By: Rita SarkisTori KuketzShane PenzoneMark Greenfield

Company History and Overview International Management Strategy Ireland Overview Economic, Financial and Political Considerations Policies and Practices Measures of Success

From the apple trees that Johnny Appleseed planted, Jerome Monroe Smucker was able to make cider and apple butter.

Johnny Appleseed wandered the Ohio countryside, planting apple seeds.

Headquarters in Orville, Ohio Has been in operation for over 110 years Committed to offering wholesome, high‐quality food products 

Products “that help families create memorable mealtime moments”

Leading marketer and manufacturer of (in North America):

o Fruit spreadso Retail packaged coffeeo Peanut buttero Shortening and oilso Ice cream toppingso Sweetened condensed milko Health and natural food and beverages

United States Smucker’s Folgers Dunkin Donuts  Jif Crisco Pillsbury  Eagle Brand  R.W. Knudsen Family Hungry Jack White Lily  Martha White

Canada• Robin Hood• Five Roses• Carnation• Europe’s Best• Bick’s

Co‐CEOCo‐CEO Co‐CEOCo‐CEO

Ireland DivisionIreland Division US DivisionUS DivisionCanada 

DivisionCanada Division

R&DR&DHRHRFinanceFinance OPSOPS ITIT SalesSales MKTGMKTGMGMT

MGMT

Control ExpenseControl Expense

Manage EmployeesManage 

Employees

Develop ProductsDevelop Products

Factory MgmtFactory Mgmt

Factory Machine Mgmt

Factory Machine Mgmt

Manage Sales

Manage Sales

Manage Factory & Employees

Manage Factory & Employees

Manage Mktg

Efforts & Promotion

Manage Mktg

Efforts & Promotion

Multi‐domestic Strategyo Build Plant in Irelando Control over production

Key Considerations:o Value Creationo Cultureo Competition

Strategic Areas

Political

Economic

Diversity

Functional

Labor

Competition

OPS Sales Finance QualityControl

TalentMgmt

ExpansionMgmtHR R&D Mark

etingIT

Vice President of International Division‐

Smuckers Ireland

Title Average Annual Salary

Total Annual Salary Total Benefits Cost(30%)

Total Compensation

VP of HR $130,000 $130,000 $39,000 $169,000

HR Manager (4) $80,000 $320,000 $24,000 *4 = 96,000 $416,000

VP of R&D $173,000 $173,000 $51,900 $224,900

R&D Manager (7) $90,000 $630,000 $27,000*7= 189,000 $819,000

Ops Manager (2) $80,000 $160,000 $24,000*2=48,000 $208,000

IT Manager (3) $95,000 $285,000 $28,500 * 3= 85,500 $370,500

Mktg Manager (3) $73,000 $219,000 $21,900 *3= 65,700 $284,700

Sales Manager (4) $70,000 + commission $280,000 + commission

$21,000 *4= 84,000 $364,000 + commission

VP of Finance $160,000 $160,000 $48,000 $208,000

Finance Manager (2) $95,000 $190,000 $28,500 *2= 57,000 $247,000

QC Manager (7) $65,000 $455,000 $19,500*7= 136,500 $591,500

Talent Manager (4) $82,000 $328,000 $24,600*4= 98,400 $426,400

Expansion Manager (3)

$75,000 $225,000 $22,500*3= 67,500 $292,500

Ireland is a member of the European Union and recognizes the Euro as its currency. Since joining the EU it has lost some of its sovereignty and follows European law rather than national law.

Minimum Notice and Terms of Employment Act Organisation of Working Time Act  Payment of Wages Act  Maternity Protection Act  Redundancy Payments Acts  Protection of Young Persons Employment Act  Worker Protection Act  Unfair Dismissals Act Employment Equality Act

Opening a business takes an average of 13 days compared to the world average of 35 days. Obtaining a business license requires less than the world average of 18 procedures and 218 days. Ireland’s policy on trade is the same as the members of the EU.

As of 2008, there is a weighted tariff rate of 1.3 Ireland has a relatively high income tax rate but a relatively low corporate tax rate. The highest corporate tax rate is 12.5 %. 

Ireland has experienced difficult economic and financial challenges as a result of the recent economic climate

Government action in response to the financial crisis included the establishment of a single fully integrated regulatory institution. The government also rebuilt the financial sector, creating the National Asset Management Agency to stabilize the banking sector and bring back liquidity. The government nationalized the Anglo Irish bank in early 2009. The government has taken a 25 percent stake in the Bank of Ireland.

Ireland’s GDP was $222.7 billion in 2009. Its nominal GDP per capita in 2009 was $49,935. Agriculture accounts for 2%, Industry accounts for 27% and Services account for 49%. In 2009, the Irish economy experienced double‐digit unemployment, deflation, a halt in credit availability and a growing budget deficit.  

Many U.S. businesses find Ireland an attractive location to manufacture for the EU market because it is inside the EU customs area and uses the Euro.

U.S. firms account for over half of Ireland’s total exports. Ireland has 12.5% corporate tax rate for foreign and domestic firms alike, political stability, pro‐business government policies, and a transparent judicial system. 

However, Ireland also has high labor and energy costs and price levels that are ranked among the highest in Europe. 

Ireland is a sovereign, independent, democratic nation with a parliamentary system of government

The president is aided by the council of State. The prime minister is elected by the lower house of parliament as the leader of the political party that wins the most seats in national elections, held every 5 years 

Politics are dominated by FiannaFail and Fine Gael parties

Ireland has a  population of approximately 4,622,917 people. 67.1 % are between 15‐64 years of age. There are approximately 1,411,336 males and 1,409,760 females. 

In regards to the labor market, there are approximately 2.7 million people ready and available to work. 

The service sector is the largest occupation with about 67% of the labor force working in the service industry. Agriculture has rapidly declined to make up 6% of the workforce and industry makes up 27%.

Ireland has an unemployment rate of 14.1%. The large majority of the population is English speaking which is 

great for American business.  However, there are high labor costs, skilled labor shortages, 

inadequate infrastructure such as transportation and internet, and extremely high price levels. 

