Globalization Of Europe An Interview With Wisse Dekker Case Study Help

Case Study Solution And Analysis

Home >> Darden >> Globalization Of Europe An Interview With Wisse Dekker >>

Globalization Of Europe An Interview With Wisse Dekker Case Study Solution

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 released "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate.
Business is now a multinational company. Unlike other international business, it has senior executives from different nations and tries to make decisions thinking about 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 countries.


The function of Globalization Of Europe An Interview With Wisse Dekker Corporation is to boost the lifestyle of individuals 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 likewise wants to motivate people 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


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. It wishes to be innovative and simultaneously understand the needs and requirements of its consumers. Its vision is to grow quick and provide items that would please the needs of each age group. Globalization Of Europe An Interview With Wisse Dekker pictures to develop a trained labor force which would help the business to grow


Globalization Of Europe An Interview With Wisse Dekker's mission is that as presently, it is the leading business in the food industry, it thinks in 'Great Food, Great Life". Its mission is to provide its consumers with a range of options that are healthy and best in taste. It is concentrated on providing the best food to its clients throughout the day and night.


Business has a vast array of products that it provides to its clients. Its items include food for babies, cereals, dairy items, treats, chocolates, food for pet and mineral water. It has around four hundred and fifty (450) factories worldwide and around 328,000 employees. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the business has put down its goals and objectives. These goals and objectives are listed below.
• One goal of the business is to reach zero garbage dump status. It is pursuing absolutely 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 goal of Globalization Of Europe An Interview With Wisse Dekker is to waste minimum food during production. Most often, the food produced is squandered even prior to it reaches the clients.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to minimize those complications and would also guarantee the shipment of high quality of its products to its customers.
• Meet international standards of the environment.
• Develop a relationship based on trust with its consumers, organisation partners, staff members, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the method 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. However, the target of the company is not achieved as the sales were anticipated to grow higher 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 decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based on 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 stuff much healthier worrying about the health concerns.
The vision of this technique is based on the key approach i.e. 60/40+ which simply indicates that the items will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The items will be made with additional dietary worth in contrast to all other items in market getting it a plus on its dietary material.
This strategy was embraced to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other companies, with an intention of keeping its trust over clients as Business Company has actually gotten more trusted by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual quantity of costs reveals that the sales are increasing at a greater rate than its R&D costs, and enable the company to more invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise shows a thumbs-up to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio present a danger of default of Business to its financiers and could lead a decreasing share costs. In terms of increasing financial obligation ratio, the firm needs to not spend much on R&D and must pay its existing financial obligations to reduce the threat for financiers.
The increasing danger of investors with increasing financial obligation ratio and declining share costs can be observed by big decline of EPS of Globalization Of Europe An Interview With Wisse Dekker stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow understanding building of consumers. This slow growth also impede company to additional invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Charts given in the Exhibitions D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business should introduce more innovative products by large quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the business. It might likewise offer Business a long term competitive advantage over its competitors.
The global expansion of Business should be concentrated on market recording of establishing nations by growth, bring in more consumers through consumer's commitment. As developing countries 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 careful acquisition and merger of organizations, as it might impact the consumer's and society's perceptions about Business. It should 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 should not just invest its R&D on innovation, rather than it should likewise focus on the R&D costs over assessment of cost of numerous healthy products. This would increase cost performance of its products, which will result in increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just developing however likewise to developed nations. It ought to broaden its circle to numerous countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It should get and combine with those countries having a goodwill of being a healthy business in the market. It would likewise make it possible for the business to utilize its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon four elements; age, gender, earnings and occupation. Business produces a number of products related to infants i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. Globalization Of Europe An Interview With Wisse Dekker items are quite budget friendly by almost all levels, but its significant targeted consumers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its presence in nearly 86 nations. Its geographical division is based upon two main elements i.e. typical income level of the customer along with the environment 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 division of Business is based upon the character and life style of the customer. Business 3 in 1 Coffee target those customers whose life design is rather hectic and do not 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 conscious mindset towards their usages.

