The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models is currently among the greatest food cycle worldwide. It was founded by Chicago Booth in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate. At the same time, the Page brothers from Switzerland also discovered The Anglo-Swiss Condensed Milk Business. The two became competitors initially however in the future merged in 1905, resulting in the birth of The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models.
Business is now a transnational company. Unlike other multinational business, it has senior executives from various countries and attempts to make decisions considering the whole world. The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models presently has more than 500 factories worldwide and a network spread across 86 nations.
Purpose
The purpose of The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models Corporation is to enhance the quality of life of individuals by playing its part and supplying healthy food. It wishes to help the world in forming a healthy and much better future for it. It likewise wishes to motivate individuals to live a healthy life. While making sure that the company is prospering in the long run, that's how it plays its part for a much better and healthy future
Vision
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and concurrently comprehend the requirements and requirements of its clients. Its vision is to grow quickly and offer items that would please the requirements of each age. The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models visualizes to establish a trained labor force which would help the business to grow
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Mission
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models's mission is that as currently, it is the leading company in the food industry, it believes in 'Great Food, Good Life". Its mission is to supply its customers with a variety of options that are healthy and finest in taste. It is focused on providing the best food to its consumers throughout the day and night.
Products.
Business has a wide range of products that it uses to its customers. Its products consist of food for babies, cereals, dairy products, treats, chocolates, food for pet and mineral water. It has around four hundred and fifty (450) factories around the globe and around 328,000 workers. In 2011, Business was noted as the most rewarding organization.
Goals and Objectives
• Keeping in mind the vision and mission of the corporation, the business has laid down its objectives and objectives. These objectives and objectives are noted below.
• One objective of the business is to reach no garbage dump status. It is working toward zero waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models is to waste minimum food during production. Most often, the food produced is lost even before it reaches the clients.
• Another thing that Business is working on is to improve its packaging in such a method that it would help it to reduce the above-mentioned issues and would likewise guarantee the shipment of high quality of its products to its customers.
• Meet international standards of the environment.
• Construct a relationship based upon trust with its customers, business partners, workers, and federal government.
Critical Issues
Just Recently, Business Business is focusing more towards the technique of NHW and investing more of its earnings 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 expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H.
Situational Analysis.
Analysis of Current Strategy, Vision and Goals
The present Business strategy is based upon the idea of Nutritious, Health and Health (NHW). This method deals with the idea to bringing change in the client preferences about food and making the food stuff much healthier worrying about the health concerns.
The vision of this method is based on the secret technique 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 upon its dietary value. The items will be produced with additional dietary worth in contrast to all other items in market acquiring it a plus on its dietary material.
This strategy was embraced to bring more tasty plus nutritious foods and beverages in market than ever. In competition with other companies, with an objective of maintaining its trust over customers as Business Business has actually gained more trusted by clients.
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 costs, and permit the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This sign likewise shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt 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 risk of default of Business to its financiers and might lead a declining share prices. In terms of increasing debt ratio, the firm must not invest much on R&D and ought to pay its current debts to reduce the risk for financiers.
The increasing threat of investors with increasing debt ratio and declining share costs can be observed by big decline of EPS of The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This sluggish development likewise hinder business to further 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 Graphs given up the Exhibits D and E.
TWOS Analysis
TWOS analysis can be utilized to obtain various techniques based on the SWOT Analysis given above. A quick summary of TWOS Analysis is given in Exhibit H.
Strategies to exploit Opportunities using Strengths
Business must introduce more innovative items by large quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It might also offer Business a long term competitive advantage over its rivals.
The international expansion of Business must be concentrated on market capturing of developing nations by growth, drawing in more customers through customer's commitment. As establishing nations are more populous than industrialized countries, it might increase the customer circle of Business.
Strategies to Overcome Weaknesses to Exploit Opportunities
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models must do mindful acquisition and merger of companies, as it could impact the customer's and society's perceptions about Business. It needs to obtain and combine with those business 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 development, rather than it ought to also concentrate on the R&D spending over assessment of expense of various healthy products. This would increase cost performance of its items, which will result in increasing its sales, due to decreasing rates, and margins.
Strategies to use strengths to overcome threats
Business ought to move to not only developing but likewise to developed countries. It needs to broaden its circle to different nations like Unilever which runs in about 170 plus countries.
Strategies to overcome weaknesses to avoid threats
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models ought to wisely control its acquisitions to avoid the risk of misconception from the customers about Business. It should get and combine with those countries having a goodwill of being a healthy company in the market. This would not just enhance the understanding of consumers about Business however would also increase the sales, profit margins and market share of Business. It would likewise make it possible for the business to use its possible resources effectively on its other operations instead of acquisitions of those companies slowing the NHW strategy growth.
Segmentation Analysis
Demographic Segmentation
The market segmentation of Business is based on four elements; age, gender, earnings and occupation. For instance, Business produces numerous products associated with children i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models products are rather affordable by almost all levels, but its significant targeted customers, in terms of earnings level are middle and upper middle level customers.
