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Protection Of Intellectual Property In The United States Case Study Analysis

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Protection Of Intellectual Property In The United States Case Study Solution

Business is currently one of the most significant food chains worldwide. It was founded by Henri Protection Of Intellectual Property In The United States in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed babies and reduce mortality rate.
Business is now a global company. Unlike other multinational business, it has senior executives from various nations and tries to make decisions thinking about the entire world. Protection Of Intellectual Property In The United States currently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The function of Protection Of Intellectual Property In The United States Corporation is to improve the quality of life of people by playing its part and supplying healthy food. It wishes to help the world in shaping a healthy and better future for it. It likewise wants to encourage people to live a healthy life. While making sure that the company is succeeding in the long run, that's how it plays its part for a better and healthy future

Vision

Protection Of Intellectual Property In The United States's vision is to provide its consumers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and concurrently understand the needs and requirements of its customers. Its vision is to grow fast and supply items that would satisfy the requirements of each age group. Protection Of Intellectual Property In The United States visualizes to establish a trained labor force which would help the company to grow
.

Mission

Protection Of Intellectual Property In The United States's objective is that as presently, it is the leading company in the food market, it thinks in 'Great Food, Good Life". Its objective is to provide its customers with a range of options that are healthy and best in taste. It is concentrated on offering the very best food to its consumers throughout the day and night.

Products.

Protection Of Intellectual Property In The United States has a broad variety of items that it offers to its consumers. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the business has actually laid down its goals and goals. These goals and goals are noted below.
• One objective of the business is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another objective of Protection Of Intellectual Property In The United States is to waste minimum food throughout production. Most often, the food produced is lost even prior to it reaches the clients.
• Another thing that Business is working on is to improve its packaging in such a method that it would help it to reduce the above-mentioned complications and would likewise ensure the shipment of high quality of its items to its consumers.
• Meet worldwide requirements of the environment.
• Develop a relationship based upon trust with its customers, company partners, workers, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the company 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%, offered in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based upon the principle of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing modification in the consumer preferences about food and making the food things healthier concerning about the health problems.
The vision of this strategy is based upon the key technique i.e. 60/40+ which just suggests that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional 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 material.
This technique was adopted to bring more yummy plus nutritious foods and beverages in market than ever. In competition with other companies, with an intention of keeping its trust over consumers as Business Business has actually gained more trusted by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual quantity of spending reveals that the sales are increasing at a greater rate than its R&D spending, and allow the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise 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 development rather than payment of debts. This increasing financial obligation ratio pose a danger of default of Business to its investors and might lead a decreasing share prices. In terms of increasing financial obligation ratio, the company should not invest much on R&D and should pay its existing debts to reduce the risk for investors.
The increasing danger of investors with increasing financial obligation ratio and decreasing share costs can be observed by huge decline of EPS of Protection Of Intellectual Property In The United States stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception building of consumers. This slow growth likewise impede business 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 calculations and Charts given in the Exhibits D and E.

TWOS Analysis


TWOS analysis can be utilized to obtain numerous techniques based upon the SWOT Analysis provided above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more ingenious items by big amount of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the profit margins for the business. It could also supply Business a long term competitive advantage over its competitors.
The international expansion of Business need to be concentrated on market capturing of developing nations by expansion, drawing in more consumers through client's commitment. As establishing countries are more populated than developed countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisProtection Of Intellectual Property In The United States should do cautious acquisition and merger of organizations, as it might impact the client's and society's understandings about Business. It needs to acquire and combine with those business which have a market reputation of healthy and nutritious companies. It would enhance the understandings of customers about Business.
Business must not only spend its R&D on innovation, instead of it needs to likewise concentrate on the R&D spending over assessment of expense of different healthy products. This would increase expense performance of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just developing however likewise to developed nations. It must widen its circle to various countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It must acquire and merge with those countries having a goodwill of being a healthy company in the market. It would likewise make it possible for the company to utilize its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon four factors; age, gender, income and profession. For example, Business produces several items associated with children i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Protection Of Intellectual Property In The United States products are rather cost effective by almost all levels, however its major targeted consumers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in almost 86 countries. Its geographical segmentation is based upon two main elements i.e. typical income level of the customer as well as the climate of the area. Singapore Business Company's division 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 lifestyle of the client. For instance, Business 3 in 1 Coffee target those clients whose lifestyle is quite hectic and do not have much time.

Behavioral Segmentation

Protection Of Intellectual Property In The United States behavioral division is based upon the mindset understanding and awareness of the customer. For example its extremely nutritious products target those customers who have a health conscious mindset towards their consumptions.

Protection Of Intellectual Property In The United States Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are 2 options:
Option: 1
The Business needs to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the business, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The company can resell the gotten systems in the market, if it stops working to execute its method. Nevertheless, amount invest in the R&D might not be revived, and it will be thought about totally sunk expense, if it do not offer possible results.
3. Investing in R&D supply sluggish growth in sales, as it takes very long time to introduce an item. Acquisitions provide quick results, as it supply the company already developed item, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core values of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send a signal of business's inefficiency of establishing innovative products, and would results in consumer's dissatisfaction.
3. Large acquisitions than R&D would extend the line of product of the company by the products which are already present in the market, making business not able to present new ingenious items.
Option: 2.
The Company should invest more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the business to produce more ingenious items.
2. It would offer the company a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by introducing those products which can be used to a totally brand-new market sector.
4. Ingenious products will provide long term benefits and high market share in long run.
Cons:
1. It would decrease the profit margins of the company.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would impact the company at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which might offer a negative signal to the investors, and could result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to introduce new ingenious products with less risk of transforming the costs on R&D into sunk cost.
2. It would provide a positive signal to the financiers, as the overall properties of the company would increase with its considerable 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 supply the company a strong long term market position in regards to the company's overall wealth as well as in terms of ingenious items.
Cons:
1. Danger of conversion of R&D costs into sunk cost, higher than option 1 lesser than alternative 2.
2. Risk of mistaken belief 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 number of ingenious items than alternative 1.

Protection Of Intellectual Property In The United States Conclusion

RecommendationsBusiness has stayed the top market gamer for more than a decade. It has institutionalized its techniques and culture to align itself with the marketplace modifications and customer habits, which has ultimately enabled it to sustain its market share. Business has developed substantial market share and brand name identity in the metropolitan markets, it is advised that the business should focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by developing a specific brand name allowance strategy through trade marketing techniques, that draw clear difference in between Protection Of Intellectual Property In The United States items and other competitor items. Furthermore, Business should take advantage of its brand name picture of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will enable the business to establish brand equity for freshly presented and already produced items on a greater platform, making the effective use of resources and brand name image in the market.

Protection Of Intellectual Property In The United States 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.
Altering perception towards much healthier products
Improvements in R&D and also QA departments.

Introduction of E-marketing.
No such influence as it is good.
Problems over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 7000
Highest possible after Service with much less growth than Company 6th Most affordable
R&D Spending Highest possible because 2008 Highest possible after Service 4th Most affordable
Net Profit Margin Highest given that 2003 with fast growth from 2008 to 2011 As a result of sale of Alcon in 2013. Virtually equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and also health factor Highest number of brands with lasting techniques Biggest confectionary and also refined foods brand name worldwide Biggest milk items and also bottled water brand name on the planet
Segmentation Center and also upper center level consumers worldwide Specific clients together with home team Every age as well as Income Consumer Teams Center and top middle degree consumers worldwide
Number of Brands 5th 8th 2nd 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 14569 438985 925781 881943 897331
Net Profit Margin 2.75% 6.23% 95.32% 2.62% 78.33%
EPS (Earning Per Share) 29.15 9.45 2.52 8.37 17.52
Total Asset 345691 387532 812187 211698 54464
Total Debt 84879 41985 49673 38936 81387
Debt Ratio 28% 62% 75% 29% 55%
R&D Spending 3893 8422 4426 7728 6112
R&D Spending as % of Sales 9.67% 1.19% 3.15% 2.54% 4.86%

Protection Of Intellectual Property In The United States Executive Summary Protection Of Intellectual Property In The United States Swot Analysis Protection Of Intellectual Property In The United States Vrio Analysis Protection Of Intellectual Property In The United States Pestel Analysis
Protection Of Intellectual Property In The United States Porters Analysis Protection Of Intellectual Property In The United States Recommendations