Student Educational Loan Fund Inc Abridged Case Study Analysis

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Student Educational Loan Fund Inc Abridged Case Study Solution

Business is presently one of the most significant food chains worldwide. It was established by Henri Student Educational Loan Fund Inc Abridged in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from various nations and tries to make choices considering the whole world. Student Educational Loan Fund Inc Abridged presently has more than 500 factories worldwide and a network spread throughout 86 countries.


The function of Student Educational Loan Fund Inc Abridged Corporation is to boost the quality of life of people by playing its part and offering healthy food. It wants to help the world in forming a healthy and better future for it. It also wants to encourage individuals to live a healthy life. While making sure that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future


Student Educational Loan Fund Inc Abridged's vision is to provide its clients with food that is healthy, high in quality and safe to consume. Business envisions to develop a trained workforce which would help the company to grow


Student Educational Loan Fund Inc Abridged's objective is that as presently, it is the leading company in the food market, it thinks in 'Great Food, Excellent Life". Its mission is to provide its customers with a range of choices that are healthy and best in taste too. It is focused on offering the very best food to its clients throughout the day and night.


Student Educational Loan Fund Inc Abridged has a large variety of products that it offers to its customers. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has laid down its objectives and goals. These goals and goals are noted below.
• One goal of the business is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another objective of Student Educational Loan Fund Inc Abridged 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 improve its product packaging in such a method that it would help it to lower those complications and would likewise ensure the delivery of high quality of its products to its customers.
• Meet international requirements of the environment.
• Develop a relationship based upon trust with its customers, service partners, workers, and government.

Critical Issues

Recently, Business Business is focusing more towards the method of NHW and investing more of its profits on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the company is not achieved as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may result in the decreased revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based on the idea of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing change in the customer preferences about food and making the food stuff much healthier concerning about the health issues.
The vision of this technique is based upon the key technique i.e. 60/40+ which simply indicates that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be manufactured with additional nutritional value in contrast to all other products in market getting it a plus on its dietary content.
This method was adopted to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other business, with an objective of retaining its trust over consumers as Business Business has acquired more relied on by costumers.

Quantitative Analysis.

R&D Spending 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 costs, and allow the business to more invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise 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 debt ratio pose a threat of default of Business to its investors and might lead a declining share costs. In terms of increasing financial obligation ratio, the company must not spend much on R&D and should pay its existing financial obligations to decrease the threat for financiers.
The increasing threat of investors with increasing debt ratio and decreasing share rates can be observed by big decrease of EPS of Student Educational Loan Fund Inc Abridged stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception building of customers. This slow growth also prevent business to additional 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 in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be utilized to derive different strategies based on the SWOT Analysis provided above. A brief summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative items by large amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the company. It might also supply Business a long term competitive benefit over its competitors.
The international expansion of Business must be focused on market capturing of establishing countries by expansion, drawing in more customers through client's loyalty. As developing nations are more populous than industrialized nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisStudent Educational Loan Fund Inc Abridged needs to do mindful acquisition and merger of organizations, as it might impact the consumer's and society's perceptions about Business. It needs to obtain and merge with those companies which have a market credibility of healthy and healthy companies. It would improve the understandings of consumers about Business.
Business ought to not only invest its R&D on development, rather than it must likewise focus on the R&D spending over examination of cost of numerous healthy items. This would increase cost efficiency of its products, which will result in increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business should move to not just establishing however likewise to developed nations. It should widen its circle to numerous countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Student Educational Loan Fund Inc Abridged needs to carefully control its acquisitions to avoid the danger of misconception from the customers about Business. It must get and merge with those countries having a goodwill of being a healthy company in the market. This would not just enhance the perception of consumers about Business however would also increase the sales, earnings margins and market share of Business. It would likewise enable the business to utilize its possible resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon four aspects; age, gender, income and profession. Business produces several items related to babies i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. Student Educational Loan Fund Inc Abridged products are rather budget friendly by nearly all levels, but its significant targeted customers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is composed of its existence in practically 86 nations. Its geographical segmentation is based upon 2 primary elements i.e. typical earnings level of the consumer as well as the climate of the region. 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 division of Business is based upon the character and life style of the customer. Business 3 in 1 Coffee target those consumers whose life design is rather hectic and do not have much time.

