Kinross Gold Corporation Accounting For Stock Based Compensation Case Study Analysis

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Business is currently one of the most significant food chains worldwide. It was established by Henri Kinross Gold Corporation Accounting For Stock Based Compensation in 1866, a German Pharmacist who initially released "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate.
Business is now a transnational business. Unlike other multinational business, it has senior executives from different countries and tries to make choices considering the whole world. Kinross Gold Corporation Accounting For Stock Based Compensation currently has more than 500 factories around the world and a network spread throughout 86 countries.


The purpose of Kinross Gold Corporation Accounting For Stock Based Compensation Corporation is to enhance the lifestyle of people by playing its part and offering healthy food. It wants to help the world in shaping a healthy and better future for it. It likewise wants to encourage people to live a healthy life. While making certain that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future


Kinross Gold Corporation Accounting For Stock Based Compensation's vision is to offer its clients with food that is healthy, high in quality and safe to consume. Business envisions to develop a well-trained labor force which would help the business to grow


Kinross Gold Corporation Accounting For Stock Based Compensation's mission is that as currently, it is the leading company in the food market, it believes in 'Great Food, Good Life". Its objective is to offer its consumers with a range of choices that are healthy and best in taste as well. It is focused on providing the very best food to its consumers throughout the day and night.


Kinross Gold Corporation Accounting For Stock Based Compensation has a wide range of products that it uses to its customers. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has put down its objectives and goals. These objectives and objectives are noted below.
• One goal of the business is to reach no landfill status. It is pursuing zero waste, where no waste of the factory is landfilled. It encourages its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Kinross Gold Corporation Accounting For Stock Based Compensation is to waste minimum food throughout production. Most often, the food produced is wasted even prior to it reaches the clients.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to decrease the above-mentioned problems and would likewise ensure the shipment of high quality of its items to its consumers.
• Meet international requirements of the environment.
• Build a relationship based on trust with its customers, organisation partners, workers, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique of NHW and investing more of its profits 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 attained as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based on the principle of Nutritious, Health and Wellness (NHW). This strategy deals with the concept to bringing modification in the consumer choices about food and making the food things healthier worrying about the health issues.
The vision of this method is based on the key 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 upon its nutritional worth. The items will be made with extra dietary value in contrast to all other products in market gaining it a plus on its nutritional material.
This technique was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competition with other companies, with an intent of keeping its trust over consumers as Business Business has gotten more relied on by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing actual amount of spending shows 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 Revenue Margin is increasing while R&D as a portion of sales is decreasing. This sign likewise reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing debt ratio posture a danger of default of Business to its investors and might lead a declining share costs. For that reason, in terms of increasing debt ratio, the company needs to not spend much on R&D and must pay its present financial obligations to reduce the threat for investors.
The increasing risk of financiers with increasing debt ratio and declining share prices can be observed by substantial decrease of EPS of Kinross Gold Corporation Accounting For Stock Based Compensation stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception building of consumers. This slow growth likewise impede business to additional 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 in the Displays D and E.

TWOS Analysis

TWOS analysis can be utilized to obtain numerous strategies 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 must present more ingenious products 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 benefit over its competitors.
The worldwide growth of Business need to be concentrated on market capturing of developing nations by expansion, attracting more customers through client's commitment. As establishing nations are more populous than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisKinross Gold Corporation Accounting For Stock Based Compensation ought to do cautious acquisition and merger of companies, as it could impact the customer's and society's understandings about Business. It needs to obtain and merge with those companies which have a market track record of healthy and healthy companies. It would improve the understandings of customers about Business.
Business ought to not just spend its R&D on innovation, rather than it needs to likewise focus on the R&D spending over examination of expense of numerous healthy products. This would increase cost performance of its products, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not only establishing but likewise to industrialized countries. It ought to widen its circle to various countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Kinross Gold Corporation Accounting For Stock Based Compensation needs to carefully manage its acquisitions to avoid the danger of misunderstanding from the customers about Business. It should obtain and combine with those nations having a goodwill of being a healthy business in the market. This would not just improve the understanding of consumers about Business but would likewise increase the sales, earnings margins and market share of Business. It would also allow the business to use its prospective resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon 4 elements; age, gender, income and occupation. For example, Business produces several items connected to children i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary items. Kinross Gold Corporation Accounting For Stock Based Compensation products are rather budget-friendly by practically all levels, however its significant targeted consumers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its presence in practically 86 countries. Its geographical division is based upon two main elements i.e. average income level of the consumer along with the climate of the area. Singapore Business Company's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and life style of the consumer. Business 3 in 1 Coffee target those clients whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Kinross Gold Corporation Accounting For Stock Based Compensation behavioral segmentation is based upon the attitude understanding and awareness of the client. Its highly nutritious items target those clients who have a health mindful attitude towards their intakes.

Kinross Gold Corporation Accounting For Stock Based Compensation Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand name, there are two alternatives:
Alternative: 1
The Company needs to spend more on acquisitions than on the R&D.
1. Acquisitions would increase total assets of the company, increasing the wealth of the business. Nevertheless, spending on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it fails to implement its method. However, quantity spend on the R&D might not be revived, and it will be thought about totally sunk cost, if it do not give prospective outcomes.
3. Investing in R&D provide slow development in sales, as it takes long period of time to introduce an item. Acquisitions offer quick outcomes, as it provide the business already developed item, which can be marketed soon after the acquisition.
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the business to face misconception of customers about Business core worths of healthy and healthy products.
2 Large costs on acquisitions than R&D would send out a signal of company's inefficiency of developing innovative items, and would lead to customer's dissatisfaction also.
3. Large acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making business unable to present new ingenious items.
Alternative: 2.
The Company ought to spend more on its R&D instead of acquisitions.
1. It would allow the business to produce more ingenious items.
2. It would supply the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted clients by presenting those products which can be provided to an entirely new market section.
4. Innovative products will provide long term advantages and high market share in long term.
1. It would reduce the profit margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, 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 might offer a negative signal to the financiers, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to introduce brand-new innovative products with less risk of transforming the costs on R&D into sunk cost.
2. It would offer a positive signal to the financiers, as the general assets of the business would increase with its considerable R&D costs.
3. It would not affect the earnings margins of the company at a large rate as compare to alternative 2.
4. It would supply the company a strong long term market position in regards to the business's total wealth in addition to in terms of ingenious items.
1. Risk of conversion of R&D costs into sunk cost, higher than alternative 1 lesser than alternative 2.
2. Threat of misconception 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 innovative products than alternative 1.

Kinross Gold Corporation Accounting For Stock Based Compensation Conclusion

RecommendationsBusiness has remained the leading market player for more than a decade. It has institutionalised its techniques and culture to align itself with the marketplace modifications and consumer habits, which has eventually allowed it to sustain its market share. Business has actually established significant market share and brand identity in the city markets, it is suggested that the company must focus on the rural areas in terms of establishing brand commitment, awareness, and equity, such can be done by developing a specific brand allowance technique through trade marketing techniques, that draw clear distinction in between Kinross Gold Corporation Accounting For Stock Based Compensation products and other rival items. Furthermore, Business ought to take advantage of its brand picture 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 business to develop brand equity for freshly introduced and already produced products on a greater platform, making the efficient use of resources and brand image in the market.

Kinross Gold Corporation Accounting For Stock Based Compensation Exhibits

PESTEL Analysis
Governmental assistance

Changing requirements of worldwide food.
Enhanced market share. Transforming perception towards healthier products Improvements in R&D and also QA departments.

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

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 4000 Greatest after Business with less development than Company 8th Least expensive
R&D Spending Greatest since 2004 Greatest after Service 9th Cheapest
Net Profit Margin Greatest considering that 2008 with fast growth from 2002 to 2014 Due to sale of Alcon in 2011. Almost equal to Kraft Foods Consolidation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as wellness variable Highest variety of brand names with sustainable methods Largest confectionary and also refined foods brand worldwide Largest dairy products and bottled water brand in the world
Segmentation Middle and also upper middle level customers worldwide Specific consumers in addition to family group Every age as well as Income Customer Teams Middle and top center level customers worldwide
Number of Brands 3rd 9th 3rd 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 17768 176927 918722 714197 619673
Net Profit Margin 7.24% 6.94% 55.62% 5.21% 94.11%
EPS (Earning Per Share) 47.22 4.47 8.44 4.74 62.11
Total Asset 116133 462648 256966 524181 27433
Total Debt 12727 82734 94664 41641 79413
Debt Ratio 34% 49% 22% 43% 91%
R&D Spending 7833 2287 3139 5884 6818
R&D Spending as % of Sales 7.34% 3.59% 2.55% 7.35% 6.53%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations