Cargill India Pvt Ltd: Internship Insights
Cargill India Pvt Ltd: Internship Insights
INTRODUCTION
INTRODUCTION ON INTERNSHIP:
It is an opportunity for a student to undergo internship for one month duration. It
helps students to experience the corporate culture. It is unpaid, and immeasurable amount of
experience that students never receive in the classroom. It helps in gaining practical knowledge
rather than theoretical knowledge.
In this program study will be conducted on particular topic. The detailed analysis will
be done on that topic. The internship will be conducted in the Cargill India Private. Ltd.
Information about the topic and later on the study will be collected from the company and from
other source.
The experience in the company was good with the support from the company staff.
The first week of internship is all about introduction about the topic and later on the study is
done on the important aspect related to topic.
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GLOBAL PERSPECTIVE:
➢ INTRODUCTION
Agriculture, known also as husbandry or farming, is the science of cultivating plants, animals,
and other life forms for food, fiber and fuel. The agricultural industry, which includes
enterprises engaged in growing crops, raising fish and animals, and logging wood, encompasses
farms, dairies, hatcheries, and ranches. It is a major industry in the United States.
The development of agriculture spans thousands of years and has been affected by human
cultures, climate variations, and evolving technologies. Despite the industry's evolution over
the centuries, all types of farming still rely on methods to maintain environments conducive for
raising domestic species. In terms of plants, the land must be sustained with a type of irrigation
system; for raising livestock, rangeland must be cultivated to support animal life. Nowadays
farm yields have greatly increased due to improvements in breeding, chemicals, and technology.
Yet some of these measures can cause damage to the environment and pose health risks to
humans.
A modern innovation in the agriculture industry is the Green Revolution, which began in the
second half of the 20th century. This development is cited for saving people around the world
from starvation through initiatives involving irrigation systems, production of high-yielding
crops, and better management strategies.
Today farming professionals face the daunting challenge of keeping current with increasingly
rapid changes in equipment technology and agricultural research. For instance, biotechnology
is being applied to industrial livestock operations to provide healthier animals and improve
breed development, resulting in more meat, eggs, and dairy products to meet consumer
demands.
Responsible for putting healthy food on consumers' tables, the agriculture industry is regulated
by strict policies. Farmers must be up to date on all legislation affecting their product and their
labors. For instance, the 2012 Agriculture Reform, Food and Jobs Act provided the most
significant reforms in farming policy in years. It stops direct subsidy payments, added new
dairy and livestock programs, and strengthened crop insurance.
A farmer may work a single tract of land in addition to renting out a number of separate tracts.
The farmer may be the sole operator of the establishment or work within a partnership or
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corporation. The agriculture industry employs a wide-range of workers including farm labors,
veterinarians, scientists, salespeople, and soil managers.
Despite all the advances made in the agriculture field, it still remains a hazardous industry.
Fatalities and injuries due to machine operation as well as diseases and birth defects spawned
by exposure to pesticides and fertilizers are among the work-related dangers faced by
agricultural workers.
A hard-hitting recession and severe droughts have plagued the agriculture industry over the past
decade. While employment in some sectors of this industry is expected to rise, other areas are
forecasted to decline. For instance, opportunities are promising for scientists and research and
development technicians but disappointing for farmers, ranchers, and labors.
Farms have increased considerably in size since the end of World War II, while the number of
farms in the United States has declined. This is partly because technology has allowed for the
operation of a much larger farm than it did during the time of horse-drawn equipment and partly
because of the growth of large-scale farms run by corporations. It has become increasingly
difficult for new farmers to invest in the industry. The rising cost of equipment and labors and
the dropping prices of commodities make it very difficult for even established farmers to
maintain their land and crops. As a result, many small farm communities are evaporating. More
people are migrating to urban and suburban areas, resulting in the closings of schools, hospitals,
and other community institutions. For years, farmers have relied on other forms of income, such
as off-farm business revenue and salaries from off-farm jobs, for the bulk of their living
expenses. Some surveys show that 90 per cent of farm household income is from off-farm
sources.
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➢ MAJOR PLAYERS
*BASF SE (Germany)
*Bayer AG (Germany)
*Syngenta AG (Switzerland)
➢ POTENTIAL
Food and agribusiness form a $5 trillion global industry that is only getting bigger. If current
trends continue, by 2050, caloric demand will increase by 70 per cent, and crop demand for
human consumption and animal feed will increase by at least 100 per cent.
Agricultural development is one of the most powerful tools to end extreme poverty, boost
shared prosperity and feed a projected 9.7 billion people by 2050.Growth in the agriculture
sector is two or four times more effective in raising incomes among the poorest compared to
other sectors. 2016 analyses found that 65% of poor working adults made a living through
agriculture.
Sensing an opportunity, strategic and financial investors are racing to capture value from
technological innovation and discontinuities in food and agriculture. Since 2004, global
investments in the food-and-agribusiness sector have grown threefold, to more than $100 billion
in 2013, according to a McKinsey analysis. Food-and-agribusiness companies on average have
demonstrated higher total returns to shareholders than many other sectors. But finding new
investment opportunities is not easy and requires a detailed understanding of crops, geographies,
and complex value chains that encompass seeds and other inputs, as well as production,
processing, and retailing. Much of the potential lies in geographies unfamiliar to some investors
and is dependent not simply on crop yields but also on how different parts of the value chain
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➢ TURNOVER
Over one billion people worldwide work in agriculture generating $2.4 trillion for the global
economy. Plant science innovations are vital to keep crops healthy and maintain this thriving
economy.
➢ ECONOMIC OUTPUT
Agriculture plays a crucial role in the economy of developing countries, and provides the main
source of food, income and employment to their rural populations.
Agriculture is diverse and full of contradictions. The sector accounts for a comparatively small
share of the global economy, but remains central to the lives of many people. In 2012, of the
world's 7.1 billion people, an estimated 1.3 billion (19 percent) were directly engaged in
farming, but agriculture (including the relatively small hunting/fishing and forestry sectors)
represented just 2.8 percent of overall income (World Bank 2012). However, in today's middle-
and low-income countries, where most of the world's farmers are to be found, agriculture
accounts for a much greater share of national income and employment—for instance, in India,
agriculture represents 18 percent of national income and 54 percent of employment
➢ OUTPUTS:
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*Develops good relation among different countries
*Investment opportunities
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INDIAN PERSPECTIVE
➢ HISTORY
Indian agriculture has long, old and beyond memory history which begins the Indus valley
civilization. One of the oldest waters regulating structure in the world is Grand Anicut dam on
river Kaveri.
Indian agriculture began by 9000 BCE as a result of early cultivation of plants, and
domestication of crops and animals. Settled life soon followed with implements and techniques
being developed for agriculture. Double monsoons led to two harvests being reaped in one year.
Indian products soon reached the world via existing trading networks and foreign crops were
introduced to India. Plants and animals—considered essential to their survival by the Indians—
came to be worshiped and venerated. The middle ages saw irrigation channels reach a new level
of sophistication in India and Indian crops affecting the economies of other regions of the world
under Islamic patronage. Land and water management systems were developed with an aim of
providing uniform growth. Despite some stagnation during the later modern era the independent
Republic of India was able to develop a comprehensive agricultural program.
➢ MARKET SIZE
During 2019-20* crop year, food grain production was estimated to reach a record
295.67 million tones (MT). In 2020-21, Government of India is targeting food grain production
of 298 MT.
Production of horticulture crops in India was estimated at a record 320.48 million metric tons
(MMT) in FY20 as per second advance estimates. India has the largest livestock population of
around 535.78 million, which translates to around 31 per cent of the world population. Milk
production in the country is expected to increase to 208 MT in FY21 from 198 MT in FY20,
registering a growth of 10 per cent y-o-y.
Sugar production in India reached 26.46 MT between October 2019 and May 2020 sugar season
according to Indian Sugar Mills Association (ISMA). India is among the 15 leading exporters
of agricultural products in the world. Agricultural export from India reached US$
38.54 billion in FY19 and US$ 28.93 billion in FY20 (till January 2020).
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The organic food segment in India is expected to grow at a CAGR of 10 per cent during 2015-
25 and is estimated to reach Rs 75,000 crore (US$ 10.73 billion) by 2025 from Rs 2,700 crore
(US$ 386.32 million) in 2015.
➢ POTENTIAL
India is expected to achieve the ambitious goal of doubling farm income by 2022. The
agriculture sector in India is expected to generate better momentum in the next few years due
to increased investment in agricultural infrastructure such as irrigation facilities, warehousing
and cold storage. Furthermore, the growing use of genetically modified crops will likely
improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the
coming few years due to concerted effort of scientists to get early maturing varieties of pulses
and the increase in minimum support price.
Going forward, the adoption of food safety and quality assurance mechanisms such as Total
Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical
Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices
(GHP) by the food processing industry will offer several benefits. The Agri-export from India
is likely to reach the target of US$ 60 billion by the year 2022.
