Reframing Health Care Through Social Media Case Study Analysis

Case Study Solution And Analysis

Home >> Chicago Booth >> Reframing Health Care Through Social Media >>

Reframing Health Care Through Social Media Case Study Analysis

Reframing Health Care Through Social Media is currently one of the biggest food cycle worldwide. It was founded by Chicago Booth in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate. At the same time, the Page siblings from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The two became rivals at first however later combined in 1905, resulting in the birth of Reframing Health Care Through Social Media.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from various countries and attempts to make choices considering the entire world. Reframing Health Care Through Social Media presently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of Business Corporation is to improve the quality of life of individuals by playing its part and supplying healthy food. While making sure that the company is succeeding in the long run, that's how it plays its part for a better and healthy future


Reframing Health Care Through Social Media's vision is to offer its consumers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and simultaneously understand the requirements and requirements of its clients. Its vision is to grow quickly and offer items that would satisfy the needs of each age group. Reframing Health Care Through Social Media visualizes to establish a well-trained labor force which would help the business to grow


Reframing Health Care Through Social Media's mission is that as currently, it is the leading business in the food market, it believes in 'Good Food, Great Life". Its mission is to provide its consumers with a range of options that are healthy and best in taste. It is concentrated on offering the best food to its customers throughout the day and night.


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

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the business has laid down its goals and objectives. These goals and objectives are noted below.
• One objective of the company is to reach zero land fill status. (Business, aboutus, 2017).
• Another goal of Reframing Health Care Through Social Media is to squander minimum food throughout production. Usually, the food produced is squandered even prior to 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 minimize those issues and would likewise ensure the delivery of high quality of its products to its customers.
• Meet global standards of the environment.
• Develop a relationship based upon trust with its customers, service partners, staff members, and government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW technique. 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 current Business method is based on the idea of Nutritious, Health and Health (NHW). This technique handles the idea to bringing change in the customer preferences about food and making the food stuff healthier concerning about the health problems.
The vision of this strategy is based on the secret approach i.e. 60/40+ which merely implies that the items 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 dietary value in contrast to all other items in market gaining it a plus on its dietary content.
This technique was adopted to bring more yummy plus healthy foods and beverages in market than ever. In competitors with other business, with an intent of keeping its trust over customers as Business Business has actually acquired more relied on by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual quantity of costs reveals that the sales are increasing at a greater rate than its R&D costs, and enable the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This indicator likewise reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio present a threat of default of Business to its financiers and might lead a decreasing share prices. In terms of increasing financial obligation ratio, the company should not spend much on R&D and must pay its current debts to decrease the threat for investors.
The increasing danger of financiers with increasing debt ratio and declining share rates can be observed by huge decrease of EPS of Reframing Health Care Through Social Media stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development likewise hinder 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 estimations and Graphs given in the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be used to derive different techniques based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business must present more ingenious products by big amount of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the business. It might likewise offer Business a long term competitive advantage over its competitors.
The worldwide expansion of Business ought to be focused on market recording of developing countries by growth, drawing in more customers through customer's loyalty. As establishing countries are more populated than industrialized nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisReframing Health Care Through Social Media ought to do mindful acquisition and merger of organizations, as it could impact the customer's and society's understandings about Business. It should acquire and combine with those companies which have a market track record of healthy and healthy business. It would enhance the perceptions of customers about Business.
Business should not just invest its R&D on development, rather than it should also focus on the R&D spending over evaluation of cost of numerous healthy products. This would increase cost performance of its items, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not just developing however also to industrialized nations. It should expand its circle to numerous countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Reframing Health Care Through Social Media needs to carefully control its acquisitions to avoid the threat of mistaken belief from the customers about Business. It must get and merge with those nations having a goodwill of being a healthy company in the market. This would not just improve the perception of consumers about Business however would also increase the sales, earnings margins and market share of Business. It would likewise enable the company to use its possible resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 aspects; age, gender, earnings and profession. Business produces a number of items related to babies i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Reframing Health Care Through Social Media products are quite affordable by practically all levels, however its significant targeted clients, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in nearly 86 countries. Its geographical division is based upon 2 primary elements i.e. average income level of the customer along with the climate of the area. Singapore Business Business's division 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 character and lifestyle of the consumer. Business 3 in 1 Coffee target those clients whose life style is quite busy and do not have much time.

Behavioral Segmentation

Reframing Health Care Through Social Media behavioral division is based upon the attitude understanding and awareness of the consumer. Its extremely nutritious items target those customers who have a health conscious attitude towards their usages.

Reframing Health Care Through Social Media Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand, there are 2 choices:
Option: 1
The Business must invest more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the company, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the obtained systems in the market, if it fails to execute its strategy. Quantity spend on the R&D could not be restored, and it will be considered entirely sunk cost, if it do not offer potential outcomes.
3. Investing in R&D supply slow development in sales, as it takes very long time to present an item. Acquisitions supply quick results, as it supply the business already developed product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to face mistaken belief of customers about Business core worths of healthy and nutritious products.
2 Large costs on acquisitions than R&D would send a signal of business's ineffectiveness of developing ingenious items, and would lead to customer's discontentment also.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making business not able to introduce brand-new innovative items.
Alternative: 2.
The Business must invest more on its R&D rather than acquisitions.
1. It would allow the company to produce more ingenious products.
2. It would supply the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted consumers by introducing those products which can be offered to an entirely new market sector.
4. Ingenious items will supply long term benefits and high market share in long run.
1. It would reduce the profit margins of the business.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would impact the business at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which could supply an unfavorable signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to introduce new innovative items with less risk of transforming the costs on R&D into sunk cost.
2. It would provide a positive signal to the financiers, as the overall assets of the business would increase with its significant R&D costs.
3. It would not impact the earnings margins of the company at a large rate as compare to alternative 2.
4. It would supply the company a strong long term market position in regards to the business's general wealth in addition to in terms of innovative products.
1. Risk of conversion of R&D spending into sunk expense, greater than alternative 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Introduction of less variety of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

Reframing Health Care Through Social Media Conclusion

RecommendationsIt has institutionalized its strategies and culture to align itself with the market changes and consumer habits, which has eventually permitted it to sustain its market share. Business has developed significant market share and brand name identity in the metropolitan markets, it is advised that the business ought to focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by producing a specific brand name allowance strategy through trade marketing tactics, that draw clear difference in between Reframing Health Care Through Social Media items and other rival products.

Reframing Health Care Through Social Media Exhibits

PESTEL Analysis
Governmental assistance

Changing standards of international food.
Boosted market share. Altering understanding in the direction of much healthier items Improvements in R&D and QA divisions.

Intro of E-marketing.
No such effect as it is good. Worries over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 7000 Highest possible after Service with less development than Business 8th Cheapest
R&D Spending Greatest considering that 2001 Greatest after Business 7th Cheapest
Net Profit Margin Greatest given that 2008 with quick development from 2001 to 2011 Because of sale of Alcon in 2015. Practically equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and also health and wellness factor Highest number of brand names with sustainable techniques Biggest confectionary as well as processed foods brand name worldwide Biggest dairy products and mineral water brand worldwide
Segmentation Middle as well as top middle degree customers worldwide Specific consumers together with house team All age and Earnings Customer Groups Middle and upper middle degree consumers worldwide
Number of Brands 2nd 5th 6th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 53917 761347 252745 346787 848666
Net Profit Margin 1.68% 9.13% 34.23% 3.34% 89.58%
EPS (Earning Per Share) 35.14 6.89 2.86 6.89 94.88
Total Asset 473347 221621 954325 549451 64952
Total Debt 79566 47411 45768 12715 48337
Debt Ratio 61% 31% 13% 24% 57%
R&D Spending 9544 9954 7153 2973 4849
R&D Spending as % of Sales 3.95% 7.22% 9.92% 4.58% 3.99%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations