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All Star Foods Canada Ltd Case Solution
All Star Foods Canada is a subsidiary of All Star Foods Snacks Company which is one of the market leaders in Canadian market. By the volume of sales, it owns some of the largest selling brands in Toronto, Quebec and other regional markets of Canada. The group, whose world headquarters is located in Toronto and is headed by Bruce Tate, who was one of the senior managers in Chicago head office of All Star Foods.
Following questions are answered in this case study solution
Evaluation of Strategic Options
Case Analysis for All Star Foods Canada Ltd
1.2. Corporate Mission, Vision & Strategic Goals: the corporate mission of All Stars Foods Canada is to achieve and maintain excellence in the preparation of snacks and ensure an excellent reputation for its products through its professional approach.
The vision of All Stars Food Canada is to become a market leader in Canadian snacks and food market and to attract new customers each year and retain existing customers.
The strategic goal to achieve the above mentioned vision is to double the market share of the company within one year while honouring policies and employment practices to promote a work environment which is fair and motivating.
The corporate values of All Stars Foods Canada are being aware of its responsibilities as a good corporate citizen and to act accordingly in order to provide a workplace safe, clean and attractive to our employees. The values of the company also include ensuring environmentally sound management in the snacks business and being involved in charitable causes targeted within its community and its region.
1.3. Evaluation of Internal Environment: Internal analysis is highly important since it provide key insights about resources and capabilities of the organization which needs to be matched with the changes in external environment. The strategic management model used for the analysis of the internal environment of All Star Foods Canada is the SWOT analysis model. The objective of the analysis is to identify strength and weaknesses within the organization of various functional areas. The financial statements of All Star Foods Canada exhibits a stagnant bottom line of the company and the profitability of the organization have increased only marginally during the previous five years.
Most important strengths of All Star Foods Canada is the brand equity of the brand name Tasty Crunch with which the products of the company are marketed. In addition, the financial resources of the business are an important strength of the company which imparts the freedom to the company to invest in new ventures or to acquire other brands. Tasty Crunch brand is strengthened by its core values, and All Star Foods Canada has demonstrated an enviable ability to adapt to a changing environment and without ever renouncing it beliefs or its core values which is essential for a long-term success. Quality concerns have been expressed by the consumers of the business in recent years and a potential law suit may be filed against the company in this perspective.
The details of the case exhibits that the human resource of the organization is also a key strength and a source of competitive. All Star Foods Canada relies significantly on its human resource and every personnel of the company are a collaborator towards its success. Each employee plays a role in the development of the company's future.
All Star Foods Canada strengths also include the fact that the organizational culture is the one of open communication and active cooperation, whereby each and every individual is invited to contribute to improvements that promote both business results and lead to personal development of the company. Corporate culture of the company also includes commitment to product quality and brand promise. All members of the organization converged to weigh pros and cons of the decision, when the decision pertaining to possible acquisition of competitors is being taken at the corporate level.
The weaknesses of All Star Foods Canada which have been identified during the application of SWOT model relate to its marketing practices. All Star Foods Canada does not market its brands effectively, which is highly important for a confectionary product where purchase decision is both impulsive and influenced by perception of quality. All Star Foods Canada has been found to engage in applying aggressive sales techniques – for both its institutional customers and other smaller sized customers – to increase penetration of its product. Yet, on the marketing end the company is comparatively weak. The reason All Star Foods Canada lags behind competitors like Supreme Snacks Incorporated and Deli Snacks is the low share-of-voice in the marketing media. The company is not involved in social media marketing or other forms of promotion which can provide the confectionary brands of the company with the necessary impetus to compete in consumer markets. The dependence of the company on a single product category for its revenues is an added weakness of the brand which leads to high riskiness.
1.4. Evaluation of External Environment: Two models has been used for evaluation of external analysis of All Star Foods Canada – SWOT analysis model and PESTLE analysis. The findings of the analysis shows that the food industry of Canada is facing major changes and these changes are occurring very rapidly. With an increasingly diverse ethnic makeup of populations, a wide range of new foods and new tastes need to be developed to fulfill the need of the market. Evaluation of external environment shows that there are two key competitors in this industry; namely, Deli Snacks and Supreme Snacks Incorporated. Secondary competitors of Nestle comprises of a long list of companies offering different forms of snacks. Also, there is a potential threat of new entrants into this sector due to low capital and technological barriers into the industry. These competitors are vying in the industry environment to gain diversity of multicultural communities and the rapid growth of local food products that meet these demands. Analysis of external environment shows that in the food industry, it is found that offering healthy yet tasty food products is the main source of overall industry growth.
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