Cargill Company Case Study
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Leading private player aided with a diversified product portfolio
With revenues of about $119.5 billion, Cargill is the largest privately-owned company in the US. The
company is one of the largest suppliers of eggs to McDonalds restaurants in the US. Besides, Cargill
is the only producer of Alberger process salt in the US.
The companys leading presence is strengthened by the fact that it offers a diversified product
portfolio. Cargills business activities include purchasing, processing, and distributing grain and other
agricultural commodities, and the manufacture and sale of livestock feed and ingredients for processed
foods and pharmaceuticals. It also operates a large financial services arm, which manages financial
risks in the commodity markets for the company. In addition, Cargill pays attention to the
connectedness among its diverse businesses. As a result, the knowledge of one business contributes
to the resiliency of the whole. For instance, through Cargills involvement in ocean shipping and the
trading of basic goods, the company was able to detect the early signs of economic change, for
example in China, the buildup in iron ore stocks and falloff in steel prices. The insights gathered
from many activities and places enabled Cargills trading teams to avoid plummeting commodity prices and to keep in check the heightened counterparty exposure that comes with big price

movements.
Cargills diversified product portfolio helps it to minimize risk and dependency on any particular
business. Furthermore, leading market position provides the company with significant competitive
advantage as well as stabilizes the companys financial growth.
Offering customized solutions and products through strong focus on R&D
Cargill has been constantly increasing its focus on research and development (R&D) activities. It
devotes significant resources and attention to product development, enhancing an existing product
and improving process efficiencies. Cargills R&D team includes more than 1,300 research,
development, applications, technical services, and intellectual property specialists working in more
than 200 locations. Furthermore, the company has around 1,900 patents in place. With R&D centers
in Europe and North America and applications and technical services professionals in locations
across the Americas, Europe, the Middle East, Africa, and Asia, Cargills R&D capabilities have a
strong global presence. This enables Cargill to develop differentiated and customized products and
solutions across various categories. The company collaborates with customers for developing
products to suit current market demand.
Offering customized solutions and products through strong focus on R&D establishes a significant
competitive advantage for Cargill which in turn results in positive impact on customer satisfaction
and loyalty.
Weaknesses
Increasing instances of product recalls
Cargill has been registering increasing instance of product recalls. For instance, in August 2011,
Cargill Value Added Meats Retail, a business unit of Wichita-based Cargill Meat Solutions, announced
an immediate Class I voluntary recall of approximately 36 million pounds of fresh and frozen ground
turkey products produced at the companys Springdale, Arkansas facility due to possible contamination
from Salmonella Heidelberg. In December 2011, Cargill Animal Nutrition announced a voluntary

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Cargills Business Activities And Diversified Product Portfolio. (July 7, 2021). Retrieved from https://www.freeessays.education/cargills-business-activities-and-diversified-product-portfolio-essay/