Renault And Nissan A Marriage Of Reason Case Study Help

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Renault And Nissan A Marriage Of Reason Case Study Help

Renault And Nissan A Marriage Of Reason is currently one of the greatest food chains 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 same time, the Page siblings from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The 2 ended up being rivals at first however in the future merged in 1905, leading to the birth of Renault And Nissan A Marriage Of Reason.
Business is now a multinational business. Unlike other international companies, it has senior executives from various countries and tries to make decisions considering the whole world. Renault And Nissan A Marriage Of Reason presently has more than 500 factories around the world and a network spread across 86 nations.


The function of Renault And Nissan A Marriage Of Reason Corporation is to boost the lifestyle of individuals by playing its part and providing healthy food. It wants to help the world in shaping a healthy and better future for it. It likewise wishes to motivate people to live a healthy life. 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


Renault And Nissan A Marriage Of Reason's vision is to provide its customers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and at the same time comprehend the requirements and requirements of its consumers. Its vision is to grow quickly and supply products that would please the needs of each age group. Renault And Nissan A Marriage Of Reason visualizes to develop a well-trained workforce which would help the company to grow


Renault And Nissan A Marriage Of Reason's objective is that as presently, it is the leading company in the food market, it thinks in 'Great Food, Excellent Life". Its objective is to provide its consumers with a range of choices that are healthy and finest in taste as well. It is concentrated on providing the very best food to its consumers throughout the day and night.


Renault And Nissan A Marriage Of Reason has a large range of items that it offers to its clients. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the business has set its objectives and goals. These goals and goals are noted below.
• One goal of the business is to reach zero land fill status. It is pursuing no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another goal of Renault And Nissan A Marriage Of Reason is to waste 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 improve its packaging in such a way that it would help it to lower the above-mentioned complications and would also guarantee the delivery of high quality of its products to its consumers.
• Meet global requirements of the environment.
• Build a relationship based upon trust with its consumers, company partners, staff members, and federal government.

Critical Issues

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

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based upon the concept of Nutritious, Health and Health (NHW). This method deals with the concept to bringing change in the client choices about food and making the food things much healthier worrying about the health concerns.
The vision of this method is based on the secret method i.e. 60/40+ which just implies that the items will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The items will be manufactured with extra dietary worth in contrast to all other products in market acquiring it a plus on its nutritional content.
This strategy was embraced to bring more yummy plus healthy foods and beverages in market than ever. In competition with other business, with an intent of maintaining its trust over consumers as Business Business has gotten more relied on by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing real amount of spending shows that the sales are increasing at a greater rate than its R&D spending, and allow the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indicator also shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of debts. This increasing financial obligation ratio posture a threat of default of Business to its investors and could lead a decreasing share costs. For that reason, in regards to increasing financial obligation ratio, the company must not spend much on R&D and should pay its existing financial obligations to decrease the risk for financiers.
The increasing risk of financiers with increasing debt ratio and declining share rates can be observed by big decrease of EPS of Renault And Nissan A Marriage Of Reason stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow development likewise prevent business to more invest in 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 up the Exhibits D and E.

TWOS Analysis

2 analysis can be used to derive various strategies 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 needs to introduce more ingenious products by big amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the business. It might likewise offer Business a long term competitive advantage over its rivals.
The worldwide growth of Business must be concentrated on market capturing of developing nations by growth, bring in more consumers through client's commitment. As establishing countries are more populated than industrialized nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisRenault And Nissan A Marriage Of Reason ought to do mindful acquisition and merger of companies, as it could impact the client's and society's understandings about Business. It ought to acquire and merge with those companies which have a market credibility of healthy and healthy business. It would enhance the perceptions of consumers about Business.
Business must not just spend its R&D on development, instead of it should also concentrate on the R&D spending over evaluation of cost of various healthy items. This would increase expense efficiency of its items, which will result in increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not just developing but also to industrialized nations. It should widen its circle to numerous nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to obtain and combine with those nations having a goodwill of being a healthy business in the market. It would also make it possible for the business to use its potential resources effectively on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on four elements; age, gender, earnings and occupation. For instance, Business produces a number of items related to children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary products. Renault And Nissan A Marriage Of Reason items are rather cost effective by nearly all levels, however its significant targeted consumers, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its existence in nearly 86 nations. Its geographical segmentation is based upon 2 main factors i.e. average income level of the consumer in addition to the environment of the region. 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 segmentation of Business is based upon the character and life style of the consumer. Business 3 in 1 Coffee target those clients whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Renault And Nissan A Marriage Of Reason behavioral division is based upon the mindset knowledge and awareness of the consumer. For example its extremely nutritious products target those clients who have a health mindful mindset towards their consumptions.

Renault And Nissan A Marriage Of Reason Alternatives

In order to sustain the brand in the market and keep the client intact with the brand, there are two choices:
Alternative: 1
The Business should spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the gotten units in the market, if it stops working to execute its technique. Amount invest on the R&D might not be revived, and it will be thought about totally sunk expense, if it do not give prospective results.
3. Investing in R&D provide slow growth in sales, as it takes long period of time to introduce a product. Nevertheless, acquisitions provide fast outcomes, as it offer the company already developed product, which can be marketed soon 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 deal with misconception of customers about Business core worths of healthy and healthy products.
2 Big costs on acquisitions than R&D would send out a signal of business's inadequacy of developing ingenious products, and would results in consumer's frustration.
3. Large acquisitions than R&D would extend the line of product of the business by the products which are already present in the market, making business not able to introduce brand-new innovative products.
Alternative: 2.
The Business needs to spend more on its R&D instead of acquisitions.
1. It would enable the company to produce more ingenious products.
2. It would offer the company a strong competitive position in the market.
3. It would allow the company to increase its targeted consumers by presenting those items which can be offered to a completely new market sector.
4. Innovative products will supply long term advantages and high market share in long run.
1. It would decrease the earnings margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk cost, and would affect the company at big. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might supply an unfavorable signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to introduce new ingenious products with less risk of converting the costs on R&D into sunk cost.
2. It would supply a positive signal to the financiers, as the general assets of the company would increase with its considerable R&D spending.
3. It would not impact the revenue 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 terms of the company's total wealth as well as in terms of innovative products.
1. Danger of conversion of R&D costs into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Intro of less number of innovative products than alternative 2 and high number of ingenious items than alternative 1.

Renault And Nissan A Marriage Of Reason Conclusion

RecommendationsBusiness has remained the top market gamer for more than a decade. It has actually institutionalized its methods and culture to align itself with the market changes and consumer habits, which has actually eventually allowed it to sustain its market share. Business has actually established significant market share and brand identity in the metropolitan markets, it is advised that the business ought to focus on the rural locations in terms of developing brand name loyalty, awareness, and equity, such can be done by creating a particular brand allocation method through trade marketing tactics, that draw clear distinction between Renault And Nissan A Marriage Of Reason items and other rival items. Renault And Nissan A Marriage Of Reason needs to take advantage of its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will permit the company to develop brand equity for freshly presented and currently produced products on a greater platform, making the effective usage of resources and brand name image in the market.

Renault And Nissan A Marriage Of Reason Exhibits

PESTEL Analysis
Governmental support

Altering criteria of global food.
Enhanced market share. Changing understanding in the direction of much healthier products Improvements in R&D and also QA departments.

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

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 9000 Greatest after Organisation with less development than Company 7th Lowest
R&D Spending Highest given that 2003 Greatest after Service 8th Cheapest
Net Profit Margin Highest possible since 2004 with rapid development from 2002 to 2018 Due to sale of Alcon in 2011. Almost equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health factor Greatest number of brands with lasting techniques Largest confectionary and processed foods brand name on the planet Largest milk items and bottled water brand name worldwide
Segmentation Middle and also upper center level consumers worldwide Private clients in addition to home group Every age and Earnings Customer Groups Middle and also upper middle degree customers worldwide
Number of Brands 7th 3rd 1st 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 65688 936725 517617 324171 714724
Net Profit Margin 3.98% 8.56% 88.49% 4.89% 18.73%
EPS (Earning Per Share) 24.61 6.96 2.85 4.47 48.71
Total Asset 469494 246677 665999 957746 13581
Total Debt 24425 65921 36222 33324 59998
Debt Ratio 97% 99% 16% 62% 89%
R&D Spending 6268 9878 2327 6892 3548
R&D Spending as % of Sales 6.52% 7.48% 6.44% 2.75% 4.57%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations