...Holland Sweetner versus Monsanto[1] Aspartame is a low-calorie sweetner marketed by Monsanto under the name of NutraSweet. It was a major impetus to the rapid growth of Diet Coke and Diet Pepsi during the 1980s and 1990s. A scientist at the G. D. Serle & Co. first discovered aspartame in 1965; Serle received a patent for the product in 1970. US regulators did not approve its use in soft drinks until 1983. In 1985, Monsanto acquired Serle—and with it a monopoly on aspartame. Monsanto’s patents expired in 1987 and 1992 in Europe and the United States, respectively. In 1986, Holland Sweetner was formed through a joint venture of Tosoh Corporation and Dutch State Mines. Its sole purpose was to challenge Monsanto in the aspartame market. It began by building a plant in the Netherlands to compete in the European market. The “big prize,” however, was the US soft-drink market, which was to open up at the end of 1992. Initially, Holland Sweetner was quite optimistic about capturing a large share of the US market. To quote their vice present of marketing and sales in referring to Coke and Pepsi, “every manufacturer likes to have at least two sources of supply.” To Holland Sweetner’s surprise, they never became a big player in the US market. In 1992, just before Monsanto’s patent expired, Coke and Pepsi signed long-term contracts with Monsanto for the continued supply of NutraSweet. The big winners in this contract negotiation were Coke and Pepsi who realized...
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...Bitter Competition: The Holland Sweetner Company vs. NutraSweet (A) Jon Bain-Chekal Introduction: The worldwide aspartame market has enjoyed patent protected financial prosperity since the early 1980’s. In 1986 the world demand for aspartame was 5,730 tons annually with future projected world demand reaching 10,000 tons annually, a 75% increase over 1986 demand. The Monsanto Corporation, the current owner of the rights to manufacture aspartame, under the brand name NutraSweet (NS), reported 1986 sales of $711 million. The estimated ROA was approximately 8%.1 With this being such an attractive industry, companies like Holland Sweetener Company (HSC) needed to determine whether or not to compete in the aspartame business. This paper will first analyze NS’s case for accommodating or deterring entry before turning to a discussion as to which strategy NS will actually choose. Given the above analysis the paper will briefly address what Holland Sweetener Company’s entry strategy should be. There are several industry factors that will affect how this game is played. First, the two versions of aspartame, as produced by HSC and NS, are relatively identical goods. This leaves the consumer indifferent to product attributes and only concerned with price. It is also assumed that geography is not a real strategic factor since shipping costs are so low. The shipping costs for a pound of aspartame average 15-20 cents.2 Compared to the 1986 market price of $70 per pound shipping costs only...
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...- 1. How should Vermijs expect NutraSweet to respond to the Holland Sweetener Company’s entry into the European and Canadian aspartame markets? (1) Baseline: Product: aspartame was a strong substitute of saccharin with better flavor and low calories, especially for diet soft drink. There was no other competitive product at that time. Market: Aspartame had a great potential market. |Mkt scale/Ton |US |EU |Canada |Japan |Total | |1982 |220 |30 |100 |5 |370 | |1986 |5100 |430 |120 |40 |5730 | * NutraSweet had a capability of 5,000 tons. (Not including capability from Japanese JV) Competition: NutraSweet (NS) was patent owner of aspartame and market leader of aspartame in US since 1970. NutraSweet monopolized aspartame market in US, European and Canadian in 1986 before HSC entered aspartame market in Europe. NS’s patent protection in Europe would expire in 1987 and 1992 in U.S. (2) Strategy of Holland Sweetener Company (HSC) Vermijs had his expectation based on its own strategy and situation NS faced. HSC had an improve aspartame products with lower produce cost and better performance of stability (supposed it was true.) HSC established Japanese JV to provide cost advantage. HSC started at Europe and Canada, which were not totally monopolized by NS. Also these markets had rigid competitive control to avoid monopoly under competition law. Therefore, Vermijs expected NS would compete price with HSC. -2. Specifically, how should Vermijs assess the relative...
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...environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits. Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi, together with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability. For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as...
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...environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits. Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi, together with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability. For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as...
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...rP os t 9-306-037 REV: JANUARY 18, 2007 JAMES AUSTIN JAMES QUINN Ben & Jerry’s: Preserving Mission and Brand within Unilever op yo In December 2004, Ben & Jerry’s head of Social Mission, Yola Carlough, sat in her office in South Burlington, Vermont, talking with the company’s “social auditor,” an external consultant hired to generate an independent perspective on the company’s performance. Together, the two were compiling data for a forthcoming report, Social and Environmental Assessment 2004, in which Ben & Jerry’s social and environmental performance would be assessed in a comprehensive, candid fashion. The auditor had been conducting the report annually since 1996, each year evaluating the extent to which the company lived up to its ambitious three-part mission of “linked prosperity” under which its product, economic performance, and social contribution were viewed as “interrelated.” tC Carlough took a moment to reflect on the dramatic change that had swept over the ice-cream company since she became its head of social mission in 2001. Since then the company had transitioned from a self-described quirky, independent-minded maker of premium ice cream, to a division within a large multinational corporation. When Ben & Jerry’s was acquired by Unilever in September 2000, many familiar with the company’s unique brand and mission were concerned with how the company might change under the direction of a large parent company. Many employees, ...
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...9-708-497 REV: JULY 6, 2011 DAVID COLLIS JAN W. RIVKIN Strategic Decline Great strategies can, on occasion, produce exceptional performance that lasts for many years. We have seen several examples of companies that held to essentially the same strategy over a long period of time and continued to outperform the competition. Wal-Mart had 99 quarters of EPS growth, much of it greater than 20% per annum, until a slowdown in the 1990s. Edward Jones has pursued the same strategy since the early 1970s, during which time it has grown nearly a hundredfold while maintaining a return on capital about 10% higher than competitors. Unfortunately, these stellar examples of sustained competitive advantage are the exception rather than the rule. The harsh truth is that changes in the external environment and competitive pressures cause the profitability of the typical superior performer to revert to the mean very rapidly.1 This fact challenges the strategist not only to craft robust strategies whose advantages last as long as possible, but also to design a strategy-making process that is capable of appropriate strategic change and effective strategic renewal. Failing to achieve this goal has led many formerly great companies, such as Sears, AT&T, and Westinghouse, into disaster. This note first shares facts about the sustainability of competitive advantage. It then observes that the demise of a previously successful strategy typically involves some change in the external environment. It...
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...Introduction The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stith Pemberton and Ed Holland. Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola on May 8, 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day. The Coca-Cola Company is the world’s largest company, refreshing consumers with more than 450 sparkling and brands. Along with the coca-cola recognized as the world’s most valuable brand. Globally no.1 provider of Coca-Cola the product that has given the world’s its best-known taste was born in Atlanta, Georgia, on May 08, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer & distributor of non-alcoholic beverage concentrates & syrups. The Company beverage products comprises of bottled & canned soft drinks as well as concentrates, syrups and not ready-to-drink power products. The coca cola company began building its global network in the 1920s. The company aims at increasing shareowner value overtime. It accomplishes this by working with its biz partners to deliver satisfaction and value to customers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. The associates...
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...CASE STUDY 1 BUNGE LIMITED Jonathan West ‘We are at a very special moment in the history of Bunge. We have reached one plateau. Now, we need to go to the next round of change. We constantly need intellectual jolts to the company.’ (Alberto Weisser, CEO of Bunge Limited) In July 2002, Bunge, a global agribusiness and food company, announced that it would purchase Cereol, a global oilseed processor, based in France. The acquisition would transform Bunge, making it the world’s leading oilseed-processing company, and give it a more balanced geographic footprint, as well as access to new products, but would substantially increase the complexity of the company’s product lines, locations and personnel. Less than a year before, on 2 August 2001, Alberto Weisser, Bunge’s CEO, rang the opening bell on the New York Stock Exchange, as Bunge successfully went public after more than 180 years as a private company. The company had primary operations in North and South America and worldwide distribution capabilities. Bunge was the largest processor of soybeans in the Americas and among the world’s leading exporters of soybean products. It was the largest fertiliser producer and supplier to farmers in Latin America. It was also a leader in vegetable oil and wheat-based food products for food manufacturers, food service companies1 and consumers. Bunge’s net sales in 2001 were $11.5 billion (see Exhibits 1 and 2 for Bunge’s financials). Bunge had undergone a dramatic transformation over...
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...Chapter 09 Segmenting, Positioning, and Forecasting Markets Multiple Choice 1. The affluent Asian adult survey by Synovate __________ individuals according to their different attitudes, media exposures and habits, and product consumption patterns. a) categorizes b) ranks c) isolates d) distinguishes e) promote Ans: a Feedback: The individuals are categorized according to their different attitudes, media exposures and habits, and product consumption patterns. Page: 241 Learning Objective: 1 2. What can be concluded about the affluent Asian adults from the survey? a) Marketers should focus their marketing efforts on all groups b) Marketers may use different messages to sell the same products to same group c) Affluent adults in Asia are a homogenous group d) Marketers will not seek to reach out to them in the same way e) All of the above can be concluded from the survey Ans: d Feedback: Marketers will not treat them as one group, and will not seek to reach out to them in the same way. Page: 242 Learning Objective: 1 3. Which of the following statements about the affluent Asian adult is true? a) “Luxury Loyalists” tend to purchase more of the digital products such as laptops and MP3 players. b) “Executive Warriors” have the highest penetration for the Internet and usage of e-mail and instant messaging c) The “HUMmers,” hungry, urban, and mobile individuals, make up the largest group of affluent Asian adults d) The “Gimmes,” younger adults between...
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...co Food and Beverage Operations DHM 102 The Official Guide Boston Business School 520 North Bridge Road #03-01 Wisma Alsagoff Singapore 188742 www.bostonbiz.edu.sg All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the Publisher. This guide may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover, other than that in which is published, without the prior consent of the Publisher. The Guide is a useful resource for those seeking to gain the internationally recognised CTHCM qualifications. The Guide however must be used together with the recommended textbooks. CONTENTS 1. Introduction 2. Food Production Methods 3. Food Service Outlets 4. Food Service Methods 5. Food and Beverage Service Staff 6. Menus and Beverage Lists 7. Food and Beverage Service Area and Equipment 8. Food Service – Accompaniments and Covers 9. Food and Beverage Service Sequence 10. Beverage Service – Non Alcoholic Beverages 11. Alcoholic Beverage Service – Wine and Beer 12. Alcoholic Beverage Service – Spirits, Liqueurs and Bar Operations 13. Customer Care and Selling Skills 14. Functions and Events 15. Supervisory Aspect of Food and Beverage Management 1 5 31 46 65 77 92 113 128 167 181 207 228 244 262 1 Introduction Description The aim of Food and...
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...Food and Beverage Operations DHM 102 The Official Guide Boston Business School 520 North Bridge Road #03-01 Wisma Alsagoff Singapore 188742 www.bostonbiz.edu.sg All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the Publisher. This guide may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover, other than that in which is published, without the prior consent of the Publisher. The Guide is a useful resource for those seeking to gain the internationally recognised CTHCM qualifications. The Guide however must be used together with the recommended textbooks. CONTENTS 1. Introduction 2. Food Production Methods 3. Food Service Outlets 4. Food Service Methods 5. Food and Beverage Service Staff 6. Menus and Beverage Lists 7. Food and Beverage Service Area and Equipment 8. Food Service – Accompaniments and Covers 9. Food and Beverage Service Sequence 10. Beverage Service – Non Alcoholic Beverages 11. Alcoholic Beverage Service – Wine and Beer 12. Alcoholic Beverage Service – Spirits, Liqueurs and Bar Operations 13. Customer Care and Selling Skills 14. Functions and Events 15. Supervisory Aspect of Food and Beverage Management 1 5 31 46 65 77 92 113 128 167 181 207 228 244 262 1 Introduction Description The aim of Food and...