Smuckers faces competition from any company that produces household foods such as jams, jellies, peanut butter as well as coffee. 

Smuckers’ top competitors include Kraft Food and ConAgra foods as well as Unilever. It also faces competition from Nestle.  Kraft food also boasts a wide product line and is international as well. 

Cultural Factor United States Ireland

Religion Protestant 51.3%Roman Catholic 23.9%Mormon 1.7%Jewish 1 .7%

Roman Catholic 87.4%Church of Ireland 2.9%None 2.4%Other: 4.5%

Education 99% literate. About 16 years of schooling.

99% Literate. About 18 years of schooling.

Economics Largest and most technologically powerful. Market oriented. Flexibility. 9.6% unemployment.

Economic crisis.Competitive financial system. 14.1% unemployment. 12.5 Corporate tax rate.

Politics Strong democratic tradition.Two major parties: Democrats & Republicans. Emergence of the Tea Party.

Fianna Fail & Fine Gael are the two main parties. Democratic parliament.

Family Nuclear family. Small. Few children or married without children.

Small families. Women work outside the home.

Class Structure RichHigh middle classLow middle classPoor

Upper ClassMiddle working classLower working classPoor

Languages English: 82.1%Spanish 10.7%

English (official)Irish (Gaelic) also official and is spoken in areas along the western coast

History Colonized by Britain in the 1600s. Gained independence in 1776. Victorious in WW1 and WW2. The world’s most powerful nation state.

1921: Independence from the UK for certain counties. 1949: all of Ireland gained independence from Britain. 1973: joined the European Community. Slowly forming peace with Northern Ireland.

Natural Resources/Geography

Borders the North Atlantic Ocean and the North Pacific Ocean; between Canada and Mexico. Large coal reserves, uranium, copper, mercury, nickel, gold

Island along the North Atlantic Ocean. Natural resources include zinc, lead, natural gas, barite, copper, limestone, peat

28%

33%

25%

14%

International Management DevelopmentManagers New Hires Teams Sales People

Social Responsibility Ethical conduct  Long term employee satisfaction and  Long term customer relationships to reach goals and objectives. 

Expatriates are relocated to given location (Ireland)

Expatriates and local managers are integrated and 

train together

Both Managers and local employees are trained and educated on company strategy and values

Focus on values an techniques of the 

international plan. Customer relations, Social 

Responsibility and Employee Relations

Expatriates mentor  and coach regional managers

Company works with employees to develop 

appropriate performance appraisals and motivation 

techniques

Regional managers are slowly moved into the executive positions and expatriates are faded out

Regional managers are transformed into well 

educated executives that can be used for further 

international investments.

Business Goals Achieved

Increased Market ShareNew CustomersProfit Margin

• Sales ReportsMonthly Measurement – Forecasting, Inventory Management, Trends.

• Marketing Surveys  Demographic information, Segmentation

• Financial ReportsQuarterly Income Statements, Balance Sheets

• 8‐10% Market share increase within 5‐7 years

• Introduce jobs and help bring economic stability to Western Europe Boost Local Brand Image

• Market leader in efficient Operations and Supply Chain Process

Multi‐domestic Strategy Various Political, Legal, Financial and Economic Considerations

Increase Employees and Annual Revenue Capture Market Share Offer quality food products that enable families to create “memorable mealtime moments”

Smucker’s Expansion into Ireland AlookatSmucker’sstrategyforexpansionintoIreland.Group4MarkGreenfield,ToriKuketz,ShanePenzone,RitaSarkisFall2010

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Company Overview The story goes, in the early 19th century, a man by the name John Chapman, or "Johnny Appleseed," wandered the Ohio countryside, sowing apple seeds. From the fruit of Johnny Appleseed's trees, Jerome Monroe Smucker first pressed cider at a mill he opened in 1897. After the cider, Jerome Smucker also prepared apple butter, which he sold from the back of a horse-drawn wagon. Each crock bore a hand-signed seal as his personal guarantee of quality. Before long, J.M. Smucker's name became well known as residents throughout the region and eventually the nation came to associate the Smucker's name with wholesome, high-quality fruit products1. The J. M. Smucker Company is the producer of the staple American household brand of Smucker’s jelly and Jiffy peanut butter. The headquarters is located in Orrville, Ohio. The company has been in operation for over 110 years and is committed to offering consumers quality products, “that help families create memorable mealtime moments”2 The company has a wide variety of brands including, Smucker’s, Folgers, Dunkin Donuts, Jif, Crisco, Pillsbury, Eagle Brand, R.W. Knudsen Family, Hungry Jack, White Lily, and Martha White in the United States In Canada, the company’s brands include Robin Hood, Five Roses, Carnation, Europe’s Best, and Bick’s. Smucker’s is the leading marketer and manufacturer of fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and health and natural foods beverages in North America3. In addition to producing fruits for their own products, Smucker’s also manufactures the fruit for Dannon yogurt and the filling for Kellogg’s Pop Tarts. The Company operates 3 international facilities and 12 plants in the United States4. The Smucker Company’s basic beliefs, which have been rooted in the heritage of the company since established by its founder, are: quality, people, ethics, growth, and independence5 . Currently, the company has about 4,850 employees6. These stated beliefs are held in the highest regards within the company as well as among the employees including potential employees. The Company has been in FORTUNE Magazine’s list of the 100 best companies to work for in the United States twelve times7. The corporate culture within the company is said to be relaxed and informal, where employees call each other by first names8. We can see that the Smucker Company hold its employees to high standards and in return the rewards are favorable for the employees. COMPANY DESCRIPTION: COMPANY HIGHLIGHTS: Name: The J.M. Smucker Company Location: Ireland Company Annual Revenue: 50,000,000 euros

