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Dividend Policy At Fpl Group Inc A Case Study Analysis

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Dividend Policy At Fpl Group Inc A is currently among the most significant food chains worldwide. It was established by Harvard in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Company. The 2 became rivals initially but later on merged in 1905, resulting in the birth of Dividend Policy At Fpl Group Inc A.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from various nations and attempts to make choices considering the whole world. Dividend Policy At Fpl Group Inc A presently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of Business Corporation is to enhance 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 better and healthy future

Vision

Dividend Policy At Fpl Group Inc A's vision is to offer its customers with food that is healthy, high in quality and safe to eat. It wants to be innovative and concurrently comprehend the requirements and requirements of its clients. Its vision is to grow quick and provide items that would please the needs of each age group. Dividend Policy At Fpl Group Inc A pictures to develop a trained labor force which would help the business to grow
.

Mission

Dividend Policy At Fpl Group Inc A's mission is that as presently, it is the leading company in the food industry, it believes in 'Excellent Food, Excellent Life". Its mission is to supply its customers with a range of choices that are healthy and finest in taste. It is focused on offering the best food to its customers throughout the day and night.

Products.

Dividend Policy At Fpl Group Inc A has a large range of products that it provides to its clients. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has laid down its goals and objectives. These goals and goals are noted below.
• One objective of the business is to reach zero garbage dump 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 by-products. (Business, aboutus, 2017).
• Another objective of Dividend Policy At Fpl Group Inc A is to lose minimum food during production. Frequently, the food produced is lost even before it reaches the clients.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to decrease those problems and would also ensure the shipment of high quality of its products to its customers.
• Meet international standards of the environment.
• Construct a relationship based upon trust with its consumers, service partners, workers, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the technique 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 strategy. The target of the business is not accomplished as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it might result in the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based on the idea of Nutritious, Health and Health (NHW). This technique handles the concept to bringing modification in the client preferences about food and making the food stuff much healthier concerning about the health problems.
The vision of this strategy is based upon the secret method i.e. 60/40+ which merely indicates that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be produced with extra dietary value in contrast to all other products in market acquiring it a plus on its nutritional material.
This technique was embraced to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other business, with an objective of retaining its trust over customers as Business Business has actually acquired more trusted by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real quantity of spending shows that the sales are increasing at a greater rate than its R&D spending, and allow the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This indicator likewise shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio pose a risk of default of Business to its investors and could lead a decreasing share rates. In terms of increasing debt ratio, the firm needs to not spend much on R&D and needs to pay its present debts to decrease the threat for financiers.
The increasing risk of investors with increasing financial obligation ratio and declining share costs can be observed by substantial decrease of EPS of Dividend Policy At Fpl Group Inc A stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish development likewise hinder business to additional 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 up the Exhibitions D and E.

TWOS Analysis


TWOS analysis can be utilized to obtain various 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 should present more innovative items by big amount of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the profit margins for the company. It might also supply Business a long term competitive benefit over its rivals.
The international expansion of Business should be concentrated on market recording of establishing nations by growth, attracting more customers through consumer's commitment. As developing nations are more populated than developed nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisDividend Policy At Fpl Group Inc A should do careful acquisition and merger of organizations, as it could affect the consumer's and society's understandings about Business. It must get and combine with those companies which have a market reputation of healthy and nutritious companies. It would enhance the perceptions of customers about Business.
Business ought to not just invest its R&D on innovation, rather than it needs to likewise focus on the R&D costs over assessment of expense of various nutritious items. This would increase expense effectiveness 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 only establishing but likewise to industrialized countries. It needs to broaden its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Dividend Policy At Fpl Group Inc A needs to sensibly manage its acquisitions to avoid the danger of mistaken belief from the consumers about Business. It should get and merge with those nations having a goodwill of being a healthy company in the market. This would not only improve the perception of customers about Business however would also increase the sales, earnings margins and market share of Business. It would also allow the company to utilize its potential resources effectively on its other operations instead of acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon four factors; age, gender, income and profession. Business produces numerous products related to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. Dividend Policy At Fpl Group Inc A items are quite cost effective by almost all levels, but its major targeted consumers, in terms of earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its presence in practically 86 nations. Its geographical division is based upon 2 primary factors i.e. average income level of the consumer as well as the climate of the area. For instance, Singapore Business Company's division 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 lifestyle of the customer. For example, Business 3 in 1 Coffee target those consumers whose life style is quite busy and do not have much time.

Behavioral Segmentation

Dividend Policy At Fpl Group Inc A behavioral division is based upon the mindset knowledge and awareness of the customer. Its extremely healthy items target those clients who have a health mindful mindset towards their usages.

Dividend Policy At Fpl Group Inc A Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand name, there are 2 choices:
Alternative: 1
The Company ought to spend 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 cost.
2. The company can resell the obtained systems in the market, if it fails to implement its method. Quantity invest on the R&D could not be revived, and it will be considered completely sunk expense, if it do not provide potential results.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to present a product. Nevertheless, acquisitions supply quick results, as it supply the company already established item, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core values of healthy and healthy products.
2 Large costs on acquisitions than R&D would send a signal of business's inefficiency of establishing innovative products, and would results in consumer's discontentment.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making company not able to present new innovative items.
Alternative: 2.
The Company needs to spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the business to produce more ingenious items.
2. It would provide the company a strong competitive position in the market.
3. It would enable the business to increase its targeted clients by introducing those items which can be used to an entirely brand-new market sector.
4. Ingenious items will supply 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 entire costs on R&D would be thought about as sunk expense, and would impact the business at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could supply a negative signal to the investors, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the company to present new innovative items with less danger of converting the spending on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the overall assets 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 provide the business a strong long term market position in regards to the company's total wealth in addition to in regards to innovative products.
Cons:
1. Threat of conversion of R&D spending into sunk expense, greater than option 1 lower than alternative 2.
2. Risk of misunderstanding 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 number of ingenious items than alternative 1.

Dividend Policy At Fpl Group Inc A Conclusion

RecommendationsIt has institutionalized its strategies and culture to align itself with the market modifications and customer habits, which has ultimately allowed it to sustain its market share. Business has actually established significant market share and brand name identity in the urban markets, it is suggested that the company must focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by developing a specific brand allocation method through trade marketing strategies, that draw clear distinction between Dividend Policy At Fpl Group Inc A items and other rival products.

Dividend Policy At Fpl Group Inc A Exhibits

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental assistance

Changing standards of global food.
Improved market share.
Transforming understanding towards much healthier products
Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such impact as it is favourable.
Concerns over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 6000
Greatest after Service with less development than Business 8th Cheapest
R&D Spending Greatest given that 2002 Highest possible after Business 2nd Most affordable
Net Profit Margin Highest possible considering that 2004 with quick development from 2008 to 2013 Due to sale of Alcon in 2018. Nearly equal to Kraft Foods Incorporation Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition and health and wellness aspect Greatest number of brand names with sustainable techniques Biggest confectionary as well as processed foods brand in the world Largest dairy items as well as mineral water brand on the planet
Segmentation Center and also upper middle level consumers worldwide Private clients together with household group Every age and also Earnings Client Groups Center and top center degree customers worldwide
Number of Brands 5th 2nd 5th 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 57879 426972 112413 559527 682925
Net Profit Margin 8.45% 6.74% 96.61% 7.37% 47.31%
EPS (Earning Per Share) 82.59 9.81 5.21 6.57 55.26
Total Asset 597243 763722 285276 917667 39521
Total Debt 34383 82115 45349 35526 65884
Debt Ratio 35% 48% 29% 49% 75%
R&D Spending 9244 1241 6922 2419 3163
R&D Spending as % of Sales 1.37% 2.83% 4.31% 7.47% 7.51%

Dividend Policy At Fpl Group Inc A Executive Summary Dividend Policy At Fpl Group Inc A Swot Analysis Dividend Policy At Fpl Group Inc A Vrio Analysis Dividend Policy At Fpl Group Inc A Pestel Analysis
Dividend Policy At Fpl Group Inc A Porters Analysis Dividend Policy At Fpl Group Inc A Recommendations