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Enman Oil Inc B Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was founded by Henri Enman Oil Inc B in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate.
Business is now a multinational company. Unlike other international companies, it has senior executives from various countries and tries to make decisions thinking about the entire world. Enman Oil Inc B currently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of Enman Oil Inc B Corporation is to boost the quality of life of individuals by playing its part and offering healthy food. It wishes to help the world in forming a healthy and better future for it. It likewise wishes to motivate people to live a healthy life. While making certain that the company is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Enman Oil Inc B's vision is to supply its consumers with food that is healthy, high in quality and safe to consume. Business envisions to develop a trained workforce which would help the company to grow
.

Mission

Enman Oil Inc B's objective is that as currently, it is the leading company in the food market, it believes in 'Good Food, Good Life". Its mission is to provide its consumers with a variety of options that are healthy and best in taste also. It is concentrated on supplying the very best food to its consumers throughout the day and night.

Products.

Enman Oil Inc B has a broad range of products that it uses to its consumers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has actually set its objectives and objectives. These objectives and objectives are listed below.
• One objective of the company is to reach no garbage dump status. (Business, aboutus, 2017).
• Another goal of Enman Oil Inc B is to squander minimum food throughout production. Usually, the food produced is lost even prior to it reaches the clients.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to lower those problems and would also ensure the delivery of high quality of its products to its customers.
• Meet international requirements of the environment.
• Build a relationship based upon trust with its customers, company partners, workers, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique of NHW and investing more of its earnings on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the business 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%, offered in Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may result in the decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based on the concept of Nutritious, Health and Wellness (NHW). This technique handles the idea to bringing change in the consumer choices about food and making the food stuff healthier worrying about the health issues.
The vision of this method is based on the secret approach i.e. 60/40+ which simply means that the items will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The items will be produced with additional nutritional worth in contrast to all other products in market getting it a plus on its dietary material.
This technique was embraced to bring more tasty plus healthy foods and beverages in market than ever. In competitors with other companies, with an objective of keeping its trust over clients as Business Company has acquired more trusted by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real quantity of spending shows 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 sign also shows a thumbs-up to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing financial obligation ratio position a danger of default of Business to its financiers and might lead a declining share rates. Therefore, in regards to increasing financial obligation ratio, the company needs to not spend much on R&D and needs to pay its present debts to decrease the danger for investors.
The increasing risk of financiers with increasing debt ratio and decreasing share prices can be observed by huge decrease of EPS of Enman Oil Inc B stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish growth also impede 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 computations and Graphs given in the Exhibitions D and E.

TWOS Analysis


2 analysis can be used to derive different strategies based on the SWOT Analysis offered above. A brief summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more ingenious items by big quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the company. It might likewise offer Business a long term competitive advantage over its rivals.
The global expansion of Business ought to be focused on market catching of establishing nations by growth, bring in more customers through client's loyalty. As establishing countries are more populated than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisEnman Oil Inc B must do cautious acquisition and merger of companies, as it could affect the client's and society's understandings about Business. It needs to acquire and combine with those business which have a market reputation of healthy and healthy business. It would improve the understandings of consumers about Business.
Business needs to not just invest its R&D on innovation, rather than it ought to likewise focus on the R&D spending over assessment of expense of numerous healthy products. This would increase cost effectiveness of its items, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just developing but also to industrialized nations. It needs to widen its circle to various countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Enman Oil Inc B must carefully control its acquisitions to avoid the threat of misconception from the consumers about Business. It should obtain and combine with those nations having a goodwill of being a healthy business in the market. This would not just enhance the perception of customers about Business but would likewise increase the sales, revenue margins and market share of Business. It would likewise allow the business to utilize its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon 4 factors; age, gender, earnings and profession. Business produces a number of items related to infants i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary items. Enman Oil Inc B products are quite cost effective by nearly all levels, but its major targeted customers, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its existence in practically 86 nations. Its geographical division is based upon 2 primary factors i.e. typical earnings level of the customer along with the environment of the region. Singapore Business Business's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the consumer. Business 3 in 1 Coffee target those consumers whose life style is rather hectic and do not have much time.

Behavioral Segmentation

Enman Oil Inc B behavioral segmentation is based upon the attitude knowledge and awareness of the client. Its highly healthy items target those clients who have a health conscious mindset towards their intakes.

Enman Oil Inc B Alternatives

In order to sustain the brand in the market and keep the client intact with the brand, there are 2 alternatives:
Alternative: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the company, increasing the wealth of the company. Costs on R&D would be sunk cost.
2. The company can resell the gotten units in the market, if it fails to execute its method. Amount spend on the R&D might not be restored, and it will be thought about totally sunk expense, if it do not provide possible results.
3. Spending on R&D supply slow development in sales, as it takes long period of time to present a product. Nevertheless, acquisitions supply fast results, as it provide the business currently established product, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the business to face misconception of consumers about Business core worths of healthy and healthy products.
2 Big spending on acquisitions than R&D would send a signal of business's ineffectiveness of establishing ingenious products, and would results in consumer's dissatisfaction too.
3. Big acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making company not able to introduce brand-new ingenious items.
Option: 2.
The Company ought to spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the company to produce more innovative products.
2. It would supply the company a strong competitive position in the market.
3. It would allow the company to increase its targeted customers by introducing those items which can be provided to a completely brand-new market sector.
4. Innovative products will offer long term advantages and high market share in long term.
Cons:
1. It would decrease the profit margins of the company.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would affect the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which might supply an unfavorable signal to the investors, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the company to introduce new ingenious items with less danger of converting the costs on R&D into sunk cost.
2. It would offer a positive signal to the financiers, as the general possessions of the company would increase with its substantial R&D costs.
3. It would not affect the earnings margins of the business at a big rate as compare to alternative 2.
4. It would offer the business a strong long term market position in terms of the company's overall wealth along with in terms of innovative products.
Cons:
1. Risk of conversion of R&D spending into sunk expense, greater than option 1 lesser than alternative 2.
2. Risk of misconception about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Intro of less number of innovative items than alternative 2 and high variety of innovative items than alternative 1.

Enman Oil Inc B Conclusion

RecommendationsIt has institutionalized its techniques and culture to align itself with the market changes and client habits, which has ultimately allowed it to sustain its market share. Business has developed considerable market share and brand name identity in the metropolitan markets, it is recommended that the business ought to focus on the rural locations in terms of developing brand name commitment, awareness, and equity, such can be done by developing a specific brand name allocation method through trade marketing techniques, that draw clear distinction between Enman Oil Inc B products and other rival products.

Enman Oil Inc B Exhibits

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

Altering criteria of global food.
Improved market share.
Changing assumption in the direction of healthier items
Improvements in R&D and also QA divisions.

Intro of E-marketing.
No such influence as it is beneficial.
Problems over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 2000
Highest after Organisation with less development than Business 4th Least expensive
R&D Spending Highest given that 2004 Greatest after Company 5th Cheapest
Net Profit Margin Highest given that 2004 with quick development from 2009 to 2018 Because of sale of Alcon in 2017. Virtually equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health aspect Highest possible variety of brand names with lasting methods Largest confectionary as well as processed foods brand in the world Biggest dairy items and bottled water brand on the planet
Segmentation Center as well as upper middle degree customers worldwide Specific consumers together with house team Any age and also Income Customer Groups Middle and top middle level customers worldwide
Number of Brands 7th 9th 3rd 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 94559 177325 351844 541914 511846
Net Profit Margin 3.19% 4.59% 29.19% 1.61% 26.54%
EPS (Earning Per Share) 43.58 2.13 4.74 7.57 11.82
Total Asset 498636 715939 754637 381932 46293
Total Debt 12915 41475 36691 98449 19436
Debt Ratio 38% 28% 31% 15% 11%
R&D Spending 4929 8936 3837 6278 5139
R&D Spending as % of Sales 5.37% 6.78% 5.78% 1.14% 3.69%

Enman Oil Inc B Executive Summary Enman Oil Inc B Swot Analysis Enman Oil Inc B Vrio Analysis Enman Oil Inc B Pestel Analysis
Enman Oil Inc B Porters Analysis Enman Oil Inc B Recommendations