Abstract This report examines the performance of Foodco in the last two fiscal years. It determines the company’s ability to meet its obligations, profitability level, and solvency. It also examines the company’s strategies using Michel Porter’s five forces model. It concludes that the company is financially healthy but needs to focus on its business strategies. Introduction Foodco Holding is one of the companies under the banner of UAE’s Abu Dhabi National Foodstuff Company (Foodco), a public shareholding company established in 1979. Foodco is involved in importing and distributing household items and foodstuffs in the UAE, packing, repacking, importing, exporting, distribution, and sale of food products. Purpose The purpose of this report is to develop a comprehensive analysis of the company’s performance (based on ratio analysis) and business strategy based on the five forces analysis. Business strategy analysis A business strategy is an initial step in determining the profitability of a proposed venture. The Michel Porter model is a framework that examines five forces that influence an industry. Rivalry Foodco faces strong competition from rival corporates in the food distribution industry in the UAE. The international and regional firms that are involved in the foodstuff business, including distribution, importation, exportation, packing, repacking, and processing activities, dominate the UAE foodstuff industry. Among other companies, Alma Foodstuff, the Gulf International, Jaleel General Trading, Belselah Foodstuff, and Food Center are the major rivals in the industry. Nevertheless, Foodco is able to fight rivalry through working with subsidiaries and providing them with the appropriate backing in order to achieve the core objectives. Threats of Substitutes Substitute products are the products and services in other industries that have the capacity to satisfy the same need (Kevin, 2007). In the UAE, the foodstuff industry does not have substitutes, which means that the company does not have concern for substitutes. Buyer power The presence of many suppliers and few buyers means that buyer power is strong (Triantis, 2009). In the case of Foodco, the number of foodstuff suppliers in Dubai is relatively large due to the presence of local, regional, and international competitors. Supplier power The power of suppliers in an industry is the impact that suppliers of goods and services or raw materials have in an industry (Porter, Argyres & McGahan, (2006). In the UAE foodstuff industry, the number of suppliers is relatively large. Barriers to entry In the UAE, the government regulates the foodstuff industry through laws and food safety regulations. In addition, the government has a strict tax policy that demands heavier taxes from foreign companies than local companies. However, the industry’s profitability is relatively high, which encourages foreign companies to enter the market. Generic strategies to counter the five forces Foodco has been using a strategy that involves working with subsidiaries in order to counter the competition and rivalry, expand the market, and increase sales. This means it has differentiated its business in order to counter these forces. Foodco Introduction