Business Unit Strategies Essay

Submitted By Yfmcgill1
Words: 459
Pages: 2

Business Unit Strategy: ConAgra Foods
Yolanda McGill
Organizational Research and Planning
BSOL 448
September 3, 2013
Instructor: Brett Veach

The business world is focusing more and more on their business unit strategy. Although it is uncontroversial for organizations to thrive; managers must have a good understanding of how business strategies work. Today’s society requires each and every successful business to make their strategic plan the core of their business proposal. The management staff at ConAgra Foods tends to focus on the Low Cost Strategy more so than any other strategy. It is their mission and vision to keep the cost as low as possible. Per Harrison and St. John (2002), “Firms pursuing cost leadership set out to become the lowest cost providers of a good or service.” ConAgra Foods is well known for their Banquet Dinners, even though it is only one of the many products the company produces. The Banquet Dinner is one of the best sellers of the company. The main focus of this product is to provide value to the customer at a minimal cost, while at the same time allowing the organization the ability to capture the value while serving their customers. According to Harrison and St. John, “Generally, low-cost leadership allows a firm to compete by lowering prices when needed without becoming unprofitable. Consequently, low-cost leaders may be better positioned for economic downturns than companies pursuing other types of strategies. Evidence of this is found in the success of Wal-Mart during the huge economic downturn that began in 2008.” The Low Cost Leadership is the most significant unit of strategic planning in the ConAgra Foods Company. The Low Cost Leadership Strategy has been a triumph in the production of the Banquet Dinners at ConAgra Foods due to the high capacity utilization factor. Like Harrison and St. John stated, “To fully appreciate the significance of the low-cost leadership…