Corporate Strategy Tate & Lyle Term Paper

The solution was to reduce processing and manufacturing costs (Lynch, 1998)

Patents: Tate & Lyle got their products licensed and obtained patents for them; this strategy was highly useful when the demand for one of the company's sweeteners increased and the company was the only one with rights to produce it (Lynch, 1998)

Despite the expected beneficial results, the company's international expansion failed to deliver the foreseen growth as its profitability decreased after the entrance on global markets. A main reason for this is that the market for starch and sweeteners is a mature one and the registration of massive profits is rather difficult to achieve. Another reason for the company's limited success onto the international market is given by the nature of their activity. As such, since they operate and process agricultural products, they are directly dependent upon the crops; which are also dependent upon natural conditions, which are then out of Tate & Lyle's control; and floods and droughts massively impact the corporate results. Also, they are highly influenced by price and currency fluctuations and the general economic status within the countries where they operate.

It is a known fact that no strategy can be implemented exactly like another company did, but it should be further developed and adapted to fit the unique needs of each company, operating in a given industry segment, conducting a certain type of operations, addressing a certain type of customers an employing a certain number of employees. However, the strategies implemented by Tate and Lyle could be used as guidelines for other companies outside the food additive industry segment.

A first strategy to be implemented is the expansionist one through mergers and acquisitions. The best approach to this strategy is given by intense research of the market within the destination country and then the purchase of an undervalued company, but with great potential.A second strategy which could serve as model for other industry segments is the patent. In this order of ideas, each company which develops a new type of product or uses an innovative recipe to manufacture or process an already existent product should acquire a patent for their innovation. This will ensure that, if the product is successful and generates increased demands, the company will be the sole beneficiary of the adherent revenues. Also, they will encounter limited to no competition for that particular product. The downside of such a strategy is that it involves significant financial resources and it offers no guarantee of success.

The strategy of price reduction is also an important one. However in the case of the industries based on agricultural products this is harder to achieve, it can be done within other industries. Among the most successful implementation of this is the increase of productivity through the usage of better technologies, leading as a consequence to a decrease in staff and manufacturing costs.

Product development, interactive marketing and protection against financial risks are also highly important strategies to be implemented by other industries and industry sectors.

References

2008, Vitafoods, http://www.vitafoods.eu.comlast accessed on February 22, 2008

2008, Official Website of Tate & Lyle, http://www.tateandlyle.com, last accessed on February 22, 2008

2008, Official Website of Tate & Lyle Ventures, http://www.tateandlyleventures.com, last accessed on February 22, 2008

Tate & Lyle 2007 Annual Report, Retrieved at http://www.tateandlyle.com/TateAndLyle/investor_relations/annual_report/default.htm. On February 22, 2008

Lynch, R., 1998, Tate & Lyle plc: globalization to sweeten the profit line, Financial Times Business Limited

Olson. P., September 28, 2007, Tate &….....