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

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Business is currently one of the biggest food chains worldwide. It was founded by Henri Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed babies and reduce mortality rate.
Business is now a transnational business. Unlike other international companies, it has senior executives from different nations and attempts to make decisions considering the whole world. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A currently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The purpose of Business Corporation is to boost the quality of life of individuals 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 better and healthy future

Vision

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A's vision is to provide its consumers with food that is healthy, high in quality and safe to eat. It wants to be innovative and simultaneously comprehend the requirements and requirements of its consumers. Its vision is to grow quickly and provide products that would satisfy the requirements of each age. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A envisions to develop a well-trained workforce which would help the company to grow
.

Mission

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A's objective is that as presently, it is the leading business in the food market, it believes in 'Great Food, Good Life". Its mission is to provide its customers with a variety of options that are healthy and best in taste. It is focused on offering the best food to its consumers throughout the day and night.

Products.

Business has a vast array of items that it provides to its consumers. Its products consist of food for infants, cereals, dairy items, snacks, chocolates, food for family pet and bottled water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 staff members. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has laid down its goals and goals. These goals and objectives are listed below.
• One objective of the business is to reach absolutely no land fill status. (Business, aboutus, 2017).
• Another objective of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A is to lose minimum food throughout production. Frequently, the food produced is squandered even prior to it reaches the customers.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to reduce the above-mentioned complications and would also guarantee the shipment of high quality of its items to its clients.
• Meet international standards of the environment.
• Construct a relationship based on trust with its consumers, company partners, workers, 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 nation is investing more on acquisitions and mergers to support its NHW strategy. The target of the company 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%, given in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based upon the idea of Nutritious, Health and Wellness (NHW). This strategy deals with the concept to bringing change in the client choices about food and making the food things healthier concerning about the health issues.
The vision of this strategy is based on the key method i.e. 60/40+ which merely means that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary value. The items will be made with extra dietary value in contrast to all other products in market acquiring it a plus on its nutritional material.
This technique was embraced to bring more yummy plus healthy foods and drinks in market than ever. In competitors with other business, with an intention of retaining its trust over consumers as Business Business has actually acquired more relied on by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing real quantity of spending reveals that the sales are increasing at a greater rate than its R&D spending, and allow 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 also reveals a green light 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 advancement instead of payment of financial obligations. This increasing financial obligation ratio pose a threat of default of Business to its financiers and could lead a declining share rates. In terms of increasing financial obligation ratio, the company should not invest much on R&D and ought to pay its current debts to decrease the threat for investors.
The increasing danger of financiers with increasing financial obligation ratio and decreasing share prices can be observed by substantial decrease of EPS of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow development also hinder business 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 computations and Charts given in the Exhibitions D and E.

TWOS Analysis


2 analysis can be utilized to obtain numerous strategies based upon the SWOT Analysis provided above. A brief summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business must introduce more ingenious items by large quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the company. It might also provide Business a long term competitive advantage over its competitors.
The global expansion of Business should be concentrated on market catching of establishing countries by expansion, attracting more customers through client's commitment. As developing countries are more populous than developed 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 should do careful acquisition and merger of organizations, as it might impact the customer's and society's understandings about Business. It ought to obtain and combine with those companies which have a market track record of healthy and healthy companies. It would improve the understandings of consumers about Business.
Business needs to not just invest its R&D on innovation, instead of it should likewise concentrate on the R&D costs over evaluation of expense of various nutritious products. This would increase cost performance of its items, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business should relocate to not only establishing but also to developed countries. It needs to expands its geographical expansion. This large geographical growth towards establishing and established countries would minimize the risk of prospective losses in times of instability in numerous nations. It ought to broaden its circle to different countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should obtain and combine with those countries having a goodwill of being a healthy business in the market. It would also allow the company to use its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on 4 aspects; age, gender, income and profession. For instance, Business produces numerous products associated with infants i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary products. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A items are rather cost effective by practically all levels, but its major targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in almost 86 countries. Its geographical division is based upon two primary elements i.e. average earnings level of the consumer along with the climate of the area. Singapore Business Business's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and life style of the consumer. Business 3 in 1 Coffee target those customers whose life design is rather hectic 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 attitude knowledge and awareness of the customer. Its extremely nutritious items target those consumers who have a health mindful mindset towards their consumptions.