➢ MAJOR PLAYERS
s
*Bombay Burma Trading Corporation Ltd
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➢ ECONOMIC OUTPUT
Agriculture plays a vital role in the Indian economy. Over 70 per cent of the rural households
depend on agriculture. Agriculture is an important sector of Indian economy as it contributes
about 17% to the total GDP and provides employment to over 60% of the population. It is
estimated that India’s agriculture sector accounts only for around 14 percent of the country’s
economy but for 42 percent of total employment. As around 55 percent of India’s arable land
depends on precipitation, the amount of rainfall during the monsoon season is very important
for economic activity.
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5. Supply of raw material to agro-based industries:
Agriculture supplies raw materials to various agro-based industries like sugar, jute, cotton
textile and vanaspati industries. Food processing industries are similarly dependent on
agriculture. Therefore, the development of these industries entirely is dependent on agriculture.
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➢ TURNOVER
Agriculture is the primary source of livelihood for about 58 per cent of India's population. Gross
Value Added (GVA) by agriculture, forestry and fishing was estimated at Rs 19.48 lakh crore (US$
276.37 billion) in FY20.
The Indian food industry is poised for huge growth, increasing its contribution to world food trade
every year due to its immense potential for value addition, particularly within the food processing
industry. Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per
cent of the sales. The Indian food processing industry accounts for 32 per cent of the country’s total
food market, one of the largest industries in India and is ranked fifth in terms of production,
consumption, export and expected growth.
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Chapter 2
Davangere [dist.]
Harihara-577222
Website : www.cargill.com
Founded : 1865(152 years ago)
Founder : William Wallace Cargill
Cargill, is an American privately held global food corporation based in Minnetonka and
incorporated in Wilmington Delaware Founded in 1865, it is the largest privately held
corporation in the United States in terms of revenue. If it were a public company, it
would rank, as of 2015, number 15 on the Fortune 500, behind McKesson and ahead of
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Cargill has frequently been the subject of criticism related to the environment, human
rights, finance, and other ethical considerations. Some of Cargill's major businesses are
trading, purchasing and distributing grain and other agricultural commodities, such as
palm oil; trading in energy, steel and transport; the raising of livestock and production
of feed; and producing food ingredients such as starch and glucose syrup, vegetables
and oils for application in processed foods and industrial use. Cargill also has a large
financial services arm, which manages financial risks in the commodity markets for the
company. In 2003, it split off a portion of its financial operations into Black River Asset
Management, a hedge fund with about $10 billion of assets and liabilities. It owned two-
thirds of the shares of The Mosaic Company (sold off in 2011), one of the world's
leading producers and marketers of concentrated phosphate and potash crop nutrients.
Cargill remains a family-owned business, as the descendants of the founder (from the
Cargill and MacMillan families) own over 90% of it. Gregory R. succeeded former CEO
Warren Staley in mid-2007, as Staley reached Cargill's mandatory retirement age of 65,
and was CEO and chairman until 2013, when he in turn was succeeded by Dave
MacLennan.’
• Long-term view - Having the patience and foresight to build sustainable businesses
For the long haul.
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➢ INTRODUCTION
Cargill is headquartered in Minneapolis, Minnesota. David MacLennan is the Chairman & CEO
of Cargill. Cargill provides food, agriculture, financial and industrial products and services to
the world. Together with farmers, customers, governments and communities, they help people
thrive by applying their insights and over 155 years of experience.
Cargill has 155,000 employees in 70 countries/regions who are committed to feeding the world
in a responsible way, reducing environmental impact and improving the communities where
we live and work
● Food
They provide food and beverage manufacturers, food service companies and retailers with high-
quality ingredients, meat and poultry products, and health-promoting ingredients and ingredient
systems.
● Agriculture
They buy, process and distribute grain, oilseeds and other commodities to makers of food and
animal nutrition products. They also provide crop and livestock producers with products and
services.
● Financial
They provide our agricultural, food, financial and energy customers around the world with risk
management and financial solutions.
● Industrial
Cargill serves industrial users of energy, salt, starch and steel products. They also develop and
market sustainable products made from agricultural feed stocks.
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➢ CARGILL IN INDIA
Cargill Business Services (CBS) India leverages Cargill’s scale to create an efficient, modern
way of providing high-quality shared services to Cargill so that their businesses and functions
can focus on what they do best.
Since its inception in January 2015, the organization has grown steadily to establish itself as a
global multi-function shared services hub providing services across multiple business functions
and processes—Finance, IT, Source to Pay, Transportation and Logistics, and HR. CBS India
currently operates out of two centers in Bangalore and Gurgaon employing over 2000 skilled
professionals.
