Rhino Poaching in South Africa: Do National Parks Have Sufficient Resources to Fight Wildlife Crime?

COURSE: INTERNATIONAL BUSINESS POLICIES & STRATEGIES

CASE STUDY: RHINO POACHING IN SOUTH AFRICA: DO NATIONAL PARKS HAVE SUFFICIENT RESOURCES TO FIGHT WILDLIFE CRIME?

COMPANY OVERVIEW: Mondelez International is known for being one of the world’s largest snack companies with global net revenues for 2106 totaling $26 billion. The company based out of Illinois, opened on October 1, 2012.

The Company manufactures and markets snack food and beverage products for consumers. The Company operates through four segments: Latin America, Asia, Middle East, and Africa, Europe and North America. As of December 31, 2016, its brands spanned five product categories, including Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. The Company's portfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages.

The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets. The Company distributes its products through direct store delivery, Company-owned and satellite warehouses, distribution centers and other facilities. As of December 31, 2016, the Company sold its products to consumers in approximately 165 countries. As of December 31, 2016, it had operations in more than 80 countries and made its products at 150 manufacturing and processing facilities in 52 countries and 130 distribution centers and depots around the world.

Their purpose and vision are to create more moments of joy by building the best snacking company in the world. Their 90,000 employees support this effort by manufacturing and marketing delicious food and beverage products for consumers in approximately 165 countries around the world.

They are a world leader in biscuits, chocolate, gum, candy and powdered beverages. They hold the No. 1 position globally in biscuits and candy as well as the No. 2 position in chocolate and gum. (source: Euromonitor) About 85 percent of their annual revenue is generated in attractive snacks categories, and nearly three-quarters of their sales come from outside of North America.

COMPANY STRENGHT: Mondelēz International, has all the ingredients in place to deliver balanced growth on both the top and bottom lines. Because of their advantaged platform, they are one of the few industry players positioned to deliver strong sales and profitability growth over the long term.

Their unmatched portfolio of iconic brands in numerous categories, and an advantaged global footprint, with over 35 percent of net revenue from emerging markets gives the company a position of strength which can be leveraged on.

Their unique routes to local, international and emerging markets are also an important differentiator for Mondelez globally, because continued investment in distribution capabilities, especially in emerging markets, has significantly expand their coverage and scale.

COMPANY GOALS: We continue to invest in our Power Brands, innovation platforms, white-space expansion and route-to-market capabilities by advancing the three pillars of our growth strategy.

Grow Our People. By building world-class capabilities and providing meaningful career experiences, we create a great place to work.

Grow Our Business. We’re focused on achieving best-in-class cost management, innovating with speed and growing the profitability and sales of our iconic brand family.

Grow Our Impact. We’re committed to enhancing the well-being of the people who make and enjoy our products, the communities we serve and the planet.

MARKET ENVIRONMENT: The market environment for the snack manufacturing industry is fierce, Mondelez Intl. competes with campbell soup company, the coca-cola company, colgate-palmolive company, Danone S.A., General Mills, Inc., the Hershey company, Kellogg company, Nestle S.A., PepsiCo, Inc., the Procter & Gamble company, Unilever PLC and the Kraft Heinz company, amongst others.

The global market for snack foods is projected to exceed US$630 billion by 2020, driven by robust demand for functional snacks, and the rising popularity of protein-fortified, organic and natural ingredients-based snacks. The growing tendency to graze and ensuing replacement of traditional meals with snacks is also expected to benefit growth in the market. Low-sugar, low-carb, low-calories, gluten-free, preservative-free, GMO-free, reduced/low/no trans-fat, and all-natural products are poised to witness strong demand, supported by the growing trend of healthy snacking. Sales of meat snacks are recording robust gains supported by growing awareness over the importance of protein-rich diets, and the increasing interest in better-for-you snacks. Europe represents the largest market worldwide. Asia-Pacific ranks the fastest growing market with a CAGR of 7.2%, driven by growing population and increased consumption of packaged convenience food among the growing base of affluent, time-pressured middle-class population.

Snacks are emerging into modern day alternatives for elaborate full-fledged meals, and the changing paradigm of success in this market is single serve, eat anywhere, portable food products. With city life changing gears to speed into the fast lane, the rise of convenience foods for time constrained on the go citizens is spiraling in popularity, and snack foods has emerged as a major beneficiary. Undeterred by the "infamous snacking culture" tag and misbranded snack foods affecting the global food economy, the worldwide market for snacks foods continues to witness steady growth. Future growth in the market will be driven by robust demand for functional snacks, including bars, chips, cookies, and yogurt, and surging popularity of protein-fortified, organic and natural snacks.

Trends and drivers of the market:

1. Growth in organic and natural snacks consumption.

2. Rise in consumption of fortified snack bars due to the growing wave of fitness trend.

3. Increase consumption of meat snacks due to increase prominence of protein-rich diets.

4. Growth in regional and cultural product customization