Globalization Of Europe An Interview With Wisse Dekker Case Study Solution

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Globalization Of Europe An Interview With Wisse Dekker Case Study Analysis

Business is presently one of the most significant food chains worldwide. It was founded by Henri Globalization Of Europe An Interview With Wisse Dekker in 1866, a German Pharmacist who first introduced "FarineLactee"; a combination of flour and milk to feed infants and decrease mortality rate.
Business is now a transnational company. Unlike other multinational business, it has senior executives from different nations and tries to make decisions considering the whole world. Globalization Of Europe An Interview With Wisse Dekker currently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of Business Corporation is to improve the quality of life of individuals by playing its part and offering healthy food. 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


Globalization Of Europe An Interview With Wisse Dekker's vision is to offer its customers 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 company to grow


Globalization Of Europe An Interview With Wisse Dekker's mission is that as currently, it is the leading business in the food industry, it believes in 'Excellent Food, Excellent Life". Its mission is to supply its consumers with a range of choices that are healthy and best in taste as well. It is focused on offering the best food to its customers throughout the day and night.


Globalization Of Europe An Interview With Wisse Dekker has a large variety of items that it provides to its clients. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has put down its objectives and objectives. These objectives and objectives are listed below.
• One objective of the business is to reach zero landfill status. It is pursuing zero 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 Globalization Of Europe An Interview With Wisse Dekker is to squander minimum food during production. Frequently, the food produced is lost even before it reaches the consumers.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to decrease those complications and would also guarantee the shipment of high quality of its products to its customers.
• Meet global requirements of the environment.
• Construct a relationship based on trust with its customers, business partners, employees, and government.

Critical Issues

Recently, Business Business is focusing more towards the method of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW technique. However, the target of the business is not achieved as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Display H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may lead to the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based upon the idea of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing modification in the customer choices about food and making the food things much healthier worrying about the health issues.
The vision of this technique is based upon the secret method i.e. 60/40+ which merely indicates that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be made with additional dietary worth in contrast to all other items in market gaining it a plus on its nutritional content.
This method was embraced to bring more delicious plus nutritious foods and beverages in market than ever. In competitors with other business, with an intent of retaining its trust over consumers as Business Company has acquired more trusted by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing real quantity 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 Profit Margin is increasing while R&D as a portion of sales is declining. This indicator also shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio present a hazard of default of Business to its financiers and might lead a decreasing share costs. Therefore, in regards to increasing debt ratio, the company needs to not invest much on R&D and needs to pay its current financial obligations to reduce the risk for financiers.
The increasing threat of financiers with increasing financial obligation ratio and decreasing share rates can be observed by substantial decrease of EPS of Globalization Of Europe An Interview With Wisse Dekker stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow perception building of customers. This sluggish growth also hinder company to more 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 estimations and Graphs given in the Exhibitions D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business should introduce more innovative products by large amount of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the company. It might also supply Business a long term competitive advantage over its competitors.
The global growth of Business need to be concentrated on market capturing of developing nations by expansion, drawing in more customers through customer's commitment. As establishing nations are more populous than developed countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisGlobalization Of Europe An Interview With Wisse Dekker needs to do cautious acquisition and merger of organizations, as it could impact the consumer's and society's understandings about Business. It needs to get and combine with those business which have a market reputation of healthy and healthy companies. It would enhance the understandings of customers about Business.
Business ought to not just invest its R&D on development, instead of it must also concentrate on the R&D spending over assessment of cost of different healthy items. This would increase cost efficiency of its items, which will lead to increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only developing but likewise to developed nations. It ought to widens its geographical expansion. This broad geographical expansion towards developing and established nations would reduce the threat of potential losses in times of instability in numerous countries. It must widen its circle to various nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Globalization Of Europe An Interview With Wisse Dekker needs to sensibly manage its acquisitions to avoid the danger of misconception from the consumers about Business. It should get and combine with those countries having a goodwill of being a healthy business in the market. This would not just enhance the understanding of consumers about Business but would also increase the sales, earnings margins and market share of Business. It would likewise enable the company to utilize its possible resources effectively on its other operations instead of acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on 4 factors; age, gender, earnings and profession. For example, Business produces a number of items related to children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Globalization Of Europe An Interview With Wisse Dekker products are quite budget friendly by practically all levels, but its significant targeted consumers, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is made up of its presence in practically 86 countries. Its geographical segmentation is based upon two main factors i.e. typical income 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 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 customer. For example, Business 3 in 1 Coffee target those clients whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Globalization Of Europe An Interview With Wisse Dekker behavioral segmentation is based upon the attitude understanding and awareness of the consumer. For instance its highly nutritious items target those customers who have a health mindful mindset towards their consumptions.

Globalization Of Europe An Interview With Wisse Dekker Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand name, there are two alternatives:
Option: 1
The Business must spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the acquired systems in the market, if it stops working to implement its strategy. Nevertheless, quantity invest in the R&D could not be revived, and it will be considered completely 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 introduce a product. Acquisitions offer fast results, as it provide the company currently developed item, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the company to deal with mistaken belief of customers about Business core values of healthy and healthy items.
2 Big spending on acquisitions than R&D would send out a signal of business's ineffectiveness of developing ingenious items, and would results in customer's dissatisfaction as well.
3. Big acquisitions than R&D would extend the product line of the business by the items which are already present in the market, making business not able to introduce brand-new ingenious items.
Alternative: 2.
The Business should spend more on its R&D instead of acquisitions.
1. It would enable the business to produce more innovative items.
2. It would provide the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by presenting those products which can be offered to a totally new market segment.
4. Innovative items will offer long term benefits and high market share in long term.
1. It would reduce the profit margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would affect the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could provide an unfavorable signal to the investors, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to present brand-new ingenious products with less danger of transforming the spending on R&D into sunk cost.
2. It would supply a favorable signal to the financiers, as the general possessions of the company would increase with its substantial R&D costs.
3. It would not affect the earnings margins of the company at a large rate as compare to alternative 2.
4. It would supply the company a strong long term market position in terms of the business's general wealth as well as in regards to ingenious items.
1. Danger of conversion of R&D spending into sunk cost, higher than alternative 1 lesser than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Intro of less number of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Globalization Of Europe An Interview With Wisse Dekker Conclusion

RecommendationsIt has institutionalized its techniques 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 developed significant market share and brand name identity in the metropolitan markets, it is recommended that the company should focus on the rural areas in terms of establishing brand name loyalty, awareness, and equity, such can be done by creating a particular brand name allocation technique through trade marketing strategies, that draw clear distinction between Globalization Of Europe An Interview With Wisse Dekker items and other rival products.

Globalization Of Europe An Interview With Wisse Dekker Exhibits

PESTEL Analysis
Governmental assistance

Altering requirements of worldwide food.
Enhanced market share. Changing understanding towards healthier products Improvements in R&D as well as QA divisions.

Intro of E-marketing.
No such effect as it is favourable. Issues over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible considering that 2000 Highest after Business with less development than Service 1st Cheapest
R&D Spending Greatest given that 2008 Highest possible after Service 6th Lowest
Net Profit Margin Greatest given that 2002 with fast growth from 2009 to 2012 As a result of sale of Alcon in 2016. Virtually equal to Kraft Foods Consolidation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health factor Highest number of brands with sustainable techniques Largest confectionary as well as processed foods brand name on the planet Biggest milk items as well as bottled water brand in the world
Segmentation Center as well as top center degree customers worldwide Specific clients in addition to family team All age and Earnings Consumer Groups Center as well as top middle level consumers worldwide
Number of Brands 4th 3rd 6th 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 96754 524552 115537 754221 847191
Net Profit Margin 3.79% 7.82% 98.78% 1.24% 38.49%
EPS (Earning Per Share) 28.73 6.36 6.91 7.28 86.47
Total Asset 343557 333788 845269 262845 42484
Total Debt 86188 22712 73246 94657 38531
Debt Ratio 36% 63% 45% 38% 76%
R&D Spending 1219 9913 7442 9885 1663
R&D Spending as % of Sales 1.22% 2.85% 5.88% 4.26% 1.71%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations