Unit 4: Business Strategy; Northern Foods & Porters 5 Forces.

Check out this excellent strategy case study from the Economist in Feb 2011. It briefly analyses the strategic position of Northern Foods, a UK-based food manufacturer that has built its business around supplying own-label processed food products (e.g. ready meals) for the supermarkets.

The article is useful for many reasons, including capacity management, reasons for Mergers & Acquisitions, supplier relationships, profit margins.

It is also a great example to use when explaining Porter’s Five Forces Model, using the references to the different bargaining power wielded by the major supermarket groups and by multinational food brands like Nestle and Kraft.