activities in the West are more horizontally integrated: in a joint with Coca-Cola, Cargill devised sugar-free sweetener for sugar conscious market in USA (Cargill,2013). Efficient work can be seen behind Cargill’s R&D team which correctly identified American market accounting for nearly 80% of reduced fats/sugars market (Confectionery,2011) .
Another value-added products were cholesterol reduced milks and environmentally friendly foam making
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Treating all of Canada as one market has many advantages. A company typically implements a global strategy when it wants to save money. A company can be more effective when it sells the same products to every market, because there is no extra time spent on differentiating the products per market, which means there are also no extra costs. Money is saved from buying in bulk and having a standard packaging. In return, the company can put more focus on the product and work towards changing and enhancing the product. The case states that the market share of Saralyn Mills has increased in each of the product categories in which it competes. By implementing a standardized strategy,
3. To become established as the national retailer of choice for chocolate connoisseurs within the next 3 years.
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