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Female Health Company Case Study Solution

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Female Health Company Case Study Solution

Business is presently one of the most significant food chains worldwide. It was established by Henri Female Health Company in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate.
Business is now a multinational business. Unlike other multinational business, it has senior executives from different countries and tries to make decisions thinking about the entire world. Female Health Company presently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of Business Corporation is to enhance the quality of life of people by playing its part and offering healthy food. While making sure that the business is succeeding 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 clients with food that is healthy, high in quality and safe to consume. Business pictures to establish a well-trained labor force which would help the business to grow
.

Mission

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

Products.

Business has a wide range of products that it offers to its customers. Its items consist of food for babies, cereals, dairy products, treats, chocolates, food for animal and bottled water. It has around four hundred and fifty (450) factories worldwide and around 328,000 staff members. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has actually put down its objectives and goals. These objectives and objectives are listed below.
• One objective of the company is to reach zero landfill status. (Business, aboutus, 2017).
• Another goal of Female Health Company is to squander minimum food during production. Most often, the food produced is lost even before it reaches the customers.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to lower the above-mentioned complications and would also ensure the delivery of high quality of its items to its consumers.
• Meet international standards of the environment.
• Construct a relationship based upon trust with its customers, company partners, staff members, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the business is not accomplished as the sales were anticipated to grow higher at the rate of 10% each year and the operating margins to increase by 20%, given in Exhibition H. There is a need to focus more on the sales then the development technology. Otherwise, it may lead to the declined income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based on the idea of Nutritious, Health and Health (NHW). This strategy handles the concept to bringing change in the consumer choices about food and making the food stuff healthier worrying about the health concerns.
The vision of this technique is based upon the secret approach i.e. 60/40+ which just means that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be made with extra nutritional worth in contrast to all other items in market gaining it a plus on its nutritional content.
This technique was adopted to bring more tasty plus nutritious foods and drinks in market than ever. In competitors with other companies, with an intent of maintaining its trust over customers as Business Business has actually gained more relied on by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D spending, and allow the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is decreasing. This indication also shows a thumbs-up to the R&D costs, mergers and acquisitions.
Debt 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 debt ratio present a danger of default of Business to its financiers and could lead a decreasing share costs. For that reason, in regards to increasing financial obligation ratio, the firm should not invest much on R&D and should pay its current debts to reduce the risk for investors.
The increasing threat of financiers with increasing financial obligation ratio and declining share costs can be observed by big decrease of EPS of Female Health Company stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow perception structure of customers. This sluggish growth also hinder business to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: 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 obtain numerous methods based on the SWOT Analysis given above. A short summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by big quantity of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the profit margins for the business. It might likewise offer Business a long term competitive benefit over its competitors.
The worldwide growth of Business must be focused on market capturing of establishing nations by growth, bring in more consumers through consumer's loyalty. As establishing nations are more populous than industrialized nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisFemale Health Company needs to do careful acquisition and merger of organizations, as it might affect the customer's and society's perceptions about Business. It must acquire and combine with those business which have a market reputation of healthy and healthy business. It would enhance the understandings of customers about Business.
Business ought to not just invest its R&D on innovation, instead of it ought to likewise focus on the R&D spending over examination of expense of different healthy products. This would increase expense efficiency of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not only establishing however also to developed nations. It should broaden its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It needs to obtain and merge with those countries having a goodwill of being a healthy company in the market. It would also allow the business to utilize its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon four elements; age, gender, income and profession. For example, Business produces numerous products associated with infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Female Health Company products are quite budget friendly by almost all levels, however its major targeted customers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in almost 86 nations. Its geographical division is based upon two main factors i.e. average earnings level of the consumer as well as the environment of the region. For example, Singapore Business Company's segmentation is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the customer. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is rather busy and do not have much time.

Behavioral Segmentation

Female Health Company behavioral segmentation is based upon the attitude knowledge and awareness of the client. For instance its extremely nutritious products target those customers who have a health conscious mindset towards their consumptions.

Female Health Company Alternatives

In order to sustain the brand in the market and keep the consumer undamaged with the brand name, there are 2 options:
Alternative: 1
The Business must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the company, increasing the wealth of the business. Costs on R&D would be sunk expense.
2. The business can resell the acquired units in the market, if it fails to execute its technique. Amount spend on the R&D could not be restored, and it will be thought about totally sunk cost, if it do not provide prospective outcomes.
3. Investing in R&D supply slow growth in sales, as it takes long period of time to present an item. However, acquisitions offer fast outcomes, as it supply the company already established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the business to face misconception of consumers about Business core worths of healthy and healthy products.
2 Large costs on acquisitions than R&D would send out a signal of company's inadequacy of developing ingenious products, and would results in customer's frustration.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making company unable to introduce brand-new innovative items.
Alternative: 2.
The Company should invest more on its R&D rather than acquisitions.
Pros:
1. It would enable the business to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by introducing those products which can be used to a completely new market section.
4. Ingenious products will provide long term advantages and high market share in long run.
Cons:
1. It would reduce the earnings margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, and would impact the business at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable signal to the financiers, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present brand-new ingenious items with less danger of converting the spending on R&D into sunk cost.
2. It would offer a favorable signal to the investors, as the overall assets of the company would increase with its substantial R&D spending.
3. It would not impact the profit margins of the business at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in terms of the company's total wealth in addition to in terms of innovative products.
Cons:
1. Danger of conversion of R&D spending into sunk cost, higher than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of ingenious items than alternative 2 and high variety of ingenious products than alternative 1.

Female Health Company Conclusion

RecommendationsBusiness has stayed the top market player for more than a decade. It has institutionalised its methods and culture to align itself with the market modifications and consumer behavior, which has actually ultimately permitted it to sustain its market share. Business has actually developed considerable market share and brand name identity in the city markets, it is recommended that the company must focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by creating a specific brand allowance technique through trade marketing tactics, that draw clear difference between Female Health Company products and other competitor products. Female Health Company must take advantage of its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will permit the company to establish brand name equity for recently presented and already produced products on a higher platform, making the effective use of resources and brand name image in the market.

Female Health Company Exhibits

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental assistance

Changing standards of international food.
Improved market share.
Transforming perception towards much healthier items
Improvements in R&D as well as QA divisions.

Introduction of E-marketing.
No such influence as it is beneficial.
Concerns over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 5000
Highest after Organisation with much less growth than Organisation 6th Cheapest
R&D Spending Highest since 2004 Greatest after Company 3rd Most affordable
Net Profit Margin Greatest given that 2005 with fast growth from 2001 to 2019 As a result of sale of Alcon in 2018. Practically equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and health and wellness element Highest possible variety of brand names with lasting practices Largest confectionary as well as processed foods brand name worldwide Biggest milk items and bottled water brand in the world
Segmentation Middle and also upper center degree customers worldwide Specific clients in addition to household group Any age and Earnings Consumer Teams Middle and top center degree consumers worldwide
Number of Brands 1st 5th 2nd 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 45954 589118 168768 993864 538795
Net Profit Margin 1.11% 3.69% 93.52% 4.15% 81.93%
EPS (Earning Per Share) 31.31 6.35 2.36 7.97 37.22
Total Asset 552634 878448 169951 386255 93658
Total Debt 36811 36548 91251 57353 33266
Debt Ratio 62% 23% 36% 86% 51%
R&D Spending 5718 5186 4553 5739 1837
R&D Spending as % of Sales 7.61% 4.76% 8.14% 8.47% 6.47%

Female Health Company Executive Summary Female Health Company Swot Analysis Female Health Company Vrio Analysis Female Health Company Pestel Analysis
Female Health Company Porters Analysis Female Health Company Recommendations