1 Smucker's. 2010. Web. 27 Nov. 2010. http://www.smuckers.com/?gclid=CMjn0YrdwaUCFUGo4Aod1i33YA 2 Ibid 3 Ibid. 4 "J.M. Smucker Co." Novelguide: Free Study Guides, Free Book Summaries, Free Book Notes, & More. Oakwood Publishing Company, 2010. Web. 27 Nov. 2010. http://www.novelguide.com/a/discover/cps_01/cps_01_00151.html. 5Smucker’s.6Novelguide7Smucker’s8Novelguide

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Number of Employees: 3,000 Type of Business: Packaged food products PURPOSE OF BUSINESS: The J.M. Smucker Company offers quality food products that help families create memorable mealtime moments. COMPANY STRATEGIC PLAN AND GOALS: 24 months: Company Annual Revenue: 100,000,000 euros Number of Employees: 5,000 Type of Business: Packaged Food Products Present: Company Annual Revenue: 50,000,000 euros Number of Employees: 1,000 Type of Business: Packaged Food Products

Co‐CEO Co‐CEO

CanadaDivision Headquarters&USDivision

IrelandDivision

HR R&D OPS IT MKTGMGMTSALESFinance

ControlExpense Manage

EmployeesDevelopProducts

FactoryMgmt

FactoryMachineMgmt

ControlSales

ManageFactory&Employees

ManageMktgEfforts

andPromotions

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INTERNATIONAL MANAGEMENT STRATEGY:

I. THEORY FOUNDATION:

International management strategy includes deciding how a company should compete abroad and developing an approach including the goals a company would like to achieve internationally9. Within in this strategy a company must be flexible in order to remain competitive and must carefully consider the locations within the country where the company wants to compete internationally. The strategy helps identify what products or services are going to be sold abroad, how the products and services will be sent and distributed abroad, what resources the company will need, and how these resources will be acquired10. The main part of the international strategy would be how the company will be able to outperform its competitors and how the company will differentiate itself from the competition. The company strategy should be taken into great consideration because without a researched way of implementing the company in a foreign country, it could be a great disaster which would result in valuable time and money lost. The strategy that we chose to use is the multi-domestic strategy because we would like to be able to control the venture we establish in Ireland. We will set up our own new branch for the company and a new plant that will produce and distribute the product. We will use local as well as our domestic suppliers accordingly. We would like to be able to control the distributors and suppliers within Ireland, but also differentiate our product enough that it fits well with the locale. II. KEY STATEMENTS:

The key statements that international management will form for the basis of the plans would be differentiating the products so that they are unique and superior to any other similar or substitute products in the country. Value creation is a key statement for the company as well because it wants to not only offer simply a product or service, but it wants to offer value that the customers will benefit from when buying its products. Also, the basic statement of offering products that the customers want is crucial because if there is no need or potential demand for the product in that country, then it will not be successful. There may not be an immediate or direct need for the product, but with the correct research a company can find that consumers will buy the product if it is presented to them. III. KEY CONSIDERATIONS:

The key elements that affect the key statements are the elements of culture, location, competition and the demand for the product. The culture is a key element that can affect the key statements because the company needs to be aware of the culture within the country, so that it can tap into what the locals will use and what they are looking for in the company’s particular products. Location is also a key element because the company needs to strategically place its possible production plants and the actual products itself where the local culture will accept it and buy the products being sold. Competition is a key element because

9 Dean B. McFarlin and Paul D. Sweeney. International Management: Strategic Opportunities and Cultural Challenges. Boston: Houghton Mifflin, 2006. Print 10Ibid.

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if the culture is already loyal to one type of competitor or product substitute, it might not be as receptive to the company’s products. The last element would be the demand for the product. Although there may not be an initial demand for the product and the consumers may not be asking for it, if the product is placed for the consumer to consider it an option and if it is not something they would reject, then the product will be successful. IV. KEY GOALS:

The key goals of the international management strategy are to expand the company into a foreign country successfully and to make a profit from this expansion. The company wants to successfully bring the Smucker’s product line into another country without sacrificing the brand equity. The company wants to bring its products to another country and reap profits from the venture. V. PIEGRAPH

StrategicAreas

Political

Economic

Diversity

Functional

Labor

Competition

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International Management Department Plan Department Descriptions Human Resource Management There is one vice president of human resource management as well as four human resource managers. Each manager reports to the vice president of human resources who reports to the Vice President of Smuckers’ Ireland. Each of the four managers covers a different domain such as recruiting/hiring, benefits, compensation, and termination. Research & Development Management There is one vice president of research and development management as well as a manager for each of Smuckers’ product lines that is expanding internationally. In total there are seven Research & Development managers for Smuckers, Folgers, Dunkin’Donuts, Jif, Crisco, Pillsbury, and Carnation. Responsibilities include product development and design as well as creating new efficient and environmentally friendly ways to develop products. Operations Management There are two operations managers. One functions to oversee the logistics of the operations as well as the supply chain management. The second manager oversees the other departments to ensure that all operations are running smoothly. Information Technology Management There are three IT managers to ensure that all internet and intranet systems are running smoothly and efficiently and without viruses. They also ensure that no information that should

VicePresidentofInternationalDivision‐SmuckersIreland

HR R&D OPS IT Mktg. Sales Finance QualityControl

TalentMgmt.

Expand.Mgmt

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not be shared leaks out via Smuckers’ computer systems. They are responsible for the day to day computer issues as well as updates. Marketing Management There are three marketing managers and they are responsible for positioning Smuckers’ products in Ireland. They are responsible for brand awareness as well as placing Smuckers’ products throughout the Irish market. They must market the products to the appropriate consumers- the families, etc- and get the word out about Smuckers. Sales Management There are four sales managers and they are responsible for signing up clients such as supermarkets and restaurants. Each sales manager has a particular region and a particular quota to reach. They coordinate with marketing and reach out to supermarkets to set up tastings and samples to bring in the consumer. Finance Management There is a vice president of finance for Ireland as well as two finance managers. The vice president oversees the managers and ensures that all budgets are being met. One manager takes care of payroll and billing and the other manager ensures that Smuckers collects payments and its accounts receivables. Quality Control Management There are seven quality control managers who sample the products being manufactured to ensure quality. They work closely with research & development managers to guarantee that quality is being met the entire way through the production process. Talent Management There are four talent managers. They report to the vice president of human resources. They work closely with employees to develop their careers. The talent managers run training seminars and conduct performance appraisals and offer input for promotions and bonuses. They are also in charge of expatriates and help them adapt to Ireland. Expansion Management There are three expansion managers. They report to the Vice President of Smuckers Ireland. They are in charge of researching expansion options as well as bringing Smuckers to other European countries. They do market research and measure Smuckers’ success in Ireland and develop plans for future expansion. They travel across Europe to do their market research and bring Smuckers’ samples with them to develop a taste for Smuckers across Europe.

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International Management Participant Compensation Plan Title Average Annual

Salary11 Total Annual Salary

Total Benefits Cost (30%)12

Total Compensation

VP of HR $130,000 $130,000 $39,000 $169,000

HR Manager (4) $80,000 $320,000 $24,000 *4 = 96,000

$416,000

VP of R&D $173,000 $173,000 $51,900 $224,900

R&D Manager (7)

$90,000 $630,000 $27,000*7= 189,000

$819,000

Ops Manager (2) $80,000 $160,000 $24,000*2=48,000 $208,000

IT Manager (3) $95,000 $285,000 $28,500 * 3= 85,500

$370,500

Mktg Manager (3)

$73,000 $219,000 $21,900 *3= 65,700

$284,700

Sales Manager (4)

$70,000 + commission

$280,000 + commission

$21,000 *4= 84,000

$364,000 + commission

VP of Finance $160,000 $160,000 $48,000 $208,000

Finance Manager (2)

$95,000 $190,000 $28,500 *2= 57,000

$247,000

QC Manager (7) $65,000 $455,000 $19,500*7= 136,500

$591,500

Talent Manager (4)

$82,000 $328,000 $24,600*4= 98,400

$426,400

Expansion Manager (3)

$75,000 $225,000 $22,500*3= 67,500

$292,500

11PayScale - Finance Manager Salary, Average Salaries. PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 06 Nov. 2010. http://www.payscale.com/research/US/Job=Finance_Manager/Salary.12EBRIBenefitOverviewFAQ|Question1.EmployeeBenefitResearchInstitute|EBRI.Web.06Nov.2010.http://www.ebri.org/publications/benfaq/index.cfm?fa=ovfaq1.

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The vice president of Finance-Ireland is responsible for this plan. This plan is measured by each position and the person in that position. We base our numbers off of task challenges, personality challenges as well as environmental challenges. We look at task variables to see if the job itself is extremely challenging. We look at personality challenges to see if the manager has had to manage a diverse group with cultural clashes. We look at environmental challenges to see if the work environment itself presents an extreme challenge. We also look at the number of years of experience and promotions that have occurred in those years. We look at past and present performance evaluations as well as overall contributions to the company.

Company International Management & Issues Key Laws Ireland is a member of the European Union and recognizes the Euro as its currency. Since joining the EU it has lost some of its sovereignty and follows European law rather than national law. Due to EU mandates, Ireland enacted the following acts: Minimum Notice and Terms of Employment Act (1973), Organisation of Working Time Act (1997), Payment of Wages Act (1991), Maternity Protection Act (1994), Redundancy Payments Acts (1967-1991), Protection of Young Persons Employment Act (1996), Parental Leave Act (1991), Worker Protection Act (1991), Unfair Dismissals Act (1993), and the Employment Equality Act (1998)13.

The Irish constitution also recognizes the right to join a Union. The Irish Congress of Trade Unions represents 64 unions and is independent of political parties and the government. The right to strike is exercised in all sectors except for police and military personnel. Employers are prohibited from discriminating against union members. Collective bargaining is used to set wages and other terms of employment. Children under 16 are legally prohibited from participating in full time work. Violations of child labor laws are uncommon14.

Ireland follows a common law system and judicial decisions create important legal

precedence. An efficient, non-discriminatory legal system is accessible to foreign investors to protect and aid acquisition and disposition of all property rights. The courts protect property and contracts are secure. Ireland has one of Europe’s most inclusive legal frameworks for the protection of intellectual property rights. It is illegal for public servants to accept bribes, and the police investigate allegations of corruption. Ireland has ratified the OECD Anti-Bribery Convention and is a member of the OECD Working Group on Bribery and the Group of States Against Corruption15.

Government action in response to the financial crisis included the establishment of a

single fully integrated regulatory institution. The government also rebuilt the financial sector, creating the National Asset Management Agency to stabilize the banking sector and re-establish liquidity16.

Key Considerations Consumer Products: Food Industry Considerations

13 Ireland - National Labour Law Profiles - Information Resources - Social Dialogue, Labour Law and Labour Administration Department. International Labour Organization - Home. Web. 06 Nov. 2010. http://www.ilo.org/public/english/dialogue/ifpdial/info/national/ire.htm. 14 Labor - Ireland. Encyclopedia of the Nations - Information about Countries of the World, United Nations, and World Leaders. Web. 06 Nov. 2010. http://www.nationsencyclopedia.com/Europe/Ireland-LABOR.html. 15 Ireland Information on Economic Freedom | Facts, Data, Analysis, Charts and More. Conservative Policy Research and Analysis | The Heritage Foundation. Web. 06 Nov. 2010. http://www.heritage.org/index/country/Ireland 16 Ibid

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Things important for Smuckers to consider when breaking into the Irish market include the general freedom to do business in Ireland. Opening a business takes an average of 13 days compared to the world average of 35 days. Obtaining a business license requires less than the world average of 18 procedures and 218 days. Ireland’s policy on trade is the same as the members of the EU. As of 2008, there is a weighted tariff rate of 1.3%. Non trade barriers include agricultural and manufacturing subsidies, quotas, import restrictions and bans for some goods and services, and market access restrictions in some service-sectors. Ireland has a relatively high income tax rate but a relatively low corporate tax rate. The highest corporate tax rate is 12.5 %17. Environmental Interests Considerations Ireland has multiple environmental agreements such as Air Pollution, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Marine Dumping, Ship Pollution, Whaling and many others. Smuckers must take care when constructing its Irish headquarters to follow all governmental and environmental rules and regulations. Ireland is located on the North Atlantic Ocean and this could help Smuckers in the long run when importing Smuckers’ products or manufacturing equipment. It is also located extremely close to England which could also prove to be beneficial to import manufacturing necessities. Ireland also has a wide array of natural resources such as zinc, natural gas, lead, barite, copper, gypsum, limestone, dolomite, and peat. This is important because Smuckers could use natural gas to power its headquarters or use the natural resources somewhere in its production process. Economic Considerations Ireland has experienced difficult economic and financial challenges as a result of the recent economic climate. Its competitive financial system was disturbed by the collapse of the housing bubble. Government action in response to the financial crisis included the establishment of a single fully integrated regulatory institution. The government also rebuilt the financial sector, creating the National Asset Management Agency to stabilize the banking sector and bring back liquidity. The government nationalized the Anglo Irish bank in early 2009. The country’s two largest banks, Bank of Ireland and Allied Irish Bank, have received capital injections, and the government has taken a 25 percent stake in the Bank of Ireland18.

Ireland’s GDP was $222.7 billion in 2009. Its nominal GDP per capita in 2009 was $49,935. Agriculture accounts for 2%, Industry accounts for 27% and Services account for 49%. In 2009, the Irish economy experienced double-digit unemployment, deflation, a halt in credit availability and a growing budget deficit. In 2010 the government frequently intervened in the banking sector to guarantee the safety of bank deposits19.

Financial Considerations Many U.S. businesses find Ireland an attractive location to manufacture for the EU market because it is inside the EU customs area and uses the Euro. U.S. firms account for over half of Ireland’s total exports. Ireland has a 12.5% corporate tax rate for foreign and domestic firms alike, political stability, pro-business government policies, and a transparent judicial system. It also has a clustering effect of existing corporations operating successfully. However, Ireland

17 Ibid.18Ibid.19 Ireland. U.S. Department of State. Web. 06 Nov. 2010. http://www.state.gov/r/pa/ei/bgn/3180.htm.

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also has high labor and energy costs and price levels that are ranked among the highest in Europe. 20 Political Considerations Ireland is a sovereign, independent, democratic nation with a parliamentary system of government. The president acts as the head of state and is elected for a 7 year term and can only be re-elected once. The current president is Mary McAleese. The president is aided by the council of State. The prime minister is elected by the lower house of parliament as the leader of the political party that wins the most seats in national elections, held every 5 years. Judges are appointed by the president after being nominated by the government. They can only be removed from office for misbehavior or incapacity. The ultimate court of appeals is the Supreme Court which can decide upon the constitutionality of legislative acts if asked to do so by the president. Most authority remains within the central government.

There are a few different political parties in Ireland such as Fianna Fail, Fine Gael, Green Party, Labor Party, Sinn Fein, Socialist party, and the Workers’ Party. Irish politics is dominated by Fianna Fail and Fine Gael. These two parties grew from Ireland’s civil war during 1922 and 1923. Fianna Fail was formed by those who opposed the 1921 treaty that partitioned the island21. Workforce Demographics & Labor Market

Ireland has a population of approximately 4,622,917 people. 67.1 % are between 15-64 years of age. There are approximately 1,411,336 males and 1,409,760 females. 20.9% are from 0-14 years of age and 12% are 65 years and over. Almost 100% of the population is literate. In regards to the labor market, there are approximately 2.7 million people ready and available to work. The service sector is the largest occupation with about 67% of the labor force working in the service industry. Agriculture has rapidly declined to make up 6% of the workforce and industry makes up 27%22. Ireland has an unemployment rate of 14.1%23. The large majority of the population is English speaking which is great for American business. However, there are high labor costs, skilled labor shortages, inadequate infrastructure such as transportation and internet, and extremely high price levels. Competition Smuckers faces competition from any company that produces household foods such as jams, jellies, peanut butter as well as coffee. Smuckers has a wide array of product lines such as Smuckers, Folgers, Dunkin’ Donuts, Jif, Crisco, Pillsbury, Carnation, and others. Smuckers’ top competitors include Kraft Food and ConAgra foods as well as Unilever. It also faces competition from Nestle. Kraft food also boasts a wide product line and is international as well. According to Hoovers.com, demand is driven largely by demographic shifts, specifically trends in population and age, working women, race and ethnicity, household size, and levels of disposable income. The profitability of individual companies depends on a good product mix and efficient operations. Large distributors are advantaged by bulk purchasing and economies of scale

20Ibid.21Ibid.22Ibid.23IrelandInformationonEconomicFreedom.Heritage.

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in distribution. Smaller companies can compete effectively by specializing in certain products or focusing on a geographical area.24

24The J. M. Smucker Company | Company Profile from Hoover's. Hoovers | Business Solutions from Hoovers. Web. 06 Nov. 2010. http://www.hoovers.com/company/The_J_M_Smucker_Company/rfxrri-1-1njg4g.html.

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Key Cultural Differences

Cultural Factor United States25 Ireland26

Religion Protestant 51.3% Roman Catholic 23.9% Mormon 1.7% Jewish 1 .7%

Roman Catholic 87.4% Church of Ireland 2.9% None 2.4% Other: 4.5%

Education 99% literate. About 16 years of schooling.

99% Literate. About 18 years of schooling.

Economics Largest and most technologically powerful. Market oriented. Flexibility. 9.6% unemployment.

Economic crisis. Competitive financial system. 14.1% unemployment. 12.5 Corporate tax rate.

Politics Strong democratic tradition. Two major parties: Democrats & Republicans. Emergence of the Tea Party.

Fianna Fail & Fine Gael are the two main parties. Democratic parliament.

Family Nuclear family. Small. Few children or married without children.

Small families. Women work outside the home.

