“Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services.” (Kneen, 2002, p. 1) Cargill is one of the leading global companies today in the food and agricultural industries (MarketWatch, 2010). Cargill was established in 1865 and has since grown to employe 142,000 employees in 67 countries and is currently the largest privately held company in the US (Cargill: Our History, 2014). Because Cargill is such a massive company this paper will focus of the food ingredients systems platform better known as FIS (pronounced fizz) within the company.
According to Armstrong (2012), a SWOT analysis is one of the ...view middle of the document...
We are the oil in your salad dressing and the beef, pork or chicken you eat for dinner.” (Kneen, 2003, p. 48 as cited in Cargill corporate brochure, 2001). Cargill supplies ingredients to Coke, McDonalds, Nestlee, and Burger King as well as many other large worldwide companies, in addition to other smaller companies.
4. Strong R&D department. Cargill had a very strong research and development department. A shining example of the fruits that have emerged from Cargill’s R&D is Truvia. Truvia was the world's first available “no-calorie sugar substitute” that had origins from a plant (Paynter, 2011). Cargill is the company that first came out with this product made from the stevia plant. The company employes 1,3000 R&D professionals that includes chemists, microbiologists to nutritionists (Cargill: R&D People, 2014).
5. Privately held company. Cargill, being a privately held company only answers to the family shareholders who own it. In a public company there are typically hundreds of shareholders all whom get to vote, Cargill only has the family members and ESOP shares to contend with. Having a long-term vision is also much easier when a company is privately held.
6.Customized solutions. Cargill offers customized solutions to its’ customers. Because there is such a high focus on R&D Cargill is able to develop “differentiated and customized products” for customers. By offering these solutions Cargill have a competitive advantage which can be seen through customer loyalty and satisfaction (SWOT Analysis, 2007).
7. Supply chain efficiency. Cargill’s supply chain shows a highly efficient performance. There are few other companies in the world that are able to move product as quickly resulting in a “faster time to market” (Cargill: Supply Chain, 2014). “Optimizing supply chains through insightful strategy, inventory management, partner collaboration, and radical operations planning has resulted in millions of dollars saved for Cargill customers.” (Cargill: Supply Chain, 2014).
1. Legal proceedings. Cargill deals with various legal proceedings in everyday business. Irrespective of the outcome any legal proceeding can be a strain on an organization. financial resources, wasted time and reputation are all areas that could be affected (Cargill, Incorporated SWOT Analysis, 2012).
2. Product recalls. Product recalls suggest poor quality control and management. This poses a possible reduction in customer confidence of the company’s products, that could lead to diminished demand for Cargill’s products (Cargill, Incorporated SWOT Analysis, 2012).
3. Outdated technology. With the large amount of BU’s that Cargill has spread across the world it is likely that technology will periodically fall behind and become outdated as it deprecates and new technologies are developed. A lack of exclusive patents and technology poses the possibility to harm Cargill’s ability to compete against competitors.
4. Lack of transparency (past). As Cargill is a...