Menu

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

Case Study Solution And Analysis


Home >> Harvard >> Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B >>

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

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B is currently among the greatest food chains worldwide. It was established by Harvard in 1866, a German Pharmacist who first launched "FarineLactee"; a mix of flour and milk to feed babies and decrease mortality rate. At the very same time, the Page siblings from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Company. The 2 became rivals at first but later merged in 1905, leading to the birth of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B.
Business is now a transnational company. Unlike other international business, it has senior executives from various nations and attempts to make decisions thinking about the entire world. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B presently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

The function of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B Corporation is to improve the quality of life of individuals by playing its part and offering healthy food. It wants to help the world in shaping a healthy and much better future for it. It likewise wishes to encourage individuals to live a healthy life. While ensuring that the company 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 B's vision is to provide its consumers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and concurrently comprehend the needs and requirements of its customers. Its vision is to grow fast and provide items that would please the needs of each age. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B pictures to develop a trained labor force which would help the company to grow
.

Mission

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B's objective is that as currently, it is the leading business in the food market, it believes in 'Good Food, Excellent Life". Its objective is to supply its consumers with a variety of choices that are healthy and best in taste. It is concentrated on offering the best food to its clients throughout the day and night.

Products.

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B has a broad variety of items that it provides to its clients. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has set its goals and goals. These objectives and goals are noted below.
• One goal of the business is to reach zero garbage dump status. It is working toward no waste, where no waste of the factory is landfilled. It encourages its workers 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 B is to lose minimum food during production. Usually, the food produced is squandered even before it reaches the clients.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to minimize those issues and would likewise guarantee the shipment of high quality of its items to its consumers.
• Meet global standards of the environment.
• Build a relationship based on trust with its customers, business partners, employees, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its earnings on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW method. The target of the company is not achieved 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 Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based on the concept of Nutritious, Health and Health (NHW). This technique handles the concept to bringing modification in the customer preferences about food and making the food things much healthier worrying about the health concerns.
The vision of this technique is based upon the key approach i.e. 60/40+ which merely suggests that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be manufactured with extra nutritional worth in contrast to all other products in market gaining it a plus on its nutritional content.
This strategy was adopted to bring more tasty plus healthy foods and beverages in market than ever. In competition with other companies, with an intent of retaining its trust over clients as Business Company has acquired more relied on by customers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing actual quantity of spending shows that the sales are increasing at a higher rate than its R&D costs, and enable the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This indication likewise reveals a green light to the R&D spending, mergers and acquisitions.
Financial obligation 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 hazard of default of Business to its investors and might lead a declining share rates. For that reason, in regards to increasing financial obligation ratio, the firm should not spend much on R&D and must pay its present debts to reduce the threat for financiers.
The increasing danger of financiers with increasing debt ratio and decreasing share costs can be observed by substantial decline of EPS of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development also prevent business to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: 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 used to derive different methods based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative items by large quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the company. It could also provide Business a long term competitive benefit over its rivals.
The international growth of Business must be focused on market catching of establishing nations by growth, attracting more customers through customer's commitment. As establishing countries are more populated than developed nations, it could 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 B must do mindful acquisition and merger of organizations, as it might affect the consumer's and society's perceptions about Business. It should acquire and combine with those business which have a market track record of healthy and healthy business. It would enhance the understandings of consumers about Business.
Business should not only spend its R&D on innovation, rather than it should likewise focus on the R&D costs over evaluation of expense of various healthy products. This would increase expense performance of its products, which will result in increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only developing but likewise to industrialized countries. It ought to broadens its geographical expansion. This large geographical expansion towards establishing and established nations would minimize the danger of prospective losses in times of instability in different countries. It should expand its circle to different nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to acquire and merge with those nations having a goodwill of being a healthy company in the market. It would also make it possible for the company to use its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon four aspects; age, gender, income and occupation. Business produces numerous items related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B products are quite budget friendly by almost all levels, however its major targeted consumers, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in practically 86 nations. Its geographical segmentation is based upon 2 main factors i.e. average income level of the consumer in addition to the climate of the region. Singapore Business Business's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the client. Business 3 in 1 Coffee target those clients whose life design is quite busy and don't have much time.

Behavioral Segmentation

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B behavioral segmentation is based upon the mindset understanding and awareness of the customer. Its highly healthy items target those clients who have a health mindful attitude towards their consumptions.

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

In order to sustain the brand in the market and keep the client undamaged 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 business, increasing the wealth of the business. However, costs on R&D would be sunk expense.
2. The business can resell the acquired units in the market, if it fails to implement its technique. Quantity spend on the R&D could not be restored, and it will be thought about totally sunk cost, if it do not provide potential results.
3. Investing in R&D supply slow growth in sales, as it takes very long time to introduce an item. However, acquisitions provide quick outcomes, as it supply the business currently developed product, which can be marketed right after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with misconception of customers about Business core values of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing ingenious items, and would lead to consumer's frustration also.
3. Big acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making company unable to introduce new ingenious products.
Option: 2.
The Company should spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the business to produce more innovative products.
2. It would supply the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by introducing those items which can be offered to a totally brand-new market section.
4. Innovative products will supply long term advantages and high market share in long term.
Cons:
1. It would reduce the revenue margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk cost, and would impact the business at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which could provide an unfavorable signal to the investors, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to introduce brand-new innovative products with less risk of transforming the costs on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the overall properties of the company would increase with its substantial R&D spending.
3. It would not affect the profit margins of the business at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in regards to the company's general wealth in addition to in terms of ingenious products.
Cons:
1. Risk of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Introduction of less variety of ingenious products than alternative 2 and high number of innovative products than alternative 1.

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

RecommendationsBusiness has actually remained the leading market player for more than a decade. It has actually institutionalised its strategies and culture to align itself with the marketplace modifications and client behavior, which has actually eventually permitted it to sustain its market share. Though, Business has developed substantial market share and brand identity in the metropolitan markets, it is suggested that the business needs to concentrate on the rural areas in regards to developing brand commitment, awareness, and equity, such can be done by creating a particular brand allowance strategy through trade marketing tactics, that draw clear difference in between Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B products and other competitor products. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B ought to utilize its brand name 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 allow the company to establish brand name equity for freshly presented and currently produced products on a higher platform, making the efficient usage of resources and brand name image in the market.

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

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

Changing requirements of global food.
Enhanced market share.
Altering assumption towards much healthier items
Improvements in R&D and also QA divisions.

Intro of E-marketing.
No such effect as it is good.
Problems over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 3000
Greatest after Business with much less growth than Business 4th Least expensive
R&D Spending Greatest given that 2002 Highest after Organisation 7th Least expensive
Net Profit Margin Greatest because 2007 with rapid development from 2005 to 2019 As a result of sale of Alcon in 2019. Almost equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness variable Greatest variety of brand names with lasting practices Largest confectionary as well as processed foods brand name worldwide Largest milk products and also bottled water brand name in the world
Segmentation Middle as well as upper center degree customers worldwide Individual consumers in addition to household team Any age as well as Earnings Customer Teams Middle and also upper middle level customers worldwide
Number of Brands 4th 4th 2nd 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 37469 984139 515758 738215 852388
Net Profit Margin 5.45% 7.73% 72.81% 1.31% 25.56%
EPS (Earning Per Share) 31.74 4.94 7.21 4.68 52.86
Total Asset 841344 237946 634976 463527 45893
Total Debt 28559 77651 15842 22783 46171
Debt Ratio 35% 96% 61% 61% 44%
R&D Spending 4339 1242 1328 9725 2578
R&D Spending as % of Sales 9.64% 7.23% 6.56% 5.85% 4.77%

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