Topic > Campbell Soup Co. - 962

1. International Strategies Over the past 25 years, Campbell's Soup has been run by three different CEOs, McGovern, Johnson and Morrison, who brought their own ideas, vision and strategy to ensure Campbell's grew in size and profitability. Campbell's international business unit, one of the largest of the six business units established by McGovern, was the primary focus of all three managers. Below are the different strategic approaches each CEO took for the international division: Gordon McGovern: McGovern's overall strategic goal was to introduce as many new products as possible. To do this, he encourages his employees to be informed and creative and emphasizes that it's okay to fail. To encourage his product development team, he provided them with a very large budget for research and development and marketing. Instead of focusing on cutting costs, he was more interested in having a bigger budget for sales and marketing. Part of its strategy also included acquiring small, fast-growing food companies. Using this, McGovern's international strategy was to expand and strengthen Campbell's performance in foreign markets. McGovern can be classified as one who is internationally minded. This is evident because McGovern's overseas acquisitions were of companies specializing in domestic food production, such as the German specialty food importer, the Italian food manufacturer, and Arnott's, the Australian biscuit company. David Johnson: David Johnson was an asset to Campbell because he had more international experience. Unlike McGovern, Johnson has shifted the company's focus from acquiring small, fast-growing food companies to increasing sales and increasing market share in its most recognized brands. Johnson hoped his strategy would boost the confidence of Campbell's heirs. Johnson restructured the six business units created by McGovern, into three divisions: domestic products, bakery and confectionery, and international groceries. 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 that catered to each country's tastes and preferences. This shows us that Johnson used transnational mentality to develop internationally. Dale Morrison Like David Johnson, Morrison also followed the transnational mindset 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. This effectively required Morrison to invest more money in advertising. He also wanted to penetrate foreign markets and believed that to achieve this he would have to acquire the company abroad.