Mars Inc. is a very unique company with a distinct strategy. As one of the biggest privately owned companies with a remarkable market share and revenue, Mars sets new dimensions to building, enabling and promoting a mission that involves mutual benefits for every stakeholder in a highly competitive and demanding environment.
Mars Inc. is one of the most productive and profitable privately owned companies operating in the food sector with an estimated revenue of US$33 billion in 2013 (“Mars Inc. Company Profile,” 2014). With a history of over a hundred years of being a highly successful business, Mars is a very special example for a sustainable but distinct company strategy.
Strategic management allows a business to conduct a environmental analysis that then enables the company to meet various business challenges in order to meet customer and stakeholder demands to gain a competitive advantage in its market (Dawson & Andriopoulos, 2014). Mars’ strategy, which is a combination of an innovative management philosophy and familial eccentricity, will be further described in this paper. Therefore external and internal influences on the company will be shown as comprehensive as possible, since a lot internal matters are kept a strict secret by Mars.
The paper will roughly outline the external influences by covering a PESTEL analysis and Porter’s Five Forces, show how Mars positions itself on the market, sketch the company’s internal HR practices, define its core competencies and conclude with Hambrick and Fredrickson’s Major Elements of Strategy. Some more detailed analysis (a longer version of the PESTEL evaluation) can be found in the appendix. As already mentioned Mars acts in a few different markets including chocolates and pet food, which all have their very own power balances and specialties. This paper, however, will give an overview of the company’s general market position in the food processing industry and will not specify on one business segment in particular.
Table of Contents
1. Introduction
2. External Analysis
3. Positioning
4. HR strategy
5. Core Competencies
6. Major Elements of Strategy
7. Conclusion
Objectives and Topics
This paper provides a strategic analysis of Mars Inc., a major privately owned company in the food industry. The central objective is to evaluate how the company maintains its market position and competitive advantage in a demanding global environment, focusing on its unique management philosophy and internal practices.
- Strategic analysis of the company's external environment (PESTEL and Porter’s Five Forces).
- Evaluation of the company's competitive positioning and strategic direction.
- Analysis of the company's internal HR strategies and core competencies.
- Assessment of the "Five Principles" as a guiding force for business operations.
Excerpt from the Book
External Analysis
The analysis of the company’s industry environment is an important component in the strategic thinking process that helps the senior management of an organization to develop strategic directions and options that focus on long-term success and include all relevant aspects. In order to do this evaluation, the PESTEL analysis and Porter’s Fiver Forces Model are used.
The PESTEL analysis is a strategic management tool to evaluate the effects of the following six external effects or influences on the operations and performance of a company: political, economical, social, technological, environmental and legal (Cambridge Dictionary, 2015).
The most important factors that influence Mars are shown now, more can be found in the appendix. The first is the social trend towards a more balanced diet and health consciousness that is vigorously supported by governments, which affects four of the company’s six segments (chocolate, Wrigley Gum, food and drinks). People prefer products that are lower in calories, fat and/or sugar (Mars Inc., 2014; Sheridan, 2004) which Mars needs to take into consideration to keep up to the consumers’ demands.
Summary of Chapters
Introduction: This chapter introduces Mars Inc. as a productive, privately owned food company and outlines the paper's aim to analyze its strategy and organizational influences.
External Analysis: This section utilizes PESTEL and Porter’s Five Forces to evaluate the competitive environment and the external factors, such as social and environmental trends, that affect the company's operations.
Positioning: This chapter discusses Mars' competitive advantage strategy, focusing on cost leadership and the company's evolution from standardized production to regional consumer responsiveness.
HR strategy: This chapter explores how Mars’ internal HR practices, characterized by flat hierarchies and empowerment, contribute to high employee retention and productivity.
Core Competencies: This section identifies human capital, private ownership, and corporate culture (the Five Principles) as the primary resources providing Mars with a unique competitive edge.
Major Elements of Strategy: This chapter synthesizes the company's strategy using Hambrick and Fredrickson’s framework, covering its arenas, vehicles, differentiation, staging, and economic logic.
Conclusion: This final section summarizes the main findings, emphasizing that Mars' combination of core values and strategic management results in long-term economic success.
Keywords
Strategic Management, Mars Inc., Private Ownership, Five Principles, PESTEL, Porter’s Five Forces, Cost Leadership, HR Strategy, Core Competencies, Food Industry, Competitive Advantage, Sustainability, Business Strategy, Resource-Based View, Corporate Culture.
Frequently Asked Questions
What is the primary focus of this strategic analysis?
The paper focuses on the strategic management processes of Mars Inc., examining both external market forces and internal organizational structures that contribute to its success.
What are the key thematic areas covered in the document?
The key themes include the external environment analysis (PESTEL/Five Forces), competitive positioning, internal HR practices, core competencies, and the "Five Principles" guiding the business.
What is the ultimate goal of the research presented?
The goal is to provide a comprehensive overview of how a large, privately owned firm like Mars maintains market relevance and a competitive edge in the food industry.
Which scientific frameworks are used for the analysis?
The author uses several established strategic management tools, including PESTEL, Porter’s Five Forces, the VRIO framework, and Hambrick and Fredrickson’s Major Elements of Strategy.
What does the main body of the text cover?
It covers the historical context of Mars, its external environment, its strategic positioning, its HR strategy, and an analysis of its core competencies.
Which keywords best characterize this work?
Keywords include Strategic Management, Private Ownership, Five Principles, Cost Leadership, and competitive positioning within the food industry.
How does the company's private ownership affect its strategic decisions?
Private ownership shields Mars from the short-term pressures faced by publicly traded rivals, allowing the company to make long-term investments without the same immediate fiscal scrutiny.
What role do the "Five Principles" play in Mars’ daily operations?
The Five Principles act as a unified driver for the company, guiding every associate in 73 countries and forming the basis for decision-making, corporate culture, and core competencies.
Why is there limited information about Mars’ internal practices?
Mars is known for its reticence and secrecy regarding internal procedures to ensure that competitors do not gain insight into its specific competitive advantages or proprietary developments.
How does Mars approach the challenge of changing consumer health trends?
Mars considers social trends—such as the preference for lower-calorie products—as a critical factor in its PESTEL analysis, requiring continuous adaptation to maintain consumer demand.
- Citar trabajo
- Julia Steger (Autor), 2015, Strategic Management of Mars Inc. A Combination of an Innovative Management Philosophy and Familial Eccentricity, Múnich, GRIN Verlag, https://www.grin.com/document/301541
