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Texas Gulf Sulphur The Timmins Ontario Mine Case Study Analysis

Business is presently one of the greatest food chains worldwide. It was founded by Henri Texas Gulf Sulphur The Timmins Ontario Mine in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed babies and reduce mortality rate.
Business is now a global business. Unlike other multinational companies, it has senior executives from different nations and tries to make decisions considering the entire world. Texas Gulf Sulphur The Timmins Ontario Mine presently has more than 500 factories around the world and a network spread throughout 86 countries.


The function of Texas Gulf Sulphur The Timmins Ontario Mine Corporation is to enhance the lifestyle of individuals by playing its part and offering healthy food. It wishes to help the world in forming a healthy and much better future for it. It also wishes to motivate people to live a healthy life. While making certain that the business is succeeding in the long run, that's how it plays its part for a better and healthy future


Texas Gulf Sulphur The Timmins Ontario Mine's vision is to supply its customers with food that is healthy, high in quality and safe to eat. Business visualizes to establish a well-trained workforce which would help the business to grow


Texas Gulf Sulphur The Timmins Ontario Mine's mission is that as currently, it is the leading business in the food market, it thinks in 'Good Food, Great Life". Its mission is to supply its consumers with a range of options that are healthy and finest in taste also. It is focused on supplying the very best food to its clients throughout the day and night.


Texas Gulf Sulphur The Timmins Ontario Mine has a large variety of products that it offers to its clients. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the company has actually laid down its objectives and objectives. These objectives and goals are noted below.
• One goal of the business is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another goal of Texas Gulf Sulphur The Timmins Ontario Mine is to lose minimum food during production. Most often, the food produced is wasted even before it reaches the customers.
• Another thing that Business is dealing with is to improve its packaging in such a way that it would help it to reduce the above-mentioned issues and would also guarantee the delivery of high quality of its products to its clients.
• Meet worldwide requirements of the environment.
• Develop a relationship based upon trust with its customers, organisation partners, staff members, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the strategy 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 strategy. The target of the company is not accomplished as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H. There is a need to focus more on the sales then the development technology. Otherwise, it may lead to the decreased income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based on the idea of Nutritious, Health and Health (NHW). This technique handles the concept to bringing modification in the client preferences about food and making the food things much healthier concerning about the health problems.
The vision of this method is based on the key method i.e. 60/40+ which simply means that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The products will be made with extra dietary value in contrast to all other items in market getting it a plus on its dietary content.
This strategy was adopted to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other companies, with an intent of retaining its trust over consumers as Business Company has gained more relied on by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing actual amount of costs shows that the sales are increasing at a greater rate than its R&D spending, and enable the company to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This sign also shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing debt ratio posture a threat of default of Business to its investors and could lead a decreasing share prices. For that reason, in regards to increasing financial obligation ratio, the firm must not spend much on R&D and ought to pay its existing financial obligations to decrease the danger for investors.
The increasing threat of investors with increasing debt ratio and decreasing share prices can be observed by huge decrease of EPS of Texas Gulf Sulphur The Timmins Ontario Mine stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception building of customers. This sluggish growth also prevent company to more 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 estimations and Graphs given up the Displays D and E.

TWOS Analysis

TWOS analysis can be utilized to derive various strategies based upon the SWOT Analysis provided above. A short summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more ingenious items by big quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the business. It might likewise offer Business a long term competitive advantage over its rivals.
The international growth of Business must be focused on market recording of establishing nations by growth, bring in more customers through client's commitment. As developing nations are more populous than developed nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisTexas Gulf Sulphur The Timmins Ontario Mine must do cautious acquisition and merger of organizations, as it might affect the consumer's and society's understandings about Business. It needs to get and merge with those companies which have a market reputation of healthy and healthy business. It would enhance the understandings of customers about Business.
Business should not just invest its R&D on innovation, rather than it must also focus on the R&D costs over evaluation of cost of various healthy products. This would increase expense performance of its items, which will result in increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not only establishing but also to industrialized nations. It should widen its circle to different countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Texas Gulf Sulphur The Timmins Ontario Mine ought to carefully manage its acquisitions to avoid the threat of misunderstanding from the consumers about Business. It needs to acquire and combine with those nations having a goodwill of being a healthy company in the market. This would not just enhance the understanding of consumers about Business but would likewise increase the sales, revenue margins and market share of Business. It would also make it possible for the business to use its prospective resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 factors; age, gender, earnings and occupation. Business produces numerous products related to babies i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Texas Gulf Sulphur The Timmins Ontario Mine items are rather economical by almost all levels, but its significant targeted customers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in almost 86 countries. Its geographical division is based upon 2 primary aspects i.e. average income level of the customer along with the climate of the area. 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 lifestyle of the client. For instance, Business 3 in 1 Coffee target those customers whose lifestyle is quite hectic and do not have much time.

