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Osscube Leveraging Social Media Case Study Analysis

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Osscube Leveraging Social Media is currently among the biggest food chains worldwide. It was established by Harvard in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate. At the same time, the Page bros from Switzerland likewise found The Anglo-Swiss Condensed Milk Business. The 2 ended up being competitors initially but later on merged in 1905, resulting in the birth of Osscube Leveraging Social Media.
Business is now a transnational business. Unlike other multinational companies, it has senior executives from various countries and tries to make decisions considering the entire world. Osscube Leveraging Social Media presently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The function 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 much better and healthy future

Vision

Osscube Leveraging Social Media's vision is to offer its customers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and all at once understand the needs and requirements of its consumers. Its vision is to grow quick and provide products that would satisfy the needs of each age group. Osscube Leveraging Social Media visualizes to develop a trained labor force which would help the business to grow
.

Mission

Osscube Leveraging Social Media's mission is that as currently, it is the leading company in the food market, it believes in 'Good Food, Good Life". Its objective is to offer its consumers with a variety of options that are healthy and finest in taste as well. It is concentrated on supplying the best food to its consumers throughout the day and night.

Products.

Osscube Leveraging Social Media has a broad range of products that it uses to its clients. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually set its objectives and goals. These objectives and objectives are noted below.
• One objective of the company is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another objective of Osscube Leveraging Social Media is to squander minimum food during production. Most often, the food produced is squandered even before it reaches the clients.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to lower the above-mentioned issues and would also ensure the shipment of high quality of its items to its clients.
• Meet international requirements of the environment.
• Build a relationship based on trust with its customers, organisation partners, employees, 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 technology. 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%, provided in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based upon the concept of Nutritious, Health and Wellness (NHW). This technique handles the idea to bringing change 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 on the key technique i.e. 60/40+ which simply means that the products will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The products will be produced with extra dietary worth in contrast to all other items in market acquiring it a plus on its dietary content.
This technique was embraced to bring more delicious plus healthy foods and drinks in market than ever. In competitors with other business, with an intent of retaining its trust over clients as Business Business has actually acquired more trusted by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D costs, and permit the company to more invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indication also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio position a hazard of default of Business to its investors and could lead a declining share costs. In terms of increasing financial obligation ratio, the company ought to not invest much on R&D and ought to pay its existing financial obligations to reduce the danger for financiers.
The increasing threat of investors with increasing financial obligation ratio and decreasing share prices can be observed by substantial decrease of EPS of Osscube Leveraging Social Media stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow development also prevent business to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given in the Displays D and E.

TWOS Analysis


TWOS analysis can be used to derive different methods based on the SWOT Analysis given above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should present more innovative items by large amount of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the business. It could also offer Business a long term competitive benefit over its rivals.
The international expansion of Business need to be focused on market recording of developing nations by expansion, attracting more customers through client's commitment. As establishing countries are more populated than industrialized nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisOsscube Leveraging Social Media must do careful acquisition and merger of organizations, as it might impact the client's and society's perceptions about Business. It must acquire and merge with those companies which have a market reputation of healthy and healthy companies. It would enhance the understandings of consumers about Business.
Business should not just spend its R&D on development, rather than it ought to likewise focus on the R&D spending over assessment of cost of different nutritious products. This would increase expense effectiveness of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just developing but likewise to industrialized nations. It ought to broadens its geographical expansion. This wide geographical expansion towards developing and established nations would decrease the risk of prospective losses in times of instability in various countries. It needs to expand its circle to numerous countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Osscube Leveraging Social Media must sensibly manage its acquisitions to avoid the threat of mistaken belief from the consumers about Business. It must obtain and combine with those countries having a goodwill of being a healthy business in the market. This would not just improve the understanding of customers about Business but would likewise increase the sales, revenue margins and market share of Business. It would likewise allow the business to utilize its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on four aspects; age, gender, earnings and occupation. For example, Business produces several products related to babies i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Osscube Leveraging Social Media items are rather affordable by practically all levels, however its major targeted clients, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is composed of its existence in practically 86 countries. Its geographical division is based upon 2 primary aspects i.e. average earnings level of the customer as well as the environment of the area. Singapore Business Business's division is done on the basis of the weather 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 consumer. For example, Business 3 in 1 Coffee target those clients whose life style is rather hectic and do not have much time.

Behavioral Segmentation

Osscube Leveraging Social Media behavioral segmentation is based upon the attitude knowledge and awareness of the consumer. For example its highly healthy items target those customers who have a health conscious mindset towards their usages.

Osscube Leveraging Social Media Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand, there are two options:
Alternative: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the company, increasing the wealth of the company. Spending 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 strategy. However, quantity invest in the R&D might not be restored, and it will be thought about entirely sunk cost, if it do not provide possible results.
3. Investing in R&D offer sluggish development in sales, as it takes long time to introduce a product. However, acquisitions offer quick results, as it offer the company currently established item, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to face mistaken belief of customers about Business core values of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send a signal of business's inadequacy of establishing ingenious products, and would lead to consumer's discontentment too.
3. Large acquisitions than R&D would extend the product line of the business by the items which are currently present in the market, making company unable to present brand-new ingenious items.
Alternative: 2.
The Business must spend more on its R&D rather than acquisitions.
Pros:
1. It would enable the business to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would allow the company to increase its targeted consumers by introducing those items which can be used to a completely brand-new market sector.
4. Ingenious products will supply long term benefits and high market share in long run.
Cons:
1. It would decrease the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, and would affect the company at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might offer a negative signal to the investors, and might result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to introduce new innovative products with less threat of converting the costs on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the overall assets of the business would increase with its considerable R&D spending.
3. It would not impact the earnings margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in terms of the company's total wealth along with in regards to ingenious items.
Cons:
1. Threat of conversion of R&D costs into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Threat of misunderstanding about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less variety of ingenious products than alternative 2 and high number of innovative items than alternative 1.

Osscube Leveraging Social Media Conclusion

RecommendationsBusiness has actually stayed the leading market player for more than a years. It has institutionalized its strategies and culture to align itself with the marketplace modifications and consumer habits, which has eventually allowed it to sustain its market share. Business has developed significant market share and brand name identity in the urban markets, it is recommended that the company needs to focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by creating a particular brand allocation technique through trade marketing techniques, that draw clear difference between Osscube Leveraging Social Media items and other competitor products. Osscube Leveraging Social Media must leverage its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will enable the company to establish brand name equity for newly presented and already produced items on a greater platform, making the efficient use of resources and brand image in the market.

Osscube Leveraging Social Media Exhibits

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

Altering requirements of international food.
Improved market share. Changing assumption in the direction of healthier items Improvements in R&D and also QA divisions.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 1000 Highest possible after Company with less growth than Organisation 1st Lowest
R&D Spending Highest possible given that 2006 Greatest after Organisation 5th Least expensive
Net Profit Margin Highest because 2009 with quick growth from 2009 to 2019 Because of sale of Alcon in 2019. Nearly equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as health and wellness factor Highest possible variety of brands with lasting techniques Biggest confectionary and refined foods brand in the world Largest milk items and also bottled water brand name in the world
Segmentation Center and also top middle level consumers worldwide Specific clients together with home group Any age and Revenue Consumer Groups Center and upper middle degree consumers worldwide
Number of Brands 3rd 1st 3rd 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 27631 698424 488315 214115 382546
Net Profit Margin 9.28% 5.96% 77.44% 7.66% 58.67%
EPS (Earning Per Share) 64.14 5.58 6.54 1.17 85.44
Total Asset 465743 133319 259726 351926 44256
Total Debt 74837 65129 55662 28197 92414
Debt Ratio 93% 68% 23% 72% 82%
R&D Spending 4752 9684 6615 4149 6751
R&D Spending as % of Sales 8.11% 3.79% 4.34% 6.91% 8.24%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations