Menu

Enman Oil Inc F Case Study Solution

Case Study Solution And Analysis


Home >> Harvard >> Enman Oil Inc F >>

Enman Oil Inc F Case Study Analysis

Enman Oil Inc F is presently one of the biggest food cycle worldwide. It was established by Harvard in 1866, a German Pharmacist who first launched "FarineLactee"; a mix of flour and milk to feed infants and reduce mortality rate. At the very same time, the Page bros from Switzerland also found The Anglo-Swiss Condensed Milk Company. The 2 ended up being rivals initially however later on merged in 1905, resulting in the birth of Enman Oil Inc F.
Business is now a transnational business. Unlike other international business, it has senior executives from various countries and attempts to make choices considering the entire world. Enman Oil Inc F presently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

The function of Enman Oil Inc F Corporation is to enhance the lifestyle of individuals by playing its part and offering healthy food. It wants to help the world in forming a healthy and much better future for it. It also wants to motivate individuals to live a healthy life. While ensuring that the business is being successful in the long run, that's how it plays its part for a much better and healthy future

Vision

Enman Oil Inc F's vision is to provide its clients with food that is healthy, high in quality and safe to consume. It wishes to be innovative and concurrently comprehend the needs and requirements of its consumers. Its vision is to grow fast and provide items that would please the needs of each age. Enman Oil Inc F imagines to establish a trained workforce which would help the company to grow
.

Mission

Enman Oil Inc F's objective is that as presently, it is the leading company in the food market, it believes in 'Good Food, Great Life". Its objective is to supply its consumers with a variety of options that are healthy and best in taste. It is concentrated on offering the best food to its consumers throughout the day and night.

Products.

Enman Oil Inc F has a broad variety of products that it provides to its consumers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has put down its objectives and objectives. These goals and goals are listed below.
• One objective of the business is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another goal of Enman Oil Inc F is to waste minimum food throughout production. Most often, the food produced is squandered even before it reaches the consumers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to minimize the above-mentioned issues and would also ensure the delivery of high quality of its items to its consumers.
• Meet international standards of the environment.
• Construct a relationship based on trust with its consumers, service partners, staff members, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW technique. The target of the company is not attained as the sales were anticipated to grow higher 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 development technology. Otherwise, it might lead to the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based on the principle of Nutritious, Health and Health (NHW). This method handles the concept to bringing modification in the customer preferences about food and making the food stuff much healthier concerning about the health issues.
The vision of this technique is based on the key approach i.e. 60/40+ which simply indicates that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary value. The items will be made with extra dietary worth in contrast to all other items in market acquiring it a plus on its dietary content.
This method was adopted to bring more tasty plus healthy foods and drinks in market than ever. In competitors with other business, with an objective of retaining its trust over customers as Business Business has gained more trusted by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing real quantity of costs reveals that the sales are increasing at a greater rate than its R&D costs, and enable the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This sign also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt 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 present a danger of default of Business to its financiers and might lead a declining share costs. For that reason, in terms of increasing debt ratio, the firm ought to not spend much on R&D and must pay its current debts to decrease the threat for financiers.
The increasing danger of investors with increasing financial obligation ratio and declining share costs can be observed by big decline of EPS of Enman Oil Inc F stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development also prevent company to further 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 computations and Charts given up the Exhibitions D and E.

TWOS Analysis


TWOS analysis can be used to obtain various methods based on the SWOT Analysis given above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative items by big amount of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the business. It could likewise supply Business a long term competitive advantage over its competitors.
The international expansion of Business need to be concentrated on market capturing of establishing nations by growth, drawing in more consumers through client's commitment. As establishing countries are more populous than industrialized nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisEnman Oil Inc F should do careful acquisition and merger of companies, as it might affect the client's and society's perceptions about Business. It must obtain and merge with those companies which have a market reputation of healthy and nutritious business. It would enhance the understandings of customers about Business.
Business needs to not only invest its R&D on innovation, instead of it ought to likewise concentrate on the R&D costs over examination of expense of various nutritious items. This would increase expense performance of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only developing but likewise to industrialized countries. It needs to expand its circle to numerous nations like Unilever which runs 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 business in the market. It would also make it possible for the business to utilize its prospective resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon four factors; age, gender, income and profession. Business produces a number of products related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. Enman Oil Inc F products are rather affordable by practically all levels, but its significant targeted customers, in terms of earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in almost 86 nations. Its geographical segmentation is based upon 2 primary factors i.e. average income level of the consumer along with the environment of the region. For example, Singapore Business Company's segmentation is done on the basis of the weather of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and life style of the customer. For example, Business 3 in 1 Coffee target those clients whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Enman Oil Inc F behavioral division is based upon the attitude knowledge and awareness of the client. For instance its highly nutritious items target those consumers who have a health conscious mindset towards their usages.

