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Touchdown Footwear On A Slippery Slope Case Study Analysis

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Touchdown Footwear On A Slippery Slope is presently among the most significant food chains worldwide. It was founded by Chicago Booth in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate. At the same time, the Page brothers from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The 2 became competitors in the beginning however later merged in 1905, resulting in the birth of Touchdown Footwear On A Slippery Slope.
Business is now a global business. Unlike other multinational companies, it has senior executives from various nations and attempts to make choices considering the whole world. Touchdown Footwear On A Slippery Slope presently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

The purpose of Touchdown Footwear On A Slippery Slope Corporation is to improve the quality of life of people by playing its part and supplying healthy food. It wishes to help the world in shaping a healthy and much better future for it. It also wishes to encourage people to live a healthy life. While making certain that the business is succeeding in the long run, that's how it plays its part for a better and healthy future

Vision

Touchdown Footwear On A Slippery Slope's vision is to provide its customers with food that is healthy, high in quality and safe to consume. Business envisions to develop a well-trained workforce which would help the company to grow
.

Mission

Touchdown Footwear On A Slippery Slope's mission is that as currently, it is the leading business in the food industry, it thinks in 'Great Food, Great Life". Its objective is to offer its customers with a range of choices that are healthy and finest in taste. It is focused on offering the best food to its consumers throughout the day and night.

Products.

Touchdown Footwear On A Slippery Slope has a broad variety of items that it offers to its clients. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has put down its objectives and objectives. These goals and goals are listed below.
• One objective of the company is to reach no garbage dump status. (Business, aboutus, 2017).
• Another goal of Touchdown Footwear On A Slippery Slope is to squander minimum food throughout production. Usually, 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 way that it would help it to decrease those complications and would likewise ensure the delivery of high quality of its products to its consumers.
• Meet global requirements of the environment.
• Develop a relationship based upon trust with its consumers, organisation partners, workers, and government.

Critical Issues

Recently, Business Business is focusing more towards the technique of NHW and investing more of its revenues on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW technique. However, the target of the company is not attained as the sales were expected to grow higher at the rate of 10% annually and the operating margins to increase by 20%, given in Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may lead to the decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the idea of Nutritious, Health and Health (NHW). This strategy deals with the idea to bringing modification in the client preferences about food and making the food things healthier worrying about the health concerns.
The vision of this technique is based upon the key technique i.e. 60/40+ which simply suggests that the products will have a score of 60% on the basis of taste and 40% is based on its dietary value. The items will be manufactured with extra nutritional value in contrast to all other items in market gaining it a plus on its dietary content.
This technique was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competition with other business, with an intention of retaining 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 decreasing with increasing actual quantity of spending reveals that the sales are increasing at a higher rate than its R&D spending, and allow the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio pose a threat of default of Business to its financiers and might lead a decreasing share rates. In terms of increasing financial obligation ratio, the company must not spend much on R&D and should pay its existing debts to reduce the risk for investors.
The increasing risk of investors with increasing financial obligation ratio and decreasing share prices can be observed by substantial decline of EPS of Touchdown Footwear On A Slippery Slope stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow understanding building of consumers. This sluggish growth likewise prevent business to further spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given up the Exhibits D and E.

TWOS Analysis


TWOS analysis can be used to obtain different strategies based on the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more ingenious products by big quantity of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the business. It could also provide Business a long term competitive benefit over its rivals.
The global growth of Business should be focused on market capturing of developing nations by expansion, drawing in more clients through client's commitment. As developing nations are more populous than industrialized nations, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisTouchdown Footwear On A Slippery Slope needs to do cautious acquisition and merger of organizations, as it could impact the customer's and society's understandings about Business. It must obtain and merge with those companies which have a market credibility of healthy and healthy business. It would enhance the understandings of consumers about Business.
Business needs to not only invest its R&D on development, instead of it must likewise concentrate on the R&D spending over examination of cost of numerous nutritious products. This would increase cost efficiency of its items, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not just establishing but likewise to industrialized nations. It should broaden its circle to different countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should obtain and combine with those nations having a goodwill of being a healthy company in the market. It would also make it possible for the business to utilize its possible resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on four elements; age, gender, earnings and profession. Business produces numerous products related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Touchdown Footwear On A Slippery Slope items are quite inexpensive by almost all levels, but its significant targeted customers, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is made up of its presence in almost 86 countries. Its geographical division is based upon two primary factors i.e. typical income level of the customer in addition to the environment of the area. Singapore Business Company's division 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 client. Business 3 in 1 Coffee target those customers whose life design is quite hectic and don't have much time.

