Chad Cameroon Petroleum Development And Pipeline Project A Case Study Solution

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Chad Cameroon Petroleum Development And Pipeline Project A Case Study Analysis

Chad Cameroon Petroleum Development And Pipeline Project A is currently one of the greatest food chains worldwide. It was established by Harvard in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate. At the exact same time, the Page brothers from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The 2 became rivals at first however later merged in 1905, resulting in the birth of Chad Cameroon Petroleum Development And Pipeline Project A.
Business is now a transnational company. Unlike other multinational business, it has senior executives from various countries and tries to make choices considering the entire world. Chad Cameroon Petroleum Development And Pipeline Project A currently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of Chad Cameroon Petroleum Development And Pipeline Project A Corporation is to enhance the lifestyle of individuals 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 encourage individuals 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


Chad Cameroon Petroleum Development And Pipeline Project A's vision is to offer its consumers with food that is healthy, high in quality and safe to consume. Business pictures to develop a trained labor force which would help the company to grow


Chad Cameroon Petroleum Development And Pipeline Project A's objective is that as currently, it is the leading business in the food market, it thinks in 'Great Food, Good Life". Its mission is to offer its customers with a range of choices that are healthy and finest in taste. It is concentrated on providing the best food to its consumers throughout the day and night.


Chad Cameroon Petroleum Development And Pipeline Project A has a wide variety of products that it offers to its consumers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the company has actually set its goals and objectives. These objectives and goals are noted 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 motivates its staff members to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Chad Cameroon Petroleum Development And Pipeline Project A is to squander minimum food throughout production. Usually, the food produced is wasted even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to reduce the above-mentioned problems and would also ensure the delivery of high quality of its products to its customers.
• Meet global requirements of the environment.
• Build a relationship based on trust with its consumers, organisation partners, workers, and 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 nation is investing more on acquisitions and mergers to support its NHW method. The target of the business is not accomplished as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the idea of Nutritious, Health and Wellness (NHW). This technique deals with the idea to bringing modification in the customer choices about food and making the food stuff much healthier concerning about the health issues.
The vision of this technique is based on the secret method i.e. 60/40+ which merely suggests that the products will have a rating of 60% on the basis of taste and 40% is based on its dietary value. The products will be produced with extra nutritional worth in contrast to all other products in market gaining it a plus on its dietary content.
This technique was embraced to bring more delicious plus nutritious foods and drinks in market than ever. In competitors with other business, with an intent of retaining its trust over customers as Business Business has gotten more trusted by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D costs, and permit the company to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indication also reveals a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing debt ratio present a risk of default of Business to its investors and could lead a decreasing share rates. Therefore, in regards to increasing debt ratio, the company ought to not spend much on R&D and needs to pay its current financial obligations to reduce the threat for investors.
The increasing danger of investors with increasing debt ratio and decreasing share prices can be observed by substantial decline of EPS of Chad Cameroon Petroleum Development And Pipeline Project A stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow growth also impede company to more 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 Graphs given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be used to derive numerous techniques based on the SWOT Analysis given above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more innovative products by big amount of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It might likewise offer Business a long term competitive benefit over its rivals.
The worldwide growth of Business should be concentrated on market recording of developing nations by growth, attracting more customers through client's commitment. As establishing countries are more populous than developed countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisChad Cameroon Petroleum Development And Pipeline Project A ought to do mindful acquisition and merger of companies, as it could impact the client's and society's understandings about Business. It must acquire and combine with those companies which have a market credibility of healthy and healthy companies. It would improve the perceptions of customers about Business.
Business ought to not only spend its R&D on development, rather than it needs to likewise focus on the R&D costs over assessment of cost of different healthy items. This would increase cost performance of its items, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not just establishing however also to developed nations. It should broaden its circle to various countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should obtain and combine with those nations having a goodwill of being a healthy company in the market. It would likewise enable the business to utilize its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based on 4 elements; age, gender, earnings and occupation. For instance, Business produces a number of products associated with babies i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary items. Chad Cameroon Petroleum Development And Pipeline Project A products are quite budget-friendly by nearly all levels, however its major targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its existence in nearly 86 nations. Its geographical division is based upon two primary factors i.e. average income level of the customer as well as the climate of the area. For example, Singapore Business Company's segmentation is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and life style of the client. Business 3 in 1 Coffee target those customers whose life design is rather busy and don't have much time.