Class Structure Rich High middle class Low middle class Poor

Upper Class Middle working class Lower working class Poor

Languages English: 82.1% Spanish 10.7%

English (official) Irish (Gaelic) also official and is spoken in areas along the western coast

History Colonized by Britain in the 1600s. Gained independence in 1776. Victorious in WW1 and WW2. The world’s most powerful nation state.

1921: Independence from the UK for certain counties. 1949: all of Ireland gained independence from Britain. 1973: joined the European Community. Slowly forming peace with Northern Ireland.

Natural Resources/Geography Borders the North Atlantic Ocean and the North Pacific Ocean; between Canada and Mexico. Large coal reserves, uranium, copper, mercury, nickel, gold

Island along the North Atlantic Ocean. Natural resources include zinc, lead, natural gas, barite, copper, limestone, peat

25 CIA - The World Factbook. Welcome to the CIA Web Site — Central Intelligence Agency. Web. 06 Nov. 2010. https://www.cia.gov/library/publications/the-world-factbook/geos/us.htm 26 Ibid.

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International Management Development Plan

International Management Plan I. International Management Development A. Recruitment and selection Pie graph B. Training and development Company values and goals - Regional and company goals - Continuous development and communication Local and international Training Program: - Influential External Environmental Factors - Internal Factors contributing to success. On the job and in house training - Mentors C. Performance Management and appraisal Motivational techniques -Intrinsic and extrinsic rewards D. Evaluation Balance Score Card - Financial, Growth, Customer Service, Employee Satisfaction Smuckers’ Corporate International Management Policies:

Smuckers has established itself as a company with quality products and reputable services. The company has reached success by perfecting its domestic strategy and has since

InternationalManagementDevelopment

Managers

NewHires

Teams

SalesPeople

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begun to expand internationally, ensuring their place in the market. Smuckers achieves success through the success of its employees. They maintain their values of social responsibility, ethical conduct, long term employee satisfaction and customer relationships to reach goals and objectives.

Smuckers provides a variety of products to a variety of people. Social responsibility refers to the idea of improving ones positive impact on the world and surrounding communities while minimizing their negative impact. Entering into new international markets forces the company to adapt to every given territory and is why we have chosen a multi-domestic strategy. Each country is different and each culture is different, a concept that Smuckers has embraced. Smuckers is primarily a food company. Expanding internationally means recognizing the different cultural needs and demands. Management policies regarding employees, customers and social responsibility must reflect the given cultures while maintaining Smuckers’ values of ethics, employee satisfaction and customer relationships.

Smuckers has the social responsibility of not only positively impacting that which surrounds the company but also catering to what surrounds the company. To achieve success the company must create and distribute products that relate to the countries they operate in. It is important that in meeting customer demands that the company maintains its company values and strategies. While Smuckers should adapt to the local countries they should also promote their company values to the community and employees.

Smuckers’ other core values focus on the employee. Employees are in many instances what gives a company its competitive advantage. When we look to motivate our employees we look back before going forward. It’s important to understand Maslow’s Hierarchy of Needs and Herzberg’s two factor approach to motivation. Both theories suggest that basic fundamental principle needs must first be met in order to successfully motivate employees. Behind our approach is the logic that an employee with those basic principles met will not only be happier, but they will have the foundation we need to build off of. From that foundation we can motivate employees appropriately. Our focus on the most basic level is to provide our employees with the proper benefits, including but not limited to health insurance and financial stability. With those techniques we can focus on motivating our employees to their maximum potential. We look to do so by developing relationships with employees that reflect our involvement in their lives. We look at employees as an investment and asset to the company. Smuckers is dedicated to the long term development of employees to increase motivation through self actualization and job enrichment.

In order maintain and satisfy our customers and employees, Smuckers places a strong emphasis on ethical standards. It’s the responsibility of the company to support customer and employees needs while promoting their well being. People are the strength both externally and internally of the company and its important management policies and practices reflect that. Smuckers management policies focus on “Beneficence and Non malfeasance, Fidelity and Responsibility, integrity, and Respect in order to promote social responsibility and ethical responsibility”27.

Beneficence and non malfeasance refers to Smuckers goal to create an environment to benefit those with whom we work and take care of, both employees and customers. We seek to safeguard the welfare and rights of those with whom we interact with professionally both our

27 Jeffrey Barnett. "Revised Code of Ethics." National Register of Health Service Providers in Psychology - Continuing Education Website. Web. http://www.e-psychologist.org/index.iml?mdl=exam/show_article.mdl&Material_ID=24.

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employees and customers. When conflicts occur among personnel we attempt to resolve these conflicts in a responsible fashion that avoids or minimizes harm. We dispel against personal, financial, social, organizational, and political factors that might lead to a negative influence on company policies and decisions.

Smuckers also practices the concepts of fidelity and responsibility. We establish relationships of trust with individuals both in and out of the work place. We are aware of the professional responsibilities we have to society and the communities in which we operate. We uphold professional standards of conduct, accept appropriate responsibility for company behavior actions as well as seek to manage conflicts in responsible and efficient manner. We strive to contribute a portion of our professional time for little or no compensation and no personal advantage in order to maximize our positive impact on the communities and world around us.

Also important in achieving success for Smuckers is to maintain its integrity. Here at Smuckers we promote accuracy, honesty, and truthfulness. Our company emphasizes the importance of honesty and ensures employees do not steal, cheat, or engage in fraud. We believe it is essential to keep promises and to avoid unclear commitments. In situations in which deception may be ethically justifiable we emphasize to our employees the importance of transparency and the importance integrity has on our company and the kind of business we do.

Most important to the success of Smuckers and the long term relationship with customers and employees is respect. We respect the dignity and worth of all people. We are aware that special safeguards may be necessary to protect the rights and welfare of persons in our communities and company. We respect cultural, individual, and role differences among all. We try to eliminate behaviors of individuals who knowingly participate in or condone activities of others that relate to any such prejudices.

