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What Makes a Company Successful?

Mr. John Foraker, CEO of Annie's, Inc. visited Bryant and spoke about his company's philosophy of continuous improvement and social responsibility. Annie's offers a variety of organic and all-natural products to consumers without sacrificing on the company's established core values. According to Mr. Foraker, Annie's began with the “desire to give families everywhere healthy alternatives to traditional comfort foods.” Annie Whitney, the company's founder wanted to “show by example that a successful business can also be socially responsible,” and Annie's has ensured that all of their products illustrate the importance of companies that focus on goals beyond that of overall profitability, margins, or EPS. By being socially responsible, Annie's has increased revenue from $12 million in FY 2002 to $100 million in FY 2010 and has risen to “the number one company in ten natural and organic food categories,” according to Mr. Foraker.

Annie's is successful for many reasons, but one specifically is establishing and following strong principles consistent with social responsibility. Annie's mission and values clearly demonstrate the company's belief that social responsibility is a cornerstone of the company. According to Annie's, the company “spreads awareness and acts as a positive role model for consumers and other businesses to do the same.” Furthermore, the company's consumers, customers, suppliers and shareholders are treated with “the same high degree of respect, fairness, and honesty” that they expect of others. Acting responsibly is important to the company, and Mr. Foraker mentioned that Annie's believes that their role in the world includes “nourishing communities by providing healthy food, promoting sustainability and supporting organizations motivated by [their] same intrinsic purpose.” Any company can have a clearly defined value system or philosophy, but Annie's is a company that implements these convictions readily. For example, Annie's funds school and community gardens throughout the country (30+ schools supported in 2009). The company has also offered “Sustainable Agriculture Scholarships” to help the “next generation of organic farmers meet their dreams” and has made numerous corporate donations to funding organizations that make a difference in their industry.

Annie's attributes much of their success in business to their strong belief in social responsibility, but also to continuous improvement. Mr. Forkaer stated that “doing the 'right thing' is a journey, requiring ongoing diligence and improvement.” In an effort to foster a philosophy of continuous improvement, Annie's has consistently introduced new products and explored new product categories. The company has enhanced existing items, pushed their internal external partners for improvements, moved to 70% post-consumer recycled cardboard for their packaging, and has updated their recycling and energy-savings systems throughout the supply chain.

If any conclusions can be drawn about what makes a company successful, it can certainly be concluded that responsibility and continuous improvement are key. Responsible companies create a aura of transparency and commitment to societal progress, not just that of shareholders and key company executives. A belief in continuous improvement allows a company to adapt and change to the demands of the market and become a leader in the market and nearly make the competition irrelevant. As the global marketplace continues to change, and external pressures increase in many industries, Annie's truly seems to be one-step ahead.

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