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

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

International Rivers Network And The Bujagali Dam Project A Chinese Version is currently one of the most significant food cycle worldwide. It was founded by Harvard in 1866, a German Pharmacist who initially released "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate. At the same time, the Page brothers from Switzerland likewise found The Anglo-Swiss Condensed Milk Company. The two became rivals at first but later on merged in 1905, leading to the birth of International Rivers Network And The Bujagali Dam Project A Chinese Version.
Business is now a multinational business. Unlike other international business, it has senior executives from different countries and attempts to make choices thinking about the whole world. International Rivers Network And The Bujagali Dam Project A Chinese Version presently has more than 500 factories worldwide and a network spread throughout 86 countries.


The purpose of Business Corporation is to boost the quality of life of individuals by playing its part and offering healthy food. 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


International Rivers Network And The Bujagali Dam Project A Chinese Version's vision is to offer its customers with food that is healthy, high in quality and safe to eat. Business pictures to establish a trained labor force which would help the company to grow


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


Business has a large range of products that it provides to its clients. Its products consist of food for infants, cereals, dairy items, treats, chocolates, food for family pet and bottled water. It has around four hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has actually laid down its objectives and objectives. These goals and objectives are noted below.
• One goal of the company is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of International Rivers Network And The Bujagali Dam Project A Chinese Version is to waste minimum food throughout production. Frequently, the food produced is squandered even prior to it reaches the consumers.
• Another thing that Business is dealing with is to enhance its packaging in such a method that it would help it to decrease those issues and would likewise guarantee the shipment of high quality of its items to its customers.
• Meet international standards of the environment.
• Construct a relationship based upon trust with its consumers, business partners, employees, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW strategy. The target of the business is not accomplished as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based upon the concept of Nutritious, Health and Wellness (NHW). This strategy deals with the concept to bringing modification in the consumer preferences about food and making the food stuff much healthier worrying about the health problems.
The vision of this strategy is based upon the key technique i.e. 60/40+ which just indicates that the items will have a score of 60% on the basis of taste and 40% is based on its dietary value. The items will be manufactured with additional nutritional value in contrast to all other products in market acquiring it a plus on its dietary material.
This strategy was adopted to bring more tasty plus nutritious foods and drinks in market than ever. In competition with other business, with an intent of retaining its trust over clients as Business Business has actually gained more trusted by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing actual amount of costs reveals that the sales are increasing at a higher rate than its R&D costs, and enable the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is decreasing. This indication likewise shows a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing debt ratio present a hazard of default of Business to its investors and could lead a declining share costs. For that reason, in terms of increasing financial obligation ratio, the firm should not invest much on R&D and ought to pay its existing financial obligations to reduce the danger for financiers.
The increasing danger of investors with increasing debt ratio and declining share prices can be observed by big decline of EPS of International Rivers Network And The Bujagali Dam Project A Chinese Version stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development likewise prevent company to additional invest in 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 up the Exhibits D and E.

TWOS Analysis

2 analysis can be used to derive numerous strategies 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 ought to present more innovative items by large quantity of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the business. It could likewise supply Business a long term competitive advantage over its rivals.
The worldwide growth of Business need to be focused on market catching of establishing countries by expansion, attracting more customers through client's loyalty. As developing countries are more populous than industrialized countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisInternational Rivers Network And The Bujagali Dam Project A Chinese Version must do careful acquisition and merger of companies, as it could impact the customer's and society's perceptions about Business. It needs to get and merge with those business which have a market credibility of healthy and nutritious business. It would enhance the understandings of consumers about Business.
Business needs to not only spend its R&D on innovation, instead of it should likewise focus on the R&D costs over examination of expense of different nutritious items. This would increase cost efficiency of its products, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only establishing however also to industrialized countries. It must expand its circle to different countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

International Rivers Network And The Bujagali Dam Project A Chinese Version needs to sensibly control its acquisitions to prevent the risk of misunderstanding from the consumers about Business. It should get and merge with those countries having a goodwill of being a healthy company in the market. This would not just improve the understanding of consumers about Business but would likewise increase the sales, profit margins and market share of Business. It would likewise allow the company to use its potential resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based upon four aspects; age, gender, earnings and profession. For example, Business produces numerous products connected to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. International Rivers Network And The Bujagali Dam Project A Chinese Version items are rather inexpensive by practically all levels, but its significant targeted customers, in terms of income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its presence in nearly 86 nations. Its geographical segmentation is based upon 2 main factors i.e. average earnings level of the customer along with the climate of the area. For instance, 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 division of Business is based upon the character and lifestyle of the consumer. For instance, Business 3 in 1 Coffee target those clients whose lifestyle is quite hectic and do not have much time.

