Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Case Study Help

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Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Case Study Analysis

Business is currently one of the greatest food chains worldwide. It was founded by Henri Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate.
Business is now a transnational business. Unlike other international business, it has senior executives from various nations and tries to make decisions thinking about the entire world. Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B currently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Corporation is to enhance the quality of life of people by playing its part and offering healthy food. It wants to help the world in shaping a healthy and better future for it. It also wishes to motivate individuals 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


Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. Business imagines to establish a trained labor force which would help the company to grow


Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B's mission is that as presently, it is the leading company in the food market, it believes in 'Excellent Food, Good Life". Its mission is to supply its customers with a variety of choices that are healthy and finest in taste also. It is focused on providing the very best food to its consumers throughout the day and night.


Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B has a broad range of products that it offers to its consumers. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Keeping 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 objective of the business is to reach zero garbage dump status. It is working toward absolutely no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another goal of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is to lose minimum food during production. Most often, 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 way that it would help it to decrease those complications and would also guarantee the shipment of high quality of its items to its customers.
• Meet worldwide standards of the environment.
• Construct a relationship based on trust with its customers, organisation partners, workers, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the strategy 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. The target of the company is not accomplished as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based upon the principle of Nutritious, Health and Health (NHW). This strategy deals with the concept to bringing modification in the consumer preferences about food and making the food things healthier concerning about the health concerns.
The vision of this method is based upon the key method i.e. 60/40+ which simply indicates that the products will have a rating of 60% on the basis of taste and 40% is based on its dietary worth. The products will be produced with additional nutritional worth in contrast to all other items in market acquiring it a plus on its nutritional content.
This method was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other business, with an objective of maintaining its trust over clients as Business Business has actually gotten more relied on by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing actual amount of spending reveals that the sales are increasing at a greater rate than its R&D spending, and allow the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is declining. This indication also shows a green light to the R&D spending, mergers and acquisitions.
Debt 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 position a hazard of default of Business to its investors and might lead a decreasing share prices. In terms of increasing debt ratio, the company ought to not invest much on R&D and ought to pay its current financial obligations to decrease the risk for financiers.
The increasing risk of investors with increasing debt ratio and decreasing share costs can be observed by big decline of EPS of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of customers. This sluggish development likewise prevent company to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Graphs given in the Displays D and E.

TWOS Analysis

2 analysis can be used to derive numerous strategies based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative products by large quantity of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the company. It might also provide Business a long term competitive advantage over its competitors.
The global growth of Business should be focused on market catching of establishing countries by growth, attracting more clients through customer's loyalty. As developing countries are more populous than developed nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisDr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B needs to do mindful acquisition and merger of organizations, as it could affect the client's and society's understandings about Business. It needs to acquire and merge with those companies which have a market reputation of healthy and nutritious companies. It would enhance the understandings of customers about Business.
Business needs to not only spend its R&D on development, instead of it needs to also focus on the R&D spending over assessment of expense of numerous healthy items. This would increase cost performance of its products, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just developing but also to industrialized countries. It must widen its circle to different countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It needs to acquire and merge with those countries having a goodwill of being a healthy business in the market. It would also allow the company to use its possible resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon four elements; age, gender, earnings and profession. Business produces a number of items related to children i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B items are rather cost effective by almost all levels, however its major targeted customers, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its existence in practically 86 countries. Its geographical division is based upon 2 main factors i.e. typical income level of the customer along with the environment of the region. Singapore Business Business's segmentation is done on the basis of the weather of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and lifestyle of the client. Business 3 in 1 Coffee target those clients whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B behavioral division is based upon the attitude knowledge and awareness of the consumer. For example its extremely healthy items target those customers who have a health conscious mindset towards their intakes.

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are 2 options:
Alternative: 1
The Business must invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Costs on R&D would be sunk expense.
2. The company can resell the obtained units in the market, if it fails to implement its method. However, quantity invest in the R&D might not be revived, and it will be thought about entirely sunk expense, if it do not give prospective results.
3. Investing in R&D provide slow growth in sales, as it takes long time to present a product. However, acquisitions provide quick outcomes, as it offer the business currently developed product, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the company to face misunderstanding of consumers about Business core values of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send a signal of business's inadequacy of establishing ingenious items, and would lead to consumer's dissatisfaction also.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are currently present in the market, making company not able to present new innovative products.
Option: 2.
The Company must invest more on its R&D rather than acquisitions.
1. It would enable the company to produce more ingenious products.
2. It would supply the company a strong competitive position in the market.
3. It would enable the company to increase its targeted consumers by introducing those items which can be provided to a totally brand-new market section.
4. Ingenious items will supply long term benefits and high market share in long term.
1. It would reduce the earnings margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would impact the company at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might provide a negative signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to present brand-new ingenious items with less risk of transforming the costs on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the general possessions of the business would increase with its significant R&D costs.
3. It would not impact the earnings 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 business's overall wealth in addition to in terms of innovative items.
1. Danger of conversion of R&D costs into sunk expense, higher than alternative 1 lower than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of innovative items than alternative 2 and high variety of innovative products than alternative 1.

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Conclusion

RecommendationsIt has institutionalized its methods and culture to align itself with the market modifications and client habits, which has ultimately enabled it to sustain its market share. Business has developed substantial market share and brand 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 creating a particular brand name allocation method through trade marketing strategies, that draw clear difference between Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B products and other competitor items.

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Exhibits

PESTEL Analysis
Governmental support

Altering standards of international food.
Boosted 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 influence as it is favourable. Problems over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 5000 Highest possible after Organisation with much less development than Business 8th Lowest
R&D Spending Highest since 2008 Highest after Business 3rd Lowest
Net Profit Margin Highest since 2005 with fast growth from 2007 to 2014 Because of sale of Alcon in 2014. Practically equal to Kraft Foods Unification Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as wellness factor Greatest number of brand names with lasting techniques Largest confectionary as well as processed foods brand in the world Largest dairy products and mineral water brand worldwide
Segmentation Middle and top center level customers worldwide Private clients in addition to house team All age as well as Income Client Groups Center as well as top center degree customers worldwide
Number of Brands 4th 3rd 9th 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 15575 955467 163497 595819 739245
Net Profit Margin 8.35% 1.63% 57.52% 6.12% 51.24%
EPS (Earning Per Share) 94.35 7.89 5.38 6.42 75.32
Total Asset 376923 919879 292555 878873 76684
Total Debt 42582 93855 63743 28445 61854
Debt Ratio 67% 35% 62% 18% 92%
R&D Spending 6382 1697 4342 4383 4547
R&D Spending as % of Sales 7.44% 9.31% 5.31% 4.95% 8.78%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations