Menu

Ultra The Quest For Leadership B Case Study Solution

Case Study Solution And Analysis


Home >> Harvard >> Ultra The Quest For Leadership B >>

Ultra The Quest For Leadership B Case Study Solution

Ultra The Quest For Leadership B is currently one of the biggest food chains worldwide. It was founded by Harvard in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate. At the exact same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two became competitors initially however later on merged in 1905, resulting in the birth of Ultra The Quest For Leadership B.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from different nations and attempts to make choices thinking about the whole world. Ultra The Quest For Leadership B presently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The purpose of Business Corporation is to enhance the quality of life of people by playing its part and offering 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

Vision

Ultra The Quest For Leadership B's vision is to provide its customers with food that is healthy, high in quality and safe to consume. Business pictures to develop a trained workforce which would help the company to grow
.

Mission

Ultra The Quest For Leadership B's objective is that as presently, it is the leading company in the food industry, it thinks in 'Excellent Food, Good Life". Its mission is to supply its consumers with a range of choices that are healthy and best in taste. It is concentrated on supplying the best food to its consumers throughout the day and night.

Products.

Ultra The Quest For Leadership B has a broad range of items that it uses to its consumers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has laid down its goals and goals. These objectives and objectives are listed below.
• One objective of the company is to reach absolutely no land fill status. (Business, aboutus, 2017).
• Another objective of Ultra The Quest For Leadership B is to squander minimum food during production. Usually, the food produced is squandered even before it reaches the customers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to lower the above-mentioned issues and would likewise ensure the shipment of high quality of its items to its consumers.
• Meet worldwide requirements of the environment.
• Construct a relationship based upon trust with its consumers, organisation partners, employees, and government.

Critical Issues

Recently, Business Company is focusing more towards the method of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the business is not attained as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based on the concept of Nutritious, Health and Health (NHW). This technique deals with the idea to bringing modification in the customer preferences about food and making the food stuff healthier concerning about the health concerns.
The vision of this strategy is based on the secret technique i.e. 60/40+ which just means that the products will have a score of 60% on the basis of taste and 40% is based upon its dietary worth. The products will be manufactured with additional dietary worth in contrast to all other products in market getting it a plus on its dietary material.
This strategy was adopted to bring more yummy plus nutritious foods and beverages in market than ever. In competitors with other business, with an intent of retaining its trust over clients as Business Company has actually acquired more relied on by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing actual quantity of costs shows that the sales are increasing at a greater rate than its R&D costs, and enable the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indication also shows a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of debts. This increasing debt ratio pose a danger of default of Business to its financiers and could lead a decreasing share prices. Therefore, in terms of increasing financial obligation ratio, the company needs to not spend much on R&D and must pay its current financial obligations to decrease the danger for financiers.
The increasing threat of financiers with increasing debt ratio and decreasing share rates can be observed by substantial decrease of EPS of Ultra The Quest For Leadership B stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish development also prevent company 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 estimations and Charts given up the Displays D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by large amount of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the business. It could likewise offer Business a long term competitive advantage over its rivals.
The worldwide growth of Business should be focused on market recording of establishing countries by growth, bring in more customers through consumer's commitment. As developing nations are more populous than industrialized nations, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisUltra The Quest For Leadership B must do cautious acquisition and merger of organizations, as it might affect the customer's and society's perceptions about Business. It must obtain and combine with those business which have a market credibility of healthy and nutritious companies. It would improve the understandings of consumers about Business.
Business needs to not only spend its R&D on development, instead of it must also concentrate on the R&D spending over evaluation of cost of numerous healthy items. This would increase cost efficiency of its products, which will result in increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business needs to transfer to not just establishing but likewise to developed countries. It should broadens its geographical growth. This wide geographical growth towards developing and developed nations would reduce the threat of possible losses in times of instability in different countries. It must broaden its circle to different nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to obtain and merge with those nations having a goodwill of being a healthy company in the market. It would likewise make it possible for the company to utilize its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based upon 4 factors; age, gender, earnings and profession. For example, Business produces a number of products related to children i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. Ultra The Quest For Leadership B items are rather cost effective by nearly all levels, but its major targeted consumers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its existence in almost 86 countries. Its geographical division is based upon two main aspects i.e. average income level of the customer in addition to the environment of the area. Singapore Business Company'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. Business 3 in 1 Coffee target those consumers whose life style is quite hectic and do not have much time.

Behavioral Segmentation

Ultra The Quest For Leadership B behavioral division is based upon the mindset understanding and awareness of the consumer. For example its extremely healthy products target those clients who have a health mindful mindset towards their intakes.

Ultra The Quest For Leadership B Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand name, there are 2 alternatives:
Option: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Spending on R&D would be sunk expense.
2. The business can resell the acquired systems in the market, if it fails to implement its technique. Quantity spend on the R&D could not be restored, and it will be thought about entirely sunk cost, if it do not provide prospective results.
3. Investing in R&D supply slow growth in sales, as it takes long time to present a product. Acquisitions supply quick results, as it supply the company currently established item, which can be marketed soon 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 deal with mistaken belief of customers about Business core values of healthy and nutritious items.
2 Big costs on acquisitions than R&D would send a signal of business's ineffectiveness of developing ingenious items, and would lead to consumer's frustration too.
3. Large 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 unable to introduce brand-new innovative items.
Alternative: 2.
The Business should spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the company to produce more innovative products.
2. It would supply the business a strong competitive position in the market.
3. It would allow the company to increase its targeted consumers by presenting those products which can be provided to a totally new market segment.
4. Innovative products will offer long term benefits and high market share in long run.
Cons:
1. It would decrease the revenue margins of the company.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would impact the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could provide a negative signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to present new innovative products with less risk of converting the spending on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the total assets of the business would increase with its significant R&D costs.
3. It would not affect the profit margins of the business at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the business's overall wealth along with in regards to innovative items.
Cons:
1. Threat of conversion of R&D costs into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of mistaken belief 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.

Ultra The Quest For Leadership B Conclusion

RecommendationsBusiness has actually remained the leading market player for more than a decade. It has institutionalized its techniques and culture to align itself with the marketplace modifications and client habits, which has eventually enabled it to sustain its market share. Business has developed substantial market share and brand identity in the city markets, it is recommended that the company ought to focus on the rural locations in terms of establishing brand name commitment, awareness, and equity, such can be done by developing a specific brand name allotment method through trade marketing techniques, that draw clear distinction between Ultra The Quest For Leadership B items and other competitor products. Furthermore, Business ought to leverage its brand 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 allow the business to develop brand name equity for freshly presented and already produced items on a higher platform, making the reliable usage of resources and brand image in the market.

Ultra The Quest For Leadership B Exhibits

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

Transforming criteria of global food.
Enhanced market share.
Altering perception in the direction of healthier items
Improvements in R&D as well as QA divisions.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 5000
Greatest after Service with much less growth than Company 1st Lowest
R&D Spending Highest since 2005 Greatest after Organisation 4th Cheapest
Net Profit Margin Highest possible because 2002 with rapid growth from 2002 to 2014 Due to sale of Alcon in 2018. Almost equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and also health element Greatest variety of brands with sustainable techniques Largest confectionary as well as refined foods brand in the world Largest milk products and mineral water brand name on the planet
Segmentation Center and top center level consumers worldwide Specific customers in addition to household team Any age and Revenue Consumer Teams Center and also upper middle degree consumers worldwide
Number of Brands 1st 8th 6th 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 28146 684475 192629 346221 794742
Net Profit Margin 6.16% 7.46% 64.11% 2.97% 83.63%
EPS (Earning Per Share) 21.45 9.34 2.49 6.26 75.63
Total Asset 843753 712273 171974 823558 91212
Total Debt 32485 29714 89592 93543 14971
Debt Ratio 37% 78% 47% 47% 35%
R&D Spending 6481 9314 8378 8491 7148
R&D Spending as % of Sales 5.22% 9.29% 2.13% 5.38% 3.52%

Ultra The Quest For Leadership B Executive Summary Ultra The Quest For Leadership B Swot Analysis Ultra The Quest For Leadership B Vrio Analysis Ultra The Quest For Leadership B Pestel Analysis
Ultra The Quest For Leadership B Porters Analysis Ultra The Quest For Leadership B Recommendations