Behavioral Segmentation

Chad Cameroon Petroleum Development And Pipeline Project A behavioral division is based upon the attitude understanding and awareness of the customer. For instance its extremely healthy items target those consumers who have a health conscious attitude towards their consumptions.

Chad Cameroon Petroleum Development And Pipeline Project A Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand, there are two choices:
Option: 1
The Business needs to spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the company, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The business can resell the gotten systems in the market, if it stops working to execute its technique. Amount invest on the R&D might not be revived, and it will be thought about entirely sunk cost, if it do not provide potential results.
3. Spending on R&D provide slow growth in sales, as it takes long period of time to present a product. Acquisitions provide quick results, as it offer the business currently developed item, which can be marketed quickly after the acquisition.
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the business to deal with misunderstanding of customers about Business core values of healthy and healthy products.
2 Large costs on acquisitions than R&D would send a signal of business's ineffectiveness of establishing innovative items, and would results in customer's discontentment also.
3. Big acquisitions than R&D would extend the line of product of the business by the products which are currently present in the market, making business unable to introduce brand-new ingenious products.
Option: 2.
The Company ought to spend more on its R&D rather than acquisitions.
1. It would make it possible for the business to produce more ingenious products.
2. It would offer the business 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 an entirely new market segment.
4. Ingenious products will provide long term benefits and high market share in long term.
1. It would reduce the profit margins of the company.
2. In case of failure, the whole costs on R&D would be thought about 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 a negative signal to the financiers, and could result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to present new ingenious products with less threat of transforming the spending on R&D into sunk expense.
2. It would offer a positive signal to the investors, as the general assets of the company would increase with its substantial R&D costs.
3. It would not affect the revenue margins of the company at a big 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.
1. Threat of conversion of R&D costs into sunk expense, greater than option 1 lower than alternative 2.
2. Danger of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less number of ingenious products than alternative 2 and high number of innovative products than alternative 1.

Chad Cameroon Petroleum Development And Pipeline Project A Conclusion

RecommendationsBusiness has actually remained the leading market player for more than a decade. It has institutionalised its methods and culture to align itself with the marketplace modifications and consumer behavior, which has ultimately permitted it to sustain its market share. Though, Business has actually established significant market share and brand identity in the urban markets, it is recommended that the company ought to concentrate on the rural areas in terms of establishing brand name commitment, awareness, and equity, such can be done by developing a particular brand allotment technique through trade marketing tactics, that draw clear distinction between Chad Cameroon Petroleum Development And Pipeline Project A items and other rival products. Chad Cameroon Petroleum Development And Pipeline Project A ought to take advantage of its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will allow the business to establish brand equity for newly presented and currently produced products on a higher platform, making the efficient use of resources and brand image in the market.

Chad Cameroon Petroleum Development And Pipeline Project A Exhibits

PESTEL Analysis
Governmental support

Transforming standards of global food.
Boosted market share. Transforming understanding towards healthier items Improvements in R&D and also QA divisions.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible considering that 2000 Highest possible after Service with much less development than Organisation 9th Least expensive
R&D Spending Highest because 2003 Highest after Service 6th Lowest
Net Profit Margin Highest possible because 2001 with rapid growth from 2006 to 2013 As a result of sale of Alcon in 2014. Nearly equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health aspect Highest variety of brand names with sustainable techniques Largest confectionary and refined foods brand name worldwide Biggest dairy items and also mineral water brand in the world
Segmentation Center and also top center level customers worldwide Private customers together with home group Any age and also Earnings Client Groups Middle and also top middle level consumers worldwide
Number of Brands 3rd 7th 3rd 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 97584 834485 644973 957819 264261
Net Profit Margin 4.83% 6.88% 28.87% 8.78% 72.37%
EPS (Earning Per Share) 66.83 2.46 9.83 7.75 12.55
Total Asset 767739 188776 264256 461956 48459
Total Debt 15695 66344 27119 92213 63913
Debt Ratio 23% 47% 49% 76% 33%
R&D Spending 7793 9925 5816 4722 5598
R&D Spending as % of Sales 2.61% 1.69% 4.85% 6.59% 7.53%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations