Business Management Case Analysis

¶ … Campbell Soup Company with special reference to strategic styles of their three CEOs. It uses 2 sources. During the McGovern period, the first Chief Executive Officer of the company needed product diversification to market its consumer's needs. It could have been an advantageous and profitable move but since this Strategy was applied, the company endured grand loss, which indicates the McGovern's was not considering the opposing effect of such a proceed. Whereas David Johnson's strategy was not diversification of the product or expansion but simple conversion.

Hence, it could be seen that the company progressed during Johnson's strategy. He merely took care of the extensive overhead cost spill derived from McGovern's plans and eliminated the six units as well as reducing the product line. His strategy was more focussed and well planned along with elements of goal oriented. Hence while he cut down costs he was at the same time conscious of the target he needed to achieve.

His twin strategy proved successful but the board did not approve of such a strategy and contract was withdrawn due to the fact that his layout would take a considerable time period to achieve the target that the company wants to achieve at a shorter period of time. However when Morrison became the Chief Executive Officer he applied the similar theory with a slight variation.

He restructured major business units with the aim to reduce financial cost but at the cost of larger business units, which is responsible for the major business revenues. Comparing the three and considering the above theories, it could be said that even though Morrison's theory was resourceful and sharp, David Johnson's business strategy is perhaps the best because he considered both the internal It would be more engaging for the shareholders to have a 3 unit business proposition because of which greater output at a smaller cost.

However, it is to be noticed that it would also mean that the company would be limited in its corporate diversification strategy. Here if one engage McGovern's strategy, it would be most suitable because it is required the business to run successfully. Correspondingly in Johnson - Morrison's strategies, the conservation feature is best suited. If Campbell accomplishes to include both features in its future strategic development then it would be increase productivity from the business point-of-view.

Vlasic Food spin-off as part of its portfolio proves to be a cautious step in strategic development. Unlike the previous models proposed by Johnson or McGovern, the company now takes an unconstrained and self-governing element and introduces it. This would allow the company to explore niche market in an independent unit. This step also exempts the company from the extra working, which included the looking after the succession of the unit. Whether the unit will be successful or not will be dependent on the management of Vlasic alone.

Hence, this way the company will limit its operational risk to Vlasic only. Hence, in one's opinion it could be said that such a step is a gain from both the company's point-of-views. Vlasic has made a good choice in order to keep its business in a well-shaped position from both the strategic and financial view. Morisson's strategy was not found effective since the CEO was not only interested in making profits, whereas the CEO concentrated on devising a way to reduce through cost.

This operational strategy would not have worked because the overhead costs were intricately linked through departments and units.