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Growth Strategies Case Study

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Case Title:

Heinz in Europe - The Growth Strategies

Publication Year : 2005

Authors: Satyabrata Das, Krishna Chaitanya V.

Industry: Food, Diary and Agriculture Products

Region:Europe

Case Code: GRS0071

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Since its inception in 1869, Heinz grew over the years from a horseradish and pickle seller to a food processing giant through acquisitions and new set-ups across the globe. By the mid 1990s, it had over 5,700 products and presence in over 110 countries. Though the company was successful in the US, its European business was struggling. With an increase in size, inefficiency also surfaced. The problem was compounded by a fluctuation in the exchange rate, rising energy costs and competition from discount retailers. To stymie the erosion of profit margin, Heinz, under Tony O'Reilly and then under William Johnson, adopted various measures to restructure Heinz Europe into a leaner profit-making organisation.

Pedagogical Objectives:

  • To highlight growth strategies adopted by Heinz in Europe
  • To discuss the problems faced by the company and the subsequent strategic initiatives taken by the company to make Heinz Europe profitable.

Keywords : HJ Heinz; European food industry; Restructuring strategies; Market entry strategy; Mergers and acquisitions; Project Millennia; Operation Excel; Growth Strategies Case Study; Vendor Improvement and Product Enhancement and Research (VIPER); Expansion Strategy; Advertising strategies; Supply chain management; Cryovac packing system; Product innovation; European ketchup business; William Johnson

Contents : 
Heinz in Europe
How Implementation of VIPER
The Growth Strategies
List of Heinz’s Establishments and Acquisitions

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