Case
Analysis
Campbell
Soup
Ltd.


University
of
Toronto


Date:

03/25/2009

Name:
Philipp
Muedder

ID:
997242176

Course:
MGT492

Lecturer:
J.
Klakurka

Assignment:
Case
Analysis


Table
of
Content


Page
#


1. Introduction………………....…………………………………………………………………………...3

2. Campbell
Soup
Ltd.
History………………………………………………………………………..4

a. The
Cooperation……………………………………………………………………………..4

b. Campbell
Canada…………………………………………………………………………….6

3. Analysis…………………………………………………………………………………………………….7

a. SWOT
Analysis.………………………………………………………………………………7

i. Strength………………………………………………………………………………8
 ii. Weaknesses……………………………………………………………………….10
 iii. Opportunities…………………………………………………………………….11
 iv. Threats……………………………………………………………………………...14

4. Recommendation……………………………………………………………………………………15

5. Conclusion……………………………………………………………………………………………...16

6. Reference……………………………………………………………………………………………….18

7. Appendix………………………………………………………………………………………………..19


2


1.
Introduction

The
case
analysis
of
my
assignment
deals
with
the
worldwide
known
firm
Campbell

Soup
Ltd.,
which
is
a
food‐processing
firm
with
its
headquarters
located
in
Camden,

New
Jersey.

In
the
case
we
follow
the
role
of
David
Clark
who
is
the
CEO
of
the
Campbell
Canada
 division, we
will
get
a
chance
to
see
what
important
factors
play
a
role
in
running
 such a
large
company
and
what
complex
and
strategic
decisions
have
to
be
made
in
 an ever
 changing
 environment.
 Therefore
 we
 not
 just
 simply
 look
 at
 the
 external
 environment, instead
we
take
both
the
internal
as
well
as
the
external
environment
 into account
 to
 gather
 more
 insight
 knowledge
 of
 the
 firm,
 its
 competitors,
 the
 grocery store
environment,
and
the
relationship
with
its
suppliers.

The
 problem
 statement
 that
 will
 guide
 you
 through
 my
 analysis
 is
 the
 following:

“What
 actions
 does
 Campbell
 Soup
 Ltd.
 needs
 to
 take
 in
 order
 to
 keep
 growing
 and
 outpacing the
competition
in
the
next
five
years?”


With
the
help
of
the
Swot
analysis,
the
Diamond
model,
and
further
research
we
will
 try to
examine
the
current
and
past
performances
of
Campbell
Soup
Ltd.
in
order
to
 come up
with
actions
that
will
help
David
Clark
sustain
the
growth
and
expand
the
 business further.



3


2.
Campbell
Soup
Ltd.
History

To
 start
 of
 with
 the
 strategic
 analysis
 of
 Campbell
 Soup
 Ltd.
 and
 the
 case
 dealing
 with their
 Canadian
 branch
 one
 should
 first
 understand
 and
 gain
 the
 knowledge
 about the
 company
 itself
 before
 going
 deeper
 into
 the
 various
 tools
 for
 analysis.

Therefore
 this
 part
 of
 the
 essay
 deals
 with
 the
 Companies
 long
 history;
 first
 it
 examines the
start
of
the
Company
in
the
United
States
before
we
take
a
closer
look
 at the
situation
and
history
of
the
unique
Canadian
branch.

2.1
The
Cooperation

Everything
with
Campbell
Soup
Ltd.
has
its
roots
in
Camden,
New
Jersey.
Camden
is
 still the
location
of
choice
for
their
headquarters.


Campbell
Soup
Ltd.
Headquarters
Camden,
New
Jersey
(www.britannica.com,
2008)


The
 official
 date
 of
 when
 the
 company
 was
 founded
 is
 dated
 back
 to
 1869
 when

Abraham
 Anderson
 and
 Joseph
 A.
 Campbell
 co‐founded
 the
 ‘Joseph
 A.
 Campbell


4


Preserve
Company’.
At
the
start
of
their
operations
they
were
mainly
selling
canned
 vegetables, jellies,
tomatoes,
soups,
minced
meat,
and
condiments.
The
business
was
 growing rapidly
 but
 for
 some
 unknown
 reason
 Abraham
 Anderson
 resigned
 and
 parted ways
with
Campbell
in
1896.
This
unexpected
departure
left
Campbell
with
 the need
to
restructure
the
company.


