Aegon Vs Axa Case Study Solution

Business is presently one of the greatest food chains worldwide. It was established by Henri Aegon Vs Axa 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 multinational business, it has senior executives from various countries and attempts to make decisions thinking about the whole world. Aegon Vs Axa presently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The purpose of Aegon Vs Axa Corporation is to enhance the lifestyle of people by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and better future for it. It likewise 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 much better and healthy future

Vision

Aegon Vs Axa's vision is to provide its customers with food that is healthy, high in quality and safe to eat. It wants to be ingenious and concurrently understand the requirements and requirements of its consumers. Its vision is to grow quickly and offer items that would satisfy the requirements of each age. Aegon Vs Axa pictures to establish a well-trained labor force which would help the business to grow
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Mission

Aegon Vs Axa's mission is that as presently, it is the leading business in the food industry, it thinks in 'Great Food, Good Life". Its objective is to offer its customers with a range of choices that are healthy and best in taste. It is concentrated on supplying the very best food to its clients throughout the day and night.

Products.

Aegon Vs Axa has a large range of items that it uses to its consumers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has put down its objectives and goals. These goals and objectives are listed below.
• One goal of the company is to reach no landfill status. It is working toward no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Aegon Vs Axa is to waste minimum food during production. Usually, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to minimize the above-mentioned complications and would likewise guarantee the delivery of high quality of its items to its consumers.
• Meet international standards of the environment.
• Construct a relationship based on trust with its customers, organisation partners, employees, and federal government.

Critical Issues

Recently, Business Business 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 strategy. However, the target of the company is not attained as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given up Display H. There is a need to focus more on the sales then the innovation technology. Otherwise, it may result in the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based upon the idea of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing change in the customer choices about food and making the food stuff much healthier worrying about the health concerns.
The vision of this strategy is based on the secret approach i.e. 60/40+ which simply indicates that the products will have a score of 60% on the basis of taste and 40% is based on its dietary value. The products will be made with extra nutritional worth in contrast to all other items in market acquiring it a plus on its nutritional material.
This strategy was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other companies, with an intention of retaining its trust over consumers as Business Business has gained more relied on by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real quantity of costs shows that the sales are increasing at a greater rate than its R&D costs, and permit the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise reveals a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio present a threat of default of Business to its financiers and could lead a decreasing share prices. Therefore, in terms of increasing financial obligation ratio, the company needs to not spend much on R&D and needs to pay its existing financial obligations to decrease the threat for investors.
The increasing threat of investors with increasing debt ratio and declining share rates can be observed by substantial decrease of EPS of Aegon Vs Axa stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish growth likewise impede company to further 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 Graphs given up the Exhibits D and E.

TWOS Analysis

2 analysis can be used to derive various techniques based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more innovative items by big quantity of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the company. It could likewise supply Business a long term competitive advantage over its rivals.
The international expansion of Business must be focused on market catching of establishing nations by expansion, attracting more consumers through client's loyalty. As developing countries are more populous than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Aegon Vs Axa should do cautious acquisition and merger of companies, as it might impact the consumer's and society's perceptions about Business. It needs to obtain and merge with those business which have a market reputation of healthy and healthy business. It would enhance the perceptions of consumers about Business.
Business should not only spend its R&D on innovation, instead of it must likewise focus on the R&D spending over examination of cost of various healthy items. This would increase expense performance of its items, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should transfer to not just developing but likewise to industrialized countries. It should widens its geographical growth. This large geographical growth towards establishing and established countries would lower the risk of prospective losses in times of instability in different nations. It ought to expand its circle to numerous countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It should obtain and merge with those countries having a goodwill of being a healthy business in the market. It would also make it possible for the company to utilize its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon four factors; age, gender, income and occupation. Business produces several items related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Aegon Vs Axa items are quite affordable by almost all levels, but its major targeted customers, in terms of income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its existence in almost 86 nations. Its geographical division is based upon two main elements i.e. average income level of the customer 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 division of Business is based upon the character and lifestyle of the client. Business 3 in 1 Coffee target those clients whose life style is quite hectic and don't have much time.

Behavioral Segmentation

Aegon Vs Axa behavioral division is based upon the mindset knowledge and awareness of the consumer. For instance its extremely healthy items target those consumers who have a health conscious attitude towards their consumptions.

Aegon Vs Axa Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand, there are 2 options:
Alternative: 1
The Business should 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. Nevertheless, costs on R&D would be sunk expense.
2. The company can resell the obtained units in the market, if it stops working to execute its technique. Quantity invest on the R&D could not be revived, and it will be considered totally sunk cost, if it do not provide potential results.
3. Spending on R&D provide sluggish development in sales, as it takes long period of time to introduce an item. Acquisitions supply quick outcomes, as it offer the business currently developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the company to face mistaken belief of customers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of developing innovative items, and would outcomes in consumer's dissatisfaction.
3. Big 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 unable to introduce new innovative items.
Alternative: 2.
The Business should invest more on its R&D rather than acquisitions.
Pros:
1. It would allow the business to produce more ingenious products.
2. It would supply the business a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted clients by presenting those items which can be offered to an entirely new market segment.
4. Ingenious items will provide long term advantages and high market share in long term.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would impact the business at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable signal to the investors, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Pros:
1. It would permit the business to introduce new ingenious items with less danger of transforming the costs on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the total possessions of the company would increase with its substantial 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 offer the business a strong long term market position in regards to the company's general wealth along with in terms of innovative items.
Cons:
1. Danger of conversion of R&D spending into sunk cost, higher than alternative 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less variety of ingenious items than alternative 2 and high variety of innovative products than alternative 1.

Aegon Vs Axa Conclusion

Business has actually stayed the top market gamer for more than a decade. It has institutionalised its strategies and culture to align itself with the market modifications and customer habits, which has actually eventually enabled it to sustain its market share. Business has established significant market share and brand identity in the metropolitan markets, it is recommended that the company needs to focus on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by creating a specific brand name allocation method through trade marketing tactics, that draw clear difference in between Aegon Vs Axa products and other rival items. Aegon Vs Axa should utilize its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will allow the company to develop brand equity for recently introduced and already produced products on a greater platform, making the efficient usage of resources and brand image in the market.

Aegon Vs Axa Exhibits