Behavioral Segmentation

Student Educational Loan Fund Inc Abridged behavioral segmentation is based upon the mindset knowledge and awareness of the customer. For instance its extremely nutritious products target those clients who have a health conscious attitude towards their usages.

Student Educational Loan Fund Inc Abridged Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand, there are 2 options:
Option: 1
The Business should spend more on acquisitions than on the R&D.
1. Acquisitions would increase total possessions of the company, increasing the wealth of the company. However, spending on R&D would be sunk cost.
2. The business can resell the gotten systems in the market, if it stops working to execute its method. Amount spend on the R&D might not be revived, and it will be considered totally sunk expense, if it do not offer prospective outcomes.
3. Investing in R&D supply slow development in sales, as it takes long period of time to present a product. However, acquisitions supply fast results, as it provide the business already established product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send out a signal of company's ineffectiveness of developing innovative products, and would outcomes in consumer's dissatisfaction.
3. Large acquisitions than R&D would extend the line of product of the company by the products which are currently present in the market, making company not able to present brand-new innovative items.
Option: 2.
The Company needs to invest more on its R&D rather than acquisitions.
1. It would make it possible for the company to produce more ingenious products.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted consumers by presenting those products which can be used to a totally new market sector.
4. Ingenious products will offer long term advantages and high market share in long run.
1. It would reduce the earnings margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk expense, 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 might provide a negative signal to the investors, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present new ingenious items with less danger of converting the costs on R&D into sunk expense.
2. It would offer a positive signal to the investors, as the total possessions of the business would increase with its substantial R&D costs.
3. It would not affect the profit margins of the business at a large rate as compare to alternative 2.
4. It would offer the company a strong long term market position in regards to the business's total wealth in addition to in regards to innovative products.
1. Risk of conversion of R&D costs into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat 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 variety of innovative items than alternative 1.

Student Educational Loan Fund Inc Abridged Conclusion

RecommendationsBusiness has remained the top market player for more than a years. It has actually institutionalised its strategies and culture to align itself with the market modifications and consumer habits, which has actually eventually permitted it to sustain its market share. Though, Business has actually developed considerable market share and brand identity in the urban markets, it is recommended that the company ought to concentrate on the backwoods in terms of establishing brand name commitment, awareness, and equity, such can be done by developing a specific brand name allocation strategy through trade marketing strategies, that draw clear difference between Student Educational Loan Fund Inc Abridged products and other competitor products. Furthermore, Business should utilize 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 business to establish brand equity for freshly introduced and already produced items on a greater platform, making the efficient use of resources and brand name image in the market.

Student Educational Loan Fund Inc Abridged Exhibits

PESTEL Analysis
Governmental assistance

Altering standards of international food.
Enhanced market share. Altering assumption in the direction of healthier items Improvements in R&D as well as QA divisions.

Introduction of E-marketing.
No such effect as it is beneficial. Concerns over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 3000 Highest after Business with much less development than Service 8th Most affordable
R&D Spending Highest given that 2001 Highest after Company 8th Most affordable
Net Profit Margin Highest possible since 2009 with quick development from 2002 to 2016 Because of sale of Alcon in 2019. Almost equal to Kraft Foods Incorporation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health and wellness aspect Highest number of brand names with lasting practices Largest confectionary and processed foods brand name worldwide Biggest milk products as well as mineral water brand on the planet
Segmentation Center and upper center level consumers worldwide Private clients in addition to home group All age as well as Revenue Customer Teams Middle and also upper middle level consumers worldwide
Number of Brands 6th 2nd 4th 9th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 41621 563487 145948 561541 348789
Net Profit Margin 8.18% 9.33% 42.39% 2.83% 12.49%
EPS (Earning Per Share) 25.81 3.52 3.65 3.36 12.24
Total Asset 633343 515791 937657 528682 12526
Total Debt 92419 45419 66768 78886 98182
Debt Ratio 49% 52% 99% 61% 62%
R&D Spending 2652 8343 7876 1438 9875
R&D Spending as % of Sales 6.47% 5.51% 1.52% 7.89% 6.59%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations