This website uses cookies to ensure you have the best experience. Learn more

"Gerber Products Company Investing In The New Poland"

2405 words - 10 pages

I. INTRODUCTIONGerber, a U.S company producing jarred baby food, was considering in 1991 whether they should acquire Alima SA, one of Poland's largest and most successful food processing plants. With this deal, Gerber expected to build a low-cost base for its European operation as a platform for growing markets of Central and Eastern Europe.Because the deal could help to have the aging plant modernized and boost its sagging export trade while bringing hard currency at the same time, Poland government was happy to close the deal.On October 1st,1991, Gerber signed a Purchase and Sale agreement in which the company committed to work with the Poland government in resolving problems such as property ownership and taxation. However, after this agreement, Poland's politics changed and Gerber faced threats from the new government that they would unable to deliver the promises made previously on October. Although most conditions of the deal were attractive to Gerber, it must reevaluate the merits of investing in Poland under such an uncertain situation.II. BACKGROUND1. Gerber Products CompanyFounded in 1928, Gerber was located in a small town of Fremont, Michigan. It has a large variety of jarred baby foods with about 165 products. Besides, the company also makes basic baby apparel under its own product name and children's wear under Buster Brown label.Fruits and vegetables used in production are grown within Fremont, and there is a glass manufacturer providing glass for baby foods' jars.Gerber's philosophy is "providing a child with nutritional food, doing everything we can to deserve and maintain the confidence mothers have in our products."In 1991, Gerber's market share in U.S was 72%, its main competitors--Heinz and Beech-nut shared the rest. At that time there was only 4% of U.S houses that have babies and Gerber reached a full 92% of them.Looking ways to expand business, Gerber first conducted ventures in day care centers and toys but failed. It then refocused on the basic lines of infant clothing and doubled its return on equity. So an expansion outside U.S market but still focusing on the core business seemed to be the right strategy for Gerber.2. AlimaAlima was a food processing plant located in a small Poland town, Rzeszow. Rzeszow was an agricultural center with thousands of farmers selling fruits and vegetables to Alima. The farmers there were well off, and also technologically advanced.The products of Alima£º_ Baby food accounted for about 10%._ Fruit juices and nectars under the "Bobo" label accounted for 60%._ Varying mix of whatever the farmers has grown that year.Alima's facilities included a set of apartment complexes and a separate enterprise, Borek Stary, which specialized in the production of liquored peaches and "fortified" fruit beverage. Alima's technology was rather up-to-date. The baby food lines contained state-of- the-art machines imported in 1985. And it also has a stable source of high quality glass jars, the...

Find Another Essay On "Gerber Products Company Investing in the New Poland"

The European Election 2014 in Poland

2687 words - 11 pages BrukselizmienimyPolskę"). Their program focused on the economy and changes benefiting the entrepreneurs. JanuszPalikot’s party also openly admitted that he wanted to introduce Poland into the Euro Zone. The next points of the program talked about the democratization of the EU, support for the development of new technologies, as well as facilitation of administrative and economic equality in the labor market and in society. JaroslawGowin’s Poland Together

The German Campaign in Poland (1939)

656 words - 3 pages The invasion of Poland by Germany in September 1939 is regarded as the trigger that unleashed the Second World War. After an analysis and study of the causes of the conflict, from my point of view I consider that the depiction of hostilities that would trigger this great war were developed long before and were only a matter of time before this war began. I consider it this way, because Germany as the defeated nation of the World War I, in which

Investing Currencies in the Far East

2388 words - 10 pages Far East, Currencies, Investing, Thailand, Singapore, China Well Done, Job ComparisonsReport on Investing Currencies in the Far EastPrepared by: Brad SaundersIntroductionIn the world today, the possibilities are endless for people who want to make money. These opportunities may exist in the form of a bond, currency, stock, or business venture, but the common tie between them is that it is possible to make money if you research the market and

The Pros of Investing in Hedge Funds

2342 words - 10 pages studying there’s only a profit if you the shares drop, or rise. However does long/short fund solve the problem allowing a risk free investment. Inflation and recession takes a toll on any market, hedge funds have many strategies to prevent any down fall and provide absolute returns. Are hedge funds risks free? Do they provide absolute returns? Is it worth investing in? Works Cited Mishkin, Frederic S. Eakins, Stanley G. (2012). Financial

Business Communication: Starting a New Chocolate Company in The UK

914 words - 4 pages chocolate company in the UK will need to use marketing as a tool of gaining new customer and retaining the existing ones (Speshock, 2010). Thus, marketing remains to be the main backbone of new and existing businesses successes. Apparently, there are several basic concepts of marketing, which are commonly used by numerous marketers of goods and services. These concepts of marketing comprise of the sellers, consumers, the product development, the

Poland Was the Aggressor in World War 2

5154 words - 21 pages East-Prussia and the rest of Germany. Not only West-Prussia was given to Poland in this War treaty other regions as well which were far beyond of 90% Germans. The division of the Reich in 1919 was one of the major tensions which lead to the Second World War which we will see when I will tackle the Years prior to the 2nd World war later in this paper. (avalon.law.yale.edu/), (Taylor) Reparation Payments The treaty of Versailles included payments

Christianity in Poland and The Church of St. Florian

1103 words - 5 pages the papacy too, for he gave the center of his nation to Pope John XII. Not long after on May 25, 992 he died, leaving in his wake a well organized and strong state for his eldest son Bołslaw to seize control over (Polska) During this time Christianity was definitely popular and quite common among the people of Poland, and people constructed lovely new churches and cathedrals. Since the religion was so widely acknowledged a great amount of effort

Six Important Aspects When Investing in the Stock Market

1233 words - 5 pages I have been interested in trading and investing in the stock market for the past seven years. I have competed in various contests to test my strategies and have won several. Over these years, I have observed many trends in our volatile markets. News is what moves the markets. Not just local news or news within the United States, but global news will affect the markets. It is good to stay informed on the dates and times that economic news will be

The role of IT in Enterprises & Investing on IT strategically

3013 words - 12 pages initiative, it will be easier to determine the different patterns of IT infrastructures, required for the successful implementation of this initiative.Another spot that needs identification is the type of innovation regarding initiatives in new products, new markets or both. For example leading enterprises, in new market initiatives use enterprisewide services clusters for IT-facilities management as well as for Security & Risk Management. In

The makeover of Avon Products, Inc headed by CEO Andrea Jung greatly transformed the company in all aspects and who benefited from the change

1091 words - 4 pages has set strategic and financial objectives that are in line with the company's mission and vision statements. There are 6 areas of development the company is looking at: marketing transformations, supply chain improvement, sales leadership, e-commerce and internet, international, and financial objectives. (Thompson - Strickland p.153)Marketing transformations"The transformation of Avon's image called for new products, new packaging, celebrity

Solidarity and it's impact on Communism in Poland. This is a research essay addressing how the Polish people struggled to overthrow communism in Poland. Bibliography included

2049 words - 8 pages propaganda in the form of jokes and graffiti damaged the regime's authority and brilliantly mocked the ludicrous pretensions of the communists.The international context changed in the 1970s and the socialist world was compelled to change as well in its thinking, spawning new problems and new solutions. For some countries, including Poland, the increase of trade between Eastern Europe and capitalist countries led to a chronic trade deficit with the West

Similar Essays

Microeconomics And Business Decision Making Gerber Products In Poland

3412 words - 14 pages given in the baby food market. Poland is a country rich of agricultural products that will compete against Gerber's cereal baby food. Baby food can be perceived as a "commodity product" with basically no cost to switch for the consumer.The Polish population had limited access to alternative baby nutrition and might be keen now to try something "new". Being the first company in the market can have a significant competitive advantage for Gerber to

Turnaround Of Apple Company. Steve Jobs And His New Products. Are They Really Revolutionary And The Best ?

2483 words - 10 pages The aim of this report is to show, that there are some successful products in the IT market without major technical advantages over similar products from competition. It means that their Net Buyer Benefit is not based on performance, but on design and life style. My research will also prove, that individuals with vision in this branch can be more successful then well educated, good managers. Apple Company is a great example of company that has

Investing In The Boeing Company Essay

2498 words - 10 pages Boeing Company: • $86.6 Billion in sales for 2013 • $441 Billion in backlogged purchase orders • Forecasted demand of 35,280 aircraft, valued at $4.8 Trillion • Investing in a global aerospace company • New products launching • Trending air cargo & passenger air transport up 5% year after year • Strong ties to U.S. Government • Partnering with rivals to win contracts • Employs more than 168,000 in over 65 countries Recommendations: The overall

The Fall Of Communism In Poland

4393 words - 18 pages Everyone has certain rights and with those rights come certain responsibilities which one must fulfill in order to preserve their responsibilities. Those involved in the Polish Solidarity Party, which began as an independent labor union, had rights and responsibilities which they satisfied and in doing so, they created a new and improved Poland. Previous to the formation of the Solidarity Party, the Communist regime controlled Poland