Behavioral Segmentation

Texas Gulf Sulphur The Timmins Ontario Mine behavioral division is based upon the attitude understanding and awareness of the consumer. For example its highly nutritious products target those customers who have a health mindful attitude towards their intakes.

Texas Gulf Sulphur The Timmins Ontario Mine Alternatives

In order to sustain the brand in the market and keep the consumer undamaged with the brand name, there are 2 alternatives:
Option: 1
The Business should invest more on acquisitions than on the R&D.
1. Acquisitions would increase total possessions of the business, increasing the wealth of the company. However, costs on R&D would be sunk expense.
2. The business can resell the acquired units in the market, if it fails to execute its strategy. Amount invest on the R&D could not be restored, and it will be thought about completely sunk cost, if it do not give possible outcomes.
3. Spending on R&D provide sluggish development in sales, as it takes very long time to present a product. However, acquisitions supply quick results, as it provide the company currently established item, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the business to face misconception of customers about Business core values of healthy and healthy items.
2 Big costs on acquisitions than R&D would send out a signal of business's inadequacy of developing ingenious products, and would results in consumer's dissatisfaction.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are already present in the market, making company not able to present new ingenious products.
Option: 2.
The Business should invest more on its R&D instead of acquisitions.
1. It would allow the business to produce more ingenious items.
2. It would supply 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 a totally brand-new market section.
4. Innovative products will offer long term benefits and high market share in long run.
1. It would reduce the profit margins of the business.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would impact the business at big. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might supply an unfavorable signal to the financiers, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to present new innovative items with less danger of converting the spending on R&D into sunk expense.
2. It would supply a positive signal to the investors, 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 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 general wealth in addition to in terms of innovative products.
1. Risk of conversion of R&D spending into sunk cost, higher than alternative 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less number of innovative items than alternative 2 and high number of innovative items than alternative 1.

Texas Gulf Sulphur The Timmins Ontario Mine Conclusion

RecommendationsBusiness has actually remained the top market gamer for more than a decade. It has actually institutionalised its methods and culture to align itself with the market modifications and customer habits, which has actually ultimately allowed it to sustain its market share. Though, Business has actually established significant market share and brand identity in the metropolitan markets, it is recommended that the company should focus on the rural areas in regards to establishing brand loyalty, awareness, and equity, such can be done by creating a specific brand allowance strategy through trade marketing tactics, that draw clear distinction in between Texas Gulf Sulphur The Timmins Ontario Mine items and other rival products. Texas Gulf Sulphur The Timmins Ontario Mine should leverage its brand image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will enable the business to establish brand name equity for freshly introduced and already produced products on a higher platform, making the reliable usage of resources and brand name image in the market.

Texas Gulf Sulphur The Timmins Ontario Mine Exhibits

PESTEL Analysis
Governmental support

Transforming requirements of worldwide food.
Improved market share. Transforming understanding in the direction of much healthier items Improvements in R&D and also QA divisions.

Intro of E-marketing.
No such influence as it is good. Concerns over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest since 2000 Greatest after Service with less growth than Company 3rd Least expensive
R&D Spending Highest possible because 2006 Highest after Business 5th Cheapest
Net Profit Margin Greatest since 2005 with quick growth from 2001 to 2016 Due to sale of Alcon in 2013. Practically equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and health and wellness factor Highest possible number of brand names with sustainable methods Largest confectionary and also processed foods brand worldwide Biggest dairy products and mineral water brand name on the planet
Segmentation Center as well as top middle level customers worldwide Specific clients in addition to household team All age and Income Client Teams Center and also top middle degree customers worldwide
Number of Brands 2nd 6th 7th 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 41622 967677 593925 259912 798712
Net Profit Margin 7.15% 9.41% 59.87% 3.55% 67.22%
EPS (Earning Per Share) 19.82 2.17 9.45 9.43 19.75
Total Asset 599725 462488 197934 122881 86595
Total Debt 52765 66736 99847 62248 64358
Debt Ratio 23% 55% 57% 57% 61%
R&D Spending 1674 5665 9221 2665 4351
R&D Spending as % of Sales 9.41% 5.74% 7.83% 1.56% 7.38%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations