CASE ANALYSIS

Upon assessing MLF’s position in the market and its organizational focus and strategy, it can be concluded that a number of factors have contributed to their loss of market share.  These factors are: 

1-        The majority of MLF’s hot dog brands reaching the mature stage of their product/industry
         life cycle

2-        MLF’s failure to attain a differentiation approach for its product lines

3-        The management team’s lack of alignment with the organizations missions and values

4-     The improper management of human capital. 

PRODUCTS AND PRICE

PRODUCTS :

                         

                                                                                           

    1-          Producer of value- added meat products.

    2-         Leader in fresh and frozen and bakery goods and pasta products.

    3-          Operations include hog production,  rendering, and bio diesel processing.

     4-          Montreal  biodiesel facility first in dedicated to commericial  biodesel  production.




PRICE :

                        

                                                  

Maple Leaf  is price setter in the Market. Price are mainly set according to current meat prices.

  Beef

•  $4.11/Pound                  

 Pork

• $3.03/Pound

Poultry

• 1.79/Pound

                       

PEST ANALYSIS

             

Demographic/Psychographic:

The age group that MLF needs to focus on varies. Their main target market is young families with three or more people in the household.  The different ethnic composition and geographic distribution is spread out across Canada. Western Canada prefers all beef dogs; Central Canada prefers the cheaper dogs; and Eastern Canada prefers the healthier dogs.  Also, hot dogs appeal to people of all income levels and educational backgrounds which widens the market.  It is also noted that hot dogs are most enjoyed in the summer and during baseball season.

Sociocultural:

Families are a main part of Maple Leaf Foods market, so any changes that people make that slow the birthrate would have an effect on the demand for MLF’s hot dogs.  Also, there is a trend where people are becoming a little more health conscious. However, MLF will have to find a balance because people will not sacrifice taste for healthier contents in the hot dogs.

Political/Legal:

The legal perspective that focuses on the hot dog industry is from the Canadian Food Inspection Agency.  This agency regulates the cuts of meat that go into the dogs as well as the nature of the vitamins that are added (for example, where does the extra calcium come from).

Technological:

Technological advances allow for more streamlined manufacturing and data analysis.  Canada has up-to-date technology available for MLF to use; this means that they will be able to update their systems and machinery in order to keep their data from present projects to compare with future projects.

Economic:

Hot dogs are at a cost where they can be continuously bought.  However, as interest rates and unemployment increase, people will have less disposable income and therefore buy less. MLF will have to keep their prices low in order to compete with JMS.

Global:

MLF focuses on the USA and Canada.  In this case they are looking at their market within Canada.  Because they produce the majority of the goods that go into hot dogs, they do not have to worry about bringing in ingredients as much as other companies do.

OPPORTUNITIES AND THREATS

OPPORTUNITIES :-

1 - Launched a line of soy products which leads to 20 % 
      growth rate.

2 - The market that MLf is in as about to reach , a 
      mature stage.

3 - Different regions in Canada prefer different types 
      of hotdogs.

4 - Wallace McCain ,CEo of McMcain foods offered
      $1.2 billoin to buy Toronto Maple leaf foods.


THREATS  :-

1 -  Profits for fourth quarter slides 70 % on
      heigher costs.

2 - Maple Leaf Foods cuts 1500 jobs in country 
      wide overhaul.

3 - Starved budgets are a threat to food safety.

4 - A worker fired in Winnipeg  after he made
     thre to his supervisor.



SOURCES :-

Witzel, M. (2013, Apr 30). The case study: Responding to a product crisis. Financial Times. Retrieved from http://search.proquest.com/docview/1346944844?accountid=3455     

http://www.psac-afpc.com/issues/campaigns/3c/cfia-e.shtml      

Best, D. (2012, Feb 08). CANADA: Maple leaf closes poultry plant. Just - Food Global News. Retrieved from http://search.proquest.com/docview/920272649?accountid=3455  

STRENGTHS AND WEAKNESSES

STRENGTHS :-

 1 - It is one of the Canada's leading consumer packed  food 
       company .  

2 - A strong food safety culture.

3 - Engage every employee in fod safety efforts.

4 - Revenue of $4.8 billion per year.

5 - Company operations are well organised in three major
     groups
                      
    - Meat products, Bakery ,and Agribusiness .


WEAKNESSES:-

1 -  Weak Brand differentiation and management  focus.

2 - Competitors of MLF are well established.


3 - Improper management of human 
     Capital.

4 - In sep 2008 ,more than 20 people
    died because of  contamination in the 
     meat processing unit.

SYMPTOMS

MLF is currently having difficulties with its hot dog portfolio of products and how these products are performing in the market. Of the nine MLF hot dog brands , five are losing significant market share and  another is down marginally. This decline in market share can be attributed to two main factors:

1-   The strong presence of MLF’s leading competitor, Schneider Foods (JMS) and

2- Weak brand differentiation and management focus.

http://www.youtube.com/watch?v=RZasf0Pf8a0

HISTORY

Maple Leaf Foods was originated in 1927.It was originally known as Canada Packers.Its main business was Pork, and its massive processing hogs for export to United Kingdom . Moving into western Canada it became Canada's largest beef slaughter.

In 1975, it was listed on the 14th largest business in Canada.They make high quality ,great tasting, nutritious and innovative food products .It is one of the best producers of  fresh and prepared meats and bakery products.

During the 1980s, the company began to suffer . It was purchased by the British Hillsdown Holdings which sold or closed most of its slaughterhouses and closed its tannery , and merged the firm with Maple Leaf Mills , renaming it Maple Leaf Foods . These efforts ,led by David Newton as CEO and Lewis Rose as CFO were successful and the company returned to profitability.

After being successfuly recieved ,the company was purchased by Wallace McCain, formerly co-CEO of McCain Foods , who had been outsed by his brother and co-owner Harrison McCain, in 1995 along with the Ontario Teachers'Plan. In 2003, the company purchased rival Schneider Foods. The company is also one Canada's largest agribusiness, owning poultry and hog farms across the country. The main slaughterhouse is located in Brandon, Manitoba. 

Maple Leaf Foods is divided into 3 main sections :-

                                                                                 1:-  Meat Products
                                                                                   
                                                                                  2:- Bakery Products

                                                                                  3:- Agribusiness products .     

Maple Leaf Foods owns 90% of Canada Bread Company Limited. They need Canada to be a place where global leaders are built ,not just a  place where foreign global leaders setup their shops.
On January 4 ,2013 ,the company sold its potato processing product facility and related assets in Lethbridge ,Alberta to Carvendish Farms corporations for proceeds of $57.8 millions ,resulting in a pre- tax gain of approximately $44. 5 million. 

On January 30, 2013, the Company announced plans to close a bakery in Grand Falls, New Brunswickand a bakery in Edmonton, Alberta in the first half of 2013.  The Company expects to incur approximately $6.3 million before tax in restructuring costs, of which approximately $4.2 million are cash costs.


 https://en.wikipedia.org/wiki/Maple_Leaf_Foods

                                  http://www.youtube.com/watch?v=P3kDsIBKMqM