Menu

International Rivers Network And The Bujagali Dam Project A Chinese Version Case Study Help

Case Study Solution And Analysis


Home >> Harvard >> International Rivers Network And The Bujagali Dam Project A Chinese Version >>

International Rivers Network And The Bujagali Dam Project A Chinese Version Case Study Solution

Business is currently one of the biggest food chains worldwide. It was founded by Henri International Rivers Network And The Bujagali Dam Project A Chinese Version in 1866, a German Pharmacist who first launched "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate.
Business is now a global business. Unlike other multinational business, it has senior executives from various nations and attempts to make decisions considering the entire world. International Rivers Network And The Bujagali Dam Project A Chinese Version currently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The function of Business Corporation is to boost the quality of life of people by playing its part and supplying healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

International Rivers Network And The Bujagali Dam Project A Chinese Version's vision is to supply its consumers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and all at once comprehend the needs and requirements of its customers. Its vision is to grow quickly and offer products that would please the needs of each age group. International Rivers Network And The Bujagali Dam Project A Chinese Version envisions to develop a trained labor force which would help the business to grow
.

Mission

International Rivers Network And The Bujagali Dam Project A Chinese Version's objective is that as presently, it is the leading business in the food industry, it believes in 'Great Food, Good Life". Its mission is to supply its consumers with a variety of options that are healthy and finest in taste too. It is focused on supplying the best food to its customers throughout the day and night.

Products.

International Rivers Network And The Bujagali Dam Project A Chinese Version has a broad variety of items that it offers to its consumers. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has set its objectives and objectives. These goals and objectives are noted below.
• One goal of the business is to reach zero land fill status. It is working toward zero waste, where no waste of the factory is landfilled. It encourages its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of International Rivers Network And The Bujagali Dam Project A Chinese Version is to lose minimum food during production. Most often, the food produced is wasted even before it reaches the clients.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to lower those problems and would also guarantee the shipment of high quality of its products to its customers.
• Meet global standards of the environment.
• Develop a relationship based on trust with its consumers, company partners, employees, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the method 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 technique. However, 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%, given in Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may result in the declined income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the idea of Nutritious, Health and Wellness (NHW). This technique handles the idea to bringing modification in the consumer preferences about food and making the food things much healthier worrying about the health problems.
The vision of this strategy is based upon the key approach i.e. 60/40+ which simply means that the products will have a rating of 60% on the basis of taste and 40% is based on its dietary value. The products will be produced with additional dietary worth in contrast to all other items in market acquiring it a plus on its dietary content.
This technique was embraced to bring more tasty plus nutritious foods and beverages in market than ever. In competition with other business, with an objective of maintaining its trust over clients as Business Business has gotten more relied on by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real quantity of spending reveals that the sales are increasing at a greater rate than its R&D spending, and allow the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indication also reveals a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing financial obligation ratio position a hazard of default of Business to its investors and might lead a declining share prices. For that reason, in terms of increasing financial obligation ratio, the company must not invest much on R&D and should pay its existing debts to reduce the danger for financiers.
The increasing risk of investors with increasing debt ratio and decreasing share rates can be observed by big decrease of EPS of International Rivers Network And The Bujagali Dam Project A Chinese Version stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding building of consumers. This sluggish development likewise prevent company to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Charts given up the Exhibits D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business should present more innovative products by big quantity of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the company. It could likewise provide Business a long term competitive advantage over its competitors.
The global growth of Business need to be concentrated on market catching of establishing nations by growth, drawing in more customers through client's commitment. As establishing nations are more populated than developed nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisInternational Rivers Network And The Bujagali Dam Project A Chinese Version should do cautious acquisition and merger of organizations, as it could affect the client's and society's perceptions about Business. It needs to acquire and merge with those business which have a market reputation of healthy and nutritious companies. It would improve the understandings of consumers about Business.
Business must not only spend its R&D on innovation, instead of it should also concentrate on the R&D spending over examination of cost of different nutritious products. This would increase expense efficiency of its items, which will lead to increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business must move to not just developing but also to developed countries. It needs to expand its circle to numerous countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

International Rivers Network And The Bujagali Dam Project A Chinese Version must sensibly manage its acquisitions to prevent the risk of misconception from the customers about Business. It must acquire and merge with those nations having a goodwill of being a healthy company in the market. This would not only improve the understanding of consumers about Business however would likewise increase the sales, revenue margins and market share of Business. It would likewise enable the company to use its potential resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon 4 elements; age, gender, income and occupation. Business produces a number of items related to infants i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary items. International Rivers Network And The Bujagali Dam Project A Chinese Version products are quite cost effective by almost all levels, however its major targeted consumers, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

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

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and lifestyle of the customer. Business 3 in 1 Coffee target those clients whose life design is quite hectic and don't have much time.