In
 1897,
 a
 year
 after
 Andersons
 departure,
 the
 by
 the
 time
 general
 manager
 of

Campbell
 Soup
 Ltd.
 Arthur
 Dorrance
 hire
 his
 24
 year
 old
 nephew
 Dr.
 John
 T.

Dorrance.
 John
 Dorrrance
 was
 a
 recent
 graduate
 from
 the
 glorious
 Massachusetts

Institute
of
Technology,
where
he
obtained
degrees
in
chemical
engineering
and
as
 an organic
chemist.
 It
was
Dorrance
who
in
1899
developed
a
commercially
viable
 method for
 condensing
 soup.
 This
 breakthrough
 gave
 Campbell
 the
 ability
 to
 sell
 their products
 at
 one‐third
 of
 the
 costs
 of
 their
 competitors.
 The
 two
 main
 competitors in
 the
 canned
 soup
 business
 at
 the
 time
 had
 no
 chance
 of
 competing
 with Campbell
at
this
point
of
time
and
therefore
the
company
grew
accordingly.

At
the
time
of
the
invention
the
soup
market
in
the
United
States
was
not
as
big
as
it
 was in
 Europe.
 But
 over
 time
 it
 grew
 rapidly
 especially
 due
 to
 the
 convenience
 of
 now canned
soups
and
the
underlying
low
price
of
the
products
(10
cents).
People
 in the
U.S.
liked
the
 new
 concept
and
the
sales
went
up,
in
1904
the
company
sold

‘16
million
cans
of
soup’.
(fundinguniverse.com,
2008)

In
 1922
 the
 company
 got
 incorporated
 and
 from
 then
 on
 changed
 the
 company
 name to
 ‘Campbell
 Soup
 Company’
 but
 it
 was
 not
 until
 1954
 that
 the
 company
 became public
 and
 started
 to
 be
 traded
 on
 the
 New
 York
 Stock
 Exchange.
 Further


5


acquisitions
of
companies
like
C.A.
Swanson
&
Sons,
Godiva
Chocolatier
Inc.,
Vlasic

Foods,
Pace
Foods
etc.
helped
the
company
to
get
into
the
respective
markets
more
 easily. For
example
the
acquisition
of
C.A.
Swanson
&
Sons
started
Campbell’s
frozen
 food business,
which
up
till
now
is
still
a
very
profitable
business
to
be
a
part
of.


2.2
Campbell
Soup
Canada

It
 was
 close
 to
 the
 end
 of
 November
 in
 the
 year
 1930
 when
 Campbell
 Soup
 Ltd.
 entered the
Canadian
market.
By
the
time
it
was
considered
a
foreign
subsidiary
of
 the main
 Company
 located
 in
 the
 United
 States.
 There
 was
 no
 problem
 with
 that
 because Campbell
was
still
a
privately
managed
and
owned
company,
but
since
they
 decided to
become
a
publicly
traded
firm
on
the
Toronto
Stock
Exchange
in
the
year.

In
 1983
they
had
to
change
to
a
separate
entity
now
called
Campbell
Soup
Canada.

The
transition
process
from
a
private
to
a
public
firm
was
quite
tough,
since
strict
 guidelines had
to
be
met
to
confer
with
the
Canadian
laws.
Campbell
Soup
therefore
 had to
 make
 sure
 that
 30
 percent
 of
 the
 shares
 during
 the
 Initial
 Public
 Offering

(IPO)
had
to
be
reserved
to
Canadian
investors.
The
rule
came
into
play
because
the

Canadian
Government
wants
to
make
sure
that
the
Canadian
population
will
benefit
 from foreign
 direct
 investments.
 According
 to
 the
 case
 “its
 worked
 out
 extremely
 well, and
we’re
extremely
pleased.’
(Crossan
M.
et.
al.,
2008)


The
remainder
of
the
essay/analysis
will
be
narrated
out
of
the
view
of
David
Clark
 the CEO
 of
 Campbell
 Soup
 Canada.
 David
 Clark
 became
 president
 of
 Campbell