➢ NATURE OF BUSINESS
It has businesses in refined oils, food ingredients, grain and oilseeds, cotton, animal nutrition,
industrial specialties and trade structured finance. Cargill markets leading consumer brands of
edible oils such as Nature Fresh, Gemini, Sweekar, Leonardo Olive Oil, Rath and Sunflower
brand of hydrogenated fats.
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➢ CARGILL MISSION STATEMENT
Cargill is committed to helping the world thrive.
Cotton
Animal Nutrition
Business Services
Maltodextrin:
It is derived from common corn starch; it is spray dried maltodextrin powder. It provides good
solubility, bland flavor and low sweetness which will provide to infants food.
Corn Gluten:
Corn gluten is having a 60% of high protein and high energy ingredient suited for all types of
animals.
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Dried Corn Fiber:
Enriched corn fiber having medium protein and medium energy ingredients which is used for
animal nutrition.
Dried Germs:
Corn germs is having high lipid ingredient which is also used to extract corn oil. It is an
excellent source of energy and its moderate protein content makes it suitable sources for
monogastric animals.
OWNERSHIP PATTERN
Cargill stock does not exist. The company avoided going public because of its size and the
number of assets it holds. Cargill is the largest private company in the United States. Since its
founding by William W. Cargill, the company has remained a family-owned private company.
Cargill had two children—a son, Austen, and a daughter, Edna, who married John MacMillan,
one of her father's business partners. To date, more than 100 family members own about 90%
of Cargill shares. In the early days, the company allowed the family to have total control of
Cargill. Over time, it diversified away from family management. The year 1960 marked the
first time a non-family member became the company's CEO. The 17-member board of directors
only has six family members, with the rest coming from other company directors and outside
personnel.
7 AchyuthVasanthIyengar Director
8 SirajAzmath Chowdry Director
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➢ AWARDS
*Cargill and PG&E Recognized for Effective Community Engagement that Aligns with
Business
2005.Acquires 100% stake in JV with Parakh Foods Ltd.; new BU formed 'Refined Oils India.’
2006.Establishes Animal Nutrition business. Refined Oils India enters into institutional oil
selling to large food industry.
2010.Refined Oils India becomes Cargill Foods India. Acquires `Rath’ brand of Vanaspati
(hydrogenated fats).
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Specific Process
Agglomeration
Packaging
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General Process
Corn receiving
Corn cleaning
Wet milling
By-Products Separation
Washing
Conversion
Refining
Storage
Bagging
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Chapter 3
McKinsey’s 7s Framework of Cargill
McKinsey’s 7S Framework
McKinsey 7s model was developed in 1980’s by McKinsey consultants Tom Peters, Robert
Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since
the introduction, the model has been widely used by academics and practitioners and remains
one of the most popular strategic planning tools. It sought to present an emphasis on human
resources (Soft S), rather than the traditional mass production tangibles of capital,
infrastructure and equipment, as a key to higher organizational performance. The key point of
the model is that all the seven areas are interconnected and a change in one area requires change
in the rest of a firm for it to function effectively.
McKinsey 7s model is a tool that analyses firm’s organizational design by looking at 7 key
internal elements in order to identify if they are effectively aligned and allow organization to
achieve its objectives. The goal of the model was to show how 7 elements of the company
which can be aligned together to achieve effectiveness in a company.
The model categorizes the seven elements as either "hard" or "soft":
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➢ STRUCTURE
Operations Head
Utility Lead
EIA Manager
Accounts Lead
Asst Mgr.
CA Lead Reliability
Admin Lead
Employee Health
& Safety Lead
HR Lead
Mill Manager
Refinery Lead
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➢ STRATEGY
This is an organization's plan for building and maintaining a competitive advantage over its
competitors.
➢ SYSTEMS
The daily activities and procedures that staff use to get the job done.
What are the main systems that run the organization? Consider financial and HR systems as
well as communications and document storage.
Where are the controls and how are they monitored and evaluated? What internal rules and
processes does the team use to keep on track? Cargill’s guiding principles
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6. We protect Cargill’s information, assets and interests.
The Code is grounded in 7 Guiding Principles—the foundation that supports all of Cargill’s
corporate activity, along with our individual actions and decisions as Cargill employees. It also
summarizes key compliance policies, highlighting issues that can have significant legal and
ethical consequences if handled improperly and providing guidelines for appropriate action.
➢ SKILLS
The actual skills and competencies of the organization's employees.
What are the strongest skills represented within the company/team?
Are there any skills gaps?
What is the company/team known for doing well?
Do the current employees/team members have the ability to do the job? How are skills
monitored and assessed?
Cargill’s development programs foster the leadership potential of its workers, helping them
grow in the workplace. Cargill’s development programs foster the leadership potential of its
workers, helping them grow in the workplace. The goal was to equip workers for their current
positions, and to prepare them for future leadership roles, creating a solid foundation for
Cargill’s growth.
