H. J. Heinz Company
1. What major challenges have Heinz managers faced over the last five years?
MANAGING CHANGE:
Heinz has learned from experience that it is not beneficial to sell one product globally and expect high assimilation into different cultures. China and Indonesia are two areas that are growing rapidly and their culture is developing significantly. The Asian Heinz label reported a 44% increase in sales last year and is expected to continue to grow. (M.BOYLE, 2010)
The Company’s performance is impacted by political and economic conditions in the nations in which it operates. The factors and conditions include changes in applicable laws and regulations, including changes in food and drug laws, accounting standards and critical accounting estimates, environmental laws, and taxation requirements. Other factors include import and export restrictions, nationalization, hyperinflationary environments, terrorist acts and political unrest. Venezuela, a country included in the Rest of World market, is a country of concern for Heinz. This market shows potential for growth, but the political instability and hyperinflationary environment of Venezuela creates risk for market penetration and business operations. (2010 HJ Heinz Company Annual Report and 10-K.(2010). The, 2010)
Other political and legal factors listed by The Heinz Company that can occur and adversely affect financial results are disruption of supply chain, factors affecting the cost of production, transportation, and distribution such as increased energy costs; increased pension, labor, and people-related expenses; food safety issues, environmental, legal, tax and other regulations. Foreign currency exchange rate exposure, the failure to successfully integrate acquisitions and joint ventures into existing operations and the failure to gain applicable regulatory approval for such transactions or divestitures can also adversely affect the Company. (2010 HJ Heinz Company Annual Report and 10-K.(2010). The, 2010)
MANAGING CHANGE:
Heinz has learned from experience that it is not beneficial to sell one product globally and expect high assimilation into different cultures. China and Indonesia are two areas that are growing rapidly and their culture is developing significantly. The Asian Heinz label reported a 44% increase in sales last year and is expected to continue to grow. (M.BOYLE, 2010)
The Company’s performance is impacted by political and economic conditions in the nations in which it operates. The factors and conditions include changes in applicable laws and regulations, including changes in food and drug laws, accounting standards and critical accounting estimates, environmental laws, and taxation requirements. Other factors include import and export restrictions, nationalization, hyperinflationary environments, terrorist acts and political unrest. Venezuela, a country included in the Rest of World market, is a country of concern for Heinz. This market shows potential for growth, but the political instability and hyperinflationary environment of Venezuela creates risk for market penetration and business operations. (2010 HJ Heinz Company Annual Report and 10-K.(2010). The, 2010)
Other political and legal factors listed by The Heinz Company that can occur and adversely affect financial results are disruption of supply chain, factors affecting the cost of production, transportation, and distribution such as increased energy costs; increased pension, labor, and people-related expenses; food safety issues, environmental, legal, tax and other regulations. Foreign currency exchange rate exposure, the failure to successfully integrate acquisitions and joint ventures into existing operations and the failure to gain applicable regulatory approval for such transactions or divestitures can also adversely affect the Company. (2010 HJ Heinz Company Annual Report and 10-K.(2010). The, 2010)
Bibliography: 2010 HJ Heinz Company Annual Report and 10-K.(2010). The. (2010). The World 's Favorite Ketchup. Recuperado el 28 de MAY de 2013, de www.heinz.com/AR_2010/Heinz_Anual_Report_2010.pdf M.BOYLE. (27 de MAY de 2010). BLOOMERANG BUSINESS ONLY. Recuperado el 28 de MAY de 2013, de www.bloomberg.com/news/2010-05-27/heinz-will-almost-triple-investment-in-china-to-expand-into-baby-formula.html M.Smith, R. (8 de April de 2010). The Daily Beast. Recuperado el 28 de May de 2013, de http://www.thedailybeast.com/newsweek/2010/04/08/you-have-to-take-a-risk.html VEGA, T. (28 de NOVEMBER de 2010). NEW YORK TIMES. Recuperado el 28 de MAY de 2013, de www.nytimes.com/2010/11/29/business/media/29truck.html?_r=1&src=busln