School of Administration and Business

RHA4123-Performance Evaluation
Teacher: Marcia Aguilera.

"ACADEMIC REPORT"

MEMBERS:

Yessenia Herrera
Claudia Pizarro
Quezada Nakithza
Ruz Nicole

Santiago, September 3, 2019

INDEX

Pages

1. Introduction………………………………………………………………………………………………………………. 2
2. Carozzi…………………………………………………………………………………………………………………….. 3
2.1 History……………………………………………………………………………………………………………… 4
2.1.1 Mission………………………………………………………………………………………………………….. 4
2.1.2 Vision……………………………………………………………………………………………………………. 4
2.1.3 Goals………………………………………………………………………………………………………. 4
2.2 Carozzi SWOT Analysis…………………………………………………………………………………………. 5
2.2.1 Strengths…………………………………………………………………………………………………….. 5
2.2.2 Weaknesses…………………………………………………………………………………………………… 5
2.2.3 Opportunities………………………………………………………………………………………… 6
2.2.4 Threats…………………………………………………………………………………………………….. 6
2.3 Carozzi SWOT Matrix………………………………………………………………………………………….. 7
2.4 Environment……………………………………………………………………………………………………………… 8
2.5 PESTA Analysis…………………………………………………………………………………………………………. 8
2.5.1 Political Analysis………………………………………………………………………………………….. 8
2.5.2 Economic analysis……………………………………………………………………………………….. 8
2.5.3 Social Analysis……………………………………………………………………………………………….. 9
2.5.4 Technological Analysis…………………………………………………………………………………… 9
2.5.5 Environmental
Analysis………………………………………………………………………………………… 9
2.6 Analysis of PORTER's 5 Forces………………………………………………………………………………. 10
2.6.1 Threat of New Competitors……………………………………………………………… 11
2.6.2 Bargaining Power of Buyers………………………………………………….. 11
2.6.3 Bargaining power of suppliers……………………………………………………. 12
2.6.4 Threat of Substitute Products……………………………………………………………… 13
2.6.5 Current Rivalry…………………………………………………………………………………………. 13

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3. Conclusion…………………………………………………………………………………………………………………. 14

1. INTRODUCTION

In the following report, the Carozzi company will first be announced with its respective history in
the national and international market as well as its mission, vision and objectives of this company.

In addition, a complete SWOT of the company was carried out, which also includes its respective
SWOT matrix in order to analyze in more detail its Strengths, Opportunities, Weaknesses and
Threats that the respective company has in the commercial area. Likewise, in order to analyze this
company even better, a PESTA analysis has been carried out. With this, your external Political,
Economic, Social, Technological and Environmental analysis can be determined.

Finally, we will conclude this study with the PORTER analysis. To be more precise, we will see the
analysis of PORTER's 5 forces, this means that we will see the threats of new competitors or
competition that the Carozzi company has, as well as the Negotiation Power that both the buyers
and suppliers of the organization have, in addition , the threat that exists in the company due to
the substitute products that exist and finally the current rivalry that takes place in the country will
be analyzed.

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2. CAROZZI

Type: Open Joint Stock Company

Industry: Mass Consumption

Legal formal: Public limited company

Founded: 1998

Founder(s): Augusto Carozzi y Cía.

Headquarters: San Bernardo, Chile

President: Gonzalo Bofill Velarde

Brands: Agrozzi, Ambrosoli, Calaf, Caricial, Costa, Fanny, Master Cat, Master Dog, Miraflores,
Molitalia, Pancho Villa, Pomarola, Selecta, Sprim, Trattoria, Vivo.

Revenue: 1,247 million USD

Operating profit: USD 170 million

Employees: 10,564

Subsidiaries: Chile, Argentina, Peru

Website: www.carozzicorp.com

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2.1 History
Carozzi Corp. It is a Chilean multinational company, owned by the Bofill family, specialized in the
food industry and has great leadership in the national and international markets. It is one of the
largest conglomerates in Latin America and achieves an annual turnover of 1,247 million dollars.
Carozzi's motto is: “I love Carozzi.” Its president is Gonzalo Bofill Velarde, the company has
recognized brands: Carozzi in pasta, costa in chocolates and candies, vivo in healthy products,
master dog and master cat in pet food, pomarola in tomato sauces, sprim in instant drinks, caress
in desserts, select in flours, agrozzi in fruit pulps and tomato pastes.