Enman Oil Inc F Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are two options:
Option: 1
The Business ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the gotten systems in the market, if it fails to implement its strategy. However, quantity spend on the R&D could not be restored, and it will be considered entirely sunk cost, if it do not offer potential results.
3. Investing in R&D supply sluggish development in sales, as it takes long period of time to present an item. Acquisitions supply quick results, as it offer the business already established product, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the company to face mistaken belief of customers about Business core worths of healthy and healthy items.
2 Big spending on acquisitions than R&D would send a signal of company's inefficiency of establishing ingenious items, and would results in customer's dissatisfaction.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are already present in the market, making business unable to present new innovative products.
Alternative: 2.
The Company must spend more on its R&D rather than acquisitions.
Pros:
1. It would make it possible for the business to produce more ingenious products.
2. It would supply the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by presenting those items which can be offered to an entirely new market section.
4. Innovative products will provide long term benefits and high market share in long run.
Cons:
1. It would reduce the revenue margins of the company.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would impact the business at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the financiers, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present brand-new innovative products with less threat of transforming the costs on R&D into sunk cost.
2. It would provide a favorable signal to the investors, as the total properties of the business would increase with its considerable R&D costs.
3. It would not affect the earnings margins of the company at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the company's total wealth along with in regards to ingenious items.
Cons:
1. Risk of conversion of R&D spending into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Intro of less variety of innovative items than alternative 2 and high variety of innovative items than alternative 1.

Enman Oil Inc F Conclusion

RecommendationsBusiness has remained the top market player for more than a decade. It has institutionalised its techniques and culture to align itself with the marketplace modifications and customer habits, which has ultimately enabled it to sustain its market share. Business has actually developed considerable market share and brand name identity in the urban markets, it is suggested that the business ought to focus on the rural areas in terms of establishing brand name loyalty, awareness, and equity, such can be done by creating a particular brand allocation strategy through trade marketing strategies, that draw clear distinction between Enman Oil Inc F items and other competitor products. Additionally, Business ought to leverage its brand name picture of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will permit the business to establish brand equity for newly introduced and already produced items on a higher platform, making the effective use of resources and brand image in the market.

Enman Oil Inc F Exhibits

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

Changing standards of worldwide food.
Improved market share.
Transforming assumption in the direction of healthier items
Improvements in R&D and QA divisions.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest because 8000
Greatest after Business with less growth than Organisation 8th Lowest
R&D Spending Greatest since 2009 Highest after Service 7th Least expensive
Net Profit Margin Highest possible given that 2001 with quick development from 2007 to 2018 Because of sale of Alcon in 2015. Nearly equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as health and wellness factor Highest number of brand names with lasting practices Largest confectionary and also processed foods brand on the planet Biggest dairy items as well as mineral water brand name on the planet
Segmentation Center as well as upper center degree consumers worldwide Individual consumers together with family team Any age and Income Consumer Teams Center and top middle degree customers worldwide
Number of Brands 7th 8th 7th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 19953 689139 192383 599598 115744
Net Profit Margin 1.38% 3.83% 29.25% 3.19% 79.19%
EPS (Earning Per Share) 65.73 7.77 5.81 3.58 86.83
Total Asset 484335 514388 144637 112187 88762
Total Debt 88452 44815 69183 27889 38438
Debt Ratio 59% 64% 65% 33% 95%
R&D Spending 2366 8755 1577 6744 2113
R&D Spending as % of Sales 9.54% 6.63% 6.44% 3.51% 1.41%

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