Canada
 in
 the
 year
 1983
 when
 the
 company
 was
 not
 doing
 as
 well
 as
 it
 was
 supposed to
be,
the
morale
of
the
workers
sunk
by
the
minute
and
it
was
considered


6


to
be
a
‘poor
organization’
overall.
 (Crossan
M.
et.
al.,
2008)
 
David
had
a
career
like
 its supposed
 to
 go,
 before
 joining
 Campbell
 at
 the
 age
 of
 only
 30
 years
 he
 was
 already considered
 a
 rising
 star
 at
 Unilevers
 marketing
 department.
 With
 such
 an
 impressive rise
 he
 took
 on
 the
 work
 of
 turning
 around
 the
 Canadian
 division
 of

Campbell
Soup
ltd.


More
details
about
the
turnaround
and
the
measures
he
took
will
be
explained
and
 thoroughly analyzed
later
in
the
essay.
 3.Analysis

The
main
part
of
the
essay
will
deal
with
the
analysis
of
Campbell
Soup
Canada
in
 this section
 we
 will
 see
 what
 effects
 economic
 changes
 as
 well
 as
 internal
 organizational changes
 will
 have
 on
 the
 decision
 making
 and
 the
 challenges
 the

Company
has
to
face
in
 the
 ever
changing
environment.
I,
David
Clark,
will
give
you
 some insight
knowledge
on
what
means
and
feels
to
be
a
CEO
at
Campbell
Canada.

3.1
SWOT
Analysis

To
get
started
on
our
goal
to
achieve
a
strategic
plan
for
the
next
five
years
we
need
 to thoroughly
know
what
our
 Strenght
 Weaknesses
 Opportunities
and
 Threats
are
 in order
to
gain
competitive
advantages
over
our
competition.
The
so‐called
SWOT
 analysis is
 a
 helpful
 tool
 to
 determine
 not
 only
 the
 internal
 but
 also
 the
 external
 environment of
a
company
and
therefore
we
will
apply
it
to
 our
case
so
that
we
can
 see on
which
subjects
we
should
focus
on
more
closely
to
reach
our
set
of
goals.


7


SWOT
Analysis
Framework.
(www.excelsia.ch,
2009)


3.1.1
Strengths

The
strength
of
our
firm
lies
in
the
various
departments
and
also
in
the
Corporate

Company
in
the
Unites
States.
One
of
the
most
important
strength
for
me
personally
 is that
 I
 have
 a
 really
 good
 and
 healthy
 relationship
 with
 the
 corporate
 CEO
 Mr.

Johnson
we
at
least
meet
once
a
month
and
whenever
I
am
at
the
headquarters
in

Camden
 I
 can
 enjoy
 an
 open
 door
 policy.
 This
 gives
 me
 the
 right
 amount
 of
 interaction between
 the
 Canadian
 division
 and
 the
 Cooperation
 in
 general,
 we
 can
 discuss short
 term
 as
 well
 as
 long
 term
 goals
 and
 whenever
 there
 is
 the
 need,
 questions on
 my
 side
 can
 be
 raised,
 discussed
 and
 solved
 in
 an
 efficient
 manner.


8


This
 contributes
 definitely
 to
 the
 strength
 of
 our
 Canadian
 division
 of
 Campbell

Soup
since
it
gives
me
the
feeling
that
I
have
the
full
support
of
the
Cooperation.

Further
 strengths
 that
 my
 team
 and
 me
 have
 discovered
 are
 that
 our
 plants
 are
 running at
a
very
efficient
manner
and
in
comparison
to
our
American
plants
we
can
 say that
we
are
more
flexible
as
well.
Instead
of
producing
only
one
kind
of
product
 at one
plant,
as
is
the
case
with
the
American
operated
plants,
we
are
producing
up
 to ten
different
kinds
of
products
this
makes
our
plants
very
flexible.
 The
efficiency
 of our
plants
can
be
backed
up
by
the
numbers
of
Exhibit
8
from
the
case
where
the
 unit costs
and
plant
capacity
is
compared
with
three
of
our
direct
competitors
and
 the US
division
of
Campbell
Soup.

Sun
Ripe
Con.

Guelph


A.D.
Wilson

Kingston


Campbell

Canada


Campbell
US


V8
Juice


Foram
Foods

Oshawa


Ingredients


4.211


3.971


3.789


3.634


3.028


Packaging


3.345


3.123


3.101


3.597


2.767


Direct
Labor


1.679


1.761


2.120


1.815


1.578


Indirect
Plant

Expense


3.45


3.23


3.99


3.03


2.24


Total
Costs


12.69


12.09


13.00


12.07


9.61


Exhibit
8.
Comparative
Unit
Cost
and
Plant
Capacity
Data
on
Two
Products
1988
(in
Cdn$).
((Crossan
M.
et.
 al., 2008)


The
table
above
shows
in
which
areas
our
plants
are
more
efficient
in
terms
of
costs
 compared to
our
competition.
We
can
observe
that
we
are
leading
in
the
cost
of
the
 ingredients and
also
our
indirect
plant
expenses
(highlighted
green)
are
much
lower
 compared to
most
of
the
competition.
Special
attention
needs
to
be
devoted
to
the


9


total
costs
 which
in
my
case
are
the
most
important
indicator
for
running
a
plant
at
 the most
efficient
manner,
in
this
category
we
are
leading
all
of
our
competition
and
 therefore can
 come
 to
 the
 conclusion
 that
 our
 plants
 are
 a
 competitive
 advantage
 and a
strength.

Another
 strength
 that
 we
 discovered
 appeals
 to
 the
 supplier
 relationship
 that
 we
 have been
building
up
to
this
point.
 We
are
using
a
method
which
is
best
described
 by saying
 that
 each
 item
 that
 we
 need
 to
 purchase
 for
 production
 we
 have
 two
 different suppliers.
This
gives
us
the
unique
opportunity
of
the
lowest
price
possible
 and we
 have
 a
 certain
 amount
 of
 security
 of
 supply.
 I
 have
 taken
 part
 of
 the
 most
 recent supplier
 meetings
 and
 can
 say
 that
 we
 are
 though
 still
 far
 away
 from
 full
 partnerships with
our
suppliers
this
is
due
to
the
reasons
that
the
supplier
still
think
 they are
sharing
a
‘limited
pie’
and
therefore
are
not
keen
on
information
exchange
 at this
point
of
time.

3.1.2
Weaknesses

SWOT
 analysis
 does
 not
 only
 show
 the
 positive
 attributes
 of
 the
 firm
 and
 its
 environment. This
might
seem
odd
at
first
but
it
shows
us
what
aspects
of
the
firm
 are developing
negatively
and
therefore
gives
us
a
heads
up
on
which
areas
to
focus.

In
our
case
we
did
identify
weaknesses
that
need
to
be
handled
with
care
if
we
want
 to turn
them
around.

The
first
issue
identified
deals
with
the
farms
that
we
own
across
Canada.
We
have
 farms that
 ensure
 supply
 for
 chickens,
 and
 mushrooms
 at
 least
 that
 were
 our
 intentions. Unfortunately
though
it
turned
out
that
we
faced
major
issues
regarding


10


the
management
of
these
assets.
In
1988
diseases
killed
80%
of
the
mushroom
crop
 and the
 hot
 summer
 decimated
 30%
 yield
 of
 the
 chickens.
 So
 keeping
 the
 farms
 might be
 a
 strong
 weakness
 to
 our
 firm,
 therefore
 it
 must
 be
 thought
 of
 the
 possibility to
get
rid
of
the
farms
rather
early
than
late.

Another
issue
deals
with
the
attachment
of
our
Canadian
division
of
Campbell
Soup
 and the
 headquarters
 in
 the
 United
 States.
 In
 the
 past
 we
 have
 worked
 to
 closely
 with the
 headquarters
 in
 terms
 of
 strategic
 decision‐making
 and
 operations
 management just
copying
the
US
brand
does
and
will
not
work
at
any
point
in
time
 for the
Canadian
part
of
the
company.
We
cant
keep
making
the
same
mistakes
as
 our competitors
who
also
have
their
parent
company
based
in
the
US
in
the
way
that
 they just
introduce
the
same
products
in
Canada
that
haven
proven
to
be
successful
 in the
United
States.
More
on
that
issue
will
be
discussed
next
in
the
opportunities
 section of
the
essay.

