International Investor Islamic Finance And The Equate Project Case Study Analysis

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International Investor Islamic Finance And The Equate Project Case Study Solution

International Investor Islamic Finance And The Equate Project is currently one of the greatest food cycle worldwide. It was founded by Harvard in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate. At the same time, the Page siblings from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The 2 became competitors initially but in the future combined in 1905, resulting in the birth of International Investor Islamic Finance And The Equate Project.
Business is now a global company. Unlike other multinational business, it has senior executives from different nations and tries to make choices thinking about the whole world. International Investor Islamic Finance And The Equate Project currently has more than 500 factories around the world and a network spread throughout 86 nations.


The function of International Investor Islamic Finance And The Equate Project Corporation is to improve the quality of life of individuals by playing its part and providing healthy food. It wishes to help the world in shaping a healthy and much better future for it. It likewise wishes to encourage 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


International Investor Islamic Finance And The Equate Project's vision is to provide its customers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and simultaneously understand the needs and requirements of its clients. Its vision is to grow fast and supply products that would satisfy the needs of each age. International Investor Islamic Finance And The Equate Project pictures to develop a well-trained labor force which would help the business to grow


International Investor Islamic Finance And The Equate Project's objective is that as presently, it is the leading company in the food industry, it thinks in 'Good Food, Great Life". Its mission is to offer its consumers with a variety of options that are healthy and finest in taste also. It is focused on offering the best food to its consumers throughout the day and night.


International Investor Islamic Finance And The Equate Project has a broad variety of products that it uses to its clients. In 2011, Business was listed as the most gainful organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has laid down its goals and objectives. These goals and objectives are listed below.
• One goal of the business is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of International Investor Islamic Finance And The Equate Project is to lose minimum food throughout production. Usually, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to minimize those problems and would likewise guarantee the delivery of high quality of its products to its customers.
• Meet worldwide standards of the environment.
• Develop a relationship based on trust with its customers, company partners, workers, and 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 country is investing more on acquisitions and mergers to support its NHW technique. The target of the business is not achieved 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 Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may lead to the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based upon the concept of Nutritious, Health and Health (NHW). This technique handles the concept to bringing modification in the customer preferences about food and making the food stuff healthier concerning about the health problems.
The vision of this technique is based on the secret method i.e. 60/40+ which just suggests that the products will have a score of 60% on the basis of taste and 40% is based on its dietary value. The products will be produced with additional nutritional worth in contrast to all other items in market getting it a plus on its dietary material.
This method was embraced to bring more tasty plus healthy foods and drinks in market than ever. In competitors with other companies, with an intention of maintaining its trust over customers as Business Company has gotten more trusted by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing actual quantity of spending shows that the sales are increasing at a greater rate than its R&D spending, and allow the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This sign 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 instead of payment of debts. This increasing debt ratio present a hazard of default of Business to its financiers and could lead a decreasing share rates. Therefore, in terms of increasing debt ratio, the firm needs to not invest much on R&D and should pay its current financial obligations to reduce the danger for investors.
The increasing risk of financiers with increasing debt ratio and decreasing share rates can be observed by substantial decrease of EPS of International Investor Islamic Finance And The Equate Project stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish development likewise prevent business to additional 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 Graphs given up the Displays D and E.

TWOS Analysis

TWOS analysis can be used to obtain numerous techniques based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce 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 also supply Business a long term competitive benefit over its competitors.
The global expansion of Business must be concentrated on market recording of establishing countries by growth, drawing in more customers through client's loyalty. As developing nations are more populous than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisInternational Investor Islamic Finance And The Equate Project needs to do mindful acquisition and merger of companies, as it could impact the customer's and society's perceptions about Business. It should acquire and combine with those business which have a market track record of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business needs to not only spend its R&D on innovation, rather than it must likewise concentrate on the R&D costs over examination of expense of various healthy products. This would increase cost efficiency of its items, which will result in increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

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

Strategies to overcome weaknesses to avoid threats

It needs to obtain and combine with those nations having a goodwill of being a healthy business in the market. It would also allow the business to use its possible resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon 4 factors; age, gender, earnings and profession. Business produces numerous items related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. International Investor Islamic Finance And The Equate Project products are rather economical by nearly all levels, however 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 existence in practically 86 countries. Its geographical division is based upon 2 primary aspects i.e. typical earnings level of the consumer along with the climate of the region. 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 consumer. For instance, Business 3 in 1 Coffee target those customers whose lifestyle is quite busy and don't have much time.

Behavioral Segmentation

International Investor Islamic Finance And The Equate Project behavioral segmentation is based upon the attitude understanding and awareness of the client. For instance its extremely healthy products target those clients who have a health conscious attitude towards their intakes.

International Investor Islamic Finance And The Equate Project Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand name, there are 2 alternatives:
Alternative: 1
The Business must spend more on acquisitions than on the R&D.
1. Acquisitions would increase total possessions of the company, increasing the wealth of the business. Nevertheless, 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 method. Nevertheless, quantity spend on the R&D might not be restored, and it will be thought about completely sunk expense, if it do not provide prospective outcomes.
3. Spending on R&D supply sluggish development in sales, as it takes long time to present an item. Acquisitions provide quick results, as it provide the company currently developed item, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to face mistaken belief of customers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of company's inadequacy of establishing ingenious products, and would results in consumer's frustration also.
3. Large acquisitions than R&D would extend the product line of the business by the items which are already present in the market, making company unable to introduce brand-new innovative products.
Alternative: 2.
The Company must spend more on its R&D instead of acquisitions.
1. It would enable the business to produce more ingenious items.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted customers by introducing those items which can be offered to an entirely brand-new market section.
4. Innovative products will offer long term benefits and high market share in long term.
1. It would reduce the profit margins of the business.
2. In case of failure, the whole spending on R&D would be considered 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 might provide an unfavorable signal to the investors, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the company to introduce brand-new innovative items with less danger of converting the costs on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the overall assets of the business would increase with its considerable R&D spending.
3. It would not impact the profit 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 regards to the business's overall wealth as well as in regards to ingenious products.
1. Threat of conversion of R&D spending into sunk cost, greater than option 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 number of ingenious products than alternative 1.

International Investor Islamic Finance And The Equate Project Conclusion

RecommendationsIt has institutionalised its methods and culture to align itself with the market changes and client behavior, which has ultimately permitted it to sustain its market share. Business has actually established considerable market share and brand identity in the urban markets, it is suggested that the business must focus on the rural locations in terms of establishing brand name commitment, awareness, and equity, such can be done by creating a particular brand name allocation technique through trade marketing techniques, that draw clear distinction in between International Investor Islamic Finance And The Equate Project products and other competitor products.

International Investor Islamic Finance And The Equate Project Exhibits

PESTEL Analysis
Governmental support

Changing standards of international food.
Boosted market share. Altering assumption towards much healthier items Improvements in R&D as well as QA departments.

Introduction of E-marketing.
No such effect as it is favourable. Issues over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest since 4000 Highest after Organisation with less growth than Service 4th Lowest
R&D Spending Highest since 2008 Highest after Service 7th Lowest
Net Profit Margin Highest since 2007 with rapid development from 2008 to 2013 As a result of sale of Alcon in 2013. Almost equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nourishment and wellness aspect Highest number of brand names with lasting techniques Biggest confectionary and also refined foods brand name on the planet Largest milk products and bottled water brand in the world
Segmentation Middle and also top center degree customers worldwide Private customers along with home team All age and Earnings Consumer Teams Center and top center level consumers worldwide
Number of Brands 4th 5th 2nd 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 58181 332567 514667 589377 345113
Net Profit Margin 9.67% 5.57% 92.95% 2.64% 46.62%
EPS (Earning Per Share) 47.78 7.78 3.76 2.85 93.99
Total Asset 416723 467375 682593 622384 39879
Total Debt 44775 63947 35569 43748 58871
Debt Ratio 21% 15% 77% 11% 53%
R&D Spending 4986 3214 8155 6877 9275
R&D Spending as % of Sales 3.83% 3.51% 2.64% 5.11% 3.83%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations