Conagra Food Analysis

ConAgra food Analysis

Dorbor K. Kabbah

Indiana Wesleyan University

Facilitator: Tom Stempson

Workshop 2 A i MGT 541

June 21, 2011

1. Situational Analysis

A. External Environmental Analysis

1. General External Environmental Analysis

ConAgra is one of the top US food producers. They offer name brand packaged and frozen foods. In 2010 ConAgra sold its Gilroy Foods and Flavor and developed strategy plan which focus on food improved ConAgra performance. The rapid growth and success Of ConAgra is primarily due to the focus on its private-label consumer food operations. ConAgra Foods has been working to foster its mission statement, which state: ConAgra Foods makes the food people love to eat (ConAgra, 2011). They are the leaders in the branded foods market

2. Industry Analysis

In order to meet its strategy plan ConAgra Foods stop the production of non-core brand foods and sold its Gilroy Foods and flavors in 2010. The main aim for their strategy was to concentrate on its consumer-aimed brand which include the following: Chef Boyardee, PAM, and others, as well as shelf-stable and frozen foods such as anquet, Hunt's, Peter Pan, and Wesson. By focusing on name-brand will improve consumer satisfaction.

B. Internal Environmental Analysis

1. Market Analysis

The 2008 revenue was $11,605.7million but gradually increase to $12,079.4 million in 2010. This trend indicated an increase in revenue over the period under review. ConAgra Foods is focused on expanding profit margins and improving returns on capital over time. The sales and marketing function at ConAgra Foods have been entirely reorganized from 100 separate operating companies into an integrated organization

2. Financials Analysis:

Base on the information obtained from the financial report, the profit margin was decreasing per year (2oo8 =8.0 %, 2009= 7.7%, and 2010 =6.0 %,). The costs of goods sold were increasing for the past three years while the debt ratio of 2010 was 65.5%. ConAgra Food ad much better revenue than its competitors with an EPS of $1.62.

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3. Assessment of physical resources:

ConAgra Food has employed the strategy of focusing on branded values such as Banquet, Chef Boyardee, PAM, and Alexia, and more recently, included Healthy Choice Café Steamers, Healthy Choice Fresh Mixers, Healthy Choice All Natural Entrées, Alexia Natural Crunchy Snacks and others. In 2008 and 2009 the company divested many businesses including trading and merchandising operations, Pemmican beef jerky business and Knott s Berry Farm jelly and jam business. The company also started a potato processing venture, Lamb Weston BSW, with an initial investment of $46 million. In 2010 the company started the plan of building a state-of-the-art sweet potato processing plant in Delhi, Louisiana.

4. Assessment of human resources:

In pursuit of the Occupational Safety and Health Administration (OSHA) voluntary Protection Program status, ConAgra introduce a comprehensive ergonomic program to its staffs. In order to efficiently implement this program, the company organized and trained an ergonomics committee in identifying stressor jobs and performs ergonomic analyses. General and job -specific employee training were also provided. ConAgra Foods practice diversity which help the company to attract, retain and engage employees from all walks of life. ConAgra University provided learning opportunities to employees. There are four learning academies with specialized instruction in General