Preparation of rough P&L based on selected solutions. 2. The competition’s changing strengths (more sophisticated manufacturing and marketing skills, stronger financial positions, focus on building value-added brands and market share) and weaknesses (reduced brand strength and longevity relative to MM) heavenwards the MM division to start devising strategies to develop healthier red meat products, invest in white meat, create new convenience products, and innovate in order to differentiate themselves from copycat brands.
As a result, MM is increasing investment in R;D, A;P, and new human resources. 3. I believe that the most viable departmental direction is Stranger’s proposal to reinvigorate the Oscar Mayer brand. Oscar Mayer is the foundation of the division and responsible for 82% of profits. Let’s important to invest in R;D for the brand to adapt to changing consumer trends while adjusting the prices and A;P budget containers market share. Second most viable is the acquisition of another company that focuses on healthier and more convenient products.
Turkey Time seems like the best candidate s it is closely related to the division’s core competencies and has extra capacity to support the MM price reductions. McGraw team has had success with LARD and can apply their learning to the next acquisition. Least viable is launching two new products. The recent failure of Stuffs Burgers demonstration MM needs more experience before they can depend on new products to drive division growth. Launching new lines is risky, requires significant capital investment and is forecasted to result infuriate losses in the short-term. Appetites is especially risky since it runs enter to health trends and, as with Stumberger’s, competing in the frozen foods channel will further narrow profit margins
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