Shanakt Consulting An Indian Technology Startups Dilemma Case Study Solution

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Business is presently one of the biggest food chains worldwide. It was founded by Henri Shanakt Consulting An Indian Technology Startups Dilemma in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate.
Business is now a transnational business. Unlike other multinational business, it has senior executives from different countries and tries to make choices considering the whole world. Shanakt Consulting An Indian Technology Startups Dilemma presently has more than 500 factories worldwide and a network spread throughout 86 countries.


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


Shanakt Consulting An Indian Technology Startups Dilemma's vision is to provide its consumers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and simultaneously understand the needs and requirements of its customers. Its vision is to grow quickly and offer items that would please the requirements of each age. Shanakt Consulting An Indian Technology Startups Dilemma envisions to develop a well-trained labor force which would help the business to grow


Shanakt Consulting An Indian Technology Startups Dilemma's mission is that as presently, it is the leading business in the food market, it thinks in 'Great Food, Great Life". Its objective is to provide its customers with a variety of options that are healthy and finest in taste. It is concentrated on providing the best food to its customers throughout the day and night.


Business has a vast array of items that it offers to its clients. Its items consist of food for babies, cereals, dairy items, treats, chocolates, food for animal and bottled water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 workers. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the company has laid down its objectives and goals. These objectives and goals are listed below.
• One goal of the business is to reach zero landfill status. (Business, aboutus, 2017).
• Another goal of Shanakt Consulting An Indian Technology Startups Dilemma is to waste minimum food during production. Most often, the food produced is wasted 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 decrease the above-mentioned issues and would likewise ensure the delivery of high quality of its products to its consumers.
• Meet international requirements of the environment.
• Develop a relationship based upon trust with its customers, service partners, workers, 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 strategy. The target of the company is not achieved as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Display H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may result in the decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business strategy is based upon the concept of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing modification in the customer choices about food and making the food stuff healthier concerning about the health problems.
The vision of this strategy is based upon the secret technique i.e. 60/40+ which simply indicates 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 extra nutritional value in contrast to all other items in market gaining it a plus on its dietary content.
This strategy was adopted to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other companies, with an objective of retaining its trust over clients as Business Company has actually gotten more trusted by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real quantity 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 Earnings Margin is increasing while R&D as a portion of sales is declining. This indication likewise reveals a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing financial obligation ratio position a danger of default of Business to its financiers and could lead a decreasing share costs. In terms of increasing financial obligation ratio, the firm ought to not spend much on R&D and must pay its present debts to decrease the threat for financiers.
The increasing risk of financiers with increasing debt ratio and declining share rates can be observed by huge decline of EPS of Shanakt Consulting An Indian Technology Startups Dilemma stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow perception structure of consumers. This slow development likewise prevent company to additional invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Charts given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be used to obtain various strategies based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business should introduce more ingenious items by large quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the profit margins for the company. It could likewise offer Business a long term competitive advantage over its rivals.
The international growth of Business need to be concentrated on market capturing of developing nations by expansion, drawing in more consumers through customer's loyalty. As developing countries are more populous than industrialized countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisShanakt Consulting An Indian Technology Startups Dilemma ought to do cautious acquisition and merger of companies, as it might affect the customer's and society's understandings about Business. It ought to get and combine with those companies which have a market reputation of healthy and healthy business. It would improve the perceptions of customers about Business.
Business must not just invest its R&D on development, rather than it needs to likewise focus on the R&D costs over examination of cost of numerous nutritious products. This would increase cost performance of its products, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just establishing but also to developed countries. It should expand its circle to numerous countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Shanakt Consulting An Indian Technology Startups Dilemma needs to wisely control its acquisitions to prevent the threat of misconception from the consumers about Business. It ought to obtain and merge with those countries having a goodwill of being a healthy company in the market. This would not only enhance the perception of customers about Business however would also increase the sales, profit margins and market share of Business. It would also make it possible for the business to utilize its potential resources effectively on its other operations instead of acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 factors; age, gender, earnings and occupation. Business produces numerous items related to infants i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Shanakt Consulting An Indian Technology Startups Dilemma items are quite inexpensive by practically all levels, but its significant targeted customers, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in nearly 86 countries. Its geographical division is based upon two main factors i.e. typical earnings level of the customer in addition to the climate of the region. For instance, 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 client. For example, Business 3 in 1 Coffee target those customers whose lifestyle is quite busy and don't have much time.

Behavioral Segmentation

Shanakt Consulting An Indian Technology Startups Dilemma behavioral division is based upon the mindset understanding and awareness of the consumer. Its extremely healthy products target those consumers who have a health mindful mindset towards their usages.

Shanakt Consulting An Indian Technology Startups Dilemma Alternatives

In order to sustain the brand in the market and keep the client intact with the brand name, there are two options:
Alternative: 1
The Company must spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. Costs on R&D would be sunk cost.
2. The company can resell the gotten units in the market, if it fails to implement its strategy. Amount spend on the R&D might not be revived, and it will be thought about totally sunk cost, if it do not provide prospective results.
3. Spending on R&D provide sluggish development in sales, as it takes very long time to present a product. Nevertheless, acquisitions offer fast results, as it offer the company currently established item, which can be marketed right after the acquisition.
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to deal with misconception of customers about Business core worths of healthy and nutritious products.
2 Big spending on acquisitions than R&D would send a signal of business's ineffectiveness of developing ingenious products, and would lead to consumer's frustration too.
3. Large acquisitions than R&D would extend the product line of the company by the items which are already present in the market, making business unable to introduce brand-new ingenious items.
Option: 2.
The Company should spend more on its R&D rather than acquisitions.
1. It would enable the business to produce more ingenious items.
2. It would offer the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted consumers by introducing those products which can be offered to a totally brand-new market segment.
4. Ingenious items will offer long term advantages and high market share in long run.
1. It would reduce the profit margins of the business.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would impact the company at big. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the financiers, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to introduce new ingenious products with less threat of transforming the spending on R&D into sunk expense.
2. It would supply a favorable signal to the financiers, as the general properties of the business would increase with its considerable R&D costs.
3. It would not impact the earnings margins of the business at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the business's total wealth in addition to in terms of ingenious products.
1. Threat of conversion of R&D costs into sunk cost, greater than alternative 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Intro of less number of innovative products than alternative 2 and high variety of ingenious items than alternative 1.

Shanakt Consulting An Indian Technology Startups Dilemma Conclusion

RecommendationsIt has institutionalized its techniques and culture to align itself with the market changes and client habits, which has eventually allowed it to sustain its market share. Business has developed significant market share and brand identity in the urban markets, it is suggested that the business should focus on the rural areas in terms of establishing brand name loyalty, awareness, and equity, such can be done by developing a particular brand name allowance strategy through trade marketing strategies, that draw clear difference in between Shanakt Consulting An Indian Technology Startups Dilemma items and other competitor items.

Shanakt Consulting An Indian Technology Startups Dilemma Exhibits

PESTEL Analysis
Governmental support

Altering standards of international food.
Enhanced market share.
Transforming assumption towards much healthier products
Improvements in R&D and QA divisions.

Intro of E-marketing.
No such influence as it is beneficial.
Problems over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest since 3000
Greatest after Organisation with much less development than Company 7th Most affordable
R&D Spending Highest possible since 2003 Greatest after Business 5th Lowest
Net Profit Margin Highest because 2001 with fast growth from 2008 to 2018 Due to sale of Alcon in 2011. Almost equal to Kraft Foods Incorporation Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment and health and wellness factor Highest possible variety of brand names with sustainable methods Largest confectionary and also processed foods brand name in the world Biggest dairy products as well as bottled water brand worldwide
Segmentation Center and also top middle level consumers worldwide Individual consumers in addition to household team Any age as well as Revenue Consumer Teams Center and also top center level customers worldwide
Number of Brands 9th 5th 4th 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 91548 731946 271475 724895 758752
Net Profit Margin 6.98% 4.75% 85.46% 6.66% 62.46%
EPS (Earning Per Share) 14.47 4.48 7.92 6.24 61.89
Total Asset 312336 855412 981668 193899 69956
Total Debt 78494 61642 57918 38715 68298
Debt Ratio 18% 16% 72% 35% 56%
R&D Spending 3446 4977 7296 2464 7614
R&D Spending as % of Sales 4.53% 3.58% 8.99% 3.84% 3.41%

Shanakt Consulting An Indian Technology Startups Dilemma Executive Summary Shanakt Consulting An Indian Technology Startups Dilemma Swot Analysis Shanakt Consulting An Indian Technology Startups Dilemma Vrio Analysis Shanakt Consulting An Indian Technology Startups Dilemma Pestel Analysis
Shanakt Consulting An Indian Technology Startups Dilemma Porters Analysis Shanakt Consulting An Indian Technology Startups Dilemma Recommendations