Bone cells and tissue homework answers

The company focuses on preparing nutrition products to accelerate its new business opportunities. In line with this approach the company made some strategic initiatives including in June 2019, the company entered into an agreement to acquire Foodspring, a German nutrition food manufacturing company. The Foodspring product portfolio includes protein shakes, supplements, snacks & bars, muesli & porridge, smart cooking solutions and a range of beverages and it registered a strong brand image as producer and marketer of nutrition food across Europe. Through the acquisition, the company could strengthen its brand image across Europe. In May 2019, the company signed a partnership agreement with Jerusalem Venture Partners, an international venture capital fund, to provide support in creating innovative technology solution for making food, agriculture and nutrition foods worldwide.

Threat

Changing consumer preferences

The company’s operations are subject to ever changing consumer preferences. It must continuously develop, produce and market new products in order to maintain and enhance the recognition of its brands and try achieving a favorable mix of products. Consumer spending patterns and preferences that change rapidly cannot be predicted. The decrease in the market demand and change in consumer spending may result in inventories that are too high or cannot be sold at anticipated prices. The company’s business, financial condition and results of operations could be affected if it is unable to adapt to the trends in the market.

Increase in labor wages in the US

Increasing manpower costs may have a negative effect on the company’s operating costs and adverse effect on its profits. The tight labor markets, government mandated increases in minimum wages and a higher proportion of full-time employees are resulting in an increase in labor costs. The federal minimum Labor costs are rising significantly in the US. The federal minimum wage provisions are contained in the

Mars, Incorporated SWOT Analysis

Mars, Incorporated © MarketLine

Page 7

Fair Labor Standards Act (FLSA). As of January 2019, the minimum wage rate in the US was US$7.2 per hour. The minimum wage rate in 29 states and the District of Columbia is more than the federal rate. These wages range from US$ 13.2 in District of Columbia, US$12 in Massachusetts and Washington, US$11.1 in Colorado, US$11 in Arizona, US$10.8 in Vermont, US$9.9 in Arkansas, US$8.5 in Florida, US$8.2 per hour in Illinois. The minimum wage in the District of Columbia reached US$13.3 per hour.

Compliance with government regulations

The company's operations are subjected to extensive regulation by the California State Department of Food and Agriculture, the Federal Trade Commission, the U.S. Food and Drug Administration, federal and state taxing authorities and other state and local authorities. The regulations by these authorities concern the tax regulations, food safety standards and the processing, packaging, storage, distribution and labeling of the company’s products. The company’s plants and products face steady inspection by federal, state and local authorities. Additionally, the company is subject to new or changed regulations, laws and accounting policies. If, the company’s fails to follow or is not in a position to fulfill with such requirements it could be subjected to civil remedies, including injunctions, fines, recalls, or seizures, apart from potential criminal sanctions. Hence changing rules and regulations exposes the company to potential sanctions and compliance costs that could adversely affect the company’s overall operations.

Copyright of Mars, Incorporated SWOT Analysis is the property of MarketLine, a Progressive Digital Media business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.