Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle Case Study Solution

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Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle Case Study Analysis

Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle is presently one of the biggest food cycle worldwide. It was established by Chicago Booth in 1866, a German Pharmacist who initially released "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate. At the exact same time, the Page brothers from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Company. The 2 became competitors at first however in the future merged in 1905, leading to the birth of Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle.
Business is now a transnational business. Unlike other international companies, it has senior executives from various countries and tries to make choices thinking about the whole world. Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle presently has more than 500 factories around the world and a network spread across 86 countries.


The function of Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle Corporation is to improve the quality of life of people by playing its part and supplying healthy food. It wants to help the world in shaping a healthy and better future for it. It likewise wants to encourage people to live a healthy life. While ensuring that the company is prospering in the long run, that's how it plays its part for a much better and healthy future


Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle's vision is to offer its clients with food that is healthy, high in quality and safe to eat. Business imagines to develop a well-trained labor force which would help the business to grow


Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle's objective is that as currently, it is the leading company in the food market, it thinks in 'Excellent Food, Good Life". Its objective is to provide its consumers with a variety of options that are healthy and finest in taste. It is focused on supplying the very best food to its customers throughout the day and night.


Business has a large range of products that it offers to its consumers. Its products include food for babies, cereals, dairy items, snacks, chocolates, food for animal and mineral water. It has around four hundred and fifty (450) factories all over the world and around 328,000 employees. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has actually set its goals and objectives. These objectives and goals are noted below.
• One objective of the business is to reach zero garbage dump status. It is working toward no waste, where no waste of the factory is landfilled. It encourages its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another goal of Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle is to squander minimum food during production. Usually, the food produced is squandered even before it reaches the consumers.
• Another thing that Business is dealing with is to enhance its product packaging in such a method that it would help it to reduce those problems and would also guarantee the delivery of high quality of its items to its clients.
• Meet worldwide standards of the environment.
• Develop a relationship based on trust with its customers, organisation partners, employees, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the technique of NHW and investing more of its revenues on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW method. The target of the company is not accomplished as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based upon the principle of Nutritious, Health and Wellness (NHW). This technique deals with the idea to bringing change in the consumer choices about food and making the food things healthier worrying about the health problems.
The vision of this technique is based on the key technique i.e. 60/40+ which merely suggests that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be manufactured with additional nutritional value in contrast to all other products in market getting it a plus on its nutritional content.
This technique was adopted to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other business, with an intention of keeping its trust over customers as Business Company has actually gotten more trusted by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real quantity of spending reveals that the sales are increasing at a higher rate than its R&D costs, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This indication also reveals a thumbs-up 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 debt ratio present a danger of default of Business to its financiers and might lead a decreasing share costs. Therefore, in terms of increasing debt ratio, the company ought to not spend much on R&D and needs to pay its current financial obligations to reduce the threat for financiers.
The increasing risk of investors with increasing financial obligation ratio and decreasing share rates can be observed by big decrease of EPS of Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception structure of consumers. This sluggish development likewise prevent company to additional spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Graphs given in the Displays D and E.

TWOS Analysis

TWOS analysis can be utilized to derive numerous techniques based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more ingenious items by big amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the business. It might also offer Business a long term competitive advantage over its competitors.
The global expansion of Business should be concentrated on market recording of establishing countries by growth, bring in more customers through consumer's loyalty. As developing countries are more populous than developed nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisFinancing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle ought to do mindful acquisition and merger of organizations, as it might impact the consumer's and society's understandings about Business. It must obtain and combine with those companies which have a market track record of healthy and nutritious companies. It would improve the perceptions of consumers about Business.
Business needs to not just spend its R&D on innovation, instead of it needs to likewise focus on the R&D costs over assessment of cost of different healthy products. This would increase cost efficiency 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 developed nations. It ought to broaden its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle ought to sensibly control its acquisitions to avoid the risk of mistaken belief from the consumers about Business. It must obtain and combine with those nations having a goodwill of being a healthy business in the market. This would not only improve the perception of customers about Business however would also increase the sales, profit margins and market share of Business. It would likewise enable the company to utilize its prospective resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on four factors; age, gender, earnings and occupation. For instance, Business produces a number of products connected to children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle items are rather cost effective by nearly all levels, but its significant targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in practically 86 nations. Its geographical division is based upon 2 primary aspects i.e. average earnings level of the consumer in addition to the climate of the region. Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and lifestyle of the customer. Business 3 in 1 Coffee target those clients whose life style is rather hectic and don't have much time.

