Atlantida Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was founded by Henri Atlantida in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed infants and decrease mortality rate.
Business is now a global business. Unlike other multinational business, it has senior executives from different countries and attempts to make choices thinking about the entire world. Atlantida currently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The purpose of Business Corporation is to enhance the quality of life of people by playing its part and offering healthy food. While making sure that the business is being successful in the long run, that's how it plays its part for a better and healthy future

Vision

Atlantida's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. It wants to be innovative and simultaneously comprehend the needs and requirements of its customers. Its vision is to grow quick and supply products that would satisfy the requirements of each age. Atlantida envisions to develop a trained workforce which would help the business to grow
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Mission

Atlantida's mission is that as presently, it is the leading business in the food market, it believes in 'Great Food, Excellent Life". Its mission is to offer its customers with a variety of choices that are healthy and best in taste. It is focused on providing the best food to its consumers throughout the day and night.

Products.

Business has a wide range of items that it provides to its customers. Its items include food for babies, cereals, dairy products, treats, chocolates, food for pet and mineral water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 workers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has actually put down its goals and objectives. These goals and objectives are listed below.
• One goal of the company is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of Atlantida is to lose minimum food during production. Usually, the food produced is squandered even prior to it reaches the consumers.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to reduce the above-mentioned problems and would also guarantee the delivery of high quality of its items to its consumers.
• Meet worldwide standards of the environment.
• Construct a relationship based upon trust with its consumers, company partners, staff members, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW technique. 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%, offered in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based on the idea of Nutritious, Health and Health (NHW). This method handles the idea to bringing modification in the customer choices about food and making the food stuff healthier concerning about the health concerns.
The vision of this strategy is based on the secret approach i.e. 60/40+ which merely indicates that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be made with additional dietary value in contrast to all other products in market gaining it a plus on its nutritional content.
This strategy was adopted to bring more tasty plus nutritious foods and beverages in market than ever. In competition with other companies, with an intent of retaining its trust over customers as Business Business has actually acquired more relied on by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual quantity of costs shows that the sales are increasing at a greater rate than its R&D costs, and permit the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is declining. This sign also shows a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio pose a hazard of default of Business to its investors and might lead a decreasing share costs. For that reason, in terms of increasing debt ratio, the firm should not invest much on R&D and ought to pay its existing financial obligations to decrease the danger for investors.
The increasing danger of investors with increasing financial obligation ratio and decreasing share rates can be observed by big decrease of EPS of Atlantida stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception building of customers. This sluggish development also impede company to additional spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: 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 used to obtain numerous techniques based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more ingenious products by big quantity of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the business. It might likewise provide Business a long term competitive benefit over its rivals.
The worldwide expansion of Business must be focused on market recording of developing nations by expansion, bring in more clients through client's commitment. As establishing nations are more populous than industrialized countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Atlantida needs to do careful acquisition and merger of companies, as it could impact the customer's and society's understandings about Business. It should obtain and combine with those business which have a market credibility of healthy and nutritious business. It would improve the understandings of consumers about Business.
Business ought to not only spend its R&D on innovation, rather than it should also concentrate on the R&D spending over examination of cost of numerous nutritious products. This would increase expense effectiveness of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not only establishing but likewise to developed countries. It ought to widens its geographical expansion. This broad geographical growth towards establishing and established nations would minimize the risk of prospective losses in times of instability in numerous nations. It must widen its circle to various nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Atlantida must carefully manage its acquisitions to prevent the threat of misconception from the customers about Business. It ought to acquire and merge with those nations having a goodwill of being a healthy business in the market. This would not only enhance the understanding of consumers about Business but would likewise increase the sales, revenue margins and market share of Business. It would likewise enable the business to use its prospective resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon 4 factors; age, gender, earnings and occupation. For example, Business produces numerous items associated with children i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Atlantida products are quite budget friendly by almost all levels, however its significant targeted clients, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its presence in almost 86 countries. Its geographical segmentation is based upon two main aspects i.e. typical income level of the customer as well as the environment of the area. For instance, 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 segmentation of Business is based upon the character and life style of the customer. For instance, Business 3 in 1 Coffee target those clients whose lifestyle is rather hectic and do not have much time.

Behavioral Segmentation

Atlantida behavioral division is based upon the attitude knowledge and awareness of the customer. Its highly nutritious items target those customers who have a health conscious attitude towards their intakes.

Atlantida Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand, there are 2 choices:
Alternative: 1
The Company should spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the company, increasing the wealth of the business. Spending on R&D would be sunk expense.
2. The business can resell the obtained units in the market, if it stops working to implement its method. Nevertheless, quantity spend on the R&D could not be restored, and it will be considered totally sunk expense, if it do not offer potential results.
3. Investing in R&D offer sluggish growth in sales, as it takes very long time to introduce a product. Acquisitions supply quick outcomes, as it supply the business currently established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with mistaken belief of consumers about Business core values of healthy and healthy items.
2 Big costs on acquisitions than R&D would send out a signal of company's inefficiency of establishing ingenious items, and would results in consumer's frustration.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making business unable to introduce brand-new innovative products.
Option: 2.
The Business should spend more on its R&D rather than acquisitions.
Pros:
1. It would allow the company to produce more innovative items.
2. It would offer the company 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 used to a completely brand-new market sector.
4. Ingenious products will provide long term benefits and high market share in long term.
Cons:
1. It would decrease the profit margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would affect the company at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the investors, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Pros:
1. It would allow the business to introduce new ingenious items with less threat of transforming the spending on R&D into sunk expense.
2. It would offer a favorable signal to the financiers, as the total assets of the company would increase with its considerable R&D costs.
3. It would not affect the revenue 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 regards to the company's total wealth as well as in terms of innovative products.
Cons:
1. Risk of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less number of innovative items than alternative 2 and high variety of innovative items than alternative 1.

Atlantida Conclusion

It has institutionalised its techniques and culture to align itself with the market changes and client habits, which has eventually permitted it to sustain its market share. Business has developed substantial market share and brand name identity in the city markets, it is recommended that the company ought to focus on the rural locations in terms of developing brand commitment, awareness, and equity, such can be done by developing a specific brand allotment strategy through trade marketing tactics, that draw clear distinction in between Atlantida products and other competitor items.

Atlantida Exhibits