Y2k The Bug That Failed To Bite Case Study Analysis

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Business is currently one of the most significant food chains worldwide. It was founded by Henri Y2k The Bug That Failed To Bite in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate.
Business is now a transnational company. Unlike other multinational business, it has senior executives from different countries and tries to make decisions considering the entire world. Y2k The Bug That Failed To Bite currently has more than 500 factories around the world and a network spread across 86 nations.


The function of Y2k The Bug That Failed To Bite Corporation is to enhance the lifestyle of people by playing its part and offering healthy food. It wants to help the world in forming a healthy and much better future for it. It also wants to encourage individuals to live a healthy life. While making sure that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future


Y2k The Bug That Failed To Bite's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. Business envisions to develop a well-trained workforce which would help the company to grow


Y2k The Bug That Failed To Bite's mission is that as presently, it is the leading company in the food market, it believes in 'Excellent Food, Great Life". Its mission is to provide its consumers with a variety of choices that are healthy and finest in taste as well. It is concentrated on supplying the very best food to its consumers throughout the day and night.


Business has a wide range of products that it uses to its clients. Its items consist of food for infants, cereals, dairy products, snacks, chocolates, food for animal and bottled water. It has around four hundred and fifty (450) factories around the globe and around 328,000 employees. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has actually put down its objectives and objectives. These goals and goals are noted below.
• One goal of the company is to reach no garbage dump status. It is pursuing no waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Y2k The Bug That Failed To Bite is to squander minimum food throughout production. Usually, the food produced is squandered even prior to it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a method that it would help it to decrease the above-mentioned issues and would also ensure the shipment of high quality of its items to its clients.
• Meet international standards of the environment.
• Construct a relationship based upon trust with its customers, service partners, staff members, and government.

Critical Issues

Recently, Business Business is focusing more towards the technique 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 method. The target of the company is not accomplished 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 Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the concept of Nutritious, Health and Health (NHW). This technique handles the idea to bringing modification in the consumer choices about food and making the food things much healthier worrying about the health problems.
The vision of this strategy is based upon the secret approach i.e. 60/40+ which merely indicates that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The products will be produced with extra nutritional value in contrast to all other items in market gaining it a plus on its dietary material.
This strategy was adopted to bring more yummy plus healthy foods and beverages in market than ever. In competition with other companies, with an objective of maintaining its trust over clients as Business Company has acquired more relied on by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing actual quantity of spending reveals that the sales are increasing at a greater rate than its R&D costs, and allow the business to more invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is declining. This sign also reveals a green light 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 risk of default of Business to its investors and could lead a decreasing share prices. Therefore, in regards to increasing debt ratio, the firm must not spend much on R&D and must pay its current financial obligations to reduce the danger for financiers.
The increasing danger of financiers with increasing debt ratio and declining share prices can be observed by huge decrease of EPS of Y2k The Bug That Failed To Bite stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This slow development likewise impede company to additional 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 calculations and Graphs given in the Exhibits D and E.

TWOS Analysis

2 analysis can be utilized to obtain various methods based upon the SWOT Analysis given above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by large quantity of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the business. It might likewise provide Business a long term competitive advantage over its rivals.
The worldwide expansion of Business must be concentrated on market capturing of developing nations by expansion, bring in more customers through consumer's loyalty. As establishing nations are more populated than developed countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisY2k The Bug That Failed To Bite must do mindful acquisition and merger of organizations, as it might affect the client's and society's understandings about Business. It ought to obtain and merge with those business which have a market reputation of healthy and healthy business. It would enhance the understandings of customers about Business.
Business must not only invest its R&D on development, instead of it must also focus on the R&D costs over assessment of expense of different nutritious products. This would increase expense performance of its items, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not only developing however likewise to industrialized countries. It ought to broaden its circle to various countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Y2k The Bug That Failed To Bite needs to carefully control its acquisitions to prevent the threat of misconception from the customers about Business. It must acquire and merge with those countries having a goodwill of being a healthy company in the market. This would not only improve the understanding of customers about Business however would also increase the sales, earnings margins and market share of Business. It would also make it possible for the business to utilize its possible resources efficiently on its other operations instead of acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on four elements; age, gender, earnings and profession. For instance, Business produces several items connected to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Y2k The Bug That Failed To Bite items are quite inexpensive by almost all levels, however its significant targeted consumers, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is made up of its existence in nearly 86 nations. Its geographical segmentation is based upon two primary factors i.e. typical earnings level of the customer along with the climate of the region. Singapore Business Business'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 lifestyle of the customer. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Y2k The Bug That Failed To Bite behavioral division is based upon the mindset understanding and awareness of the consumer. For example its extremely nutritious items target those clients who have a health mindful attitude towards their intakes.

Y2k The Bug That Failed To Bite Alternatives

In order to sustain the brand name in the market and keep the customer intact with the brand name, there are two choices:
Alternative: 1
The Business should invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the business, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk expense.
2. The company can resell the gotten systems in the market, if it stops working to implement its method. Amount invest on the R&D could not be restored, and it will be thought about completely sunk expense, if it do not provide possible outcomes.
3. Spending on R&D offer sluggish development in sales, as it takes long period of time to present a product. Acquisitions supply quick outcomes, as it supply the company already developed product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with misconception of customers about Business core values of healthy and nutritious items.
2 Big costs on acquisitions than R&D would send out a signal of business's ineffectiveness of developing ingenious items, and would outcomes in consumer's frustration.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making business unable to introduce new ingenious items.
Alternative: 2.
The Company must invest more on its R&D rather than acquisitions.
1. It would allow the business to produce more innovative items.
2. It would supply 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 brand-new market sector.
4. Innovative products will offer long term benefits and high market share in long run.
1. It would decrease the profit margins of the business.
2. In case of failure, the whole costs on R&D would be thought about as sunk expense, and would impact the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might provide an unfavorable signal to the investors, 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 permit the business to introduce new ingenious items with less threat of transforming the spending on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the total properties of the company would increase with its substantial R&D costs.
3. It would not impact the profit margins of the company 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 company's overall wealth along with in regards to ingenious products.
1. Risk of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Danger of misconception about the acquisitions, greater than alternative 2 and lower than option 1.
3. Intro of less number of ingenious items than alternative 2 and high variety of ingenious items than alternative 1.

Y2k The Bug That Failed To Bite Conclusion

RecommendationsBusiness has actually stayed the leading market player for more than a decade. It has institutionalized its methods and culture to align itself with the market modifications and consumer habits, which has actually eventually enabled it to sustain its market share. Business has actually developed considerable market share and brand identity in the urban markets, it is recommended that the business must focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by producing a particular brand allotment technique through trade marketing strategies, that draw clear difference between Y2k The Bug That Failed To Bite products and other competitor products. Y2k The Bug That Failed To Bite should leverage 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 establish brand equity for newly introduced and currently produced items on a greater platform, making the reliable usage of resources and brand name image in the market.

Y2k The Bug That Failed To Bite Exhibits

PESTEL Analysis
Governmental assistance

Changing criteria of worldwide food.
Enhanced market share. Transforming perception towards much healthier items Improvements in R&D and QA divisions.

Introduction of E-marketing.
No such impact as it is beneficial. Worries over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 5000 Greatest after Business with less development than Organisation 2nd Least expensive
R&D Spending Greatest because 2004 Greatest after Company 1st Lowest
Net Profit Margin Highest given that 2001 with rapid growth from 2006 to 2011 Due to sale of Alcon in 2017. Almost equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as health element Highest variety of brand names with lasting methods Largest confectionary and also processed foods brand name on the planet Biggest milk products and bottled water brand name on the planet
Segmentation Middle as well as upper middle level consumers worldwide Private customers along with home team All age and Income Client Teams Middle and upper middle degree customers worldwide
Number of Brands 5th 4th 9th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 37489 468975 621394 292488 195785
Net Profit Margin 3.71% 5.52% 31.68% 4.44% 97.14%
EPS (Earning Per Share) 21.15 2.63 3.52 3.92 39.58
Total Asset 475863 337518 383781 634153 19732
Total Debt 85557 92181 39523 12297 31567
Debt Ratio 23% 13% 51% 31% 51%
R&D Spending 3835 1731 1252 9733 3944
R&D Spending as % of Sales 1.86% 6.15% 3.19% 6.17% 9.58%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations