Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Case Study Solution

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Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Case Study Analysis

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A is presently among the greatest food chains worldwide. It was established by Harvard in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed infants and reduce mortality rate. At the very same time, the Page bros from Switzerland also discovered The Anglo-Swiss Condensed Milk Business. The two became rivals initially however in the future combined in 1905, resulting in the birth of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A.
Business is now a multinational business. Unlike other multinational business, it has senior executives from different nations and attempts to make choices thinking about the whole world. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A presently has more than 500 factories around the world and a network spread throughout 86 nations.


The function of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Corporation is to improve the quality of life of people by playing its part and supplying healthy food. It wishes to help the world in forming a healthy and much better future for it. It also wishes to motivate people to live a healthy life. While ensuring that the business is being successful in the long run, that's how it plays its part for a better and healthy future


Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A's vision is to supply its customers with food that is healthy, high in quality and safe to eat. Business pictures to develop a trained labor force which would help the business to grow


Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A's objective is that as currently, it is the leading company in the food industry, it thinks in 'Good Food, Good Life". Its mission is to offer its consumers with a range of options that are healthy and best in taste too. It is focused on supplying the very best food to its customers throughout the day and night.


Business has a large range of items that it offers to its clients. Its products include food for babies, cereals, dairy products, treats, chocolates, food for pet and bottled water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 employees. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has put down its goals and objectives. These goals and goals are noted below.
• One goal of the business is to reach zero land fill status. It is pursuing no waste, where no waste of the factory is landfilled. It motivates its staff members to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A is to squander minimum food during production. Usually, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to lower those problems and would also ensure the shipment of high quality of its items to its consumers.
• Meet international requirements of the environment.
• Build a relationship based upon trust with its customers, organisation partners, workers, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the technique of NHW and investing more of its profits on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the business 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%, offered in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based on the principle of Nutritious, Health and Wellness (NHW). This technique deals with the concept to bringing change in the client choices about food and making the food stuff much healthier worrying about the health issues.
The vision of this technique is based upon the secret technique i.e. 60/40+ which simply implies that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The items will be manufactured with extra nutritional value in contrast to all other products in market getting it a plus on its dietary content.
This technique was adopted to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other companies, with an intent of keeping its trust over clients as Business Company has actually gotten more trusted by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing actual amount of spending reveals that the sales are increasing at a higher rate than its R&D spending, and allow the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This sign also shows 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 financial obligations. This increasing financial obligation ratio position a threat of default of Business to its financiers and might lead a declining share costs. In terms of increasing debt ratio, the firm should not invest much on R&D and should pay its present debts to decrease the risk for investors.
The increasing threat of investors with increasing financial obligation ratio and declining share costs can be observed by big decline of EPS of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A 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 also hinder business to more 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 computations and Graphs given up the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be utilized to derive numerous strategies based on the SWOT Analysis offered above. A brief summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative products by big amount of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the profit margins for the business. It might likewise provide Business a long term competitive benefit over its competitors.
The worldwide growth of Business ought to be concentrated on market capturing of establishing nations by expansion, attracting more consumers through client's commitment. As developing nations are more populated than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisOcean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A needs to do mindful acquisition and merger of organizations, as it could impact the client's and society's perceptions about Business. It must obtain and merge with those business which have a market reputation of healthy and healthy companies. It would improve the perceptions of customers about Business.
Business should not only invest its R&D on development, instead of it must likewise focus on the R&D spending over assessment of expense of various nutritious products. This would increase expense effectiveness of its products, which will result in increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business should transfer to not only developing however likewise to developed nations. It needs to broadens its geographical growth. This wide geographical expansion towards establishing and established nations would lower the danger of potential losses in times of instability in numerous countries. It should widen its circle to various nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to acquire and merge with those nations having a goodwill of being a healthy company in the market. It would likewise enable the company to utilize its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon four elements; age, gender, earnings and profession. For instance, Business produces numerous products connected to children i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A products are quite budget-friendly by practically all levels, but its significant targeted consumers, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its presence in nearly 86 countries. Its geographical division is based upon 2 primary elements i.e. average earnings level of the customer as well as the environment of the area. For example, 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 character and lifestyle of the customer. Business 3 in 1 Coffee target those consumers whose life design is rather busy and do not have much time.

Behavioral Segmentation

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A 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 intakes.

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand name, there are two alternatives:
Option: 1
The Company should spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the gotten units in the market, if it stops working to implement its technique. Quantity invest on the R&D could not be revived, and it will be thought about entirely sunk expense, if it do not provide prospective outcomes.
3. Investing in R&D supply sluggish development in sales, as it takes long time to present an item. However, acquisitions offer quick results, as it offer the business currently developed product, 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 business to face mistaken belief of customers about Business core worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send a signal of company's inadequacy of developing innovative items, and would outcomes in consumer's frustration.
3. Large acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making business not able to introduce new ingenious products.
Alternative: 2.
The Business needs to invest more on its R&D rather than acquisitions.
1. It would make it possible for the business to produce more ingenious items.
2. It would supply the business a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those products which can be used to a totally new market section.
4. Ingenious 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 spending on R&D would be thought about as sunk cost, and would affect the business at large. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could offer a negative signal to the financiers, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to introduce new ingenious items with less risk of converting the costs on R&D into sunk cost.
2. It would supply a favorable signal to the investors, as the overall assets of the company would increase with its substantial 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 provide the company a strong long term market position in regards to the company's general wealth in addition to in terms of ingenious products.
1. Danger of conversion of R&D spending into sunk cost, greater than option 1 lesser than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high number of ingenious items than alternative 1.

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Conclusion

RecommendationsIt has institutionalised its methods and culture to align itself with the market changes and customer habits, which has ultimately allowed it to sustain its market share. Business has established significant market share and brand name identity in the metropolitan markets, it is suggested that the business must focus on the rural locations in terms of developing brand commitment, awareness, and equity, such can be done by producing a specific brand name allotment strategy through trade marketing strategies, that draw clear difference between Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A items and other rival items.

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Exhibits

PESTEL Analysis
Governmental assistance

Altering requirements of global food.
Enhanced market share. Changing understanding in the direction of much healthier items Improvements in R&D and also QA departments.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest since 5000 Highest after Company with less growth than Company 8th Cheapest
R&D Spending Greatest considering that 2003 Highest possible after Organisation 9th Least expensive
Net Profit Margin Highest possible given that 2009 with rapid development from 2009 to 2019 As a result of sale of Alcon in 2011. Nearly equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and health aspect Highest possible variety of brands with lasting techniques Largest confectionary and processed foods brand worldwide Largest dairy items and mineral water brand name in the world
Segmentation Center and upper center level consumers worldwide Individual customers together with home team Any age and Income Client Groups Middle as well as top center degree consumers worldwide
Number of Brands 9th 9th 1st 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 14853 819556 641749 467779 784343
Net Profit Margin 6.24% 1.62% 32.96% 1.45% 93.29%
EPS (Earning Per Share) 31.15 9.78 2.94 2.42 37.82
Total Asset 913721 565811 783844 883191 34712
Total Debt 42655 24185 74813 17253 18344
Debt Ratio 97% 38% 21% 47% 56%
R&D Spending 5927 5916 3776 1944 7918
R&D Spending as % of Sales 7.52% 6.62% 5.97% 5.32% 3.72%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations