Description
SWOT ANALYSIS OF ARCHER DANIELS MIDLAND

Archer Daniels Midland

Parent Company

Archer Daniels Midland Company

Category

Food Processing& Commodities Trading

Sector

Food and Beverages

Tagline/ Slogan

Supermarket to the world; Resourceful by Nature

USP

ADM connects the harvest to the home STP

Oilseed Processing, Corn Processing, Agricultural Services, Food,Feed Segment Ingredient and Financial activities

Manufacturers around the world who use the food ingredients, animal feeds and feed ingredients, biofuels and other products Target Group produced by ADM

Emphasizes the advantages of the company's close, one-on-one relationships with farmers combined with its expertise and global Positioning resources. SWOT Analysis

1. Comprehensive global research-and-development network which includes state-of-the-art culinary center& equipment, advanced pilot plants and laboratories worldwide. 2. Online services especially the e-ADM platformthat enables customers to cost effectively manage their business with automatic inventory monitoring and ordering, online payments, product and ingredient searches, logistics management and reporting. 3. ADM Cocoa markets its products under the well-respected brands Ambrosia, De Zaan and Merckens, there are other brands known and respected around the globe within other product categories as well. Strength 4.Possesses significant barriers to entry that slows competitive

threats and increases profits 5. ADM Logistics is a leader in supply chain solutions with access to one of the most far-reaching transportation networks in the world. 6. Robust financial performance over the years 7. One of the companies that truly enjoys the benefits of the "farm" subsidies enabling it to obtain cornseeds, etc. at cheap rates 8. A member of more than 200 business and trade associations.

1. The business is exposed to volatility in commodity prices 2. Higher energy and raw material prices are negatively impacting production costs in the ingredients industry. 3. There is a reduced demand for products with synthetics in colors, flavor enhancers, preservatives, anti-oxidants and also artificial Weakness sweeteners. This will affect sales of some of ADM’s product offerings.

1.Investment in GrainCorpwill help grow their Agricultural Services and Oilseeds businesses by investing in key supply regions outside the United States 2.New partnerships with Wilmar International will help strengthen ADM’s global marketing reach, while delivering a best-in-class service to the customers 3.The health and wellness market offers opportunities, with a demand for natural and scientifically proven ingredients. 4. There are also new opportunities in some categories, as suppliers look to develop cheaper alternatives to costly ingredients. For example, as cocoa prices continue to fluctuate, cheaper alternatives Opportunity such as cocoa butter equivalents are becoming a popular alternative.

1. Fluctuations in prices of fuels and energy products can have adverse effects on the company’s production costs and profitability 2.Markets within which it operates are highly competitive 3. Vulnerable to development of new substitution products 4. Use of GMOs is against the regulations of governments in certain Threats countries so it faces a risk of losing markets in these nations Competition

Competitors

1. Bunge Limited 2. Cargill Incorporated

3. Ingredion Incorporated



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