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The Man In The Mirror B Case Study Analysis

The Man In The Mirror B is presently among the most significant food cycle worldwide. It was established by Chicago Booth in 1866, a German Pharmacist who first introduced "FarineLactee"; a combination of flour and milk to feed infants and reduce mortality rate. At the exact same time, the Page siblings from Switzerland also found The Anglo-Swiss Condensed Milk Business. The 2 became competitors in the beginning however later on combined in 1905, resulting in the birth of The Man In The Mirror B.
Business is now a transnational company. Unlike other multinational business, it has senior executives from different countries and attempts to make decisions considering the entire world. The Man In The Mirror B presently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The function of The Man In The Mirror B Corporation is to improve the quality of life 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 encourage people to live a healthy life. While making certain that the business is being successful in the long run, that's how it plays its part for a better and healthy future

Vision

The Man In The Mirror B's vision is to provide its consumers with food that is healthy, high in quality and safe to consume. Business pictures to develop a well-trained labor force which would help the business to grow
.

Mission

The Man In The Mirror B's mission is that as presently, it is the leading company in the food industry, it thinks in 'Good Food, Good Life". Its mission is to provide its customers with a variety of options that are healthy and finest in taste as well. It is focused on offering the very best food to its clients throughout the day and night.

Products.

The Man In The Mirror B has a wide variety of items that it offers to its consumers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has actually laid down its goals and objectives. These goals and objectives are noted below.
• One goal of the business is to reach no land fill status. (Business, aboutus, 2017).
• Another goal of The Man In The Mirror B is to waste minimum food during production. Most often, the food produced is squandered even prior to it reaches the consumers.
• Another thing that Business is working on is to enhance its product packaging in such a way that it would help it to lower the above-mentioned issues and would likewise guarantee the shipment of high quality of its products to its consumers.
• Meet global requirements of the environment.
• Build a relationship based upon trust with its customers, service partners, staff members, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the method 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 strategy. The target of the business is not achieved as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may lead to the decreased income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the concept of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing modification in the consumer choices about food and making the food stuff much healthier concerning about the health problems.
The vision of this technique is based upon the key method i.e. 60/40+ which simply suggests that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be manufactured with additional dietary worth in contrast to all other products in market getting it a plus on its dietary material.
This method was embraced to bring more tasty plus nutritious foods and drinks in market than ever. In competitors with other business, with an intention of keeping its trust over consumers as Business Business has acquired more relied on by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing actual quantity of spending shows that the sales are increasing at a higher rate than its R&D spending, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indication also reveals a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing debt ratio pose a danger of default of Business to its investors and might lead a declining share costs. In terms of increasing financial obligation ratio, the company needs to not invest much on R&D and needs to pay its existing debts to reduce the danger for investors.
The increasing danger of financiers with increasing debt ratio and declining share costs can be observed by substantial decrease of EPS of The Man In The Mirror B stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding building of consumers. This slow development also hinder company to more invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Graphs given up the Displays D and E.

TWOS Analysis


2 analysis can be used to obtain various methods based upon the SWOT Analysis provided above. A brief summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more innovative items by big amount of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the business. It could likewise offer Business a long term competitive advantage over its competitors.
The global expansion of Business must be focused on market catching of establishing countries by expansion, drawing in more clients through customer's commitment. As developing countries are more populated than developed countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe Man In The Mirror B must do cautious acquisition and merger of organizations, as it could affect the consumer's and society's understandings about Business. It must obtain and combine with those companies which have a market reputation of healthy and healthy business. It would enhance the understandings of consumers about Business.
Business must not only spend its R&D on innovation, instead of it ought to also concentrate on the R&D spending over examination of cost of different healthy products. This would increase expense performance of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business must transfer to not just developing but likewise to developed countries. It must expands its geographical growth. This large geographical expansion towards developing and established nations would lower the danger of possible losses in times of instability in various countries. It should widen its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It needs to obtain and merge with those countries having a goodwill of being a healthy business in the market. It would also allow the business to utilize its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on four aspects; age, gender, earnings and profession. Business produces numerous items related to children i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary items. The Man In The Mirror B products are quite budget friendly by almost all levels, but its major targeted customers, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is made up of its presence in almost 86 countries. Its geographical division is based upon 2 main elements i.e. typical earnings level of the customer in addition to the environment of the region. For example, Singapore Business Company's division is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and lifestyle of the consumer. Business 3 in 1 Coffee target those customers whose life design is rather hectic and do not have much time.

Behavioral Segmentation

The Man In The Mirror B behavioral division is based upon the attitude knowledge and awareness of the consumer. For example its extremely healthy products target those customers who have a health conscious mindset towards their intakes.

The Man In The Mirror B Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand, there are two alternatives:
Alternative: 1
The Business should spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the company. However, 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 technique. Amount spend on the R&D might not be revived, and it will be considered totally sunk expense, if it do not offer prospective results.
3. Spending on R&D provide slow development in sales, as it takes very long time to present an item. However, acquisitions provide quick results, as it supply the company currently established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the business to deal with mistaken belief of customers about Business core worths of healthy and healthy items.
2 Big spending on acquisitions than R&D would send out a signal of company's inefficiency of developing innovative items, and would lead to consumer's discontentment as well.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making business not able to introduce new ingenious products.
Option: 2.
The Company needs to spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the company to produce more innovative products.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted clients by presenting those products which can be provided to an entirely new market segment.
4. Ingenious items will provide long term benefits and high market share in long run.
Cons:
1. It would decrease the profit margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would affect the company at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could supply an unfavorable signal to the financiers, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to present brand-new ingenious 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 general possessions of the company would increase with its considerable R&D costs.
3. It would not affect the earnings margins of the company at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the business's total wealth along with in terms of innovative products.
Cons:
1. Threat of conversion of R&D costs into sunk expense, higher than alternative 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

The Man In The Mirror B Conclusion

RecommendationsBusiness has remained the leading market gamer for more than a years. It has institutionalized its strategies and culture to align itself with the market changes and client behavior, which has ultimately allowed it to sustain its market share. Though, Business has actually established substantial market share and brand name identity in the urban markets, it is recommended that the company must focus on the backwoods in regards to developing brand name commitment, awareness, and equity, such can be done by creating a specific brand allotment strategy through trade marketing techniques, that draw clear distinction between The Man In The Mirror B items and other rival products. The Man In The Mirror B ought to leverage its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will allow the business to establish brand equity for recently introduced and currently produced items on a greater platform, making the reliable use of resources and brand image in the market.

The Man In The Mirror B Exhibits

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental support

Transforming criteria of international food.
Improved market share.
Changing assumption towards much healthier products
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 Highest possible given that 1000
Highest after Organisation with much less development than Service 9th Least expensive
R&D Spending Highest given that 2009 Highest after Service 2nd Lowest
Net Profit Margin Highest possible considering that 2004 with rapid growth from 2009 to 2014 Because of sale of Alcon in 2018. Nearly equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nourishment and wellness aspect Highest possible number of brand names with sustainable techniques Biggest confectionary and also processed foods brand name on the planet Biggest milk items and also mineral water brand name on the planet
Segmentation Middle and top center level customers worldwide Individual customers in addition to house group Every age as well as Earnings Consumer Teams Center and upper middle degree customers worldwide
Number of Brands 6th 3rd 1st 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 22711 137679 114715 985111 661661
Net Profit Margin 9.25% 4.94% 67.37% 6.38% 25.34%
EPS (Earning Per Share) 47.97 6.48 2.57 7.18 39.81
Total Asset 139466 626511 729692 248639 68758
Total Debt 46669 86245 95855 41697 63551
Debt Ratio 25% 26% 71% 68% 22%
R&D Spending 2855 5224 1252 4958 8697
R&D Spending as % of Sales 5.76% 6.98% 1.95% 7.87% 7.31%

The Man In The Mirror B Executive Summary The Man In The Mirror B Swot Analysis The Man In The Mirror B Vrio Analysis The Man In The Mirror B Pestel Analysis
The Man In The Mirror B Porters Analysis The Man In The Mirror B Recommendations