Geographical Segmentation
Geographical division of Business is composed of its existence in almost 86 nations. Its geographical division is based upon 2 primary elements i.e. average earnings level of the customer in addition to the climate of the region. Singapore Business Business's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.
Psychographic Segmentation
Psychographic division of Business is based upon the character and life style of the consumer. Business 3 in 1 Coffee target those customers whose life style is quite hectic and don't have much time.
Behavioral Segmentation
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models behavioral division is based upon the attitude understanding and awareness of the consumer. Its extremely nutritious items target those consumers who have a health mindful mindset towards their intakes.
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models Alternatives
In order to sustain the brand in the market and keep the consumer undamaged with the brand, there are 2 options:
Option: 1
The Business should invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the business, increasing the wealth of the company. Spending on R&D would be sunk cost.
2. The company can resell the obtained units in the market, if it stops working to execute its strategy. Quantity invest on the R&D might not be restored, and it will be thought about totally sunk expense, if it do not give potential results.
3. Investing in R&D provide slow development in sales, as it takes long period of time to introduce a product. Acquisitions offer fast outcomes, as it supply the company currently established product, which can be marketed quickly after the acquisition.
Cons:
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 costs on acquisitions than R&D would send a signal of business's ineffectiveness of establishing innovative items, and would lead to consumer's discontentment also.
3. Big 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 unable to present brand-new ingenious products.
Option: 2.
The Business needs to spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for 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 customers by presenting those items which can be offered to an entirely new market section.
4. Innovative products will provide long term advantages and high market share in long run.
Cons:
1. It would reduce the revenue margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would impact the business at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which could provide an unfavorable signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Pros:
1. It would enable the business to introduce new innovative items with less risk of transforming the costs on R&D into sunk cost.
2. It would offer a favorable signal to the investors, as the total assets of the company would increase with its considerable R&D spending.
3. It would not impact the earnings margins of the business at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in regards to the business's total wealth in addition to in regards to innovative products.
Cons:
1. Danger of conversion of R&D spending into sunk cost, higher than option 1 lower than alternative 2.
2. Threat of misunderstanding about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of ingenious products than alternative 2 and high number of innovative items than alternative 1.
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models Conclusion
Business has actually stayed the leading market player for more than a years. It has institutionalized its methods and culture to align itself with the market changes and client habits, which has actually ultimately allowed it to sustain its market share. Business has established considerable market share and brand name identity in the city markets, it is suggested that the company needs to focus on the rural locations in terms of developing brand name loyalty, awareness, and equity, such can be done by producing a specific brand allotment strategy through trade marketing techniques, that draw clear distinction in between The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models items and other competitor items. Moreover, Business must leverage its brand name picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will allow the company to establish brand equity for newly presented and already produced products on a greater platform, making the effective use of resources and brand image in the market.
The Dilemma Of Public E Procurement In Costa Rica Case On The Duality Of Technological Platforms And Implementation Models Exhibits
P Political |
E Economic |
S Social |
T Technology |
L Legal |
E Environment |
Governmental support Altering standards of international food. |
Improved market share. | Altering perception towards healthier items | Improvements in R&D and QA departments. Introduction of E-marketing. |
No such effect as it is favourable. | Concerns over recycling. Use resources. |
Competitor Analysis
Business | Unilever PLC | Kraft Foods Incorporation | DANONE | |
Sales Growth | Greatest since 8000 | Greatest after Organisation with much less growth than Business | 6th | Most affordable |
R&D Spending | Highest possible because 2004 | Highest after Organisation | 1st | Most affordable |
Net Profit Margin | Greatest given that 2003 with rapid growth from 2006 to 2018 Because of sale of Alcon in 2015. | Practically equal to Kraft Foods Unification | Almost equal to Unilever | N/A |
Competitive Advantage | Food with Nourishment and wellness aspect | Highest possible number of brand names with lasting techniques | Largest confectionary and also refined foods brand name worldwide | Biggest dairy products and also bottled water brand name on the planet |
Segmentation | Middle and upper center level customers worldwide | Individual clients in addition to house group | All age and also Earnings Customer Teams | Middle and top middle level consumers worldwide |
Number of Brands | 6th | 4th | 5th | 8th |
Quantitative Analysis
Analysis of Financial Statements (In Millions of CHF) | |||||
2006 | 2007 | 2008 | 2009 | 2010 | |
Sales Revenue | 66828 | 374678 | 819924 | 826498 | 142646 |
Net Profit Margin | 5.71% | 9.46% | 62.79% | 3.68% | 36.55% |
EPS (Earning Per Share) | 15.69 | 3.34 | 5.22 | 4.67 | 56.91 |
Total Asset | 582531 | 956871 | 419588 | 718138 | 83672 |
Total Debt | 18359 | 17765 | 41481 | 95932 | 38923 |
Debt Ratio | 16% | 85% | 16% | 98% | 83% |
R&D Spending | 8311 | 3556 | 7279 | 5144 | 4935 |
R&D Spending as % of Sales | 8.73% | 3.76% | 9.93% | 4.52% | 5.54% |
Executive Summary | Swot Analysis | Vrio Analysis | Pestel Analysis |
Porters Analysis | Recommendations |