➢ STYLE
How participative is the management/leadership style?
How effective is that leadership
Do employees/team members tend to be competitive or cooperative?
Are there real teams functioning within the organization or are they just nominal groups?
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Cargill recognized that great team members also make great leaders. But, the insights, skills,
and vision needed to be an effective leader must be developed, practiced, and learned over time.
The Transition into Leadership curriculum was designed to: Introduce the best ideas and
practices in leadership today
□ Determine the participants own leadership strengths and areas for improvement
□ Learn "best practices" through close affiliation with other Cargill leaders
□ Embrace change and challenge the comfort zone of team members Cargill's leadership
development program places great importance on their employees and know that they
are the key part of a successful future. As a result, they seek the best programs in order
to create development opportunities for their employees and leaders around the world.
➢ STAFF
What positions or specializations are represented within the team?
What positions need to be filled?
Are there gaps in required competencies?
Cargill implemented “Everyday Performance Management” to instigate this change.
“Everyday Performance Management” was based on the four principles you’ll find under the
“how” section.
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What?
Cargill decided that effective performance management needs to be a continuous process—out
with the old-school, document-heavy annual review. Daily activity and practices were now to
How?
• Consistent recognition of outstanding performances from managers who exemplify the
qualities of good day-to-day performance management practices.
➢ SHARED VALUES
What are the core values?
What is the corporate/team culture? How strong are the values?
What are the fundamental values that the company/team was built on?
Cargill's values are at the core of how we work. They are also the source of Cargill’s three
leadership expectations that allow us to bring the outside in, energize for high performance and
execute exceptional results.
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PORTER’S FIVE FORCE MODEL
Porter's Five Forces is a simple but powerful tool for understanding the competitiveness of your
business environment, and for identifying your strategy's potential profitability.
This is useful, because, when you understand the forces in your environment or industry that
can affect your profitability, you'll be able to adjust your strategy accordingly. For example,
you could take fair advantage of a strong position or improve a weak one, and avoid taking
wrong steps in future.
➢ Competitive Rivalry - This looks at the number and strength of your competitors.
How many rivals do you have? Who are they, and how does the quality of their products and
services compare with yours? Where rivalry is intense, companies can attract customers with
aggressive price cuts and high-impact marketing campaigns. Also, in markets with lots of
rivals, your suppliers and buyers can go elsewhere if they feel that they're not getting a good
deal from you. On the other hand, where competitive rivalry is minimal, and no one else
isdoing what you do, then you'll likely have tremendous strength and healthy profits.
➢ Supplier Power - This is determined by how easy it is for your suppliers to increase
their prices. How many potential suppliers do you have? How unique is the product or service
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that they provide, and how expensive would it be to switch from one supplier to another? The
more you have to choose from, the easier it will be to switch to a cheaper alternative. But the
fewer suppliers there are, and the more you need their help, the stronger their position and their
ability to charge you more. That can impact your profit.
➢ Buyer Power - Here, you ask yourself how easy it is for buyers to drive your prices
down. How many buyers are there, and how big are their orders? How much would it cost them
to switch from your products and services to those of a rival? Are your buyers strong enough
to dictate terms to you? When you deal with only a few savvy customers, they have more power,
but your power increases if you have many customers.
➢ Threat of New Entry - Your position can be affected by people's ability to enter your
market. So, think about how easily this could be done. How easy is it to get a foothold in your
industry or market? How much would it cost, and how tightly is your sector regulated? If it
takes little money and effort to enter your market and compete effectively, or if you have little
protection for your key technologies, then rivals can quickly enter your market and weaken
your position. If you have strong and durable barriers to entry, then you can preserve a favorable
position and take fair advantage of it.
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2. Potential of New Entrants into an Industry-Brand names are investing a bargain in
marketing and advertising to attract new customers. Providers products have a couple
substitutes. If you provide a remarkable software application product which automates a crucial
treatment, folks may substitute it by doing the procedure manually or by outsourcing it.
