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  • Essay / Campbell Soup Co. - 962

    1. International Strategies Over the past 25 years, Campbell's Soup has been managed by three different CEOs, McGovern, Johnson and Morrison, all of whom brought their own ideas, vision and strategy to ensure Campbell's growth in size and profitability. Campbell's international business unit, one of the largest of six business units created by McGovern, was the focus of all three executives. Here are the different strategic approaches taken by each CEO of the international division: Gordon McGovern: McGovern's overall strategic goal was to introduce as many new products as possible. He does this by encouraging his employees to be competent and creative, and emphasizing that it's okay to fail. To encourage his product development team, he gave them a very high budget for R&D and marketing. Instead of focusing on cutting costs, he was more concerned about having a larger sales and marketing budget. Part of his strategy also included acquiring small, fast-growing food companies. Through this, McGovern's international strategy was to expand and strengthen Campbell's performance in foreign markets. McGovern can be classified as having an international mentality. This is evident because McGovern's overseas acquisitions involved companies specializing in domestic food production, such as the German specialty food importer, the Italian food producer, and Arnott's, the Australian biscuit company. David Johnson: David Johnson was an asset to Campbell's because he had more international experience. Unlike McGovern, Johnson shifted the company's focus from acquiring small, fast-growing food companies to increasing sales and increasing the market share of its more recognized brands. Johnson hoped his strategy would increase the confidence of Campbell's heirs. Johnson restructured the six business units created by McGovern into three divisions: domestic, bakery and confectionery and international grocery. Like McGovern, he also wanted to increase sales in the international division. However, instead of acquiring domestic companies, its strategy was to better market its products abroad while preparing foods tailored to each country's tastes and preferences. This shows us that Johnson used the transnational mentality to expand internationally. Dale Morrison Like David Johnson, Morrison also followed the transnational mentality and believed that to grow and be profitable, Campbell needed to focus on premium brands that had the highest growth potential and were differentiated from competing brands. To achieve this, Morrison had to invest more money in advertising. He also wanted to enter foreign markets and believed that to achieve this he would need to acquire the company's overseas operations..