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Ferrero Group (Ferrero) operated in the chocolate confectionery industry. The in

by | May 20, 2022 | Business and Management | 0 comments

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Ferrero Group (Ferrero) operated in the chocolate confectionery industry. The industry was facing challenges related to changes in consumer needs and uncertainties in terms of price volatility and scarcity of raw ingredients, primarily hazelnuts, and cocoa. To achieve its ambitious economic goals in this environment, Ferrero integrated various sustainability initiatives in its supply chain and grew the company through vertical and horizontal integration. Advocating a vision of “sharing values to create value,” the company set sustainability goals which included controlling and being able to trace the supply of raw ingredients, especially cocoa, palm oil, hazelnuts, and sugar. Could Ferrero maintain its leading position in the industry and achieve its sustainability goals? To what extent could the sustainability goals strengthen the company’s competitive position and move it toward achieving its financial goals?
What were the key success factors or core competencies of the Ferrero Group? How was the company able to maintain its leading position in the global chocolate industry? (40 points)
What were the main challenges and the competitive situation in the chocolate industry? How did these challenges affect companies in the industry? Apply Porter’s five forces model to understand the industry structure and profit potential of the chocolate industry (40 points)
Was the vertical integration a successful solution for Ferrero? Why? or Why not? (40 points)
There were rumors that Ferrero would go public; if the company really did go public, would it be helpful to achieve its sustainability goals? How? Describe the major cons and pros of becoming a public company (40 points)
To what extent were CSR issues relevant to Ferrero? Were the benefits of CSR greater than its costs? (40 points
Please don’t use any outside sources. If your turninit score is over 20% paper will not be graded.

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