Behavioral Segmentation

Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle behavioral division is based upon the attitude knowledge and awareness of the customer. For instance its highly healthy items target those consumers who have a health mindful mindset towards their intakes.

Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are two alternatives:
Option: 1
The Business must invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk expense.
2. The business can resell the gotten systems in the market, if it stops working to implement its technique. Nevertheless, amount invest in the R&D might not be revived, and it will be thought about completely sunk expense, if it do not give prospective results.
3. Investing in R&D offer sluggish development in sales, as it takes very long time to introduce an item. Acquisitions supply quick results, as it provide the company already developed item, which can be marketed soon after the acquisition.
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the company to face misconception of customers about Business core worths of healthy and healthy products.
2 Big spending on acquisitions than R&D would send a signal of company's ineffectiveness of establishing innovative products, and would lead to customer's frustration as well.
3. Big acquisitions than R&D would extend the product line of the business by the items which are currently present in the market, making business unable to introduce brand-new ingenious products.
Alternative: 2.
The Business ought to spend more on its R&D instead of acquisitions.
1. It would make it possible for the company to produce more innovative items.
2. It would offer the business a strong competitive position in the market.
3. It would allow the business to increase its targeted consumers by introducing those items which can be used to a totally brand-new market sector.
4. Ingenious items will provide long term benefits and high market share in long run.
1. It would reduce the revenue margins of the company.
2. In case of failure, the whole costs on R&D would be considered as sunk cost, and would impact the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable signal to the investors, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to present new innovative items with less threat of converting the costs on R&D into sunk expense.
2. It would supply a favorable signal to the financiers, as the general assets of the company would increase with its significant R&D spending.
3. It would not affect the earnings margins of the business at a big rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the business's total wealth in addition to in regards to innovative items.
1. Threat of conversion of R&D costs into sunk cost, higher than option 1 lesser than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less number of ingenious items than alternative 2 and high number of ingenious products than alternative 1.

Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle Conclusion

RecommendationsIt has institutionalized its techniques and culture to align itself with the market modifications and customer habits, which has actually eventually allowed it to sustain its market share. Business has actually developed substantial market share and brand name identity in the urban markets, it is suggested that the business should focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by developing a specific brand allocation strategy through trade marketing techniques, that draw clear difference in between Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle items and other competitor items.

Financing Slum Rehabilitation In Mumbai A Nonprofit Caught In The Middle Exhibits

PESTEL Analysis
Governmental assistance

Altering standards of international food.
Improved market share. Changing perception in the direction of healthier items Improvements in R&D and also QA departments.

Introduction of E-marketing.
No such impact as it is good. Concerns over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 9000 Highest after Business with much less development than Business 7th Lowest
R&D Spending Highest possible because 2008 Highest after Business 5th Least expensive
Net Profit Margin Greatest since 2003 with fast growth from 2003 to 2013 As a result of sale of Alcon in 2014. Virtually equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as health and wellness factor Greatest number of brands with sustainable practices Biggest confectionary and processed foods brand in the world Largest dairy items and mineral water brand in the world
Segmentation Middle and also upper center level customers worldwide Individual clients along with house group Every age and Revenue Consumer Groups Center and also top middle degree customers worldwide
Number of Brands 1st 3rd 6th 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 96789 763626 649123 874915 769992
Net Profit Margin 3.98% 1.85% 11.26% 7.98% 98.58%
EPS (Earning Per Share) 97.73 3.37 9.26 6.71 87.68
Total Asset 457636 644321 543497 634695 46365
Total Debt 64957 63759 64912 72544 91184
Debt Ratio 12% 11% 49% 97% 38%
R&D Spending 5775 6984 8953 3348 8985
R&D Spending as % of Sales 6.62% 5.73% 5.76% 8.68% 5.31%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations