Economic
Industry & Category
Technology
Financial
Customer & Channel
100
Forecasts indicate continued economic turmoil and uncertainty in the US and Europe. Economists project low GDP growth over near and mid term horizons. What implication could this have on our business?
Economic uncertainty in developed countries could mean slower growth for our core business. Will likely be true for our Glanbia Cheese JV as well.
100
Global demand for dairy products, especially WMP, SMP & Proteins will generally outstrip supply and prices expected to remain high. What could this mean for our business?
We are well-positioned to capitalize on this market dynamic. We need to fully define and execute a strategy to get "More Whey" including "Native Whey.
100
We have not been as innovative in Nutrition as we have in Cheese. We have lagged our competition in developing Nutrition technology. What do we need to do strategy-wise to change this dynamic?
We need to become a leader in "Nutrition" like we are in mozzarella - Science - Technology - Application experts - Understand consumer drivers
100
We lose $30MM annually due to problem product generation, risk customer satisfaction and limit our upside on future opportunities. How can we ensure the right level of focus exists across the organization?
Drive the "Prevent Problems Before They Happen" message throughout the organization.
100
Mid-sized regional pizza chains are getting squeezed. They don't have the scale to compete with the national brands. Yet their quality doesn't match the small independents. What can we do on the market side to win in this important market segment?
"Project Renaissance" our Chain Account Team has been formed to deliver the LFC Mission within this segment.
200
Domestic unemployment rates remain high by historical standards, hovering below 8% currently. What is one potential implication to our business?
Economic uncertainty affects consumer confidence which, in turn, constrains spending on discretionary items like restaurants.
200
Growth in infant formula demand will continue to escalate, but will be centered primarily in emerging economies. What opportunity does present for our business?
Continue to explore "value added" nutrition opportunities such as infant formula by leveraging large, multinational customer relationships such as Nestle, Meiji, Abbott, Mead, Johnson and Danone.
200
Nutrition industry becoming increasingly focused on specialized products and more refined whey fractions. How can we fully capitalize on this opportunity?
Successfully deploy WPI in Greeley and build differentiation capabilitysimultaneously. Additionally, we need to drive the Native Proteins project forward.
200
Nutrition prices are beginning to stabilize and even soften but are still high by historical standards. What impact could this have on our overall business and what can we do to address any risks?
Reductions in market prices on nutrition products would have a material and negative impact on our bottom line. We need to make sure our core "cheese" business remains profitable by stabilizing and improving margins on cheese products.
200
Pricing of Dairy Ingredients products has increased significantly. May moderate in the future but expected to be at a "new higher" norm. What is at least one implication to our business?
Dairy Ingredients business has become a much higher component of our revenues and profitablity. We need to execute on our Nutrition Where to Play business plan.
300
Growth rates in emerging markets like China and India have slowed but still remain strong compared to developed countries. What could this mean for our business?
Developing a sustainable global supply chain to address these growing markets is important to long term growth. YRI business in China showing signs of slowing, particularly within KFC.
300
Domestic mozzarella demand growth slowing, expected to be 2-3% in the US. What could this mean for our business?
Significant margin pressure on incremental domestic cheese volume is expected.
300
Commercialization of Fonterra's C21 product has occurred. Product is showing up throughout Asia. What do we need to do to ensure this doesn't have a major impact on core QLC volumes?
Continued innovation in all products, but particularly QLC, will be important to maintain our competitive advantage.
300
We are extremely capital intensive. Our invested capital has more than doubled in the last 5 years and our ROIC has diminished. We are no longer a "top quartile" performer. What are some things we can do to improve our financial performance?
Drive the concept of ROIC - Develope concepts around plant and process innovations that support: - Lower capital requirements - Evolving innovation; and - Same or improved quality and output/efficiency Execute 44-hour run time
300
Our largest customers are growing faster internationally than domestically. What does this mean to our business?
We must continue to win business from our largest customers in their most important strategic markets (e.g., YRI China, Domino's Japan)
400
Growth in Brazilian GDP slowed to 1% in 2012. Risk of "stagflation" (high inflation, low growth) exists in the region. What implications could this dynamic have on our business strategy?
High degree of confidence in Brazil economic growth and stability critical component of expansion analysis.
400
Dietary benefits of "dairy" are expanding. Dairy products in general are now viewed as good sources of protein, carbohydrate and other essential nutrients. What opportunity does this present for our business?
Learn how to fully exploit the nutritional benefits on dairy-based protiens .- Better quality, higher concentrates and new fractions - Get "more whey" Need to develop value-added innovation to dairy carbohydrate stream - e.g., GOS
400
Within gas flush products, we lack a defined right to win. What are some business strategies we are exploring in order to define a right to win in this category?
Determine our "right to win" in gas flushed products. - Revisit "Frozen Gas Flushed" product offering - Deliver $0.05/savings in Gas Flushed products.
400
Our core business today remains profitable but margins are coming under pressure. Our margins have generally eroded over the last 10 years as we've been unable to drive adoption of significant innovations. What can we do to ensure ongoing profitability of our cheese business?
Protect the economics of our cheese business by stabilizing and improving cheese margins to ensure core business is sustainable long term. Combination of: - Price Increases - Cost reductions - e.g., Deliver on the Frieght and Storage BHAG - Tech progression e.g., P2, x and e-products
400
Customers are shifting product requirements away from QLC. Given this trend, what should we do to ensure growth in this and other products?
Win with critical growth targets such as Little Caesar's, Sam's Club retail. Focus on bolstering "quality" message to drive QLC sales.
500
Serious fiscal challenges remain, both in the US and abroad. The uncertainty about government economic policy may never have been higher. A major policy mis-step could have profound repercussions for the economy. What type of strategy would be effective to manage this potential risk?
Continued caution is warranted, particularly as it relates to management of corporate assets. Defensive positioning should be favored in many areas.
500
Global demand adds to US price volatility. Global markets do not use weekly pricing customary in the US. What strategies might we need to consider to be competitive in world markets?
We need to focus on further expanding our fixed price offerings for non-US customers. Our competitors offer long-term stable pricing contracts. We need to further develop our programs to ensure continued competitiveness.
500
Our "Technology Progression" needs to focus on inventing new manufacturing technologies and process innovations in addition to yield progression. How can we best focus our efforts to ensure focus on these areas?
New working group formed as part of this year's strategic planning process to identify, prioritize and execute against both process and product innovations.
500
Overall whey profitability will be a larger share of our bottom line and will be increasingly important to cheese companies to compete. What should we do to fully capitalize on this important dynamic?
Define and execute a robust "go to market" strategy to fully capitalize on the rapidly growing Nutrition Market. Execute against "Where to Play" choices in Nutrition: - Infant Formula - Sports Nutrition - Better for you Beverages - Adult Nutrition
500
Commercial acceptance of "tech progressed" cheese has limits. Retailers require comparable quality as national brands (e.g., 7 grams of protein). What does this mean for our plan to further tech progress our products?
Identify manufacturing process improvements over "functional fortification" to drive LFC competitive advantage.
M
e
n
u