Molycorp Issuing The Happy Meal Securities B Case Study Solution

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Molycorp Issuing The Happy Meal Securities B Case Study Analysis

Business is presently one of the greatest food chains worldwide. It was founded by Henri Molycorp Issuing The Happy Meal Securities B in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed infants and reduce mortality rate.
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 entire world. Molycorp Issuing The Happy Meal Securities B currently has more than 500 factories around the world and a network spread throughout 86 nations.


The function of Molycorp Issuing The Happy Meal Securities B Corporation is to boost the lifestyle of individuals by playing its part and offering healthy food. It wishes to help the world in forming a healthy and better future for it. It likewise wants to encourage individuals to live a healthy life. While ensuring that the company is succeeding in the long run, that's how it plays its part for a better and healthy future


Molycorp Issuing The Happy Meal Securities B's vision is to supply its consumers with food that is healthy, high in quality and safe to consume. Business imagines to establish a well-trained workforce which would help the company to grow


Molycorp Issuing The Happy Meal Securities B's mission is that as presently, it is the leading company in the food industry, it believes in 'Good Food, Great Life". Its objective is to supply its customers with a range of choices that are healthy and finest in taste as well. It is concentrated on offering the best food to its consumers throughout the day and night.


Business has a large range of products that it offers to its customers. Its products consist of food for infants, cereals, dairy products, treats, chocolates, food for pet and mineral water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 employees. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the company has actually laid down its objectives and goals. These objectives and goals are noted below.
• One objective of the business is to reach no landfill status. (Business, aboutus, 2017).
• Another objective of Molycorp Issuing The Happy Meal Securities B is to squander minimum food throughout production. Most often, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to reduce those complications and would also guarantee the shipment of high quality of its products to its clients.
• Meet international requirements of the environment.
• Build a relationship based on trust with its customers, organisation partners, employees, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the business is not achieved as the sales were expected to grow greater at the rate of 10% annually and the operating margins to increase by 20%, given in Display H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might result in the decreased revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the principle of Nutritious, Health and Wellness (NHW). This strategy deals with the idea to bringing change in the client preferences about food and making the food stuff much healthier concerning about the health issues.
The vision of this strategy is based upon the key method i.e. 60/40+ which simply suggests that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be made with additional nutritional value in contrast to all other items in market acquiring it a plus on its dietary content.
This strategy was embraced to bring more tasty plus healthy foods and drinks in market than ever. In competitors with other companies, with an intention of keeping its trust over clients as Business Business has acquired more relied on by customers.

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 greater rate than its R&D costs, and enable the business to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is decreasing. This indicator 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 development instead of payment of financial obligations. This increasing debt ratio posture a risk of default of Business to its investors and could lead a decreasing share prices. Therefore, in regards to increasing debt ratio, the firm should not invest much on R&D and needs to pay its current debts to reduce the threat for investors.
The increasing risk of financiers with increasing financial obligation ratio and decreasing share costs can be observed by substantial decrease of EPS of Molycorp Issuing The Happy Meal Securities B stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow growth also prevent company to further 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 calculations and Charts given up the Exhibitions D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business ought to introduce more ingenious products by big amount of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the business. It might also offer Business a long term competitive benefit over its competitors.
The global expansion of Business ought to be focused on market recording of developing nations by expansion, bring in more clients through customer's commitment. As establishing countries are more populous than developed nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisMolycorp Issuing The Happy Meal Securities B needs to do mindful acquisition and merger of organizations, as it could affect the client's and society's understandings about Business. It needs to get and combine with those business which have a market reputation of healthy and nutritious companies. It would enhance the perceptions of customers about Business.
Business ought to not just spend its R&D on innovation, rather than it should likewise focus on the R&D spending over assessment of cost of different nutritious products. This would increase expense effectiveness of its products, which will lead to increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not only developing but also to industrialized countries. It must widens its geographical growth. This large geographical expansion towards developing and developed countries would decrease the danger of potential losses in times of instability in different countries. It should broaden its circle to numerous countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Molycorp Issuing The Happy Meal Securities B should wisely control its acquisitions to prevent the danger of misunderstanding from the consumers about Business. It ought to acquire and combine with those countries having a goodwill of being a healthy business in the market. This would not only enhance the understanding of consumers about Business but would likewise increase the sales, revenue 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 demographic segmentation of Business is based on four factors; age, gender, income and profession. Business produces several items related to children i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Molycorp Issuing The Happy Meal Securities B products are quite inexpensive by practically all levels, however its major targeted customers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in almost 86 nations. Its geographical segmentation is based upon two primary factors i.e. typical earnings level of the customer along with the environment of the area. Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and lifestyle of the customer. Business 3 in 1 Coffee target those consumers whose life style is rather busy and don't have much time.

Behavioral Segmentation

Molycorp Issuing The Happy Meal Securities B behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its highly healthy items target those customers who have a health mindful attitude towards their intakes.

Molycorp Issuing The Happy Meal Securities B Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand name, there are 2 choices:
Option: 1
The Business must invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the business, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the gotten systems in the market, if it stops working to execute its method. Amount spend on the R&D might not be revived, and it will be thought about entirely sunk cost, if it do not give possible outcomes.
3. Investing in R&D provide slow growth in sales, as it takes long period of time to introduce a product. However, acquisitions supply quick results, as it supply the company already established item, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the business to face misunderstanding of customers about Business core values of healthy and healthy products.
2 Large spending on acquisitions than R&D would send a signal of company's inadequacy of developing innovative products, and would lead to customer's discontentment as well.
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 company not able to introduce new ingenious products.
Option: 2.
The Company should invest more on its R&D rather than acquisitions.
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 make it possible for the business to increase its targeted clients by introducing those products which can be offered to an entirely new market segment.
4. Innovative products will offer long term advantages and high market share in long term.
1. It would decrease the revenue margins of the company.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would impact the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might supply a negative signal to the investors, and might result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to present brand-new ingenious products with less threat of transforming the costs on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the overall properties of the company would increase with its considerable R&D spending.
3. It would not impact the revenue margins of the business at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in terms of the company's general wealth as well as in terms of ingenious items.
1. Danger of conversion of R&D costs into sunk cost, higher than alternative 1 lesser than alternative 2.
2. Threat of misunderstanding about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less number of innovative products than alternative 2 and high variety of ingenious products than alternative 1.

Molycorp Issuing The Happy Meal Securities B Conclusion

RecommendationsBusiness has actually remained the top market player for more than a years. It has actually institutionalised its strategies and culture to align itself with the marketplace modifications and consumer behavior, which has ultimately permitted it to sustain its market share. Though, Business has actually developed considerable market share and brand identity in the city markets, it is recommended that the company ought to focus on the backwoods in regards to establishing brand name commitment, awareness, and equity, such can be done by developing a specific brand name allocation strategy through trade marketing methods, that draw clear difference in between Molycorp Issuing The Happy Meal Securities B items and other rival items. Molycorp Issuing The Happy Meal Securities B must 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 enable the company to establish brand equity for newly presented and currently produced products on a higher platform, making the effective use of resources and brand name image in the market.

Molycorp Issuing The Happy Meal Securities B Exhibits

PESTEL Analysis
Governmental assistance

Transforming requirements of worldwide food.
Enhanced market share. Changing perception in the direction of much healthier items Improvements in R&D as well as QA departments.

Intro of E-marketing.
No such influence as it is beneficial. Problems over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible since 3000 Highest after Business with much less development than Service 8th Lowest
R&D Spending Highest possible because 2001 Greatest after Organisation 7th Least expensive
Net Profit Margin Highest possible considering that 2008 with fast development from 2009 to 2014 As a result of sale of Alcon in 2019. Virtually equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health factor Highest variety of brand names with lasting methods Largest confectionary and also refined foods brand worldwide Largest milk products and mineral water brand in the world
Segmentation Center and also upper center degree consumers worldwide Individual consumers along with household group All age and Revenue Customer Teams Middle and also top center degree consumers worldwide
Number of Brands 9th 6th 4th 7th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 75516 127169 869457 175644 357876
Net Profit Margin 3.27% 9.84% 72.77% 1.11% 57.61%
EPS (Earning Per Share) 93.93 7.95 9.36 9.44 12.93
Total Asset 198996 232226 192576 746921 38132
Total Debt 14691 41359 92133 21283 99962
Debt Ratio 93% 31% 21% 98% 95%
R&D Spending 7285 2919 5133 7975 2761
R&D Spending as % of Sales 3.78% 7.94% 2.24% 2.14% 3.24%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations