J.M. Smucker’s Mission Statement

Executive Summary

            The proponent of this paper will conduct an overview of the J.M. Smucker’s company and analyze if its mission statement, corporate strategy and various organizational components work together to help build a highly profitable company. This can be achieved by looking at the company’s recent activities as well as to look into previous research done regarding the company’s strengths, weaknesses, opportunities and threats. After doing these things it was revealed to the proponent of this study that indeed the Smucker’s brand was able integrate core beliefs, corporate strategy and business operations to create a well-respected brand in the United States and even around the world.

Introduction

In the United States there are just a few companies that are as beloved and respected as J.M. Smucker (“Smucker’s”) when it comes to food and consumer products. The importance and influence of the Smucker’s brand cannot be only simply understood by looking at the annual report but also by examining the success and longevity of the brands that it carries such as: Crisco, Dunkin Donuts, Folgers, Hungry Jack, Knott’s Berry Farm, Pillsbury and so much more. But this is not the time to take it easy, the company must continue to adhere to its mission statement, follow through with its proven corporate strategy and attempt to improve on various organizational components to maintain its position as one of the world’s best manufacturer of consumer products.

Mission, Strategy, and Organization

            Analysis of the overall strength and value of the company must begin by reviewing its mission statement because knowledge of what the company attempts to do in the long term will help determine if it is heading the right direction. In regards to the company’s mission statement the first generation leaders of this organization simplified its vision and goals by defining its basic beliefs and using it as a guide ever since. These basic beliefs are as follows: quality, people, ethics, growth, and independence.

Quality can be seen not only in the finished products but also in the processes used to create the same. This can be seen in the way the factories are acquired and managed. The company adheres to high standards when it comes to the manufacturing of consumer products. Quality can also be measured by looking at the revenues because the customers are the ultimate judge whether Smukers as a company was able to consistently deliver high-quality goods.

People is prioritized over other components of the organization. In a report featured in the financial arm of CNN, a list of the 100 Best Companies to Work for, it was revealed that the company is number 47 in the list. This is proof that the company has invested heavily into the human resources aspect of the organization and the employees are responding in kind (CNNMoney.com, 2008). Another evidence of Smucker’s commitment to its people is evident even in the hiring process wherein eight to ten people will interview an applicant and once that person is hired the company prides itself in having a low employee turn-over rate (CNNMoney.com, 2008).

Growth can only be understood in terms of revenues, increasing market shares, and expanding the business operation of Smucker’s. This was achieved last year when the company acquired Folders Coffe and this well-timed move allowed Smucker’s to not only expand its business operations to now include a prominent coffee brand but also increase its revenue growth by 52% (RTTNews, 2010). Growth can also be seen in the decisions made to increase the value of the company. In the upcoming year the company is ready to invest in a new state-of-the-art food manufacturing facility in Orrville, Ohio and according to the news release made by the company the impact will be as follows:

Upon completion of the new facility, production of the Company’s fruit spreads, syrups, and ice cream toppings for its consumer and foodservice businesses in the U.S. and Canada will primarily be concentrated in Orrville and Ripon. Planned capital investments for equipment and technology at the Ripon plant will support increased volume and provide operational flexibility (Smucker’s, 2010).

Ethics is one of the basic beliefs of Smucker’s and this can be understood as the pursuit of marketing and manufacturing of consumer products while maintaining a high standard of ethics, especially when it comes to the consumers, customers, employees, suppliers, communities and shareholders (Smucker’s, 2010). An example is the company rule that prohibits employees from accepting money from any customer, competitor or supplier that does business with Smucker’s. This prevents the employee from being caught in an awkward moral dilemma. By laying down these ethical principles the company is training a workforce and an organization that is not susceptible to corrupt practices that can potentially damage the company’s reputation.

Independence is understood as the capability to be good stewards as well as the ability to reach lofty goals because the company and the corporate leaders are not beholden to anyone except to their customers, various stakeholders and the commitment to uphold their basic beliefs. The purpose is none other than to have that capacity to control the company’s destiny (Smucker’s, 2010). It can also be argued that this philosophy is not only limited to the manufacturing and marketing of consumer products. This philosophy is also reflected in how the company is allowing their employees to enjoy life to the full and not be overburdened by work. As a result Smucker’s is one of the few companies that believe in the long-term benefits of job sharing programs, compressed workweek and telecommuting for some employees (CNNMoney.com, 2008). An independent minded company is not afraid to do what is right in order to become the best in its respective industry.

Recommendations

            Smucker’s is one of the best food companies in America and even the world. However, there is room for improvement and it starts with increasing the efficiency of the organization to contend with increasing competition due to globalization. There are now better ways to import raw materials and better yet to manufacture these raw materials abroad where cost of production is way lower. Smucker’s will not only survive but thrive by not forgetting its core beliefs to invest in quality and people as well as to give importance to ethics and independence. If this is achieved then the company can expect growth for a very long time.

Conclusion

            The J.M. Smucker Company is one of the most profitable and highly respected business organizations in the United States and even the rest of the world. Its products are exported worldwide while at the same time it is enjoying strong support in the United States. The success of the company can be understood by the skillful integration of core company beliefs as well as the ability to manage a complex organization. The company was able to maintain and manage a huge organization that includes Dunkin Donuts, Crisco and Folgers Coffee as some of the few brands under its control. But this is not the time to bask in corporate glory because globalization can easily topple any established organization that has grown complacent over the years. The company must continue to improve on quality and invest not only in the manufacturing aspect of the business but also on the people.

References

Annual report (2009). The J.M. Smucker’s Company. Retrieved June 24, 2010, from       http://phx.corporate-ir.net/phoenix.zhtml?c=77952&p=irol-reportsannual

CNNMoney.com. (2008). “100 Best Companies to Work For.”

Retrieved August 5, 2010 http://money.cnn.com/magazines/

fortune/bestcompanies/2008/full_list/index.html

Henry, A (2007). The Internal Environment: A Resource Based View of Strategy. Understanding           Strategic Management. Oxford University Press. Retrieved June 24, 2010, from             http://www.oup.com/uk/orc/bin/9780199288304/henry_ch05.pdf

RTT News. (2009). “JM Smucker Q2 Profit More Than Doubles On Folgers Acquisition; Raises           FY10 Adj. EPS View.” Retrieved August 5, 2010, from           http://www.rttnews.com/ArticleView.aspx?Id=1136582&pageNum=1

Smucker’s. (2010). “Our Basic Beliefs.” Retrieved August 5, 2010 from

http://www.smuckers.com/

family_company/join_our_company/our_basic_beliefs.aspx