Behavioral Segmentation

International Rivers Network And The Bujagali Dam Project A Chinese Version behavioral segmentation is based upon the mindset understanding and awareness of the consumer. Its highly nutritious items target those clients who have a health conscious attitude towards their intakes.

International Rivers Network And The Bujagali Dam Project A Chinese Version Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand, there are 2 options:
Option: 1
The Company must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the company, increasing the wealth of the business. However, costs on R&D would be sunk expense.
2. The business can resell the obtained units in the market, if it stops working to execute its strategy. Amount invest on the R&D might not be revived, and it will be considered completely sunk cost, if it do not offer potential results.
3. Investing in R&D provide sluggish development in sales, as it takes long time to introduce a product. Acquisitions offer fast outcomes, as it provide the business already developed item, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to face misunderstanding of consumers about Business core worths of healthy and healthy products.
2 Big costs on acquisitions than R&D would send a signal of company's inefficiency of establishing innovative items, and would lead to customer's discontentment also.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are already present in the market, making business unable to introduce brand-new innovative items.
Option: 2.
The Business ought to spend more on its R&D rather than acquisitions.
Pros:
1. It would enable the company to produce more innovative products.
2. It would provide the business a strong competitive position in the market.
3. It would enable the business to increase its targeted customers by introducing those products which can be provided to an entirely brand-new market section.
4. Innovative products will offer long term advantages and high market share in long run.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the entire spending on R&D would be thought about as sunk cost, and would affect the company 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 investors, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to introduce new ingenious items with less risk of transforming the spending on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the total possessions of the company would increase with its considerable R&D costs.
3. It would not impact the earnings margins of the company at a big rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the company's overall wealth as well as in terms of innovative products.
Cons:
1. Danger of conversion of R&D spending into sunk cost, greater than option 1 lower than alternative 2.
2. Danger of misunderstanding about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less number of innovative products than alternative 2 and high variety of ingenious products than alternative 1.

International Rivers Network And The Bujagali Dam Project A Chinese Version Conclusion

RecommendationsIt has actually institutionalised its techniques and culture to align itself with the market modifications and customer behavior, which has actually ultimately permitted it to sustain its market share. Business has actually established substantial market share and brand identity in the city markets, it is recommended that the business needs to focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by developing a particular brand allowance technique through trade marketing methods, that draw clear distinction between International Rivers Network And The Bujagali Dam Project A Chinese Version products and other competitor products.

International Rivers Network And The Bujagali Dam Project A Chinese Version Exhibits

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

Changing criteria of international food.
Improved market share.
Altering understanding towards much healthier items
Improvements in R&D and also QA divisions.

Intro of E-marketing.
No such impact as it is favourable.
Worries over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 3000
Highest after Organisation with less development than Organisation 2nd Lowest
R&D Spending Highest considering that 2006 Highest possible after Business 8th Least expensive
Net Profit Margin Highest possible because 2006 with quick development from 2008 to 2015 As a result of sale of Alcon in 2017. Nearly equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as wellness aspect Highest variety of brand names with sustainable methods Largest confectionary and refined foods brand name in the world Largest milk items and also bottled water brand name in the world
Segmentation Middle as well as top middle level consumers worldwide Private clients along with family group All age and Revenue Consumer Teams Middle and top center degree consumers worldwide
Number of Brands 4th 5th 8th 9th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 19322 415389 682742 125216 651439
Net Profit Margin 7.42% 5.18% 16.14% 3.37% 78.28%
EPS (Earning Per Share) 29.17 8.98 3.77 5.58 41.57
Total Asset 498491 777199 829854 558493 12418
Total Debt 56787 35575 12189 27329 92582
Debt Ratio 58% 37% 99% 25% 68%
R&D Spending 1571 2592 6368 1592 3358
R&D Spending as % of Sales 8.13% 7.16% 8.36% 6.73% 2.69%

International Rivers Network And The Bujagali Dam Project A Chinese Version Executive Summary International Rivers Network And The Bujagali Dam Project A Chinese Version Swot Analysis International Rivers Network And The Bujagali Dam Project A Chinese Version Vrio Analysis International Rivers Network And The Bujagali Dam Project A Chinese Version Pestel Analysis
International Rivers Network And The Bujagali Dam Project A Chinese Version Porters Analysis International Rivers Network And The Bujagali Dam Project A Chinese Version Recommendations