Customers have the ability to easily shift from standard models Bot the new models on account
of the convenience they supply. Powerful consumers can apply pressure to drive down rates, or
enhance the essential quality for precisely the very same price, and so minimize profits in a
business. Ford's consumers considerably help determine the business. In addition, digital
services are able to make long lasting income streams which of course is a better and financially
rewarding chance than the 1-time sale of a physical item. Supplier power is no problem for
McDonald's in the quick food market. The bargaining power of providers is high in the occasion
the purchaser doesn't represent a large part of the supplier's sales. The point is that the
bargaining power of the supplier in an industry impacts the competitive environment for the
buyer and influences the purchaser's capability to attain profitability. Customers have power
whenever there aren't a number of them, however plenty of sellers, in addition to when it is not
difficult to change from 1 service's services or items to another. Buyer Power Low Customers
have actually limited power over console developers, because the variety of prospective
consumers is big, the company isn't too concerned about losing consumers. Porter’s five forces
analysis is a considerable tool for everyone trying to evaluate the tactical standing of a current
company, or considering a new venture into a present industry. The analysis working with the
Porter's 5 forces analysis ought to be a basis where the firm discovers and implements their
strategy which should increase their competitive benefit.
When an industry is rewarding, or appealing in a long-term strategic fashion, then it's going to
be appealing to brand-new companies. As an instance, the airline business has strong
competition amongst the 2 producers, Plane and Boeing. Bear in mind that 5 forces affect
different industries differently and for that reason don't utilize exactly the exact same outcomes
of analysis for even similar markets!
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In the event today firms do not allow it to be challenging for other individuals to join the market,
the profitability will tend to fall towards no. Services can take advantage by raising the cost and
decreasing of the product, however it's typically required to have short term advantages.
Regardless of the reality that it does not sound very attractive for business to enter into the airline
organization, it's NOT impossible.
In order to cut the risk of new entry, the business needs to produce an excellent brand image. If
it has a good brand image, then customer would like to stick with the brand name products. It
is quite hard for a company to get in the Auto market and take on among the greatest business on
earth.
4. Bargaining Power of Customers- The Porter's Five Forces tool is rather a strong tool.
Because that time, it is now a regularly utilized tool for examining a company's industry
structure and its business strategy. Additional modelling tools will probably help you round out
your understanding of your business and its potential. As it will help to comprehend not simply
the strength of present competitive position however in addition the strength of an expected
position, it's very practical. By doing this it is possible to swiftly examine the strength of your
organization position. The retailer's ability to keep and increase its North American market
share is going to be the essential factor influencing its stock-price movement later. You might
take reasonable benefit of a strong position or enhance a weak one, and prevent taking wrong
actions in future.
5. Bargaining Power of Customers- After assessing the forces, you should find techniques
to affect the forces. In order to end up an entire competitive analysis, the porter's 5 forces must
be compensated. Porter's 5 Forces is a good beginning point to evaluate an organization
however shouldn't be made use of in seclusion.
6. Threat of Substitutes-The analysis working with the Porter's 5 forces analysis ought to
be a basis where the company discovers and executes their strategy which should enhance their
competitive benefit. Bear in mind that five forces affect various industries in a different way
and therefore don't use specifically the exact same results of analysis for even comparable
industries! In order to complete a whole competitive analysis, the Cargill A porter's 5 forces
must be compensated.
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Chapter 4
The acronym “SWOT” stands for Strength, Weakness, Opportunities and Threats. It is a useful
tool that is widely used for strategic planning and management in many organizations. It is
effectively used in building strategies for the organization to maintain its competitiveness in
the market. It is simple yet powerful tool that help the organization in identifying its existing
resources, capabilities, deficiencies, the existing opportunities and threats prevailing in the
market.
SWOT assumes that strengths and weaknesses are frequently internally- related, while
opportunities and threats commonly focus are due to the external environment. The name is an
acronym for the four parameters the technique examines:
• Opportunities: Elements in the environment that the business or project could exploit
to its advantage.
• Threats: Elements in the environment that could cause trouble for the business or
project.
The degree to which the internal environment of the firm matches with the external environment
is expressed by the concept of strategic fit. Identification of SWOTs is important because they
can inform later steps in planning to achieve the objective. First, decision-makers should
consider whether the objective is attainable, given the SWOTs. If the objective is not attainable,
they must select a different objective and repeat the process.
Cargill - SWOT analysis of Cargill, Incorporated analyses the brand/company with its
strengths, weaknesses, opportunities & threats. In Cargill, Incorporated SWOT Analysis, the
strengths and weaknesses are the internal factors whereas opportunities and threats are the
external factors. SWOT Analysis is a proven management framework which enables a brand
like Cargill, Incorporated to benchmark its business & performance as compared to the
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competitors and industry. As of 2020, Cargill, Incorporated is one of the leading brands in the
food & beverages sector.
STRENGTHS
Strength is a characteristic that adds value to something by making it more special, unique and
advantageous when compared. In this element of SWOT, the abilities and the key properties of
organization are discussed that gives an organization an advantage over other organizations
bymaking it more competitive. It defines the characteristics and situations of an organization
which makes it more effective and efficient when compare with its competitors. It defines the
areas in which the organization hold a command or is good at doing it and that provides the
organization and important capability.
It can be a skill, a resource, image, market leadership, relation with buyer or supplier or any
other advantage relative to its competitors that fulfil the needs of the market by providing the
organization with a comparative advantage.
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WEAKNESS
Cargill’s Weakness refer to the situation in which the existing capabilities and the resources the
company holds are weaker or not sufficient compared to others organizations in the market. In
other words, it means the aspects in which the organization is less efficient and needs to improve
in order to align with the market trends. As these aspects negatively affect the overall
performance of the organization by making it weaker compared to its competitors.
These are the factors that an organization lacks and does poorly in comparison to the
organizations operating in the same market at the same level. It is a deficiency or limitation of
resources, capabilities, skills that majorly affect the organizations effective performance.
Management capabilities, Facilities, financial resources, marketing skills and the weak brand
image can be the sources of weakness.
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OPPORTUNITIES
Cargill’s Opportunities is an advantage and the driving force for an organization. It is the
convenient time or situation that is present in the environment and will help the organization in
achieving its goals. It is a factor that contribute positively towards the growth of the
organization. It is a condition existing in the external environment that allow the organization
to take an advantage of the organizational strengths, and help in overcoming the weaknesses
and to neutralize the threats present in the environment.
THREATS
Threats are the factors that prevent the organization from the actualization of an activity. It is
an unfavorable situation that exist in the environment making it difficult for the organization to
achieve its defined goals. It is a situation that arises as a result of the changes that took place in
the immediate or distant environment, preventing the organization from maintaining its
existence and superiority in the growing competition and are disadvantageous for the
organization.
All the environmental factors are considered as a threat to an organization that could affect the
efficiency and effectiveness of the organization.
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Threats faced by Cargill are:
➢ Trump’s trade war with China increasing uncertainty in the business. The following
analysis of Strength, Weakness, Opportunity and Threats (SWOT Analysis) mentioned for
Cargill is best of my knowledge and the analysis of the gathered information gathered is made
known to have the knowledge about the company and its efficiency in the market and its
effectiveness in the economy.
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Chapter 5
Financial analysis
Financial analysis is the process of identifying the strengths and weakness of the firm
by property establishing relationships between item of the balance and profit and loss
account.
Financial analysis can be undertaken by management of the firm.
Generally current ratio of 2:1 is considered as standard. From the above table. It is
clear that the company fails to attain the standard ratio. The ratios are
fluctuating year by year.
2. Quick Ratio
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid
assets and therefore excludes inventories from its current assets. It is also known as the "acid-test
ratio".
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Particular 2019 2020 2021 2022 2023
Quic 0.80 0.66 0.70 0.56 0.57
k
Rati
o
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Analysis and Interpretation:
The obligation of company towards its current liability is lower than ideal ratio that is 1:1 and in
2022 & 2023 it has moderate quick ratio of 0.56 & 0.57 as compared to the past 3 years. The quick
ratios are 0.80, 0.66, 0.70, in the years 2019, 2020, 2021 respectively.
3 Debt-Equity Ratio;
The debt equity ratio is calculated by dividing company's total long-term liabilities by its
shareholders equity. It is calculated to measure debt equity
relationship which affects company's profit levels.
Generally debt equity ratio of 1:1 is considered as standard. From Above table. it shows that the
company is almost debt free which is good for the company.
Ratios are fluctuating year by year.
Price to Earnings Ratio or Price to Earnings Multiple is the ratio of share price of
a stock to its earnings per share (EPS). PE ratio is one of the most popular
valuation metric of stocks. It provides indication whether a stock at its current
market price is expensive or cheap
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Analysis and Interpretation:
The following data shows conclusion of the price to earning is low in 2023 and
high in the year 2019.
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5 Price to sales ratio:
The following data shows value of the Price to sales ratio is low in 2021 and
high in the year 2023.
The operating margin measures how much profit a company makes on a dollar of sales after paying
for variable costs of production, such as wages and raw materials, but before paying interest or
tax. It is calculated by dividing a company's operating income by its net sales.
Analysis and
Interpretation:
The following data shows value of the Operating Profit Margin is low in 2021 and
high in the year 2023.
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7 Gross Profit Margin:
The gross profit margin ratio shows the percentage of sales revenue a company
keeps after it covers all direct costs associated with running the business. Gross profit
margin is calculated by subtracting direct expenses from net revenue, dividing the result
by net revenue and multiplying by 100%.
