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Band Of Angels Case Study Solution

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Band Of Angels is presently one of the greatest food chains worldwide. It was established by Darden in 1866, a German Pharmacist who first introduced "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate. At the exact same time, the Page brothers from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The 2 became rivals initially but later combined in 1905, leading to the birth of Band Of Angels.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from various nations and tries to make decisions considering the whole world. Band Of Angels currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The purpose of Band Of Angels Corporation is to enhance the quality of life of individuals by playing its part and providing healthy food. It wishes to help the world in shaping a healthy and better future for it. It also wishes to motivate 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

Band Of Angels's vision is to provide its consumers with food that is healthy, high in quality and safe to eat. Business visualizes to establish a trained workforce which would help the company to grow
.

Mission

Band Of Angels's mission is that as currently, it is the leading business in the food industry, it believes in 'Excellent Food, Good Life". Its mission is to offer its consumers with a variety of choices that are healthy and best in taste. It is concentrated on providing the best food to its clients throughout the day and night.

Products.

Business has a wide variety of products that it offers to its customers. Its products consist of food for babies, cereals, dairy products, treats, chocolates, food for family pet and bottled water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 workers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the business has actually put down its goals and objectives. These objectives and objectives are noted below.
• One objective of the business is to reach no garbage dump status. It is pursuing no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Band Of Angels is to lose minimum food throughout production. Frequently, the food produced is squandered even before it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a method that it would help it to minimize the above-mentioned complications and would likewise ensure the shipment of high quality of its products to its consumers.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its consumers, organisation partners, workers, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its revenues on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW method. The target of the business is not attained as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given 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 concept to bringing modification in the consumer choices about food and making the food stuff healthier worrying about the health issues.
The vision of this method is based upon the key method i.e. 60/40+ which just indicates that the products will have a score of 60% on the basis of taste and 40% is based upon its dietary worth. The items will be made with additional dietary value in contrast to all other items in market acquiring it a plus on its nutritional content.
This method was adopted to bring more yummy plus healthy 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 gained more trusted by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and enable the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise reveals a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing financial obligation ratio pose a hazard of default of Business to its investors and could lead a decreasing share rates. For that reason, in terms of increasing financial obligation ratio, the firm must not invest much on R&D and ought to pay its present debts to decrease the danger for financiers.
The increasing danger of financiers with increasing financial obligation ratio and decreasing share rates can be observed by substantial decrease of EPS of Band Of Angels stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding building of consumers. This slow growth also prevent business to more spend on 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 Charts given up the Displays D and E.

TWOS Analysis


TWOS analysis can be used to derive numerous strategies based upon the SWOT Analysis given above. A quick summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by large amount of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the company. It might likewise provide Business a long term competitive advantage over its rivals.
The international expansion of Business must be focused on market recording of developing countries by expansion, bring in more consumers through consumer's loyalty. As developing countries are more populous than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisBand Of Angels must do careful acquisition and merger of organizations, as it might impact the customer's and society's perceptions about Business. It must get and combine with those companies which have a market track record of healthy and healthy business. It would improve the understandings of customers about Business.
Business ought to not just invest its R&D on development, instead of it needs to likewise concentrate on the R&D spending over examination of cost of various healthy products. This would increase expense 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 needs to relocate to not only developing however likewise to industrialized nations. It should widens its geographical growth. This wide geographical expansion towards developing and developed countries would lower the danger of possible losses in times of instability in numerous nations. It needs to widen its circle to numerous countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should get and merge with those nations having a goodwill of being a healthy company in the market. It would also enable the company to utilize its prospective resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on four factors; age, gender, income and profession. Business produces several products related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Band Of Angels products are quite economical by practically all levels, but its major targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is composed of its existence in practically 86 countries. Its geographical division is based upon two primary elements i.e. average earnings level of the consumer in addition to the climate of the region. Singapore Business Company's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the consumer. For instance, Business 3 in 1 Coffee target those clients whose lifestyle is rather busy and do not have much time.

Behavioral Segmentation

Band Of Angels behavioral division is based upon the attitude understanding and awareness of the client. Its highly healthy products target those consumers who have a health conscious attitude towards their intakes.

Band Of Angels Alternatives

In order to sustain the brand name in the market and keep the customer intact with the brand, there are two options:
Option: 1
The Company must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the company, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the acquired units in the market, if it stops working to execute its method. However, quantity invest in the R&D might not be revived, and it will be considered entirely sunk expense, if it do not provide potential results.
3. Spending on R&D provide slow development in sales, as it takes long time to present an item. Acquisitions provide fast results, as it offer the business currently established product, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send a signal of business's inefficiency of establishing ingenious products, and would lead to customer's dissatisfaction also.
3. Large acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making company unable to present brand-new ingenious products.
Option: 2.
The Business must invest more on its R&D rather than acquisitions.
Pros:
1. It would allow the business to produce more innovative items.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by presenting those items which can be used to a completely new market sector.
4. Innovative 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 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 could provide a negative signal to the investors, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to present brand-new innovative products with less risk of transforming the costs on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the general assets of the company would increase with its substantial R&D spending.
3. It would not impact the revenue margins of the business at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in terms of the company's general wealth along with in regards to ingenious products.
Cons:
1. Risk of conversion of R&D costs into sunk expense, higher than alternative 1 lower than alternative 2.
2. Danger of misunderstanding about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less variety of innovative products than alternative 2 and high variety of ingenious items than alternative 1.

Band Of Angels Conclusion

RecommendationsIt has actually institutionalised its techniques and culture to align itself with the market modifications and customer habits, which has actually ultimately permitted it to sustain its market share. Business has actually developed significant market share and brand identity in the urban markets, it is recommended that the business should focus on the rural locations in terms of establishing brand name commitment, awareness, and equity, such can be done by creating a particular brand allocation method through trade marketing techniques, that draw clear difference in between Band Of Angels items and other competitor products.

Band Of Angels Exhibits

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

Altering standards of international food.
Enhanced market share.
Changing perception in the direction of much healthier products
Improvements in R&D as well as QA departments.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 5000
Highest after Business with less growth than Business 9th Least expensive
R&D Spending Highest possible since 2002 Highest after Company 6th Most affordable
Net Profit Margin Highest possible given that 2003 with fast development from 2001 to 2015 Because of sale of Alcon in 2016. Virtually equal to Kraft Foods Consolidation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and also wellness aspect Highest number of brands with sustainable methods Biggest confectionary and also refined foods brand on the planet Biggest milk products and also bottled water brand name in the world
Segmentation Center and also top middle degree customers worldwide Private consumers together with household team Every age as well as Earnings Customer Groups Middle as well as top center level consumers worldwide
Number of Brands 4th 8th 6th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 18645 521246 557626 165971 838483
Net Profit Margin 1.24% 2.59% 21.74% 3.48% 28.69%
EPS (Earning Per Share) 65.77 9.21 1.11 3.17 37.71
Total Asset 688245 412917 842572 459951 24974
Total Debt 73212 93549 58275 18323 28326
Debt Ratio 77% 87% 17% 47% 72%
R&D Spending 6924 1389 1914 8538 6146
R&D Spending as % of Sales 1.39% 8.52% 8.17% 1.91% 5.28%

Band Of Angels Executive Summary Band Of Angels Swot Analysis Band Of Angels Vrio Analysis Band Of Angels Pestel Analysis
Band Of Angels Porters Analysis Band Of Angels Recommendations