Internationally, it has production plants in Argentina and Peru, where it owns Molitali. In addition,
it is present in more than thirty countries and in the most important markets in the world, such as
Brazil, Japan, Central America, Mexico, Paraguay and the United States. The main rival of Carozzi
companies is Tres Montes Lucchetti (Nutresa group).

The Carozzi company was founded on March 29, 1898 in Valparaíso, under the name “Young Italy,
Carozzi Passani” (1874-1942) later the company grew and the products found a good market
throughout the country, which converted the plant from Quilpué in the largest producer of chili
pastes. When making the change of location, the company opted for a new name: “Compania
Molinos y Fideos Carozzi”.

2.1.1 Mission
To be a Chilean multinational company, specialized in the food industry, recognized for
its high productivity and strong culture, typical of a family business, supporting its
leadership in the national market.
2.1.2 Vision
To be the most respected and valued mass consumption company in Latin America .

2.1.3 Goals
Maintain sustained growth of the company.

Carry out an advertising campaign that positions Carozzi as a company that cares about
people and their health.

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2.2 CAROZZI SWOT ANALYSIS

2.2.1 Strengths :

i. The brand is highly recognized by people, which is why consumers prefer it when deciding which
product to buy.

ii. It has one of the best positions in the national pasta market
iii. Their facilities, whether manufacturing, distribution or sales premises, are differentiated
according to the type of product they focus on (pasta, chocolate and candies)
iv. They comply with the appropriate safety and legal standards to be able to export, prepare and
develop operations in the food area.
v. Good corporate image
vi. Great range of products

2.2.2 Weaknesses:

i. High level of debt

ii. One of the main raw materials used corresponds to agricultural products such as tomatoes and
fruits, which is why Carozzi works through the forware system to ensure we have the amount of
raw material necessary for the production demand that we may have.
iii. The high costs in the use of labor, since we need trained people to use production machinery
iv. High cost of machinery maintenance, since being high-priced and high-quality machinery, they
are required to carry out periodic, preventive maintenance, to avoid greater losses.
v. Deterioration of credit indicators after heavy investments

2.2.3 Opportunities

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 i. Carozzi is constantly innovating its product line, in order to ensure its market share and keep its
customers captive, the live products are aimed at a new segment.
ii. Through its cutting-edge technology, it can produce a greater variety and quality of products,
unlike its competitors.
iii. It generates job opportunities, also opportunities for personal development in the workplace
within the company and with it the social-cultural growth of people.
iv. Free trade agreements.
v. Strategic Alliances.
vi. New needs to satisfy

2.2.4 Threats

i. The entry and strong positioning of multinational competitors in the Chilean food market has
increased the competitiveness of the sector.
ii. Anti-obesity campaigns, since it affects pasta consumption.
iii. New competitors.
iv. Stagnation of the Chilean economy.
v. Restrictive trade policies.
vi. Increased barriers and regulatory requirements.

2.3 CAROZZI SWOT MATRIX

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 FO GIVES

 Thanks to the opportunity for  It is necessary to improve critical

innovation, a greater range of
products can be created.
 Due to its good corporate image at
the national level, the company
represents reliability, which is why it
is possible to form strategic alliances
more easily.
 It is possible through technology to
achieve sufficient production yields to
expand growth internationally.
indicators, to be able to make future
investments and position ourselves
better against future competitors.
 It is necessary to improve liquidity ratios
to face the debt and not suffer a great
impact due to the stagnation of the
economy.

FA DO

 Through the improvement of  To the extent that the flows associated

technology it is possible to acquire with investments and acquisitions in the
competitive advantages and foreign market are incorporated, it is
discourage the entry of new possible to improve monetary indicators
competitors. when paying the debt.
 By reducing costs thanks to
economies of scale, it is possible to  It is possible to improve liquidity
face the stagnation of the economy in problems through strategic alliances,
a position that suits us. which support the company's financial
 A differentiated strategy for each structure.
brand could anticipate changes in
consumer tastes and preferences,
reacting efficiently and effectively.
 A good corporate image is interpreted
as good comprehensive functioning
by the company. Therefore, adapting
to new policies and regulations is part
of the company's philosophy.

2.4 AROUND

The analyzes that we will use will be the following:

 PESTA analysis
 PORTER Analysis

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2.5 PEST ANALYSIS

2.5.1 Political Analysis

The stability of the government and possible changes is a fact that impacts companies today.
Carozzi, being a company specialized in the food industry , is not exempt from being affected in
this area.

It is under the regulations of the Ministry of Health and the Sema, to comply with international
hygiene and quality standards in the manufacturing process. On the other hand, the Sesma
constantly monitors the industry plants for pollution levels, not just the air. , but also supervises
that the plants are free of all types of pests, whether mice, etc.

2.5.2 Economic analysis

Analyzing Carozzi from the economic area we have to look at what it can impact us as a company,
we must always be attentive to the economy of our country, for Carozzi the company's exports are
exposed to variations in economic conditions and exchange rates, The company has a policy of
using forward contracts to cover expected mismatches between export and import flows.

Also, do not forget that if we have workers in our company, we must be aware of everything that
involves labor costs and we must always be attentive to stock market trends. We must always be
visualizing these details that are very important when having an organization in charge. Having all
this correctly, we still have the opportunity to grow as a company and thus have full security of
being able to continue being leaders in the market both in Chile and abroad.

2.5.3 Social Analysis

The national environment with Americanization in its socio-cultural aspect, increased consumption
of junk food, that is, fast food, etc. (Burger King, McDonald's). Factors that influence to some
degree the pasta industries, motivating us to innovate in products that are easy and quick to
prepare.

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 Innovation of quickly prepared products is the incorporation of women into work, since they
spend less time at home and therefore preparing food.

2.5.4 Technological Analysis

From the technological point of view of this company, we must always have very well controlled
what the technological factor is, that is, that nothing can affect the production processes, the
purchasing decision and the consumer's behavior.

The technology present in Carozzi is one of the most advanced in America, mainly it focuses on the
production processes in the agroindustrial line (Agrozzi). They have the type of “Cold Process”
system, leading technology in the world, this being the first company in South America that
implements this advance in its production processes.

Technology has affected the development of pasta packaging designs, from the improvement in
design development times to the simulation of how it will ultimately look. On the other hand, we
can also say that in terms of printing, Technology has been of great support in terms of colors to
improve printing quality.

2.5.5 Environmental analysis

In this aspect we can say that Carozzi is a company concerned about the environment, since they
have treatment plants for liquid industrial waste (riles) in their plants in Nos, Teno and Reñaca
and in this way reduce environmental pollution, they also have with dynamic aerobic biofilters to
purify the water they return to the environment after using it in production processes.

2.6 ANALYSIS OF PORTER'S 5 FORCES

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2.6.1 Threat of new competitors

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• The threat of entry is “medium” due to the wide variety of products that the company offers,
however, it is difficult for them to become highly competitive in the sector.

2.6.2 Bargaining power of buyers

• Negotiating power with your clients is high

• It has competitive advantages and market leadership with mostly loyal customers.

• Negotiate through the marketing of white brands of pasta and tomato sauces

• The company is among the top 5 suppliers of large Chilean supermarkets, which gives it
greater negotiating power.

• Client bargaining power is low.

2.6.3 Bargaining power of suppliers

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• It has a very high level of production, monopolizing a large part of the suppliers and being,
therefore, a very attractive company for them due to its production volume.

• Its tradition and track record reinforce its financial stability and its timely payment policy.

• National farmers are the main source of raw materials in the pasta sector, and they can also
be easily replaced by Carozzi given the large number of suppliers of this type.

• The bargaining power of suppliers is low.

2.6.4 Threat of substitute products

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 • Carozzi produces most of its own substitutes on a multinational level, focused mainly on the
line of pastas it offers.

• The candy line has high competition with many types of products and several companies,
although Carozzi brands stand out for their wide variety and “medium” attractive leadership.

2.6.5 Current rivalry

• Many skills

• The main competitors are the companies Nestlé, watts, arcor and Lucchetti, for having
product lines that include pasta, juices, chocolates,

3. CONCLUSION

In summary, for the strategic planning of a company in general, several analyzes are required that
clarify the outlook for the company and allow for the detection of threats or opportunities. A
company must perform internal and external analysis. Within the external analyses, there are 2

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types of environments which must be analyzed; the micro environment and the macro environment
.

The PESTA analysis is an analysis of macro environmental trends , which arises from the need to
have perspective of what is happening on a large scale in the market in which the company is
inserted, in order to discover possible threats or opportunities and in relation to the five PORTER
forces we can say that it is a strategic model.

This model establishes a framework to analyze the level of competition within an industry, and to
develop a business strategy. This analysis results in the respective articulation of the 5 forces that
determine the intensity of competition and rivalry in an industry and, therefore, how attractive this
industry is in relation to investment opportunities and profitability.

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