The following data shows value of the Gross Profit Margin of the company from 2019 to 2023
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CHAPTER 6
➢ Community Engagement
Cargill’s charitable giving in fiscal year 2020 provided $115 million in total charitable
contributions across 56 countries to advance programs that make a difference. It’s businesses,
facilities and employee-led groups support civic and non-profit organizations in their local
communities.
Cargill invests in local communities through economic development, partnerships and giving
combined with the volunteer efforts of our employees. Cargill provides corporate support to
select national and global non-profit and nongovernmental organizations (NGOs) that serve
communities in which they have a business presence. Cargill support partners working within
our focus areas of nourishing our world, protecting our planet, and enriching our communities.
In the fiscal year 2020, Cargill provided $115 million in total charitable contributions, hosted
trainings for 860,000 farmers in sustainable agricultural and business practices to improve their
earnings potential and provided more than 39 million meals to global and local food bank
partners.
Cargill is committed to feeding the world in a safe and responsible way reducing our
environmental impact and improving the communities where we live and work. Cargill is
passionate about their purpose to be the global leader in nourishing people and operating
responsibly across the agricultural, food, industrial and financial markets we serve.
The Cargill Global Scholars program provides financial support and leadership development
opportunity to undergraduate students from around the world.
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➢ Leveraging global knowledge across markets
With food research and innovation centers, local food application facilities, animal nutrition
research center’s, and product development center’s, Cargill has a window on the world. Cargill's
global presence enables us to stay at the forefront of emerging customer needs and solutions
and bring important new knowledge to you.
Cargill’s Business Resource Groups (BRGs) make up global, diverse populations and are
consulted for perspective on a regular basis.
• Cargill Ebony Council: The Cargill Ebony Council continuously strives to build an
inclusive environment that fosters and supports the full participation of Black, African
American and Pan-African employees in reaching their full potential for maximum contribution
to Cargill’s success.
• Cargill Ability Network: The Cargill Ability Network supports Cargill’s efforts in
creating and maintaining an inclusive workplace where people of all abilities can be empowered
to achieve high performance and drive business results.
• Cargill Pride Network: The Cargill Pride Network fosters an equitable, safe and
supportive business environment for lesbian, gay, bisexual and transgender employees, their
allies and business associates.
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• Cargill Veteran Military Support Network: The Cargill Veteran Military Support
Network recognizes, supports and encourages members of the United States military, veterans
and their families. We also serve as a recruitment and retention tool, meeting the unique needs
of this segment of the U.S. workforce
• Cargill Women’s Network: Cargill Women’s Network empowers all women who work
at Cargill by building advocacy and sponsorship of women globally, while advancing Cargill’s
global gender parity aspirations.
• Cargill Welcoming and Onboarding Network: We bring together new employees with
current employees through the provision of a buddy system and by holding events that assist
with orienting and welcoming new employees into the Cargill culture.
In Cargill they live and work by our values of putting people first and doing the right thing.
The cornerstone of their commitment is creating an inclusive culture where their employees
feel welcome, valued and heard.
1. Cargill is are going to focus more intensely to remove any bias from hiring processes
and talent selection so underrepresented minorities have greater access to economic and career
opportunities, and are treated with dignity and respect from the time they apply for a role at
Cargill through their tenure as a valued employee.
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2. Cargill have policies and practices to elevate our inclusive work environment, offering
inclusive facilities, unconscious bias training and employee assistance and psychological safety
programs.
Conclusion:
I had the wonderful opportunity to conduct an organization study at Cargill India Private Limited in
Belludi Harihar. Having knowledge of the organizational study’s practical reality has been quite
beneficial. I have worked really hard to finish my organization study.
Cargill India Private Limited is effectively and efficiently distributing quality product and services to
its customers. Its purpose is to be the global leader in nourishing people. Cargill is rated number 1 in
its business. This is as a result of the organizational structure adopting and implementing good
facilities for organizational efficiency. It is very motivated and has its own goodwill.
Further adjustments are not necessary for Cargill India Private Limited. It is doing best in whatever it
make
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BIBLIOGRAPHY
WEBSITE:
• https://businesscasestudies.co.uk/the-role-of-a-multi-
national-in- developing-markets/
• https://www.cargill.com/about/diversity
• https://www.statista.com/statistics/274778/revenue-and-
profit-of- Cargill-agricultural-company/
• https://www.cargill.co.in/en/about-cargill
• https://www.cargill.co.in/en/page/news
• https://www.cargill.com/news
BOOKS :
• A south Asian Perspectives – Michael A. Hitt R. Duane Ireland, Publisher Cengage South-
Western,2015. Strategic Management
• A.K.P.C Swain Kalyani publication, edition, 2008. Research methodology
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