3.2.3
Opportunities

Through
the
initial
public
offering
(IPO)
we
were
able
to
attract
some
good
talent
to
 our company,
 now
 being
 public
 means
 that
 we
 can
 offer
 them
 executive
 incentive
 plans and
a
stock
savings
scheme
for
retirement
purposes.
This
was
 a
 great
way
to
 attract and
 of
 course
 retain
 the
 talent
 that
 was
 so
 desperately
 needed
 for
 us
 to
 turnaround. One
of
the
first
acquisitions
of
mine
was
the
hiring
of
John
Cassaday
he
 was hired
as
a
senior
vice
president
of
Marketing
and
Sales
and
formerly
worked
at

General
Foods,
John
helped
us
to
improve
our
marketing
and
sales
efforts
since
that
 was one
 of
 the
 main
 disadvantages
 due
 to
 the
 lack
 of
 investments
 in
 this
 area.


11


Further
hires
 in
the
areas
of
operations,
administrations
and
corporate
services,
as
 well as
 finances
 and
 human
 resources
 all
 contributed
 to
 the
 grow
 of
 the
 firm.

Therefore
 we
 have
 to
 take
 advantage
 of
 our
 now
 good
 reputation
 to
 hire
 the
 best
 and turn
this
opportunity
into
a
strength.

A
 great
 opportunity
 embarked
 through
 thorough
 research
 of
 our
 competition.
 We
 did expect
our
competition
to
strongly
aim
for
our
product
lines
but
really
knowing
 what they
were
up
to
was
difficult
to
figure
out.
The
research
though
suggested
that
 most of
 our
 large
 competitors
 were
 US
 based
 companies
 and
 they
 most
 likely
 introduced already
 proven
 products
 from
 the
 home
 market
 into
 the
 Canadian
 market. This
 gives
 us
 the
 opportunity
 of
 already
 narrowing
 down
 the
 product
 offerings of
 the
 competition
 of
 what
 might
 be
 introduced
 to
 the
 market
 well
 in
 advance so
 that
 we
 can
 inhibit
 counter
 measures
 before
 the
 product/s
 hit
 the
 market. Further
 market
 research
 has
 to
 be
 conducted
 to
 transfer
 this
 great
 opportunity into
a
real
strength
for
our
company.

The
 changing
 of
 the
 grocery
 store
 business
 with
 the
 emergence
 of
 the
 two
 new
 business ideas
which
are
so‐called
‘Box”
stores
like
CostCo
where
products
are
sold
 in large
 quantities
 with
 lower
 mark
 ups.
 The
 second
 new
 business
 idea
 was
 the
 introduction of
private
labels
like
for
example
Presidents
Choice
by
Loblaw,
most
of
 the private
 labels
 were
 often
 sourced
 by
 the
 same
 producers
 of
 the
 branded
 products. The
price
advantage
of
these
private
labels
was
achieved
through
the
facts
 that no
advertising
or
promotional
costs
occurred
therefore
higher
margins
on
the
 store site
 of
 the
 business
 could
 be
 achieved.
 The
 market
 share
 of
 the
 business
 is


12


supposed
to
grow
from
today’s
(1983)
8%
to
25%
in
the
upcoming
decade.
This
fact
 is supported
by
the
following
graph
which
shows
that
between
2003
and
2008
we
 can observe
 a
 steady
 increase
 in
 the
 market
 share
 of
 private
 labels
 especially
 the
 strong incline
 in
 the
 summer
 of
 2008
 provides
 evidence
 that
 the
 consumers
 are
 becoming more
 and
 more
 price
 conscious
 due
 to
 the
 ongoing
 economic
 downturn/recession and
 this
 the
 chance
 for
 the
 private
 labels
 to
 increase
 the
 market share.
The
trend
of
private
labels
was
already
very
big
in
Europe
when
I
was
 leading the
division
over
there
with
market
share
now
up
to
50%
in
some
markets

(Germany,
France
etc.)


