Resource: Implementation, Strategic Controls, and Contingency Plans assignment with facilitator feedback

August 23, 2015

Professor Brian Rowland

The growth and success of any organization solely depend on the strategies they have planned on how to execute its business. Competition from other firms remains the greatest threat to ConAgra Foods Company, and thus it should take viable strategic measures to stay relevant and competitive in the market. This paper seeks to identify the best value discipline, an appropriate generic strategy, and the most suitable grand strategy for the company. Finally, recommendations will be made on which strategy or strategies the company should implement; based on analyzes of market trends so that it can acquire significant market share and meet the goals of the shareholders.

The Best Value Discipline

Though there are several value disciplines that ConAgra Foods Company could choose from; as of now, based on the competitive nature of the market, operational excellence is the best. To realize operational excellence rests vastly on the employees; if the employees are motivated, it means that they will carry out their tasks efficiently and effectively, and this is achievable by empowering them. With the employees who are motivated, the organizational problems will be minimized or solved quickly and in the right ways; thus enabling the company to concentrate on issues that focus on the customer satisfaction and brand loyalty rather than dwelling on employees’ vs employer problems which always hinders the growth of the organization (Cohen & Roussel, 2005).

Since the company has its various small companies operating in different geographic regions, an effective supply chain will ensure that they reach customer demands more so guaranteed products accessibility to the consumers. In these all-smaller companies, the cost of production reduction is through automation of production processes; large volume of the food products being produced each day hence ensuring that; at any given time there will be no shortage of ConAgra food products in the market, selling will a continuous process that will result in enormous profits turnover. To ensure that the supply chain is performing at its peak there should be performance measurement of each player within the supply chain; this action will ensure that every task being carried out within the supply chain has someone who is responsible for ensuring that it is carried to completion, and in a manner prescribed (Cohen & Roussel, 2005). Therefore, performance excellence will be vital for ConAgra Foods Company to realize growth.

Generic Strategy

The most appropriate generic strategy for this company is cost leadership. Customers during these tough economic times are becoming price sensitive. Therefore, any effort by the company to reduce its product’s price will win a greater percentage of the customers when there is no substitution with lowering the product quality. This strategy aims at outmaneuvering the competitors who are producing similar products at relatively higher prices (Dess, 2012).

In an effort to ensure that, this company is not getting losses out of this; there are reduction of costs used somewhere else that does not actually contribute to the growth of the organization. For example, they can forgo the cost of advertisement since ConAgra products are a well-known product in the market. Therefore, a shift from advertisement to other worthy activities that will make the company grow such as cost reduction practices. In the end win the market share through selling of the products at a cheaper price than what is in the market or presently sold by competing firms. One of the leading agendas of this company should be to satisfy its customers, thus for every change that is being undertaken regarding the price of food commodities; there should be an assurance that other factors more precisely quality has not been compromised. Presenting this communication to them some few weeks prior to actual implementation, and the customers will be aware and longing for such time to come (Dess, 2012). This anticipation will attract more customers who previously had no idea about the company’s products, and they can shift from products that other firms supply to ConAgra.

When the company will be a position to provide lower priced products to its consumers, they will be able to satisfy all types of consumers who are either quality oriented or price-oriented or to a unique type of customers who value both features (Dess, 2012). This serves as a clear indicator that the success and growth of ConAgra Foods Company wholly depend on its capability to satisfy its customers.

Grand strategy

The most suitable grand strategy this firm should adopt is the market development. Though the company has established itself in several regions within the United States, there is also the need to venture into other market areas such as overseas nations. Acquiring of new markets means increment of the company’s daily sales, which translates to increase in the income thus meeting the shareholders goals. Since the growth of an organization majorly depends on the income generation, market expansion will be an opportunity to realize such growth. Consider the case whereby a new branch of the ConAgra Foods Company establishes in less a developed nation whereby competition is almost zero. The company will be a dominant force in such regions, and it will be able to accrue massive profits (Pearce & Robinson, 2005).

Though the establishment of a new business requires a lot of capital, the long-term outcomes in such regions is worth investing. The company will be able to decide on the price of their products to meet its goals but with care not to face rebellion from the consumers. The return on investment period will be very short and before the entrance of the competitors in such markets the company will have gained huge profits and they can now focus on other strategies such as cost leadership to outfox the competitor (Pearce & Robinson, 2005).

In order for the company to save itself from the verge of collapse; due to entrance of new firms into to the current market who are selling similar food products at lower prices; market development strategy is handy in such a case. This is because whereas the company will be trying to lower their food price and its associated challenges they can be generating profits in other markets that will subsidize the losses being incurred (Pearce & Robinson, 2005). Therefore, an establishment of new markets is crucial for ConAgra Foods Company to realize growth.

Recommendations on Strategies to Implement

The growth of ConAgra Foods Company will depend on the choices of their business strategies. The Company needs to implement business strategies that will ensure its growth regardless of the competition from other firms. Since each of the above-analyzed strategies carry with it merits and demerits; it is crucial to state here that combination of both generic and grand strategies will have long-term benefits for the company. With improved operational excellence; supply chain effectiveness and efficiency is increased whereas production cost is reduced, and thus it means that there is production of large volumes of food products that requires new market ventures to sell these products. It is from this point that; the company should implement both cost leadership and market development strategies that in the end will benefit the shareholders (Cohen & Roussel, 2005).

Cost leadership will see the company compete favorably with other firms who are selling their products at lower prices, and at the same time generating profits as the primary goal of any organization. The company also will be able to win many customers who are budget-minded hence having a significant market share. When these combine with the market expansion; the regions with low incoming rates such as developing nations, will find the ConAgra food products being affordable to them, which will result in substantial profits turnover in the new markets due to large sales that will be experienced in these markets (Dess, 2012).

The future prospects of the ConAgra Foods Company growing are high and with great optimism if they implement these recommended strategies.

References

Cohen, S., & Roussel, J. (2005). Strategic supply chain management. New York: McGraw-Hill.

Dess, G. (2012). Strategic management. New York: McGraw-Hill/Irwin.

Pearce, J., & Robinson, R. (2005). Strategic management. Boston, Mass.: McGraw-Hill.