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Cargill Response

Cargill Response. Group 7: Anthony Silvio, Kimberly Alonzo, Sean Gonzales, Alex Guinn, Kenneth Krogstad , Clay Hebert, Myles Bragman and Tuan Nguyen. Central Problem. Their idea. Our idea.

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Cargill Response

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  1. Cargill Response Group 7: Anthony Silvio, Kimberly Alonzo, Sean Gonzales, Alex Guinn, Kenneth Krogstad, Clay Hebert, Myles Bragmanand Tuan Nguyen

  2. Central Problem Their idea Our idea What will be the future industries and how will Cargill, as the largest privately held company, be the first to adopt them? Main difference is they focus on what industries Cargill is currently involved with, versus what industries Cargill can adopt in the foreseeable future. • “Are our strategic intents sufficient for continued growth and success in the ever-growing industries in which we are involved?” • What this basically states is can we continue to make profit in the industries we are currently involved with

  3. Goals & Constraints Goals Constraints Add value to customers on an individual basis Improve in the industry of Ag and Food Motivate supply (Vertical Integration) to reduce costs and improve quality • Outdated budget from 1998 • Government policy controlling Ag and Food • Customer bias against the use of GMO’s due to 9/11

  4. Modified Goals & Constraints Goals Constraints Constantly changing technology Agreed with government policy, but realize it could be positive/negative Disagree with customer bias against GMO’s as a constraint • Becoming the pioneer of horizontally integrating Cargill with its competitors • Ask the question of “What exactly needs to be improved in the Ag and Food Industry?” • Agree with adding value to customers by improving quality of products

  5. Alternative 2: Ag & Food Chain Co. • This would rely on the basis that Cargill would become an integrated farm-to-food business • Many firms do this, but would be the first to expand on it, thus addressing the central problem • With Cargill’s current knowledge and management structure, this alternative will be a smooth transition into a new market

  6. Implementation • First step is to acquire a joint venture with a large publicly traded company (Ex. Monsanto, ADM, Unilever, Procter & Gamble) • The private/public company pairing allows different avenues of going around public policies • Would allow access to the public partners’ capital and R & D team

  7. Possible Future Benefits • If this partnership runs smoothly, this will bring Cargill much closer to Alternative 1 (Implementing a global supply chain company) • With the success of a joint venture food chain company, this opens the door to partnering with other possible companies in order to create a global supply chain

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