Impact of Smucker’s International Management Policies:

Smuckers has successfully implemented their policies and beliefs over the recent years. Implementing these policies on an international level may not be as easily executed. By focusing on a wider span of control it reduces the levels typically associated and involved in large companies. Minimizing the hierarchy can lead to reduced tensions and help Smuckers execute its core values.

By increasing the span of control and reducing the hierarchal pyramid it helps the company maintain and continue to develop its relationships with employees and customers. It promotes the free flow of information throughout the organization. Functioning on a more personal level allows managers to develop better relationships with employees.

These relationships are important for the company to maintain in order to adequately motivate its employees. There are a number of techniques offered to motivate employees. The equity approach “contends that when employees perceive that they’ve been treated unfairly, they are motivated to restore a sense of fairness28”. The reinforcement approach views motivation of employees in terms of consequences. The third approach is the expectancy approach. This approach “assumes three factors determine effort in a given situation. First, employees must believe that working hard will result in good performance. Second, employees must believe that

28McFarlin356

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rewards are associated with good performance. Finally, motivation and effort will also suffer if the rewards available to employees are unimportant to them.” 29

Although all approaches are equally valid none of them will be a direct policy for the

company in terms of motivation. Self actualization in Maslow’s Theory and job enrichment in Herzberg’s approach really focus on making an employee interested in their work and care about their work. We here at Smuckers believe that the key is getting our employees involved and that is a policy that we work hard to accomplishment. Through job flexibly, independent job design and rewards based on individual preference we will seek to make the most out of our company personnel.

Smuckers managerial and operational infrastructure should focus on creating individual operating units in the countries they embark. As we embark into Ireland we will create a company based on Smuckers values but strategize and recruit locally. To best operate in this way Smuckers will use expatriates. In doing so Smuckers can have upper management expatriates that instill the core beliefs and values of the company to its personnel. Integrating expatriates with local employees will allow them to manage the people according to the cultural differences applicable to the area. It’s important not to force the techniques used domestically on the employees of Ireland. Smuckers should structure the company and be flexible with policies to adapt to whatever country it may be in. By using both local employees and expatriates it allows the company to have a stronger impact on the society they are in and maintain their ideals. International Management Process

29Ibid360.

Company Business Goals set:

Increased Market Share

Increased Employees and Increased Employee Satisfaction

InternationalBusinessStrategy&Plan

Multi‐DomesticStrategy

InternationalManagementStrategy&Plan:Managersacceptandunderstandlocalcustoms

Behaviors,knowledge,skillsappliedtobusiness:

Understandthecustomers

Understandinternationalcorporatestructure

BusinessGoalsAchieved:

IncreasedMarketShare

NewCustomers

ProfitMargin

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II. Manager Development Process

What data will be collected, how, analyzed? We will collect data from three main sources: sales reports, financial reports, and marketing surveys. These three sources of data will be used to help in future decision making processes, as well as a measurement of where the company stands now. The sales reports will be conducted monthly, and will be used by both upper management as well as regional sales managers regarding the status of the company and its success regarding its sales each month. These reports will be useful regarding identifying consumer trends, target customers and segments, inventory management, and will also be the main determinant of sales forecasts moving forward. The marketing surveys that will be conducted will be administered in stores and offered to customers who buy any of the company’s products. The survey will focus on questions regarding consumer demographics, as well as how they heard about the product, and whether or not they would recommend the specific product to a friend. This demographic information will also help the corporate marketing department isolate the market into specific segments, and help develop the target consumer more effectively based on primary methods of marketing research. This can have a drastic effect on how various marketing procedures are done such as the pricing of products, as well as where and who to advertise to more precisely. Finally, financial reports will be key in determining the status and success of the company. Statements of cash flows, income statements, and balance sheets will collectively help understand the company’s investment in its international expansion. These numbers will make sure that the company is on track in comparison to its expectations. The reports will insure that the company is profitable, and will also break down the specific margins on products. These numbers will help the company

Expatriatesarerelocatedtogivenlocation(Ireland)

Expatriatesandlocalmanagersareintegrated

andtraintogether

Bothmanagersandlocalemployeesaretrainedandeducatedoncompanystrategyandvalues

Focusonvaluesantechniquesoftheinternationalplan.:

CustomerRelations,SocialResponsibilityandEmployeeRelations

Expatriatesmentorandcoachregionalmanagers

Companyworkswithemployeestodevelop

appropriateperformanceappraisalsandmotvation

techniques

Regionalmanagersareslowlymovedintotheexecutivepositionsandexpatriatesarefadedout

Regionalmanagersaretransformedintowelleeucatedexecutivesthatcanbeusedforfurther

internationalinvestments.

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produce at ideal economies of scale, and to maximize its profitability. The financial numbers will be reviewed on a quarterly basis, and changes will be made accordingly based on the status of each product. These three main types of reports will be the main key in determining whether or not the company is meeting company goals, and what differences should be made on periodic basis. Another form of data collected will be employee turnover and employee satisfaction. Cultural differences in different countries are important to consider regarding new employees employed in those different countries. It is important to note levels of employee satisfaction throughout all functions of the business internationally. This will be done by administering human resource management surveys to the field and making sure that employees internationally are content with their jobs and circumstances. If they are not satisfied, then proactive changes must be considered to change the turnover rate and level of employee satisfaction. Success Measuring success in the international marketplace will consist of many different elements. The first and main element is market share. The company is looking to obtain an 8-10% market share in the next 5-7 years by introducing products to new customers. Expanding into a new area is risky but is also a huge opportunity for growth and success. Anything less than this set goal will be considered a failure for the company’s international expansion plan. Another main focus of success will be mastering operations and the supply chain process. As a company, we want our supply chain to be rivaled by none, and we want to be the perfect example of efficiency for companies across all business types. This can be a huge source of strength for a company, and mastering it while expanding into a different part of the world can be a huge determinant in profit margins and the ultimate financial success of the firm. Another form of success is our employee satisfaction. As touched upon earlier, the happiness of our employees is very important to the company, especially with the cultural differences proposing a potential threat to dissatisfaction. Understanding and embracing these cultural differences will be very important regarding the levels of satisfaction of our employees, and it is important that they are understood and utilized to have the best and happiest employees in the market. Finally, one of the most important and opportunistic measures of success that we will incorporate is the impact that the introduction of the company will have on the country and local environment. Recent years have been very difficult for parts of Western Europe financially and economically. Our company has the opportunity to provide jobs to this local economy, which could be a big headline and great Public Relations for the company. Financial and economic stability is something that Western Europe is in need of very badly, and helping solve that problem is a way to develop a positive local brand image and successful company. Another goal and means of success for the company will be the introduction of a new product within the next 3 years. This product should provide the solution to any cultural or demographic gap that we may have missed initially with our product introduction. Finally, we intend to acquire a local brand of Western Europe to increase our level of prevalence within the local environment.