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 customer intact with the brand, there are 2 choices:
Option: 1
The Business ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the company, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The company can resell the gotten units in the market, if it stops working to implement its method. However, amount invest in the R&D might not be revived, and it will be thought about entirely sunk expense, if it do not offer prospective results.
3. Spending on R&D supply slow development in sales, as it takes very long time to introduce a product. However, acquisitions supply fast results, as it offer the company already developed item, which can be marketed right after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to face misunderstanding of consumers about Business core values of healthy and healthy items.
2 Large spending on acquisitions than R&D would send a signal of company's ineffectiveness of establishing innovative items, and would lead to consumer's frustration too.
3. Large acquisitions than R&D would extend the line of product of the business by the products which are already present in the market, making business not able to introduce brand-new innovative products.
Option: 2.
The Business ought to invest more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the company to produce more innovative products.
2. It would supply the business a strong competitive position in the market.
3. It would enable the company to increase its targeted consumers by introducing those items which can be used to an entirely brand-new market section.
4. Ingenious items will offer long term advantages and high market share in long term.
Cons:
1. It would reduce the profit margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, and would affect the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could supply a negative signal to the investors, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to introduce brand-new ingenious products with less danger of transforming the spending on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the total properties of the business would increase with its significant R&D costs.
3. It would not affect the earnings margins of the company at a big rate as compare to alternative 2.
4. It would offer the company a strong long term market position in regards to the company's total wealth along with in regards to innovative items.
Cons:
1. Threat of conversion of R&D spending into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less number of innovative products than alternative 2 and high variety of innovative items than alternative 1.

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

RecommendationsBusiness has remained the top market gamer for more than a years. It has institutionalized its techniques and culture to align itself with the marketplace changes and consumer habits, which has eventually allowed it to sustain its market share. Though, Business has actually developed considerable market share and brand identity in the urban markets, it is advised that the company should focus on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by creating a particular brand allotment method through trade marketing tactics, that draw clear distinction 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 needs to leverage its brand name 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 develop brand name equity for freshly presented and currently produced items on a greater platform, making the efficient use of resources and brand image in the market.

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

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental assistance

Altering criteria of international food.
Improved market share.
Altering understanding in the direction of healthier items
Improvements in R&D as well as QA departments.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 7000
Highest possible after Company with less development than Company 7th Least expensive
R&D Spending Highest since 2006 Greatest after Business 9th Lowest
Net Profit Margin Greatest considering that 2001 with rapid development from 2006 to 2015 Due to sale of Alcon in 2016. Virtually equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness element Greatest variety of brands with lasting methods Largest confectionary as well as refined foods brand worldwide Largest dairy items as well as mineral water brand name on the planet
Segmentation Middle and top middle level customers worldwide Individual consumers together with house group Any age as well as Earnings Customer Teams Center as well as upper middle degree customers worldwide
Number of Brands 7th 7th 4th 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 95277 118417 921449 363776 831875
Net Profit Margin 6.96% 3.11% 22.79% 4.99% 42.55%
EPS (Earning Per Share) 99.55 6.52 8.81 1.27 36.24
Total Asset 688376 855676 782422 844752 92145
Total Debt 75779 79957 53326 63339 13577
Debt Ratio 12% 37% 83% 98% 73%
R&D Spending 5699 6434 5567 4858 7928
R&D Spending as % of Sales 9.47% 5.36% 3.42% 9.82% 3.93%

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Executive Summary Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Swot Analysis Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Vrio Analysis Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Pestel Analysis
Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Porters Analysis Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria A Recommendations