This
emergence
of
the
grocery
environment
can
give
us
a
great
opportunity
to
get
a
 head start
 of
 our
 competition.
 The
 only
 problem
 that
 we
 face
 thus
 far
 is
 that

Campbell
corporate
is
officially
not
letting
any
of
their
divisions
produce
for
private
 labels since
they
don’t
want
to
risk
that
their
recipes
get
stolen
but
fortunately
for

Campbell
Canada
is
that
I
have
very
good
connections
with
our
CEO
Mr.
Johnson
and
 he at
least
let
me
use
1%
of
our
plant
capacity
to
produce
private
label
brands.


13


3.2.4
Threats

There
are
two
areas
where
threats
can
be
created
one
is
on
the
internal
side
of
the
 company and
the
other
one
represents
the
external
side.
In
both
cases
it
is
of
vital
 importance that
the
senior
management
knows
what
the
threats
are
to
implement
 proper precautionary
 measures
 so
 that
 the
 threats
 wont
 be
 turning
 into
 any
 weaknesses for
 the
 company.
 For
 us
 at
 Campbell
 Soup
 it
 means
 we
 have
 to
 constantly screen
the
environment
internally
and
externally
for
threats.

One
of
the
threats
that
lies
inside
of
the
firm
has
caught
my
attention
and
is
central
 for my
goal
of
establishing
a
strategic
plan
for
the
next
five
years.
It
deals
with
the
 issue that
we,
at
Campbell
Canada,
 are
resting
at
the
moment
taking
in
the
moment
 of joy
 and
 victory
 because
 the
 turnaround
 of
 the
 company
 is
 finally
 gaining
 momentum. This
threat
has
to
be
overcome,
people
within
the
organization
have
to
 be reminded
of
the
fact
that
as
soon
as
we
are
resting
on
our
wins
the
competition
 will not
be
sleeping
and
will
try
to
take
the
chance
of
our
‘time
out’
to
grow
and
steal
 market share
from
us.

Potential
 threats
 from
 the
 external
 environment
 included
 the
 dismantling
 of
 the

Federal
 Investment
 Review
 Agency
 (FIRA).
 The
 FIRA
 was
 formerly
 established
 to
 guarantee that
 all
 foreign
 direct
 investments
 would
 be
 beneficial
 to
 the
 Canadian
 people this
also
affected
us
in
the
way
that
while
undergoing
our
IPO
we
had
to
offer

30%
 of
 the
 shares
 outstanding
 to
 Canadian
 investors.
 With
 the
 fall
 of
 that
 barrier
 the Canadian
government
tried
to
attract
foreign
investment
and
therefore
lowered


14


the
 entry
 barrier
 to
 potential
 competition.
 Competition
 that
 before
 hand
 was
 not
 likely to
engage
in
the
Canadian
food
processing
market.

The
argumentation
from
above
is
 supported
by
the
fact
that
the
governments
of
the

Unites
 States
 and
 Canada
 have
 eliminated
 another
 former
 entry
 barrier.
 The
 creation of
the
Canada
 –
U.S.
Free
Trade
Agreement
(FTA)
 in
the
beginning
of
1989
 was a
 milestone
 for
 the
 two
 countries
 in
 terms
 of
 economic
 benefit.
 The
 formerly
 know tax
rates
on
imports
to
Canada
have
been
cut
massively
especially
interesting
 for our
 company
 is
 that
 the
 tax
 rate
 for
 importing
 cans
 and
 chicken
 will
 be
 completely abolished
 within
 the
 next
 two
years.
 This
 is
 an
 enormous
 threat
 for
 us
 because the
rate
before
the
agreement
had
been
25%
and
therefore
know
one
was
 even thinking
about
importing
or
entering
the
market.
 4.
Recommendations

After
 reviewing
 and
 discussing
 the
 analysis
 of
 both
 the
 internal
 as
 well
 as
 the
 external side
of
our
company
we
can
say
that
 we
should
further
focus
on
our
good
 communication with
the
corporation
in
the
U.S
my
good
personal
relationship
with
 our CEO
makes
it
even
easier
for
us
to
try
out
new
things.
The
example
of
the
private
 label brands
 discusses
 earlier
 contributes
 to
 this
 positively.
 In
 order
 to
 gain
 more
 market share
and
expand/grow
further
we
need
to
tap
into
that
market
as
soon
as
 possible since
it
will,
based
on
our
analysis,
grow
by
a
large
amount.
This
can
be
a
 chance for
us
to
be
an
‘early
adopter’
in
this
market.