Globalization Of Europe An Interview With Wisse Dekker Alternatives

In order to sustain the brand in the market and keep the consumer undamaged with the brand, there are two options:
Alternative: 1
The Company needs to invest more on acquisitions than on the R&D.
1. Acquisitions would increase total assets of the business, increasing the wealth of the company. However, costs on R&D would be sunk expense.
2. The business can resell the acquired systems in the market, if it fails to execute its strategy. Amount invest on the R&D might not be revived, and it will be thought about totally sunk expense, if it do not provide potential outcomes.
3. Investing in R&D offer slow growth in sales, as it takes very long time to present an item. Acquisitions supply fast results, as it provide the business currently established product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face mistaken belief of consumers about Business core values of healthy and healthy items.
2 Large costs on acquisitions than R&D would send a signal of company's inefficiency of establishing ingenious items, and would outcomes in consumer's frustration.
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 business not able to introduce brand-new innovative products.
Option: 2.
The Company ought to spend more on its R&D instead of acquisitions.
1. It would make it possible for the business to produce more ingenious products.
2. It would offer the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those items which can be provided to a completely new market sector.
4. Innovative products will provide long term advantages and high market share in long run.
1. It would reduce the profit margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would affect the company at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which might supply a negative signal to the investors, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present new ingenious products with less threat of converting the costs on R&D into sunk expense.
2. It would offer a positive signal to the financiers, as the general possessions of the business would increase with its significant R&D spending.
3. It would not impact the profit margins of the business 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 along with in terms of innovative products.
1. Risk of conversion of R&D spending into sunk cost, greater than option 1 lesser than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high number of innovative items than alternative 1.

Globalization Of Europe An Interview With Wisse Dekker Conclusion

RecommendationsIt has actually institutionalised its strategies and culture to align itself with the market changes and customer behavior, which has ultimately permitted it to sustain its market share. Business has established substantial market share and brand name identity in the metropolitan markets, it is advised 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 specific brand name allowance method through trade marketing methods, that draw clear distinction between Globalization Of Europe An Interview With Wisse Dekker products and other rival products.

Globalization Of Europe An Interview With Wisse Dekker Exhibits

PESTEL Analysis
Governmental support

Changing criteria of worldwide food.
Boosted market share.
Altering assumption in the direction of healthier products
Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such impact as it is good.
Concerns over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible because 1000
Highest after Organisation with less development than Service 7th Cheapest
R&D Spending Highest possible considering that 2002 Highest after Business 2nd Least expensive
Net Profit Margin Greatest considering that 2006 with rapid development from 2003 to 2017 Due to sale of Alcon in 2011. Practically equal to Kraft Foods Incorporation Almost equal to Unilever N/A
Competitive Advantage Food with Nourishment and health aspect Highest possible number of brand names with sustainable techniques Largest confectionary and also refined foods brand name worldwide Largest dairy products as well as mineral water brand in the world
Segmentation Center as well as top middle degree customers worldwide Private consumers together with family team All age and Income Client Teams Middle as well as upper middle degree consumers worldwide
Number of Brands 6th 7th 9th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 98656 996463 383931 772713 878477
Net Profit Margin 7.95% 7.12% 37.32% 6.72% 38.37%
EPS (Earning Per Share) 92.49 1.33 3.28 3.96 77.14
Total Asset 557193 665835 654828 863422 71699
Total Debt 18834 58426 61831 29578 56122
Debt Ratio 13% 61% 63% 31% 88%
R&D Spending 9571 8769 8911 6982 8512
R&D Spending as % of Sales 8.88% 2.37% 5.71% 9.52% 6.56%

Globalization Of Europe An Interview With Wisse Dekker Executive Summary Globalization Of Europe An Interview With Wisse Dekker Swot Analysis Globalization Of Europe An Interview With Wisse Dekker Vrio Analysis Globalization Of Europe An Interview With Wisse Dekker Pestel Analysis
Globalization Of Europe An Interview With Wisse Dekker Porters Analysis Globalization Of Europe An Interview With Wisse Dekker Recommendations