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

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

Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B is currently among the most significant food cycle worldwide. It was founded by Harvard in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Company. The two ended up being competitors at first however later merged in 1905, resulting in the birth of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B.
Business is now a multinational company. Unlike other multinational business, it has senior executives from different nations and attempts to make choices thinking about the entire world. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B presently has more than 500 factories worldwide and a network spread across 86 nations.


The purpose of Business Corporation is to enhance the quality of life of individuals by playing its part and supplying healthy food. While making sure that the business is prospering 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 B's vision is to provide its clients with food that is healthy, high in quality and safe to eat. Business envisions to develop a trained labor force which would help the business to grow


Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B's mission is that as presently, it is the leading company in the food industry, it believes in 'Excellent Food, Good Life". Its mission is to offer its customers with a variety of options that are healthy and finest in taste. It is focused on providing the very best food to its consumers throughout the day and night.


Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B has a wide range of products that it provides to its consumers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the business has actually laid down its goals and goals. These objectives and goals are listed below.
• One objective of the company is to reach absolutely no landfill status. It is pursuing no waste, where no waste of the factory is landfilled. It motivates 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 squander minimum food during production. Most often, the food produced is wasted even prior to it reaches the consumers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to decrease the above-mentioned complications and would likewise ensure the shipment of high quality of its products to its clients.
• Meet global requirements of the environment.
• Develop a relationship based on trust with its consumers, service partners, staff members, and government.

Critical Issues

Recently, Business Business 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 business is not achieved as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibit H. There is a need to focus more on the sales then the innovation technology. Otherwise, it may lead to the decreased revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based on the concept of Nutritious, Health and Wellness (NHW). This method deals with the concept to bringing modification in the client preferences about food and making the food stuff healthier concerning about the health concerns.
The vision of this technique is based on the key approach i.e. 60/40+ which merely indicates that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary worth. The items will be produced with extra nutritional value in contrast to all other products in market gaining it a plus on its nutritional content.
This method was adopted to bring more delicious plus healthy foods and beverages in market than ever. In competition with other companies, with an intention of keeping its trust over consumers as Business Business has actually gained more relied on by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing actual amount of spending shows that the sales are increasing at a higher rate than its R&D spending, and enable the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This sign also shows 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 development rather than payment of debts. This increasing debt ratio posture a hazard of default of Business to its investors and might lead a declining share rates. In terms of increasing financial obligation ratio, the firm must not invest much on R&D and needs to pay its existing financial obligations to reduce the risk for financiers.
The increasing threat of financiers with increasing debt ratio and declining share prices can be observed by substantial decline of EPS of Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception structure of consumers. This sluggish growth also prevent 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 calculations and Charts given up the Exhibits D and E.

TWOS Analysis

2 analysis can be used to derive numerous methods based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative products by large amount of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the business. It might also offer Business a long term competitive benefit over its competitors.
The international expansion of Business must be concentrated on market capturing of establishing countries by growth, attracting more customers through customer's loyalty. As establishing nations are more populated than developed countries, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisOcean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B needs to do cautious acquisition and merger of organizations, as it could affect the customer's and society's perceptions about Business. It should get and merge with those business which have a market track record of healthy and nutritious companies. It would enhance the perceptions of consumers about Business.
Business ought to not just invest its R&D on development, instead of it should also concentrate on the R&D spending over assessment of cost of different healthy items. This would increase expense effectiveness of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not just establishing but also to industrialized countries. It ought to expands its geographical expansion. This large geographical expansion towards developing and established countries would minimize the danger of prospective losses in times of instability in various countries. It must broaden its circle to various nations like Unilever which operates in about 170 plus nations.

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 business to use its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based on 4 elements; age, gender, income and profession. For instance, Business produces several products connected to children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Ocean And Oil Holdings And The Leveraged Buyout Of Agip Nigeria B products are quite budget-friendly by nearly all levels, but its significant targeted clients, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in nearly 86 nations. Its geographical segmentation is based upon 2 primary factors i.e. typical income level of the consumer as well as the environment of the region. For example, Singapore Business Business's segmentation is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the customer. For example, Business 3 in 1 Coffee target those customers whose lifestyle is quite busy and do not have much time.

Behavioral Segmentation

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

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

In order to sustain the brand name in the market and keep the customer undamaged with the brand name, there are two choices:
Alternative: 1
The Business needs to invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The company can resell the gotten units in the market, if it fails to execute its technique. Nevertheless, quantity invest in the R&D might not be revived, and it will be considered entirely sunk expense, if it do not give prospective results.
3. Investing in R&D supply slow development in sales, as it takes long period of time to present a product. Acquisitions supply fast outcomes, as it provide the business currently developed product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face 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 business's inefficiency of establishing innovative products, and would results in consumer's dissatisfaction.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are already present in the market, making business not able to introduce new ingenious products.
Option: 2.
The Company ought to spend more on its R&D instead of acquisitions.
1. It would make it possible for the company to produce more ingenious items.
2. It would offer 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 used to an entirely brand-new market section.
4. Innovative products will supply long term benefits and high market share in long run.
1. It would decrease the earnings margins of the business.
2. In case of failure, the whole spending on R&D would be thought about as sunk expense, and would impact the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the investors, and might result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present new ingenious products with less threat of transforming the spending on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the general assets of the business would increase with its significant 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 terms of the company's total wealth in addition to in terms of ingenious products.
1. Danger of conversion of R&D spending into sunk expense, higher than option 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less variety of ingenious items than alternative 2 and high variety of innovative products than alternative 1.

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

RecommendationsIt has actually institutionalized its strategies and culture to align itself with the market changes and consumer behavior, which has actually ultimately permitted it to sustain its market share. Business has developed significant market share and brand identity in the metropolitan markets, it is suggested that the company should focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by creating a particular brand allotment technique through trade marketing strategies, that draw clear distinction 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 Exhibits

PESTEL Analysis
Governmental assistance

Altering criteria of international food.
Enhanced market share. Changing assumption towards healthier items Improvements in R&D and QA divisions.

Introduction of E-marketing.
No such influence as it is good. Issues over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest considering that 4000 Greatest after Service with less growth than Service 8th Lowest
R&D Spending Highest because 2005 Highest possible after Business 9th Lowest
Net Profit Margin Greatest because 2004 with rapid growth from 2008 to 2014 Because of sale of Alcon in 2011. Nearly equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness aspect Highest variety of brands with lasting practices Largest confectionary as well as processed foods brand name on the planet Largest dairy items and bottled water brand name in the world
Segmentation Middle and upper center degree customers worldwide Individual clients together with home group Every age and Income Customer Teams Middle as well as top middle level customers worldwide
Number of Brands 3rd 2nd 2nd 9th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 14741 624955 563669 472278 332513
Net Profit Margin 8.38% 2.17% 47.43% 4.25% 58.47%
EPS (Earning Per Share) 36.74 4.64 8.59 4.65 46.41
Total Asset 588268 475836 348649 478742 18287
Total Debt 13723 29671 89831 41189 76635
Debt Ratio 76% 11% 96% 15% 22%
R&D Spending 5752 7518 9365 9215 5815
R&D Spending as % of Sales 8.18% 4.63% 1.16% 6.72% 7.85%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations