Smucker's Internal Analysis

Executive Summary

The resource based view emphasizes the internal capabilities of the organization in formulating strategy to achieve a sustainable competitive advantage in its markets & industries. In this exercise of analyzing the SWOT for the J.M.Smuckers Company, we have been trying to identify its capabilities within the value chain activities that provide it with competitive advantage.

Based on the resource based view, we have calculated the EVA and then analyzed the resources and capabilities, translating into SWOT of the organization. The EVA for the present year is coming to negative USD $0.8 mn. This is due to the fact that the company has acquired the Folger’s coffee brand and paid dividends to its existing share holders. The entire deal was to the tune of USD $3 billion, which clearly indicates the obvious reason. Even though the EVA is largely on the negative side as of now, an assessment done with the tangible & intangible resources and capabilities surely brings the company in good light.

The Strengths of the company come out as Market Reputation, Product Portfolio, Supplier Relations, Financial Management & Company Management; where as weakness of the company appears to be Size of the company, lack of research & development, dependency on large retailers & distributors. Opportunities are Expansion through Inorganic acquisitions, Leverage acquired expertise on renewable energy source utilization & economies of scale, increase focus on new forms of distribution & customer acquisition where as Threats seem to be Acquisition by Bigger players, Single product Replication by small suppliers, Legal compliance fall back, Lack of consumer demand & hence problems with cash flows.

In light of the analysis it is recommended that the company should retain its focus on its impeccable finance management & growth strategy, while leveraging its competence in cost and resource management and look at expanding its channels of distribution keeping in mind the...