Behavioral Segmentation

International Rivers Network And The Bujagali Dam Project A Chinese Version behavioral segmentation is based upon the mindset knowledge and awareness of the customer. For example its highly healthy products target those clients who have a health conscious mindset towards their consumptions.

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

In order to sustain the brand in the market and keep the customer intact with the brand, there are two choices:
Option: 1
The Business should spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The company can resell the gotten units in the market, if it fails to implement its strategy. However, amount invest in the R&D might not be revived, and it will be thought about totally sunk cost, if it do not give potential results.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to introduce a product. However, acquisitions offer fast outcomes, as it offer the company currently developed item, which can be marketed right after the acquisition.
1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the business to deal with misconception of customers about Business core worths of healthy and healthy products.
2 Big costs on acquisitions than R&D would send a signal of company's ineffectiveness of developing innovative items, and would lead to consumer's frustration too.
3. Large acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making business not able to introduce new innovative items.
Option: 2.
The Company needs to invest more on its R&D rather than acquisitions.
1. It would allow the business to produce more innovative products.
2. It would provide the company a strong competitive position in the market.
3. It would enable the company to increase its targeted consumers by presenting those products which can be used to a totally new market section.
4. Ingenious items will provide long term benefits and high market share in long term.
1. It would reduce the earnings 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 danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might offer an unfavorable signal to the investors, and might 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 permit the business to present new innovative items with less risk of converting the spending on R&D into sunk expense.
2. It would supply a positive signal to the financiers, as the total assets of the company would increase with its significant R&D spending.
3. It would not affect the profit margins of the business at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the company's general wealth along with in regards to innovative products.
1. Risk of conversion of R&D costs into sunk cost, higher than option 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Intro of less number of innovative items than alternative 2 and high variety of ingenious items than alternative 1.

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

RecommendationsBusiness has stayed the leading market player for more than a years. It has institutionalised its strategies and culture to align itself with the market changes and consumer habits, which has eventually allowed it to sustain its market share. Business has actually established substantial market share and brand name identity in the metropolitan markets, it is advised that the business should focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by developing a particular brand name allotment technique through trade marketing tactics, that draw clear distinction in between International Rivers Network And The Bujagali Dam Project A Chinese Version products and other rival items. International Rivers Network And The Bujagali Dam Project A Chinese Version needs to take advantage of its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will allow the company to develop brand equity for freshly presented and already produced products on a greater platform, making the efficient usage of resources and brand image in the market.

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

PESTEL Analysis
Governmental support

Altering standards of international food.
Enhanced market share. Changing understanding in the direction of much healthier items Improvements in R&D as well as QA departments.

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

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 7000 Highest possible after Business with much less development than Organisation 9th Cheapest
R&D Spending Highest since 2001 Highest possible after Organisation 2nd Cheapest
Net Profit Margin Greatest considering that 2008 with quick growth from 2006 to 2017 Because of sale of Alcon in 2017. Virtually equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness factor Highest variety of brand names with sustainable techniques Biggest confectionary as well as processed foods brand on the planet Biggest dairy items and bottled water brand worldwide
Segmentation Middle and upper center level customers worldwide Private consumers together with family group Every age as well as Revenue Customer Groups Middle and also top center level customers worldwide
Number of Brands 7th 3rd 8th 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 82169 356795 376389 324333 853291
Net Profit Margin 8.85% 8.39% 74.69% 1.15% 55.18%
EPS (Earning Per Share) 36.82 5.81 5.78 7.55 77.51
Total Asset 342281 961216 858575 713922 47291
Total Debt 88579 18274 75448 76347 33831
Debt Ratio 42% 67% 89% 11% 58%
R&D Spending 1111 5373 9964 2539 7839
R&D Spending as % of Sales 4.44% 1.24% 8.45% 3.71% 2.36%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations