Thaifoon Restaurant Case Study Help

Thaifoon Restaurant is presently one of the most significant food chains worldwide. It was founded by Harvard in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed babies and decrease mortality rate. At the very same time, the Page brothers from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Company. The 2 became rivals at first however later on combined in 1905, leading to the birth of Thaifoon Restaurant.
Business is now a multinational business. Unlike other international companies, it has senior executives from different nations and attempts to make decisions thinking about the entire world. Thaifoon Restaurant presently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The function of Thaifoon Restaurant Corporation is to enhance the quality of life of individuals by playing its part and offering healthy food. It wants to help the world in forming a healthy and much better future for it. It also wants to motivate people to live a healthy life. While making sure that the company is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Thaifoon Restaurant's vision is to offer its clients with food that is healthy, high in quality and safe to eat. It wants to be innovative and all at once understand the requirements and requirements of its customers. Its vision is to grow fast and provide items that would please the requirements of each age group. Thaifoon Restaurant imagines to establish a well-trained workforce which would help the business to grow
.

Mission

Thaifoon Restaurant's mission is that as currently, it is the leading company in the food industry, it thinks in 'Good Food, Excellent Life". Its mission is to provide its consumers with a range of options that are healthy and best in taste also. It is concentrated on offering the very best food to its consumers throughout the day and night.

Products.

Business has a large range of items that it offers to its consumers. Its items consist of food for babies, cereals, dairy products, snacks, chocolates, food for animal and bottled water. It has around four hundred and fifty (450) factories all over the world and around 328,000 employees. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the business has laid down its objectives and objectives. These objectives and objectives are noted below.
• One objective of the business is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of Thaifoon Restaurant is to lose minimum food throughout production. Usually, the food produced is wasted even before it reaches the consumers.
• Another thing that Business is dealing with is to improve its product packaging in such a way that it would help it to minimize those complications and would also ensure the shipment of high quality of its items to its clients.
• Meet global standards of the environment.
• Build a relationship based on trust with its customers, service partners, employees, and government.

Critical Issues

Recently, Business Company is focusing more towards the technique of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. The target of the business is not accomplished 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 Exhibition H. There is a need 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 present Business method is based upon the concept of Nutritious, Health and Health (NHW). This technique deals with the idea to bringing modification in the client preferences about food and making the food things much healthier worrying about the health problems.
The vision of this technique 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 dietary value. The items will be made with extra nutritional value in contrast to all other items in market acquiring it a plus on its nutritional content.
This method was adopted to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other business, with an objective of maintaining its trust over customers as Business Business has actually acquired more relied on by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing actual quantity of spending reveals that the sales are increasing at a higher rate than its R&D spending, and permit the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is declining. This indication likewise shows a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio pose a hazard of default of Business to its financiers and might lead a declining share rates. In terms of increasing financial obligation ratio, the company needs to not spend much on R&D and should pay its current financial obligations to decrease the risk for investors.
The increasing danger of financiers with increasing debt ratio and decreasing share prices can be observed by substantial decline of EPS of Thaifoon Restaurant 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 business to additional 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 computations and Graphs given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be used to obtain different techniques based upon the SWOT Analysis provided above. A brief summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more ingenious items by big quantity of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the company. It might also provide Business a long term competitive benefit over its competitors.
The international growth of Business need to be focused on market recording of establishing countries by growth, bring in more customers through consumer's loyalty. As establishing nations are more populated than developed countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Thaifoon Restaurant ought to do mindful acquisition and merger of organizations, as it could impact the customer's and society's understandings about Business. It needs to get and merge with those business which have a market credibility of healthy and nutritious companies. It would improve the perceptions of customers about Business.
Business ought to not just invest its R&D on innovation, instead of it must also focus on the R&D costs over examination of expense of different nutritious items. 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 ought to move to not just developing however likewise to industrialized countries. It must broaden its circle to numerous nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It must get and merge with those nations having a goodwill of being a healthy business in the market. It would also make it possible for the business to utilize its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon four factors; age, gender, income and occupation. Business produces several products related to infants i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Thaifoon Restaurant products are rather cost effective by almost all levels, however its major targeted consumers, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in almost 86 nations. Its geographical segmentation is based upon two main factors i.e. typical earnings level of the customer along with the climate of the region. Singapore Business Business's segmentation 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 consumer. Business 3 in 1 Coffee target those customers whose life style is quite busy and don't have much time.

Behavioral Segmentation

Thaifoon Restaurant behavioral division is based upon the attitude understanding and awareness of the customer. Its highly nutritious items target those consumers who have a health mindful mindset towards their intakes.

Thaifoon Restaurant Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand, there are 2 choices:
Option: 1
The Company must invest 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 cost.
2. The business can resell the acquired units in the market, if it fails to execute its method. Nevertheless, quantity spend on the R&D could not be restored, and it will be thought about completely sunk cost, if it do not provide potential outcomes.
3. Spending on R&D supply sluggish growth in sales, as it takes long time to present a product. Acquisitions provide fast results, as it offer the business already established product, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to face misunderstanding of customers about Business core worths of healthy and nutritious products.
2 Big spending on acquisitions than R&D would send out a signal of company's ineffectiveness of developing innovative items, and would lead to customer's discontentment also.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are currently present in the market, making business not able to introduce new ingenious products.
Alternative: 2.
The Company needs to spend more on its R&D rather than acquisitions.
Pros:
1. It would enable the business to produce more innovative items.
2. It would offer the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted clients by presenting those products which can be provided to a completely new market segment.
4. Innovative items will provide 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 entire spending on R&D would be considered as sunk expense, and would affect the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could offer a negative signal to the investors, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Pros:
1. It would permit the company to introduce new innovative products with less threat of converting the costs on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the overall possessions of the business would increase with its considerable R&D costs.
3. It would not impact the revenue margins of the company at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the company's overall wealth as well as in terms of ingenious products.
Cons:
1. Threat of conversion of R&D costs into sunk cost, greater than option 1 lower than alternative 2.
2. Risk of misunderstanding about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Introduction of less number of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

Thaifoon Restaurant Conclusion

It has institutionalized its strategies and culture to align itself with the market changes and consumer habits, which has ultimately permitted it to sustain its market share. Business has developed significant market share and brand name identity in the metropolitan markets, it is recommended that the company ought to focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by creating a specific brand name allotment technique through trade marketing techniques, that draw clear difference in between Thaifoon Restaurant items and other competitor items.

Thaifoon Restaurant Exhibits