Behavioral Segmentation

Touchdown Footwear On A Slippery Slope behavioral segmentation is based upon the mindset knowledge and awareness of the client. Its highly nutritious items target those customers who have a health conscious attitude towards their consumptions.

Touchdown Footwear On A Slippery Slope Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are 2 choices:
Alternative: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the business. However, spending on R&D would be sunk cost.
2. The business can resell the acquired units in the market, if it stops working to implement its strategy. However, amount spend on the R&D might not be revived, and it will be considered totally sunk cost, if it do not provide possible results.
3. Spending on R&D supply sluggish growth in sales, as it takes long period of time to introduce an item. Nevertheless, acquisitions offer quick outcomes, as it provide the company already established item, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the company to face mistaken belief of consumers about Business core values of healthy and healthy items.
2 Big costs on acquisitions than R&D would send a signal of company's inefficiency of establishing ingenious products, and would results in consumer's discontentment.
3. Large acquisitions than R&D would extend the product line of the business by the items which are currently present in the market, making company unable to present brand-new ingenious products.
Option: 2.
The Business must spend more on its R&D instead of acquisitions.
Pros:
1. It would allow the company to produce more innovative items.
2. It would supply the company a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted customers by introducing those items which can be offered to a totally brand-new market sector.
4. Ingenious items will provide long term benefits and high market share in long run.
Cons:
1. It would reduce the profit margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, and would impact the company at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable signal to the investors, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to introduce new ingenious products with less risk of converting the costs on R&D into sunk cost.
2. It would provide a favorable signal to the investors, as the overall possessions of the business would increase with its significant R&D costs.
3. It would not affect the revenue margins of the company at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the company's overall wealth along with in terms of ingenious items.
Cons:
1. Danger of conversion of R&D spending into sunk expense, higher than alternative 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Intro of less variety of ingenious items than alternative 2 and high number of innovative items than alternative 1.

Touchdown Footwear On A Slippery Slope Conclusion

RecommendationsBusiness has remained the leading market gamer for more than a decade. It has actually institutionalised its techniques and culture to align itself with the market changes and consumer behavior, which has ultimately permitted it to sustain its market share. Though, Business has developed substantial market share and brand name identity in the urban markets, it is advised that the business must focus on the rural areas in terms of establishing brand commitment, awareness, and equity, such can be done by developing a specific brand allowance technique through trade marketing strategies, that draw clear distinction in between Touchdown Footwear On A Slippery Slope products and other rival items. Furthermore, Business must take advantage of its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will allow the business to establish brand name equity for newly introduced and currently produced items on a greater platform, making the effective use of resources and brand name image in the market.

Touchdown Footwear On A Slippery Slope Exhibits

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

Changing requirements of worldwide food.
Improved market share.
Transforming assumption towards much healthier items
Improvements in R&D and also QA departments.

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

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 2000
Greatest after Business with much less development than Business 3rd Least expensive
R&D Spending Highest since 2009 Greatest after Organisation 4th Least expensive
Net Profit Margin Greatest considering that 2005 with rapid development from 2002 to 2015 Because of sale of Alcon in 2018. Virtually equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness element Greatest variety of brands with lasting methods Largest confectionary and processed foods brand in the world Biggest dairy items as well as mineral water brand in the world
Segmentation Center and upper center degree customers worldwide Specific clients in addition to house group Any age and also Revenue Client Groups Middle and also top middle level consumers worldwide
Number of Brands 1st 6th 2nd 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 79616 769955 436793 382878 872173
Net Profit Margin 9.77% 5.22% 67.59% 4.83% 82.96%
EPS (Earning Per Share) 26.12 4.53 4.91 5.55 47.44
Total Asset 418694 326819 332371 242133 18892
Total Debt 63167 57494 82125 13292 82518
Debt Ratio 18% 13% 51% 81% 76%
R&D Spending 4533 9773 7599 2175 5918
R&D Spending as % of Sales 4.21% 1.19% 7.38% 7.41% 8.65%

Touchdown Footwear On A Slippery Slope Executive Summary Touchdown Footwear On A Slippery Slope Swot Analysis Touchdown Footwear On A Slippery Slope Vrio Analysis Touchdown Footwear On A Slippery Slope Pestel Analysis
Touchdown Footwear On A Slippery Slope Porters Analysis Touchdown Footwear On A Slippery Slope Recommendations