Value
Most Archer Daniels Midland (ADM) Food Processing company’s resources are valuable because they create business opportunities and reduce potential risks. For example, a company is a leader in the market and occupies a significant part of it, because of which it has more access to raw materials for processing (About ADM, 2023). In addition, the company uses advanced technologies that can improve its efficiency and increase production volumes.
Another valuable resource is a developed global production chain, including “around 500 crop procurement locations, 270 ingredient manufacturing facilities, 44 innovation centers, and the world’s premier crop transportation network” (Guo et al., 2019, p. 1). Distribution networks are one of the most valuable resources for a food processing company as they provide timely delivery, lower costs, and reach a wider audience globally.
Moreover, the value is also represented by a qualified workforce with the necessary knowledge and contributes to achieving the company’s goals. ADM has a Code of Conduct, which sets out the principles of the company’s work (About ADM, 2023). In addition, the business is focused on customer satisfaction, which has allowed it to establish a strong connection with the audience and create a recognizable brand. ADM keeps track of new food and nutrition trends to provide customers with the products they demand in the shortest possible time.
Rarity
The uniqueness of ADM’s resources determines rarity, and competitors do not. For example, the company has proprietary technologies, including copyrights for crop processing technologies and trademarks (Guo et al., 2019). These resources are unique because other food processing companies need access to these technologies. In addition, ADM’s brand, reputation, global presence, and company awareness are also exceptional. The company has been on the market for more than 100 years, and during this period, it has developed unique organizational strategies and production technologies (About ADM, 2023). The firm has a broad client base and contracts with partners, which limits competitors’ access to critical resources or markets.
Imitability
Competitors may try to recreate ADM resources, but more than these efforts are needed to completely replace the company’s products and force ADM out of the market. For example, other companies in the industry can develop a robust global manufacturing and supply chain (Guo et al., 2019). In addition, a skilled workforce and the use of technology and innovation to optimize business performance have a reasonably high level of imitability. However, ADM has a long company history, during which it has developed unique complex manufacturing processes and acquired unique knowledge and experience (About ADM, 2023). Competitors cannot replicate these resources as no one has such a long business history as ADM. In addition, over this long period, the company managed to get a loyal customer base.
Organization
ADM uses available resources quite efficiently and considers their value, rarity, and imitability in the strategic planning of the company’s development. For example, a company efficiently uses supply chains and available raw materials to optimize and speed up production. In addition, ADM actively communicates with customers and collects product feedback (About ADM, n.d.).
The company can gain a competitive advantage by offering unique products that meet the audience’s needs. Moreover, ADM is constantly scaling production and expanding its activities to new countries (Guo et al., 2019). However, some aspects require more careful management. For example, the company currently offers customers food and pet and animal nutrition (About ADM, 2023). However, ADM can expand its activities and produce goods from related fields. In addition, the use of technology also needs to be improved, as it can significantly affect business efficiency.
References
About ADM. (2023). ADM. Web.
Guo, C., Rainey, D. V., & Li, J. (2019). Analysis on the operation model of agribusiness: ADM comparison with Beidahuang. Advances in Agricultural Technology & Plant Sciences, 2(3), 1-9. Web.