Female Health Company Case Study Solution

Business is presently one of the biggest food chains worldwide. It was founded by Henri Female Health Company in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and decrease mortality rate.
Business is now a global company. Unlike other multinational companies, it has senior executives from various countries and attempts to make choices considering the entire world. Female Health Company presently has more than 500 factories around the world and a network spread across 86 countries.

Purpose

The function of Business Corporation is to enhance the quality of life of individuals by playing its part and providing healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Female Health Company's vision is to offer its customers with food that is healthy, high in quality and safe to consume. Business imagines to establish a trained workforce which would help the business to grow
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Mission

Female Health Company's mission is that as currently, it is the leading business in the food market, it believes in 'Excellent Food, Excellent Life". Its objective is to provide its customers with a variety of options that are healthy and finest in taste too. It is focused on supplying the best food to its customers throughout the day and night.

Products.

Business has a wide variety of items that it provides to its consumers. Its items consist of food for infants, cereals, dairy products, snacks, chocolates, food for family pet and mineral water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 staff members. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has put down its objectives and goals. These goals and objectives are listed below.
• One goal of the company is to reach zero garbage dump status. It is working toward zero waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Female Health Company is to waste minimum food throughout production. Frequently, the food produced is wasted even before it reaches the clients.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to reduce the above-mentioned complications and would likewise ensure the delivery of high quality of its items to its customers.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its customers, organisation partners, workers, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW method. However, the target of the company is not achieved as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may result in the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based on the concept of Nutritious, Health and Wellness (NHW). This strategy handles the concept to bringing change in the client preferences about food and making the food stuff much healthier concerning about the health issues.
The vision of this method is based on the key approach i.e. 60/40+ which simply means that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be manufactured with additional dietary value in contrast to all other items in market gaining it a plus on its dietary material.
This strategy was adopted to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other companies, with an objective of retaining its trust over clients as Business Business has actually gotten more trusted by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and allow the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indicator also shows a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio position a risk of default of Business to its financiers and might lead a declining share costs. In terms of increasing financial obligation ratio, the firm ought to not spend much on R&D and needs to pay its existing debts to reduce the danger for financiers.
The increasing danger of financiers with increasing financial obligation ratio and decreasing share costs can be observed by substantial decline of EPS of Female Health Company stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow growth also impede company to further spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of calculations and Charts given up the Displays D and E.

TWOS Analysis

2 analysis can be used to derive numerous strategies based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative items by big quantity of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the business. It might likewise offer Business a long term competitive benefit over its rivals.
The worldwide expansion of Business need to be concentrated on market capturing of establishing countries by expansion, bring in more customers through consumer's loyalty. As establishing nations are more populated than industrialized nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Female Health Company ought to do careful acquisition and merger of companies, as it could affect the customer's and society's perceptions about Business. It needs to get and combine with those companies which have a market track record of healthy and healthy business. It would enhance the understandings of customers about Business.
Business needs to not just spend its R&D on development, rather than it ought to likewise concentrate on the R&D costs over evaluation of expense of different healthy items. This would increase expense effectiveness of its products, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business should move to not only establishing however also to industrialized countries. It needs to broadens its geographical growth. This large geographical expansion towards establishing and developed countries would minimize the threat of potential losses in times of instability in different countries. It should widen its circle to different nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Female Health Company should carefully manage its acquisitions to prevent the threat of mistaken belief from the consumers about Business. It ought to acquire and combine with those countries having a goodwill of being a healthy business in the market. This would not only improve the perception of consumers about Business but would likewise increase the sales, earnings margins and market share of Business. It would also make it possible for the business to use its possible resources effectively on its other operations instead of acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on four factors; age, gender, earnings and occupation. For example, Business produces numerous items associated with children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Female Health Company products are rather cost effective by practically all levels, but its major targeted consumers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in almost 86 countries. Its geographical division is based upon 2 main elements i.e. average income level of the customer in addition to the climate of the region. Singapore Business Business's segmentation is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and lifestyle of the client. For example, Business 3 in 1 Coffee target those customers whose life style is quite busy and don't have much time.

Behavioral Segmentation

Female Health Company behavioral segmentation is based upon the mindset knowledge and awareness of the consumer. Its extremely healthy items target those clients who have a health mindful mindset towards their usages.

Female Health Company Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand name, there are 2 choices:
Alternative: 1
The Business needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Spending on R&D would be sunk cost.
2. The company can resell the gotten systems in the market, if it fails to implement its method. However, quantity invest in the R&D might not be revived, and it will be thought about entirely sunk expense, if it do not give potential results.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to present an item. Acquisitions offer quick outcomes, as it supply the company currently developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face misunderstanding of consumers about Business core worths of healthy and healthy products.
2 Large costs on acquisitions than R&D would send a signal of company's inadequacy of developing innovative products, and would results in consumer's frustration also.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making company not able to introduce brand-new ingenious items.
Alternative: 2.
The Business must invest more on its R&D instead of acquisitions.
Pros:
1. It would allow the company to produce more innovative items.
2. It would supply the business a strong competitive position in the market.
3. It would enable the business to increase its targeted customers by introducing those items which can be used to a totally brand-new market segment.
4. Innovative items will offer long term benefits and high market share in long term.
Cons:
1. It would decrease the revenue margins of the company.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would affect the business at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could provide a negative signal to the investors, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Pros:
1. It would enable the company to present new ingenious products with less danger of converting the costs on R&D into sunk expense.
2. It would offer a favorable signal to the investors, as the total properties of the company would increase with its substantial R&D costs.
3. It would not impact the revenue margins of the company at a large rate as compare to alternative 2.
4. It would supply the business a strong long term market position in terms of the company's overall wealth in addition to in terms of ingenious items.
Cons:
1. Threat of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Danger of misunderstanding about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less number of innovative items than alternative 2 and high number of innovative items than alternative 1.

Female Health Company Conclusion

Business has remained the leading market player for more than a years. It has institutionalised its techniques and culture to align itself with the market modifications and client habits, which has eventually allowed it to sustain its market share. Though, Business has actually established significant market share and brand identity in the urban markets, it is recommended that the business should focus on the rural areas in regards to establishing brand loyalty, awareness, and equity, such can be done by producing a specific brand allotment technique through trade marketing methods, that draw clear distinction between Female Health Company products and other competitor products. Female Health Company must utilize its brand name image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will enable the company to develop brand equity for freshly presented and already produced products on a greater platform, making the effective usage of resources and brand name image in the market.

Female Health Company Exhibits