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China Metal Recycling Holdings Limited Scrap King Gets Scrapped Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was established by Henri China Metal Recycling Holdings Limited Scrap King Gets Scrapped in 1866, a German Pharmacist who first introduced "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate.
Business is now a multinational company. Unlike other international business, it has senior executives from different nations and attempts to make decisions thinking about the whole world. China Metal Recycling Holdings Limited Scrap King Gets Scrapped currently has more than 500 factories around the world and a network spread across 86 nations.


The function of Business Corporation is to improve the quality of life of people by playing its part and providing healthy food. While making sure that the company is prospering in the long run, that's how it plays its part for a much better and healthy future


China Metal Recycling Holdings Limited Scrap King Gets Scrapped's vision is to offer its customers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and simultaneously understand the requirements and requirements of its customers. Its vision is to grow quickly and offer products that would please the requirements of each age group. China Metal Recycling Holdings Limited Scrap King Gets Scrapped envisions to establish a well-trained workforce which would help the company to grow


China Metal Recycling Holdings Limited Scrap King Gets Scrapped's objective is that as currently, it is the leading business in the food market, it thinks in 'Great Food, Good Life". Its objective is to offer its consumers with a variety of choices that are healthy and finest in taste too. It is focused on supplying the very best food to its clients throughout the day and night.


Business has a vast array of products that it provides to its consumers. Its products consist of food for infants, cereals, dairy products, snacks, chocolates, food for family pet and bottled water. It has around four hundred and fifty (450) factories all over the world and around 328,000 staff members. 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 laid down its goals and objectives. These objectives and objectives are noted below.
• One objective of the business is to reach absolutely no landfill status. It is working toward no 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 goal of China Metal Recycling Holdings Limited Scrap King Gets Scrapped is to squander minimum food during production. Frequently, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to reduce those complications and would likewise ensure the shipment of high quality of its items to its consumers.
• Meet international standards of the environment.
• Construct a relationship based upon trust with its consumers, organisation partners, workers, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW strategy. The target of the company is not attained as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based upon the principle of Nutritious, Health and Wellness (NHW). This technique handles the concept to bringing modification in the consumer preferences about food and making the food stuff healthier worrying about the health concerns.
The vision of this technique is based on the secret approach i.e. 60/40+ which simply implies that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The items will be produced with extra dietary worth in contrast to all other products in market gaining it a plus on its dietary content.
This method was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competition with other companies, with an intent of maintaining its trust over clients as Business Company has actually gained more relied on by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real amount of costs shows that the sales are increasing at a greater rate than its R&D spending, and enable the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This sign also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio pose a hazard of default of Business to its financiers and might lead a decreasing share costs. For that reason, in regards to increasing debt ratio, the company ought to not spend much on R&D and needs to pay its present debts to decrease the threat for investors.
The increasing danger of financiers with increasing debt ratio and declining share rates can be observed by big decline of EPS of China Metal Recycling Holdings Limited Scrap King Gets Scrapped stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception structure of consumers. This sluggish growth likewise prevent 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 estimations and Graphs given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be used to derive various techniques based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must introduce more ingenious items by large quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It could likewise provide Business a long term competitive advantage over its competitors.
The worldwide growth of Business ought to be concentrated on market recording of developing countries by growth, bring in more customers through consumer's loyalty. As developing countries are more populated than developed nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisChina Metal Recycling Holdings Limited Scrap King Gets Scrapped should do careful acquisition and merger of organizations, as it could impact the customer's and society's perceptions about Business. It ought to acquire and merge with those business which have a market track record of healthy and nutritious companies. It would enhance the understandings of consumers about Business.
Business should not only invest its R&D on innovation, instead of it ought to also focus on the R&D costs over examination of cost of various healthy products. This would increase cost efficiency of its items, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business must move to not just establishing but likewise to industrialized countries. It must widen its circle to numerous nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to obtain and combine with those nations having a goodwill of being a healthy company in the market. It would also allow the company to use its prospective resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 aspects; age, gender, income and profession. Business produces numerous products related to babies i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. China Metal Recycling Holdings Limited Scrap King Gets Scrapped products are quite inexpensive by practically all levels, however its significant targeted clients, in terms of earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in almost 86 nations. Its geographical segmentation is based upon two main elements i.e. typical income level of the customer in addition to the environment of the region. Singapore Business Business'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 character and life style of the client. For example, Business 3 in 1 Coffee target those customers whose lifestyle is rather busy and don't have much time.

Behavioral Segmentation

China Metal Recycling Holdings Limited Scrap King Gets Scrapped behavioral division is based upon the mindset understanding and awareness of the client. Its highly nutritious items target those clients who have a health conscious attitude towards their consumptions.

China Metal Recycling Holdings Limited Scrap King Gets Scrapped Alternatives

In order to sustain the brand in the market and keep the customer intact with the brand name, there are two options:
Alternative: 1
The Business should invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the business. However, costs on R&D would be sunk cost.
2. The business can resell the obtained units in the market, if it stops working to implement its strategy. However, amount spend on the R&D could not be restored, and it will be considered entirely sunk cost, if it do not provide potential results.
3. Spending on R&D supply slow growth in sales, as it takes long period of time to introduce an item. Acquisitions offer quick outcomes, as it offer the business currently developed item, 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 deal with misconception 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 developing innovative items, and would lead to consumer's frustration too.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making business not able to introduce new ingenious items.
Alternative: 2.
The Business needs to spend more on its R&D instead of acquisitions.
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 business to increase its targeted consumers by introducing those products which can be offered to a totally brand-new market segment.
4. Ingenious products will supply long term benefits and high market share in long run.
1. It would decrease the revenue margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk expense, and would impact the company at large. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could supply a negative signal to the financiers, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present new ingenious items with less risk of transforming the costs on R&D into sunk cost.
2. It would provide a favorable signal to the investors, as the total assets of the company would increase with its considerable R&D spending.
3. It would not impact the earnings margins of the company at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in terms of the business's overall wealth along with in terms of ingenious products.
1. Danger of conversion of R&D spending into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Intro of less variety of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

China Metal Recycling Holdings Limited Scrap King Gets Scrapped Conclusion

RecommendationsBusiness has actually stayed the leading market player for more than a years. It has institutionalised its methods and culture to align itself with the marketplace changes and client habits, which has actually eventually permitted it to sustain its market share. Business has actually developed substantial market share and brand name identity in the urban markets, it is advised that the business must focus on the rural areas in terms of establishing brand name loyalty, awareness, and equity, such can be done by developing a specific brand name allowance technique through trade marketing techniques, that draw clear difference between China Metal Recycling Holdings Limited Scrap King Gets Scrapped products and other rival products. Additionally, Business should leverage its brand 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 enable the company to establish brand equity for freshly introduced and already produced products on a greater platform, making the effective usage of resources and brand name image in the market.

China Metal Recycling Holdings Limited Scrap King Gets Scrapped Exhibits

PESTEL Analysis
Governmental support

Changing standards of worldwide food.
Boosted market share. Changing understanding in the direction of much healthier products Improvements in R&D as well as QA divisions.

Intro of E-marketing.
No such effect as it is good. Problems over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible because 9000 Highest after Service with less growth than Business 6th Cheapest
R&D Spending Greatest considering that 2007 Greatest after Service 7th Least expensive
Net Profit Margin Highest since 2006 with fast growth from 2006 to 2018 Because of sale of Alcon in 2019. Almost equal to Kraft Foods Consolidation Practically equal to Unilever N/A
Competitive Advantage Food with Nourishment and health and wellness element Highest number of brands with sustainable practices Largest confectionary and refined foods brand in the world Biggest milk items and also mineral water brand name in the world
Segmentation Middle and upper middle degree consumers worldwide Specific clients in addition to family group Every age as well as Earnings Client Teams Middle as well as upper center degree customers worldwide
Number of Brands 7th 5th 9th 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 56964 373177 288138 292492 624155
Net Profit Margin 9.91% 9.58% 19.34% 3.43% 51.28%
EPS (Earning Per Share) 38.24 9.56 9.64 5.89 93.41
Total Asset 113675 823977 682452 371799 23947
Total Debt 87938 14387 28823 72545 32751
Debt Ratio 72% 18% 21% 14% 94%
R&D Spending 6419 8734 3932 1687 6652
R&D Spending as % of Sales 3.75% 3.23% 8.61% 4.19% 7.74%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations