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Essay / Research Paper Abstract
A 3 page paper discussing the shift away from a highly decentralized structure holding more than 90 independent companies to one large company with three very large divisions. The owner of many of today’s leading food brands, ConAgra itself is not particularly well known among consumers. The paper recommends that ConAgra continue its streamlining efforts to make it easier for grocery chains to deal with it, enlisting them to assist in promoting ConAgra brands such as Healthy Choice and Butterball turkeys. Bibliography lists 5 sources.
Page Count:
3 pages (~225 words per page)
File: CC6_KSconAgStrat.rtf
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Unformatted sample text from the term paper:
ConAgra bought company after company during the 1980s, eventually ending up with more than 90 independently-operating food-processing or food-related companies. Prices were favorable, and ConAgra made no attempt to
achieve in operating cost savings by integrating all - or any - of the companies into a single large entity. Current CEO Bruce Rohde does not have such a
favorable pricing environment, and indeed every business today is obliged to operate as efficiently as possible, regardless of its industry. Strategy Shift ConAgra
has been moving away from the highly decentralized structure for some time, focusing on creating three main divisions: in 2000, Rohde began "sweeping up dozens of separate units and
ten product groups under three main divisions: food service (restaurants), retail (grocery stores) and agricultural products" (Copple, 2000; p. 68). Young (2003), editor
of National Provisioner, writes that the changes at ConAgra have visibly altered the commodity meat industry. When the publication first ranked the countrys meat and poultry producers in 1993,
ConAgra led the list. The company sold its beef and pork business in 2002, followed by other meat concerns in 2003. The sale of these businesses "enables a
more streamlined ConAgra to concentrate on its "long term strategic resolve driven by branded and value-added food products marketing" (Young, 2003; p. 8). The company also sold its seafood
operations and cheese operations in 2002, and committed to selling its chicken operations. In November 2003, ConAgra sold an agricultural business as well (Profile, 2004). Promoting Brands
Though ConAgra led the meat processing industry a decade ago and currently is a $28 billion company with 63,000 employees, it still is not well
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