La Grande Alliance Restaurant Francaise Case Study Solution

Business is currently one of the most significant food chains worldwide. It was founded by Henri La Grande Alliance Restaurant Francaise in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate.
Business is now a multinational business. Unlike other international business, it has senior executives from different countries and tries to make decisions thinking about the whole world. La Grande Alliance Restaurant Francaise currently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The purpose of La Grande Alliance Restaurant Francaise Corporation is to boost the lifestyle of people by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and much better future for it. It likewise wishes to encourage individuals to live a healthy life. While making sure that the business is being successful in the long run, that's how it plays its part for a better and healthy future

Vision

La Grande Alliance Restaurant Francaise's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. Business visualizes to develop a well-trained labor force which would help the company to grow
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Mission

La Grande Alliance Restaurant Francaise's objective is that as currently, it is the leading company in the food market, it believes in 'Excellent Food, Good Life". Its objective is to supply its customers with a variety of choices that are healthy and best in taste too. It is focused on providing the very best food to its clients throughout the day and night.

Products.

La Grande Alliance Restaurant Francaise has a broad variety of products that it uses to its customers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has put down its goals and goals. These goals 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 La Grande Alliance Restaurant Francaise is to lose minimum food throughout production. Frequently, the food produced is wasted even prior to it reaches the consumers.
• Another thing that Business is dealing with is to enhance its product packaging in such a way that it would help it to reduce the above-mentioned problems and would also ensure 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 customers, organisation partners, workers, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW strategy. However, the target of the company is not attained as the sales were expected to grow higher at the rate of 10% each year and the operating margins to increase by 20%, given in Exhibition H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might lead to the decreased revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based on the concept of Nutritious, Health and Health (NHW). This method deals with the concept to bringing modification in the customer preferences about food and making the food stuff healthier worrying about the health problems.
The vision of this strategy is based upon the key technique i.e. 60/40+ which simply indicates that the items will have a rating of 60% on the basis of taste and 40% is based upon its dietary worth. The products will be produced with extra nutritional value in contrast to all other products in market acquiring it a plus on its nutritional content.
This method was embraced to bring more delicious plus nutritious foods and drinks in market than ever. In competitors with other companies, with an intent of keeping its trust over clients as Business Business has gotten more trusted by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real quantity of spending shows that the sales are increasing at a higher rate than its R&D costs, and permit the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This indicator also shows a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio pose a hazard of default of Business to its investors and might lead a declining share costs. For that reason, in regards to increasing financial obligation ratio, the company should not invest much on R&D and must pay its existing debts to reduce the risk for financiers.
The increasing danger of investors with increasing debt ratio and decreasing share rates can be observed by huge decrease of EPS of La Grande Alliance Restaurant Francaise 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 hinder business to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of estimations and Charts given up the Displays D and E.

TWOS Analysis

2 analysis can be utilized to obtain different methods based upon the SWOT Analysis offered above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more innovative products by large quantity of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the business. It might also offer Business a long term competitive benefit over its rivals.
The global expansion of Business need to be concentrated on market capturing of developing nations by growth, bring in more consumers through customer's commitment. As establishing countries are more populated than industrialized nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

La Grande Alliance Restaurant Francaise should do cautious acquisition and merger of organizations, as it could affect the consumer's and society's understandings about Business. It should obtain and combine with those companies which have a market track record of healthy and healthy business. It would improve the perceptions of consumers about Business.
Business ought to not only invest its R&D on development, rather than it must also focus on the R&D spending over evaluation of cost of different healthy items. This would increase expense 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 must move to not just developing but also to developed nations. It needs to expands its geographical growth. This broad geographical expansion towards developing and developed nations would lower the risk of possible losses in times of instability in different countries. It ought to broaden its circle to various countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

La Grande Alliance Restaurant Francaise must wisely control its acquisitions to prevent the risk of misunderstanding from the consumers about Business. It should acquire and merge with those nations having a goodwill of being a healthy company in the market. This would not only enhance the understanding of consumers about Business but would likewise increase the sales, profit margins and market share of Business. It would also enable the company to use its possible resources efficiently on its other operations instead of acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon 4 factors; age, gender, income and occupation. For instance, Business produces a number of items associated with infants i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. La Grande Alliance Restaurant Francaise items are quite affordable by almost all levels, however its significant targeted customers, in regards to 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 income level of the customer along with the climate of the region. For example, Singapore Business Business'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 character and life style of the client. Business 3 in 1 Coffee target those customers whose life design is quite busy and don't have much time.

Behavioral Segmentation

La Grande Alliance Restaurant Francaise behavioral division is based upon the mindset knowledge and awareness of the customer. For example its highly nutritious products target those customers who have a health mindful mindset towards their consumptions.

La Grande Alliance Restaurant Francaise Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand, there are 2 alternatives:
Option: 1
The Company needs to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the company, increasing the wealth of the company. However, costs on R&D would be sunk cost.
2. The business can resell the gotten systems in the market, if it fails to implement its strategy. Quantity spend on the R&D could not be revived, and it will be thought about entirely sunk cost, if it do not give potential results.
3. Investing in R&D offer slow development in sales, as it takes very long time to introduce a product. Nevertheless, acquisitions offer fast outcomes, as it supply the company already developed item, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to deal with misconception of consumers about Business core worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send out a signal of business's inefficiency of establishing ingenious items, and would results in consumer's dissatisfaction too.
3. Big acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making company unable to present brand-new ingenious products.
Option: 2.
The Business ought to invest more on its R&D rather than acquisitions.
Pros:
1. It would enable the company to produce more ingenious products.
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 presenting those items which can be used to a completely brand-new market sector.
4. Innovative items will supply long term benefits and high market share in long run.
Cons:
1. It would reduce the profit margins of the business.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would impact the business at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable signal to the financiers, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Pros:
1. It would permit the company to introduce brand-new innovative items with less risk of converting the spending on R&D into sunk cost.
2. It would supply a positive signal to the financiers, as the general properties of the business would increase with its significant R&D spending.
3. It would not impact the earnings margins of the company at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the business's overall wealth in addition to in regards to innovative items.
Cons:
1. Threat of conversion of R&D spending into sunk cost, greater than option 1 lesser than alternative 2.
2. Risk of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less number of innovative items than alternative 2 and high variety of ingenious products than alternative 1.

La Grande Alliance Restaurant Francaise Conclusion

Business has stayed the leading market player for more than a years. It has institutionalised its methods 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 developed significant market share and brand identity in the metropolitan markets, it is advised that the company ought to focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by developing a specific brand name allotment method through trade marketing techniques, that draw clear difference between La Grande Alliance Restaurant Francaise items and other competitor products. La Grande Alliance Restaurant Francaise must leverage its brand name image 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 business to develop brand name equity for recently introduced and already produced products on a greater platform, making the efficient use of resources and brand name image in the market.

La Grande Alliance Restaurant Francaise Exhibits