Musimundo Case Study Help

Business is currently one of the biggest food chains worldwide. It was founded by Henri Musimundo in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed infants and reduce mortality rate.
Business is now a global business. Unlike other international companies, it has senior executives from different nations and attempts to make decisions thinking about the whole world. Musimundo presently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

The purpose of Business Corporation is to improve the quality of life of individuals by playing its part and offering 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

Vision

Musimundo's vision is to offer its customers with food that is healthy, high in quality and safe to eat. It wishes to be innovative and simultaneously comprehend the needs and requirements of its consumers. Its vision is to grow quickly and provide items that would satisfy the needs of each age. Musimundo visualizes to develop a trained workforce which would help the business to grow
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Mission

Musimundo's mission is that as currently, it is the leading business in the food industry, it believes in 'Excellent Food, Good Life". Its mission is to supply its consumers with a variety of options that are healthy and finest in taste too. It is concentrated on offering the best food to its clients throughout the day and night.

Products.

Business has a wide variety of items that it provides to its consumers. Its products consist of food for babies, cereals, dairy products, snacks, chocolates, food for animal and bottled water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 workers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the business has actually put down its goals and objectives. These goals and objectives are noted below.
• One goal of the company is to reach zero land fill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Musimundo is to squander minimum food during production. Frequently, the food produced is wasted even before it reaches the consumers.
• Another thing that Business is working on is to improve its packaging in such a method that it would help it to decrease the above-mentioned problems and would likewise guarantee the delivery of high quality of its items to its clients.
• Meet global requirements of the environment.
• Build a relationship based on trust with its customers, service partners, staff members, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the method of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW strategy. The target of the company is not accomplished as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based on the idea of Nutritious, Health and Health (NHW). This strategy deals with the concept to bringing change in the customer choices about food and making the food things healthier concerning about the health problems.
The vision of this method is based upon the key technique i.e. 60/40+ which merely implies that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be manufactured with extra dietary value in contrast to all other items in market getting it a plus on its nutritional content.
This method was embraced to bring more tasty plus healthy foods and beverages in market than ever. In competitors with other business, with an intent of keeping its trust over clients as Business Company has gotten more relied on by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing actual quantity of spending reveals 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 Earnings Margin is increasing while R&D as a portion of sales is declining. This indicator also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing debt ratio present a hazard of default of Business to its investors and might lead a decreasing share prices. For that reason, in terms of increasing debt ratio, the firm needs to not spend much on R&D and needs to pay its existing debts to reduce the threat for investors.
The increasing risk of investors with increasing debt ratio and declining share prices can be observed by huge decrease of EPS of Musimundo stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish growth likewise hinder business to more 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 estimations and Charts given up the Exhibitions D and E.

TWOS Analysis

2 analysis can be utilized to derive different strategies based upon the SWOT Analysis given above. A quick summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative products by large quantity of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the company. It could likewise supply Business a long term competitive benefit over its rivals.
The global growth of Business must be focused on market recording of establishing countries by expansion, bring in more clients through customer's loyalty. As establishing countries are more populated than developed countries, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Musimundo should do cautious acquisition and merger of organizations, as it might impact the client's and society's understandings about Business. It must obtain and combine with those companies which have a market credibility of healthy and nutritious companies. It would improve the understandings of customers about Business.
Business should not only invest its R&D on innovation, instead of it needs to also focus on the R&D spending over assessment of cost of numerous nutritious items. This would increase cost performance of its items, which will result in increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business must move to not just establishing however also to developed nations. It must expand its circle to numerous countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It ought to acquire and combine with those nations having a goodwill of being a healthy company in the market. It would likewise enable the company to use its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on 4 aspects; age, gender, earnings and occupation. Business produces numerous products related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary items. Musimundo items are quite economical by almost all levels, however its major targeted customers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is composed of its presence in nearly 86 nations. Its geographical segmentation is based upon two main aspects i.e. typical earnings level of the customer along with the climate of the region. For example, Singapore Business Company's segmentation 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 example, Business 3 in 1 Coffee target those customers whose life style is quite hectic and do not have much time.

Behavioral Segmentation

Musimundo behavioral division is based upon the mindset understanding and awareness of the client. For instance its highly healthy items target those consumers who have a health mindful mindset towards their intakes.

Musimundo Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand, there are two choices:
Alternative: 1
The Business should spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the company, increasing the wealth of the company. Costs on R&D would be sunk cost.
2. The business can resell the obtained units in the market, if it stops working to implement its technique. However, quantity invest in the R&D might not be revived, and it will be thought about entirely sunk cost, if it do not give prospective results.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to introduce a product. Acquisitions offer fast results, as it provide the business currently established product, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the company to deal with misconception of customers about Business core worths of healthy and nutritious products.
2 Large costs on acquisitions than R&D would send a signal of company's inadequacy of developing ingenious items, and would lead to customer's frustration too.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are currently present in the market, making business unable to present new ingenious items.
Option: 2.
The Company needs to invest more on its R&D rather than acquisitions.
Pros:
1. It would allow the company to produce more ingenious items.
2. It would supply the business a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by presenting those items which can be offered to a totally brand-new market segment.
4. Ingenious items will provide long term benefits and high market share in long run.
Cons:
1. It would reduce the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would impact the company at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which might offer a negative signal to the financiers, and could result I decreasing stock rates.
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 ingenious items with less danger of converting the spending on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the general assets of the company would increase with its substantial R&D spending.
3. It would not impact the profit margins of the company 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 business's general wealth along with in regards to ingenious items.
Cons:
1. Threat of conversion of R&D costs into sunk expense, higher than alternative 1 lower than alternative 2.
2. Risk 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 number of ingenious items than alternative 1.

Musimundo Conclusion

Business has remained the top market player for more than a years. It has actually institutionalised its strategies and culture to align itself with the market changes and client behavior, which has ultimately permitted it to sustain its market share. Though, Business has developed substantial market share and brand identity in the city markets, it is suggested that the business ought to focus on the rural areas in regards to developing brand name loyalty, awareness, and equity, such can be done by developing a particular brand name allowance strategy through trade marketing methods, that draw clear difference between Musimundo products and other competitor products. Moreover, Business should 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 company to establish brand equity for newly introduced and currently produced items on a higher platform, making the reliable usage of resources and brand image in the market.

Musimundo Exhibits