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Lester 's Peanut Butter Company

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Question - You work for the 3rd largest peanut butter manufacturer in the US, selling 120 million jars per year. You trail behind Skippy and Jif, and Peter Pan is only 2 market share percentage points behind you. Lester 's Peanut Butter sells to supermarkets and convenience stores nationwide, making up 60% of the company 's sales volume. Sales to big box stores like Costco and BJ 's make up 25%. Walmart is your biggest customer, and makes up the remaining 15% of sales. Walmart is replacing your peanut butter with their own private label peanut butter, but want you to produce it - everything will be the same except for the label. Should your company move ahead with this strategic decision? Yes, or No, what are the advantages and disadvantage Lester’s peanut butter company must move forward with this decision. This is not a decision that should be taken lightly due to the fact that it has an effect on the image of Lester’s Peanut Butter Company. Corporate image, or reputation, describes the manner in which a company, its activities, and its products or services are perceived by outsiders. In a competitive business climate, many businesses actively work to create and communicate a positive image to their customers, shareholders, the financial community, and the general public. A company that mismanages or ignores its image is likely to encounter a variety of problems. (referenceforbusiness.com 2016) Loyal customers of Lester’s Peanut Butter have come to expect to

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