15


Keeping
up
the
good
an
efficient
work
in
our
plants
to
drive
down
costs
will
play
a
 vital role
 in
 the
 future
 as
 we
 can
 gain
 greater
 efficiencies
 through
 importing
 some
 products from
the
 neighboring
 United
States
since
the
tariffs
have
been
eliminated.

In
the
analysis
we
mentioned
the
elimination
of
the
tariffs
as
a
threat
but
in
some
 cases like
for
example
production
we
might
be
able
to
benefit.

 It
is
of
great
importance
that
we
also
further
establish
our
 Company
as

a
separate
 entity from
the
headquarters
in
the
U.S.
this
will
give
us
more
room
for
own
decision
 making. The
 first
 step
 has
 been
 accomplished
 with
 the
 IPO
 on
 the
 Canadian
 stock
 exchange this
made
us
legally
a
separate
entity
now
we
have
to
prove
that
we
can
 actually do
it
and
take
it
further
in
the
way
that
we
outsmart
our
competition
and
 don’t make
 the
 mistake
 of
 just
 copying
 and
 introducing
 products
 that
 have
 been
 successful in
the
American
market.

The
 threats
 mentioned
 in
 the
 SWOT
 analysis
 have
 to
 be
 taken
 with
 caution.
 If
 approached in
 an
 appropriate
 manner
 we
 will
 be
 able
 to
 resist
 them
 and
 in
 some
 cases turn
them
into
opportunities
or
in
rare
case
even
strength.
 5.
Conclusion

After
listening
to
the
analysis
conducted
by
Clark
and
his
team
we
should
be
coming
 to back
to
the
problem
statement
from
the
beginning
which
was,
“What
actions
does

Campbell
 Soup
 Ltd.
 needs
 to
 take
 in
 order
 to
 keep
 growing
 and
 outpacing
 the
 competition in
the
next
five
years?”
This
is
has
been
answered
by
the
team
through


16


the
use
of
SWOT
analysis
and
the
recommendation
part.
However
though
there
are
 limitations to
 my
 case
 analysis
 in
 the
 way
 that
 for
 implementing
 the
 framework
 analysis like
 for
 example
 the
 Diamond
 Model
 there
 was
 not
 enough
 time
 and
 resources to
do
it.
Besides
that
I
think
one
can
clearly
see
what
actions
need
to
be
 taken to
further
grow
and
outpace
the
competition.


17


6.
References

Nielsen
 Strategic
 planner.
 2008.
 Private
 Label
 Share
 started
 to
 grow
 last
 summer.

Retrieved
March
17th

from
the
World
Wide
Web:


http://farm4.static.flickr.com/3164/2965446198_513a76e263.jpg


Crossan
M.,
Bansal
P.,
Killing
J.,
White
R.,
Zietsma
C..
2008.
 Strategic
Management
A

Casebook

8th

Edition

Swot
 Analysis
 Framework,
 2009.
 Leverage
 success
 with
 Swot
 Analysis.
 Retrieved

March
17th
from
the
World
Wide
Web:


http://www.excelsia.ch/htmlgb/blog/images/swot‐analysis‐image.png


Fundinguniverse.com,
2008.
Campbell
Soup
Company
–
Campbell
History.
Retrieved

March
17th
from
the
World
Wide
Web:


http://www.fundinguniverse.com/company‐histories/Campbell‐Soup‐

Company‐Company‐History.html

Encyclopaedia
 Brittanica,
 2009.
 Campbell
 Soup
 Company.
 Retrieved
 March
 16th
 from the
World
Wide
Web:


http://media‐2.web.britannica.com/eb‐media/34/124134‐004‐

76B5F212.jpg


18


7.
Appendix

Appendix
A:

SWOT
Analysis:

Strength

•
•

•

The
Interaction
between
the
Canadian
president
and
the
cooperate
heads
is
 really good
(meeting
ones
a
week,
and
always
open
door
if
needed)

Campbell
Canada’s
plants
are
more
flexible
than
the
U.S.
counterparts
 o U.S.
plants
produced
one
product
at
each
plant
while
in
Canada
one
 plant produced
many
different
items
(up
to
10)

In
regards
to
suppliers
the
company
used
a
practice
where
they
use
two
 suppliers for
each
bought‐in
item
=>
This
gave
them
the
security
of
supply
 and the
lowest
price
possible


Weaknesses

•
•
•

•
•
•

Managing
of
farms
was
difficult
therefore
it
must
be
thought
of
to
digest
the
 farms in
future.

Few
products
were
introduced
and
market
share
fell
in
all
categories
(prior

’83)

11
presidents
were
introduced
In
the
last
8
years
this
lead
to
depressed
 employee morale
and
leading
industry
turnover,
accompanied
by
declining
 profits and
falling
revenues

Relied
to
much
on
the
on
the
U.S.
headquarters
for
strategic
and
operational
 directions Long
way
away
from
a
full
partnership
with
suppliers

Campbell
Corporate
did
not
allow
any
unit
to
produce
for
the
emerging
 private label
market


Opportunities

•

•

Through
the
IPO
Campbell
Canada
is
able
to
attract
the
best
talent
available
 because they
were
now
able
to
offer
stock
saving
plans
and
other
incentives

(gave
them
the
opportunity
to
be
on
their
“own”
now)

The
competitors
of
Campbell
in
Canada
were
mostly
subsidiaries
of
large

U.S.
firms
therefore
tended
to
follow
there
leads
(in
this
case
introducing
 products that
are
already
selling
in
the
U.S.)
 o Through
thorough
market
analysis
this
opportunity
can
turn
into
a
 strength o Opportunities
in
the
non
brand
business


19


Threats

•
•
•

The
decline
of
the
Canadian
dollar
in
comparison
to
the
U.S.
dollar
(steady
 decline estimated
to
be
3‐4%
per
year)

Encouragement
of
foreign
investment
into
Canada
through
newly
passed
 laws can
be
seen
as
a
threat
to
Canadian
companies


With
the
creation
of
the
FTA
and
the
elimination
of
tariffs
the
threat
of
more

U.S.
based
companies
pushing
into
the
Canadian
market
can
become
a
 problem for
Campbell
soup
because
their
will
be
more
competitors
through
 lower barriers
of
entry


Appendix
B:

David
Clark

•
•
•
•
•
•

Main
character
of
the
story
(becomes
Campbell
Canada
president)

Becomes
president
in
1983
(in
his
early
30s)
three
month
before
the
IPO

Before
had
been
rising
star
at
Unilever
(marketing
background)

In
late
1986
Clark
became
group
vice
president
of
Europe
and
Canada


Also
got
a
share
in
the
corporate
operating
committee

In
late
1988
he
requested
a
transfer
back
to
Canada
once
he
accomplished
 the acquisition
program
in
Europe


The
Grocery
Store
environment

•
•
•

•
•

Top
five
grocery
store
chains
controlled
more
than
80%
of
Canadian
market

To
top
this
in
each
province
it
was
3
chains
that
held
the
market
share

Low
margin
business
 o After
tax
profits
were
only
1‐2%
 o Regular
reports
of
bankruptcy

Workers
were
unionized

Two
new
trends
emerging:
 o “Box”
store
like
for
example:
Costco

 large
non
unionized
warehouses

 offered
smaller
range
of
items
at
lower
mark‐ups
(7%
instead
 of 25%)
 o Private
label
brands
like
for
example:
President
Choice

 Often
sourced
from
the
same
producers
of
branded
products

 Had
the
same
quality
but
no
advertising
and
promo
costs
=>
 this resulted
into
higher
margins
on
the
store
site

 At
the
moment
8%
market
share
=>
expected
to
grow
to
25%
 within the
next
decade


20