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...0 1 2 0 1 3 0 3 2009 Annual Report WHAT IS At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a healthier future for people and our planet. As a global food and beverage company with brands that stand for quality and are respected household names—Quaker Oats, Tropicana, Gatorade, Lay’s and Pepsi-Cola, to name a few—we will continue to build a portfolio of enjoyable and wholesome foods and beverages, find innovative ways to reduce the use of energy, water and packaging, and provide a great workplace for our associates. Additionally, we will respect, support and invest in the local communities where we operate, by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. Because a healthier future for all people and our planet means a more successful future for PepsiCo. This is our promise. PerFormance To all our investors… It’s a promise to strive to deliver superior, sustainable financial performance.* Our GOals and COmmitments toP line: • Grow international revenues at two times real global GdP growth rate. • Grow savory snack and liquid refreshment beverage market share in the top 20 markets. • Sustain or improve brand equity scores for Pepsico’s 19 billion-dollar brands in top 10 markets. • rank among the top two suppliers in customer (retail partner) surveys where third-party measures exist. bottom line: • continue to expand division...
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...ANNUAL REPORt 2011 Johnson & Johnson will continue to bring meaningful innovations to people around the world so they can live better and healthier lives. We are deeply committed and dedicated to the people who use our products, our employees, the communities in which we live and work, and you, our shareholders. Most important, we will never lose sight of who we are. ON tHE COVER Matt Cox, who has type 1 diabetes and uses the waterproof ANIMAS® VIBE™ insulin pump, swam an English Channel relay to raise money for the Juvenile Diabetes Research Foundation. Matt wants to show his son, Jack, who also has type 1 diabetes, that the condition need not hold him back in life. Read Matt’s story on page 16. CHAIRMAN’S LETTER To Our Shareholders hroughout our annual report this year, you’ll read the severe economic decline; the tightening of consumer about how Johnson & Johnson is bringing meaningful spending and health care budgets; over-the-counter (OTC) innovation to our patients and customers, and making product quality issues at McNeil Consumer Healthcare and a difference in their lives in a personal way—from the recall of the DePuy ASR™ Hip System. Brunhilde Wecker, who made a full recovery from her stroke Our company was severely tested. thanks to our new blood clot retrieval and removal device, In managing through this stretch, we relied heavily on the resolve to our own Bill Hait, an oncologist whose vision and insights of our people and on our time-tested business...
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...SEVENTH EDITION PROJECT MANAGEMENT A Managerial Approach SEVENTH EDITION PROJECT MANAGEMENT A Managerial Approach Jack R. Meredith Broyhill Distinguished Scholar and Chair in Operations Wake Forest University Samuel J. Mantel, Jr. Joseph S. Stern Professor Emeritus of Operations Management University of Cincinnati John Wiley & Sons, Inc. DeDication To Avery and Mitchell, from “papajack.” J. R. M. To Maggie and Patty for their help, support, and affection. S. J. M. VICE PRESIDENT & EXECUTIVE PUBLISHER Don Fowley EXECUTIVE EDITOR Beth Golub ASSOCIATE EDITOR Jen Devine MARKETING MANAGER Carly DeCandia DESIGN DIRECTOR Harry Nolan SENIOR DESIGNER Kevin Murphy SENIOR PRODUCTION EDITOR Patricia McFadden SENIOR MEDIA EDITOR Lauren Sapira PRODUCTION MANAGEMENT SERVICES Ingrao Associates This book was set in by GGS Book Services PMG and printed and bound by RRD/Willard. The cover was printed by RRD/Willard. This book is printed on acid free paper. Copyright © 2009 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc...
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