Essay on Newman's Own

3412 Words Jun 5th, 2012 14 Pages
Case Study: Newman’s Own

Group 6: Bang Yan, Jun Ma, Son Myung Kim, Tin Cheung, Xiaohang Feng

Business Administration 799
Professor Susan Young
May 21st, 2012

Executive Summary

Paul Newman, a well-known actor, started his own philanthropic food company, Newman’s Own, Inc. Since the beginning, they have come across challenges dealing with competition, advertising, product development, and a philanthropic initiative. The general environmental analysis and five forces look at the opportunities and threats to achieve strategic competitiveness. For VRIO analysis, Newman’s Own, Inc. has five resources and capabilities: Paul Newman, company’s logo, company reputation for high quality products and continuous contributions to
…show more content…
Finally, the issue of establishing new philanthropic initiative of national 2% profits to charity.
External Analysis: General Environment
Political/Legal Factors: FDA regulations enforced are a huge barrier of entry of this industry. Federal agencies also increasingly have turned to the issuance of guidance documents to communicate regulatory expectations to industry. For example, in 2006, an FDA regulation went into effect that requires listing the amount of Trans-fat present in a packaged food on the label of that food, something that some consumer groups were advocating (Food).
Economic Factors: The economy of the US is moving along at a relatively strong pace in 1990s. The Gross Domestic Product (GDP) maintained relatively stable growth of 2-4 percent each quarter for the last couple years in the 1990’s (GDP-Real). This shows the output of goods and services has remained steady. The stable economic environment played a vital role in expanding business and continued growth of sales in 1990s for the food industry.
Demographic Trend: The key factor of population is the more people in an area, the greater market will be. By 1998, the population of the US is over 271 million people (GDP-Real). Besides, the United States is known for its acquisition of many material goods as well as a society that consumes very high calories. Thus a lot of food products are needed, which is good news for food companies to maintain a steady

Related Documents