Swot Analysis: H.J. Heinz Company
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SWOT Analysis: H.J. Heinz Company
Mission/Vision Statement:
The only real vision statement Heinz offers is to have a bottle of ketchup on every table. This vision statement reinforces the notion that Heinz only produces ketchup. It is unnecessary for Heinz to further identify themselves with ketchup. The ketchup market is not going to continue to expand much more than it has already. Since Heinz is synonymous with ketchup already, and customers are aware of this high quality product, they should make consumers aware of the other products they offer. Those who feel Heinz ketchup is of the highest quality would be eager to buy other products produced by Heinz believing they too would be of the highest quality. They do need a mission statement. One that identifies them with the wide variety of products they produce. Perhaps a vision statement is not as important since Heinzs customers are not really looking for any kind of break-through products in the food industry.
Strengths:
Heinz is recognized as the premier ketchup maker in the world. The Heinz corporation has diversified themselves concentrically and horizontally. They make several different types of sauces and they have expanded to the prepared food and pet food markets as well. The Heinz corporation has expanded their business internationally. This has increases sales while at the same time proved to make the corporation less susceptible to economic conditions in any one country. Heinz has also committed their corporation to being involved in food associated markets. It cut its Weight Watchers segment because it did not follow the same structure as the other divisions.
Weaknesses:
Heinz has had little success with developing new products. This corporation relies heavily on its Ketchup market for expansion. It is only involved with food related products. This means that Heinz is not willing to invest in any other type of market, no matter how promising the rewards. Cutting the Weight Watchers segment as part of this commitment may have been a bad mistake as the trend of losing weight is becoming more popular everyday. Their international operations make them susceptible to the strengthening U.S. dollar.
Opportunities:
The Heinz corporation has the opportunity to get into the diet fad. The trend now follows the Adkins Diet. They could create meals that were compliant with this diet. Perhaps pushing their Star-Kist tuna line and making some creative packaged meals with the tuna would be popular.
Threats:
The threat of off brand or store brand condiments is very significant to Heinz. The rising popularity of salsa and similar international condiments is also something of which Heinz must be aware. The new trend of dieting and losing weight could also be a threat to the Heinz company. As people tend to eat healthier they may consume less Bagel Bites, and Boston Market gravy. The strength of the American dollar and economy is a serious threat to realized profits for Heinz. Heinz is very susceptible to international food regulations as well. They should have a plan of action if something similar to Mad-Cow occurs, affecting one or some of the ingredients of their products.
Financial Analysis:
In 2000 Heinz income numbers were