Ford Ka A Breaking New Ground In The Small Car Market Case Study Solution

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Ford Ka A Breaking New Ground In The Small Car Market Case Study Analysis

Ford Ka A Breaking New Ground In The Small Car Market is presently among the biggest food cycle worldwide. It was established by Chicago Booth in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed babies and reduce mortality rate. At the very same time, the Page siblings from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two became competitors at first but later merged in 1905, leading to the birth of Ford Ka A Breaking New Ground In The Small Car Market.
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. Ford Ka A Breaking New Ground In The Small Car Market presently has more than 500 factories worldwide and a network spread across 86 nations.


The purpose of Business Corporation is to enhance the quality of life of individuals by playing its part and supplying 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


Ford Ka A Breaking New Ground In The Small Car Market's vision is to supply its clients with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and concurrently understand the needs and requirements of its customers. Its vision is to grow quickly and provide products that would satisfy the requirements of each age group. Ford Ka A Breaking New Ground In The Small Car Market visualizes to develop a trained workforce which would help the business to grow


Ford Ka A Breaking New Ground In The Small Car Market's mission is that as currently, it is the leading company in the food market, it thinks in 'Great Food, Excellent Life". Its objective is to provide its customers with a range of choices that are healthy and finest in taste also. It is concentrated on offering the best food to its clients throughout the day and night.


Business has a large range of products that it uses to its consumers. Its products consist of food for infants, cereals, dairy items, treats, chocolates, food for pet and bottled water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the company has set its goals and objectives. These goals and goals are noted below.
• One goal of the company is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another goal of Ford Ka A Breaking New Ground In The Small Car Market is to waste minimum food throughout production. Usually, the food produced is lost even prior to it reaches the clients.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to reduce those complications and would also guarantee the shipment of high quality of its products to its customers.
• Meet international requirements of the environment.
• Construct a relationship based on trust with its consumers, service partners, staff members, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its revenues on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW technique. Nevertheless, the target of the business is not attained as the sales were anticipated to grow higher at the rate of 10% per 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 innovation technology. Otherwise, it might lead to the declined income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based on the idea of Nutritious, Health and Health (NHW). This strategy handles the concept to bringing change in the consumer preferences about food and making the food things much healthier worrying about the health concerns.
The vision of this technique is based upon the secret approach i.e. 60/40+ which merely suggests that the items will have a rating of 60% on the basis of taste and 40% is based on its dietary worth. The products will be produced with extra nutritional value in contrast to all other items in market acquiring it a plus on its nutritional content.
This strategy was embraced to bring more delicious plus nutritious foods and drinks in market than ever. In competitors with other companies, with an objective of keeping its trust over consumers as Business Business has gained more relied on by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing actual quantity of spending reveals that the sales are increasing at a greater rate than its R&D costs, and allow the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is decreasing. This sign also shows a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing financial obligation ratio present a hazard of default of Business to its investors and could lead a declining share prices. In terms of increasing financial obligation ratio, the firm must not invest much on R&D and should pay its present debts to reduce the danger for financiers.
The increasing risk of financiers with increasing debt ratio and declining share costs can be observed by big decline of EPS of Ford Ka A Breaking New Ground In The Small Car Market stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This slow development likewise hinder company to more 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 computations and Charts given in the Displays D and E.

TWOS Analysis

2 analysis can be used to obtain numerous techniques based on the SWOT Analysis offered above. A brief summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative items by big quantity of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the profit margins for the company. It could also provide Business a long term competitive advantage over its rivals.
The international growth of Business need to be focused on market catching of developing countries by growth, bring in more clients through client's loyalty. As establishing countries are more populated than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisFord Ka A Breaking New Ground In The Small Car Market should do mindful acquisition and merger of companies, as it might impact the client's and society's understandings about Business. It must get and merge with those companies which have a market track record of healthy and healthy business. It would improve the understandings of consumers about Business.
Business should not just spend its R&D on development, instead of it must also focus on the R&D costs over examination of expense of different healthy items. This would increase expense efficiency of its products, which will result in increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business ought to relocate to not just establishing but also to developed nations. It ought to expands its geographical expansion. This wide geographical growth towards establishing and established countries would decrease the danger of potential losses in times of instability in various nations. It should widen its circle to numerous countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should get and merge with those countries having a goodwill of being a healthy business in the market. It would also enable the company to utilize its possible resources effectively on its other operations rather than acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on four factors; age, gender, income and occupation. For instance, Business produces a number of items connected to infants i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Ford Ka A Breaking New Ground In The Small Car Market products are rather budget-friendly by practically all levels, however its significant targeted customers, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in almost 86 countries. Its geographical segmentation is based upon two main elements i.e. average income level of the customer along with the climate of the area. Singapore Business Company's division is done on the basis of the weather 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 example, Business 3 in 1 Coffee target those customers whose lifestyle is quite hectic and do not have much time.

Behavioral Segmentation

Ford Ka A Breaking New Ground In The Small Car Market behavioral division is based upon the mindset understanding and awareness of the customer. For example its highly nutritious items target those customers who have a health mindful mindset towards their consumptions.

Ford Ka A Breaking New Ground In The Small Car Market Alternatives

In order to sustain the brand in the market and keep the customer intact with the brand, there are 2 options:
Option: 1
The Company should invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. However, costs on R&D would be sunk expense.
2. The business can resell the obtained units in the market, if it stops working to implement its technique. Nevertheless, amount spend on the R&D could not be revived, and it will be considered entirely sunk expense, if it do not provide possible results.
3. Investing in R&D provide slow growth in sales, as it takes very long time to introduce an item. Nevertheless, acquisitions offer quick results, as it supply the company currently established item, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the company to face misconception of customers about Business core worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send out a signal of company's ineffectiveness of establishing innovative products, and would lead to customer's dissatisfaction too.
3. Large acquisitions than R&D would extend the product line of the business by the items which are currently present in the market, making company unable to introduce new ingenious products.
Option: 2.
The Company ought to invest more on its R&D instead of acquisitions.
1. It would allow the business to produce more ingenious items.
2. It would supply the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by presenting those products which can be provided to an entirely new market section.
4. Innovative products will provide long term advantages and high market share in long term.
1. It would reduce the earnings margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk cost, and would impact the company at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of business, which might offer an unfavorable signal to the investors, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the company to present new innovative products with less threat of converting the spending on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the total assets of the business would increase with its significant R&D costs.
3. It would not impact the profit margins of the business at a large rate as compare to alternative 2.
4. It would supply the business a strong long term market position in regards to the company's general wealth as well as in terms of innovative items.
1. Danger of conversion of R&D costs into sunk cost, higher than alternative 1 lower than alternative 2.
2. Threat of misunderstanding about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less variety of ingenious products than alternative 2 and high variety of ingenious items than alternative 1.

Ford Ka A Breaking New Ground In The Small Car Market Conclusion

RecommendationsIt has institutionalised its strategies and culture to align itself with the market changes and consumer behavior, which has eventually allowed it to sustain its market share. Business has actually established substantial market share and brand name identity in the metropolitan markets, it is suggested that the company must focus on the rural areas in terms of establishing brand commitment, awareness, and equity, such can be done by developing a particular brand allocation technique through trade marketing techniques, that draw clear difference in between Ford Ka A Breaking New Ground In The Small Car Market products and other competitor items.

Ford Ka A Breaking New Ground In The Small Car Market Exhibits

PESTEL Analysis
Governmental support

Altering criteria of international food.
Improved market share.
Transforming understanding in the direction of much healthier items
Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such impact as it is beneficial.
Worries over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 7000
Greatest after Organisation with much less growth than Organisation 8th Most affordable
R&D Spending Greatest since 2005 Highest possible after Organisation 3rd Cheapest
Net Profit Margin Greatest because 2004 with rapid development from 2003 to 2013 As a result of sale of Alcon in 2019. Practically equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and health variable Highest possible number of brands with sustainable practices Biggest confectionary and refined foods brand on the planet Biggest dairy products and mineral water brand worldwide
Segmentation Middle and upper center level customers worldwide Individual consumers along with home group Any age and Revenue Client Teams Middle as well as upper middle level consumers worldwide
Number of Brands 8th 7th 1st 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 72139 461831 898864 565413 735978
Net Profit Margin 9.73% 2.31% 98.62% 3.16% 92.46%
EPS (Earning Per Share) 98.28 4.43 5.41 9.34 83.45
Total Asset 197453 936268 725674 338222 64642
Total Debt 47196 73852 62725 79575 81764
Debt Ratio 38% 65% 28% 49% 62%
R&D Spending 5224 9944 9293 8253 6238
R&D Spending as % of Sales 7.56% 7.83% 4.97% 7.41% 4.39%

Ford Ka A Breaking New Ground In The Small Car Market Executive Summary Ford Ka A Breaking New Ground In The Small Car Market Swot Analysis Ford Ka A Breaking New Ground In The Small Car Market Vrio Analysis Ford Ka A Breaking New Ground In The Small Car Market Pestel Analysis
Ford Ka A Breaking New Ground In The Small Car Market Porters Analysis Ford Ka A Breaking New Ground In The Small Car Market Recommendations