Green Valley Medical Center Case Study Analysis

Business is currently one of the greatest food chains worldwide. It was established by Henri Green Valley Medical Center in 1866, a German Pharmacist who first introduced "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate.
Business is now a global company. Unlike other multinational companies, it has senior executives from various countries and tries to make decisions considering the whole world. Green Valley Medical Center currently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The function of Green Valley Medical Center Corporation is to enhance the lifestyle of people by playing its part and supplying healthy food. It wants to help the world in forming a healthy and better future for it. It likewise wants to motivate individuals to live a healthy life. While making sure that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

Green Valley Medical Center's vision is to provide its customers with food that is healthy, high in quality and safe to consume. It wishes to be innovative and simultaneously understand the needs and requirements of its customers. Its vision is to grow quickly and provide products that would satisfy the requirements of each age group. Green Valley Medical Center pictures to develop a well-trained labor force which would help the company to grow
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Mission

Green Valley Medical Center's mission is that as currently, it is the leading company in the food market, it thinks in 'Good Food, Great Life". Its objective is to supply its consumers with a range of options that are healthy and finest in taste. It is concentrated on supplying the best food to its clients throughout the day and night.

Products.

Green Valley Medical Center has a large range of items that it offers to its consumers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has actually laid down its objectives and goals. These goals and goals are noted below.
• One goal of the business is to reach no landfill status. (Business, aboutus, 2017).
• Another objective of Green Valley Medical Center is to waste minimum food throughout production. Usually, the food produced is wasted even before it reaches the clients.
• Another thing that Business is working on is to improve its product packaging in such a method that it would help it to minimize those complications and would also ensure the delivery of high quality of its items to its consumers.
• Meet global requirements of the environment.
• Build a relationship based on trust with its consumers, business partners, staff members, and government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its earnings 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 attained as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the principle of Nutritious, Health and Health (NHW). This strategy handles the concept to bringing modification in the consumer choices about food and making the food things much healthier concerning about the health issues.
The vision of this method is based on the secret method i.e. 60/40+ which merely means that the products will have a score of 60% on the basis of taste and 40% is based on its dietary value. The items will be produced with additional dietary worth in contrast to all other products in market gaining it a plus on its dietary content.
This method was adopted to bring more yummy plus nutritious foods and beverages in market than ever. In competitors with other companies, with an objective of retaining its trust over consumers as Business Company has acquired more trusted by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining 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 Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This sign likewise reveals a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio position a risk of default of Business to its investors and might lead a decreasing share prices. In terms of increasing financial obligation ratio, the firm ought to not invest much on R&D and should pay its present financial obligations to decrease the threat for investors.
The increasing threat of financiers with increasing financial obligation ratio and declining share prices can be observed by big decrease of EPS of Green Valley Medical Center stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding building of consumers. This slow growth also impede 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 calculations and Charts given up the Displays D and E.

TWOS Analysis

2 analysis can be utilized to derive various methods based on the SWOT Analysis provided above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should introduce more innovative products by large 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 growth of Business need to be focused on market catching of developing nations by expansion, bring in more consumers through customer's commitment. As developing nations are more populated than industrialized nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Green Valley Medical Center must do mindful acquisition and merger of companies, as it could affect the customer's and society's perceptions about Business. It must obtain and merge with those business which have a market reputation of healthy and healthy business. It would improve the understandings of customers about Business.
Business must not just spend its R&D on development, rather than it should also concentrate on the R&D spending over assessment of cost of various nutritious items. This would increase cost efficiency of its items, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing but likewise to industrialized nations. It needs to expands its geographical expansion. This broad geographical expansion towards developing and established nations would lower the threat of possible losses in times of instability in various nations. It must widen its circle to numerous nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to acquire and combine with those nations having a goodwill of being a healthy business in the market. It would likewise allow the business to utilize its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon four aspects; age, gender, earnings and occupation. For example, Business produces numerous products related to infants i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Green Valley Medical Center items are quite budget friendly by practically all levels, however its major targeted consumers, in terms of income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its existence in almost 86 nations. Its geographical division is based upon two primary aspects i.e. average earnings level of the customer 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 client. For example, Business 3 in 1 Coffee target those consumers whose life style is quite busy and don't have much time.

Behavioral Segmentation

Green Valley Medical Center behavioral segmentation is based upon the attitude knowledge and awareness of the consumer. For example its highly healthy products target those customers who have a health mindful attitude towards their intakes.

Green Valley Medical Center 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 must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the business, increasing the wealth of the business. Spending on R&D would be sunk expense.
2. The business can resell the acquired units in the market, if it stops working to execute its strategy. Quantity invest on the R&D could not be revived, and it will be considered completely sunk cost, if it do not provide prospective outcomes.
3. Spending on R&D provide slow growth in sales, as it takes very long time to introduce an item. However, acquisitions supply quick results, as it provide the company currently developed item, which can be marketed right after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to face mistaken belief of consumers about Business core values of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send out a signal of business's inefficiency of establishing innovative products, and would results in consumer's discontentment also.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are currently present in the market, making business not able to present brand-new ingenious products.
Alternative: 2.
The Company needs to spend more on its R&D rather than acquisitions.
Pros:
1. It would make it possible for the company to produce more ingenious items.
2. It would provide the business a strong competitive position in the market.
3. It would enable the company to increase its targeted customers by introducing those items which can be provided to an entirely new market segment.
4. Ingenious products will offer long term advantages 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 costs on R&D would be considered as sunk expense, and would affect the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could supply an unfavorable signal to the financiers, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Pros:
1. It would permit the company to introduce new innovative products with less risk of converting the costs on R&D into sunk cost.
2. It would offer a favorable signal to the investors, as the total possessions of the business would increase with its considerable R&D spending.
3. It would not affect the revenue margins of the company at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the business's overall wealth along with in regards to innovative products.
Cons:
1. Risk of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Introduction of less number of innovative products than alternative 2 and high number of ingenious items than alternative 1.

Green Valley Medical Center Conclusion

Business has remained the leading market gamer for more than a years. It has actually institutionalised its strategies and culture to align itself with the market modifications and consumer behavior, which has ultimately allowed it to sustain its market share. Business has actually established considerable market share and brand name identity in the urban markets, it is advised 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 producing a specific brand name allotment strategy through trade marketing techniques, that draw clear distinction between Green Valley Medical Center items and other competitor products. Furthermore, Business should leverage its brand 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 enable the company to develop brand equity for newly introduced and currently produced items on a higher platform, making the efficient use of resources and brand name image in the market.

Green Valley Medical Center Exhibits