Moolani Foundation Case Study Solution

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Moolani Foundation Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was founded by Henri Moolani Foundation in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate.
Business is now a transnational business. Unlike other multinational business, it has senior executives from different nations and tries to make decisions considering the entire world. Moolani Foundation currently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of Business Corporation is to enhance the quality of life of people by playing its part and providing healthy food. While making sure that the business is being successful in the long run, that's how it plays its part for a much better and healthy future


Moolani Foundation's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. It wishes to be innovative and at the same time understand the needs and requirements of its clients. Its vision is to grow fast and supply items that would please the needs of each age. Moolani Foundation pictures to develop a trained workforce which would help the company to grow


Moolani Foundation's mission is that as presently, it is the leading company in the food market, it believes in 'Great Food, Great Life". Its mission is to supply its consumers with a variety of choices that are healthy and best in taste. It is focused on providing the very best food to its customers throughout the day and night.


Moolani Foundation has a broad range of products that it offers to its customers. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually put down its goals and objectives. These goals and objectives are noted below.
• One objective of the company is to reach no garbage dump status. It is working toward no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Moolani Foundation is to lose minimum food throughout production. Usually, the food produced is wasted even before it reaches the customers.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to minimize the above-mentioned problems and would likewise guarantee the shipment of high quality of its products to its clients.
• Meet worldwide requirements of the environment.
• Construct a relationship based on trust with its consumers, business partners, employees, and federal government.

Critical Issues

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 method. The target of the business is not attained as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the idea of Nutritious, Health and Wellness (NHW). This strategy handles the idea to bringing modification in the customer choices 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 score of 60% on the basis of taste and 40% is based upon its dietary value. The products will be manufactured with additional nutritional worth in contrast to all other items in market gaining it a plus on its nutritional material.
This strategy was embraced to bring more tasty plus healthy foods and drinks in market than ever. In competition with other companies, with an objective of retaining its trust over customers as Business Company has actually gained more trusted by customers.

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 higher rate than its R&D spending, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indicator likewise reveals a thumbs-up to the R&D spending, 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 debts. This increasing financial obligation ratio position a danger of default of Business to its financiers and could lead a decreasing share costs. For that reason, in regards to increasing debt ratio, the firm must not invest much on R&D and must pay its existing financial obligations to decrease the danger for investors.
The increasing danger of investors with increasing debt ratio and decreasing share prices can be observed by big decline of EPS of Moolani Foundation stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. 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 calculations and Charts given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be utilized to derive different techniques based on the SWOT Analysis given above. A quick summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business should present more innovative items by large amount of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the company. It might likewise provide Business a long term competitive advantage over its rivals.
The global growth of Business ought to be concentrated on market recording of establishing countries by growth, bring in more clients through consumer's loyalty. As establishing countries are more populous than developed nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisMoolani Foundation ought to do cautious acquisition and merger of organizations, as it might impact the customer's and society's understandings about Business. It needs to acquire and combine with those companies which have a market track record of healthy and nutritious companies. It would enhance the perceptions of customers about Business.
Business should not just spend its R&D on innovation, instead of it needs to also concentrate on the R&D costs over assessment of cost of various 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 transfer to not just developing but also to industrialized nations. It needs to expands its geographical expansion. This broad geographical expansion towards establishing and developed countries would minimize the threat of potential losses in times of instability in different countries. It needs to broaden its circle to various nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Moolani Foundation ought to sensibly manage its acquisitions to prevent the risk of misconception from the consumers about Business. It needs to get and merge with those nations having a goodwill of being a healthy business in the market. This would not only improve the perception of consumers about Business however would likewise increase the sales, earnings margins and market share of Business. It would also allow the company to utilize its possible resources effectively on its other operations instead of acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on 4 elements; age, gender, income and profession. For example, Business produces numerous items related to babies i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary items. Moolani Foundation products are rather budget-friendly by practically 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 presence in practically 86 countries. Its geographical segmentation is based upon two main factors i.e. average earnings level of the customer in addition to the climate of the area. For instance, 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 lifestyle of the consumer. Business 3 in 1 Coffee target those consumers whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Moolani Foundation behavioral division is based upon the attitude understanding and awareness of the consumer. Its extremely nutritious products target those consumers who have a health mindful mindset towards their intakes.

Moolani Foundation 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 must invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The business can resell the gotten systems in the market, if it stops working to execute its strategy. Quantity invest on the R&D might not be restored, and it will be considered entirely sunk cost, if it do not offer potential outcomes.
3. Spending on R&D offer sluggish development in sales, as it takes long time to introduce an item. Nevertheless, acquisitions offer quick results, as it provide the company already developed item, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the company to face mistaken belief of customers about Business core values of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing ingenious products, and would results in customer's frustration.
3. Large acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making company not able to present new ingenious items.
Alternative: 2.
The Company should spend more on its R&D rather than acquisitions.
1. It would enable the business to produce more innovative items.
2. It would offer the business a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by presenting those products which can be used to an entirely new market segment.
4. Innovative items will provide long term benefits and high market share in long term.
1. It would reduce the earnings margins of the business.
2. In case of failure, the entire costs on R&D would be thought about as sunk expense, and would impact the company at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which could offer a negative signal to the financiers, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present brand-new innovative items with less danger of transforming the costs on R&D into sunk cost.
2. It would provide a positive signal to the investors, as the total properties of the business would increase with its significant R&D spending.
3. It would not impact the profit margins of the business 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 business's general wealth along with in terms of innovative items.
1. Danger of conversion of R&D spending into sunk expense, greater than option 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Intro of less number of innovative products than alternative 2 and high number of ingenious items than alternative 1.

Moolani Foundation Conclusion

RecommendationsBusiness has remained the top market gamer for more than a years. It has actually institutionalised its techniques and culture to align itself with the marketplace modifications and client habits, which has actually ultimately enabled it to sustain its market share. Though, Business has developed substantial market share and brand name identity in the urban markets, it is advised that the business needs to focus on the rural areas in regards to developing brand name commitment, awareness, and equity, such can be done by producing a specific brand name allowance strategy through trade marketing tactics, that draw clear distinction between Moolani Foundation products and other rival products. Furthermore, Business ought 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 categories such as nutrition. This will enable the business to establish brand name equity for newly presented and already produced items on a greater platform, making the reliable use of resources and brand image in the market.

Moolani Foundation Exhibits

PESTEL Analysis
Governmental support

Altering standards of international food.
Boosted market share. Transforming assumption towards much healthier products Improvements in R&D and also QA departments.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 2000 Highest possible after Organisation with less development than Service 6th Most affordable
R&D Spending Highest considering that 2005 Highest after Service 1st Cheapest
Net Profit Margin Highest possible given that 2006 with rapid growth from 2007 to 2012 Because of sale of Alcon in 2013. Almost equal to Kraft Foods Incorporation Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health element Highest variety of brand names with lasting methods Biggest confectionary and also processed foods brand worldwide Largest milk items and bottled water brand on the planet
Segmentation Center and also top middle degree customers worldwide Individual consumers in addition to house group Every age and Earnings Consumer Teams Center as well as upper center degree consumers worldwide
Number of Brands 9th 8th 1st 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 51921 938545 339435 319847 432682
Net Profit Margin 1.87% 9.59% 54.28% 5.26% 63.18%
EPS (Earning Per Share) 32.76 6.46 2.54 2.87 53.62
Total Asset 859526 644948 244747 341366 92483
Total Debt 47738 57491 41831 97688 77655
Debt Ratio 39% 79% 33% 23% 37%
R&D Spending 9756 8255 1376 5737 3253
R&D Spending as % of Sales 5.34% 3.92% 6.49% 2.27% 6.66%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations