Buy essay on Food industry

Porter’s model of five forces can be used to determine and to analyze economic development of a particular company or industry, and represents a key framework for selecting a business strategy. The aim of this essay is to consider the case of Schneider Foods, acquired by Maple Leaf Foods in 2004, and currently existing as a division of the acquirer. The purpose is to use five forces model for determining three levels of planning at Schneider Foods, select the level of strategic planning, consider corporate culture and analyze the impact of each of the five forces on the company and on the selection strategy.
In general, three levels of planning are strategic, operational and marketing planning (Kurtz, MacKenzie and Snow, 2009, p. 75). Concerning Schneider Foods strategy since the last decade, for example, it is possible to outline decisions relating to each level: a key strategic decision was to accept Maple Leaf offer concerning acquisition and become a division of Maple Lead Foods; example of operational planning is to introduce new products and maintain the traditional quality associated with Schneider Foods; finally, the example of a marketing decision is to add the Schneider Lunch Mate line to school pre-made lunch market.
Concerning recent history of Schneider Foods and Maple Leaf Foods, namely: long-term traditions of quality at Schneider Foods, recent 2004 acquisition and tendency towards developing new products as well as recent 2008 and 2009 product recalls and related damage to public image, it is reasonable for the company to concentrate on particular segment rather than whole industry, and improve quality rather than offer low cost products. Thus, it is most efficient for Schneider Foods to choose a focus strategy with accent on product differentiation.
Also, the example of Schneider Foods and the above-listed strategy recommendation can serve as background for describing five forces mentioned in Porter’s model: rivalry, threat of substitutes, buyer power, supplier power and barriers/threats to entry (Kurtz, MacKenzie and Snow, 2009, p. 68).
As for rivalry, it is comparatively low in the sector of food industry related to meat processing: the diversity of products and customer preferences decreases the grade of rivalry. Also, because there are many products and different companies specialize in different ones (and often create new ones), threat of substitutes is medium. The differentiation of products can also lead to changing customer preferences. However, the third force – buyer power – has a medium effect on the industry; for companies with diversified product range and differentiation strategy it is easy to conform to their tastes. Supplier power is stronger than buyer power in food industry and its meat sector; this was illustrated by the example with product recalls and little power that food companies had concerning quality control. Finally, differentiation and the variety of products as well as the needs for quality inspection act as entry barrier for meat processing industry and food industry in general.
Using the case of Schneider Foods, it is also possible to determine how corporate culture might have impact on company’s strategy and values. When Schneider Foods existed as a separate organization, its premium quality and time-honored recipes constituted its brand image. Even after becoming a division of larger Maple Leaf Foods, Schneider Foods managed to preserve its culture and provide a variety of new products, aimed at greater customer satisfaction. However, this culture was not common for the whole company, and currently the name of Maple Leaf Foods as well as Schneider Foods might be associated with products recalls rather than with quality. This example shows that it is necessary to create a consistent corporate culture and select the best divisions as background for creating corporate ethics, in order to avoid such incidents.

Reference
Kurtz, David L., H. F. MacKenzie and Kim Snow. Contemporary Marketing. Cengage Learning, 2009.