If all of these previously listed means of success are met, then we feel that the international company introduction will be a positive addition to the company.

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Executive Summary

The J.M. Smucker Company began in 1897 with the opening of Jerome Monroe Smucker’s first pressed cider mill. Jerome Smucker founded the Smucker Company based on an esteemed belief in high quality, people, ethics, growth and independence. Smucker’s is an American staple and will prosper internationally in a market similar to the domestic market. 110 years later, the J.M. Smucker Company is still in business with a wide variety of product lines including Smuckers, Folgers, Dunkin Donuts, Jif, Crisco, Pillsbury, White Lily, and several others. Smuckers has been successful in brand acquisitions and merging companies together. The Smucker’s Division of Ireland will offer quality food products that enable families to create memorable mealtime moments. Within 24 months Smuckers hope to increase its employees and annual revenue. They will do this through a multi-domestic strategy which will enable them to continue to control their product lines and secret recipes. The multi-domestic strategy helps to identify what products and services are going to be sold abroad, how the products and services will be manufactured and distributed abroad as well as the resources needed for production. Smucker’s Ireland will have ten different divisions including human resources, research and development, operations management, information technology management, marketing management, sales management, finance management, quality control, talent management, and expansion management. These divisions will oversee the day to day activities of the Ireland division and report to the Vice President of Smuckers Ireland. Ireland is a good place for a business to expand because it takes less than 13 days to start one there compared to the world average of 35 days. While Ireland does face serious economic difficulties, it still needs foreign direct investment and companies that invest in the downturn will most likely gain a large market share and profits during the upswing. We believe that with help from the European Union and foreign direct investment Ireland will be able to turn its economy around. Smuckers Ireland will profit in this harsh economic climate by embracing their core values. Smuckers will focus on customer service and becoming number one in that department all across Ireland. Customer service is extremely important to us because without our customers we cannot succeed. We believe whole-heartedly in the satisfaction of our employees and pride ourselves on having happy employees. If our employees are not satisfied in the workplace, then our customers will not be satisfied in the marketplace. We also believe firmly in social responsibility and making a positive impact on the community around us. In this economic downturn we bring stability and jobs. To reach our core values in Ireland we must adapt to the local culture and be respectful of local customs. We will measure our performance success through marketing surveys, financial reports, and sales reports. Marketing surveys will provide customer demographics and let us know who our customer is as well as future customers. Financial reports let us know where we stand in terms of profits and in overall terms of reaching our goal of measured success. We will be successful when we have increased our market share by 8-10 percent over 5-7 years. Sales reports give us a perspective on our customers and finances. They help us forecast what is to come and where demand will be. They also let us know if we are in good financial shape and can continue to expand internationally. We hope that with a successful expansion strategy into Ireland, we can also grow throughout the European Union.

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Works Cited Barnett, Jeffrey E. "Revised Code of Ethics." National Register of Health Service Providers

in Psychology - Continuing Education Website. Web. 30 Nov. 2010. http://www.e-psychologist.org/index.iml?mdl=exam/show_article.mdl&Material_ID=24.

"EBRI Benefit Overview FAQ | Question 1." Employee Benefit Research Institute | EBRI.

Web. 06 Nov. 2010. http://www.ebri.org/publications/benfaq/index.cfm?fa=ovfaq1. "CIA - The World Factbook." Welcome to the CIA Web Site — Central Intelligence

Agency. Web. 06 Nov. 2010. https://www.cia.gov/library/publications/the-world-factbook/geos/us.html.

"J.M. Smucker Co." Novelguide: Free Study Guides, Free Book Summaries, Free Book

Notes, & More. Oakwood Publishing Company, 2010. Web. 27 Nov. 2010. http://www.novelguide.com/a/discover/cps_01/cps_01_00151.html.

"Ireland - National Labour Law Profiles - Information Resources - Social Dialogue, Labour

Law and Labour Administration Department." International Labour Organization - Home. Web. 06 Nov. 2010. http://www.ilo.org/public/english/dialogue/ifpdial/info/national/ire.htm.

"Ireland Information on Economic Freedom | Facts, Data, Analysis, Charts and More."

Conservative Policy Research and Analysis | The Heritage Foundation. Web. 06 Nov. 2010. http://www.heritage.org/index/country/Ireland.

"Ireland." U.S. Department of State. Web. 06 Nov. 2010.

http://www.state.gov/r/pa/ei/bgn/3180.htm. Labor - Ireland." Encyclopedia of the Nations - Information about Countries of the World,

United Nations, and World Leaders. Web. 06 Nov. 2010. http://www.nationsencyclopedia.com/Europe/Ireland-LABOR.html.

McFarlin, Dean B., and Paul D. Sweeney. International Management: Strategic

Opportunities and Cultural Challenges. Boston: Houghton Mifflin, 2006. Print "PayScale - Finance Manager Salary, Average Salaries." PayScale - Salary Comparison,

Salary Survey, Search Wages. Web. 06 Nov. 2010. http://www.payscale.com/research/US/Job=Finance_Manager/Salary

Smucker's. 2010. Web. 27 Nov. 2010.

http://www.smuckers.com/?gclid=CMjn0YrdwaUCFUGo4Aod1i33YA.