Ultra The Quest For Leadership C Portuguese Version Case Study Solution

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Ultra The Quest For Leadership C Portuguese Version Case Study Analysis

Business is currently one of the most significant food chains worldwide. It was established by Henri Ultra The Quest For Leadership C Portuguese Version in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate.
Business is now a multinational company. Unlike other multinational companies, it has senior executives from different nations and attempts to make decisions thinking about the entire world. Ultra The Quest For Leadership C Portuguese Version currently has more than 500 factories around the world and a network spread across 86 countries.


The function of Ultra The Quest For Leadership C Portuguese Version Corporation is to improve the lifestyle of individuals by playing its part and supplying healthy food. It wishes to help the world in shaping a healthy and better future for it. It likewise wishes to motivate individuals to live a healthy life. While making sure that the business is being successful in the long run, that's how it plays its part for a much better and healthy future


Ultra The Quest For Leadership C Portuguese Version's vision is to provide its customers with food that is healthy, high in quality and safe to eat. Business pictures to develop a well-trained workforce which would help the business to grow


Ultra The Quest For Leadership C Portuguese Version's objective is that as presently, it is the leading business in the food market, it thinks in 'Great Food, Good Life". Its objective is to provide its consumers with a variety 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.


Ultra The Quest For Leadership C Portuguese Version has a broad range of products that it uses to its consumers. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the business has actually set its goals and objectives. These goals and goals are noted below.
• One goal of the business is to reach no garbage dump status. It is pursuing zero waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Ultra The Quest For Leadership C Portuguese Version is to waste minimum food during production. Usually, the food produced is squandered even before it reaches the customers.
• Another thing that Business is dealing with is to improve its product packaging in such a way that it would help it to reduce those problems and would likewise guarantee the delivery of high quality of its items to its customers.
• Meet global requirements of the environment.
• Develop a relationship based upon trust with its customers, business partners, staff members, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy 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 method. The target of the business is not accomplished 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 Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may result in the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based upon the concept of Nutritious, Health and Wellness (NHW). This technique handles the concept to bringing change in the client preferences about food and making the food stuff much healthier concerning about the health problems.
The vision of this strategy is based on the key technique i.e. 60/40+ which just implies that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary worth. The items will be manufactured with additional nutritional value in contrast to all other items in market acquiring it a plus on its nutritional material.
This technique was adopted to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other companies, with an intention of keeping its trust over consumers as Business Business has gotten more trusted by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing real amount of costs shows that the sales are increasing at a higher rate than its R&D costs, and enable the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indication likewise shows a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio posture a risk of default of Business to its investors and could lead a decreasing share prices. Therefore, in terms of increasing debt ratio, the firm ought to not spend much on R&D and ought to pay its existing financial obligations to decrease the risk for financiers.
The increasing risk of financiers with increasing financial obligation ratio and declining share costs can be observed by big decline of EPS of Ultra The Quest For Leadership C Portuguese Version stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow perception structure of consumers. This sluggish development likewise prevent company to further invest in 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 up the Displays D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business ought to present more ingenious items by large amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the business. It might likewise provide Business a long term competitive advantage over its competitors.
The global growth of Business ought to be concentrated on market recording of developing nations by expansion, drawing in more consumers through consumer's loyalty. As establishing countries are more populous than industrialized countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisUltra The Quest For Leadership C Portuguese Version should do cautious acquisition and merger of companies, as it could impact the customer's and society's understandings about Business. It needs to get and combine 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 only invest its R&D on innovation, rather than it should also focus on the R&D spending over evaluation of cost of different nutritious items. This would increase cost efficiency of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not only establishing but likewise to developed nations. It must expand its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It must get and combine with those nations having a goodwill of being a healthy business in the market. It would also enable the business to use its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon 4 factors; age, gender, income and profession. Business produces several products related to children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. Ultra The Quest For Leadership C Portuguese Version products are quite cost effective by nearly all levels, however its major targeted clients, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in nearly 86 countries. Its geographical segmentation is based upon 2 primary factors i.e. typical income level of the consumer as well as the environment of the region. For example, 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 personality and life style of the customer. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Ultra The Quest For Leadership C Portuguese Version behavioral segmentation is based upon the mindset understanding and awareness of the customer. Its extremely nutritious products target those consumers who have a health conscious attitude towards their intakes.

Ultra The Quest For Leadership C Portuguese Version Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand, there are 2 alternatives:
Option: 1
The Business ought to spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the business, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The business can resell the obtained systems in the market, if it stops working to implement its method. Nevertheless, amount invest in the R&D might not be restored, and it will be thought about completely sunk expense, if it do not provide prospective results.
3. Spending on R&D provide slow development in sales, as it takes very long time to present an item. However, acquisitions offer fast results, as it offer the company already developed product, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the company to face misconception of customers about Business core worths of healthy and nutritious items.
2 Big costs on acquisitions than R&D would send a signal of company's ineffectiveness of establishing innovative products, and would results in customer's dissatisfaction as well.
3. Big acquisitions than R&D would extend the line of product of the business by the products which are already present in the market, making business unable to introduce brand-new ingenious products.
Option: 2.
The Business should invest more on its R&D rather than acquisitions.
1. It would allow the company to produce more ingenious products.
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 introducing those products which can be offered to a completely brand-new market section.
4. Innovative items will offer long term benefits and high market share in long run.
1. It would reduce the earnings margins of the company.
2. In case of failure, the entire costs on R&D would be considered as sunk expense, and would affect the business at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which might provide an unfavorable signal to the investors, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to introduce new ingenious items with less danger of converting the spending on R&D into sunk expense.
2. It would offer a positive signal to the investors, as the general properties of the business would increase with its considerable R&D costs.
3. It would not impact the profit 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 regards to the company's total wealth as well as in terms of innovative items.
1. Danger of conversion of R&D spending into sunk cost, greater than option 1 lower than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Intro of less number of innovative items than alternative 2 and high number of ingenious products than alternative 1.

Ultra The Quest For Leadership C Portuguese Version Conclusion

RecommendationsBusiness has remained the top market player for more than a decade. It has actually institutionalized its strategies and culture to align itself with the marketplace modifications and customer habits, which has eventually permitted it to sustain its market share. Though, Business has actually developed substantial market share and brand name identity in the urban markets, it is suggested that the company needs to focus on the rural areas in terms of developing brand loyalty, awareness, and equity, such can be done by creating a specific brand allocation strategy through trade marketing techniques, that draw clear difference between Ultra The Quest For Leadership C Portuguese Version items and other competitor items. Moreover, Business must take advantage of 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 enable the business to establish brand name equity for freshly introduced and currently produced products on a greater platform, making the efficient use of resources and brand image in the market.

Ultra The Quest For Leadership C Portuguese Version Exhibits

PESTEL Analysis
Governmental assistance

Changing standards of international food.
Enhanced market share. Transforming assumption towards much healthier products Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such impact as it is beneficial. Problems over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 9000 Highest possible after Company with much less development than Organisation 2nd Most affordable
R&D Spending Greatest since 2003 Greatest after Business 8th Most affordable
Net Profit Margin Highest possible given that 2007 with rapid growth from 2001 to 2018 As a result of sale of Alcon in 2012. Nearly equal to Kraft Foods Incorporation Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment and also wellness element Highest possible number of brands with lasting practices Largest confectionary as well as processed foods brand in the world Biggest dairy products and also mineral water brand on the planet
Segmentation Center as well as top center degree customers worldwide Private clients in addition to home team Any age and also Earnings Consumer Teams Middle and upper center degree consumers worldwide
Number of Brands 7th 2nd 6th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 28841 912618 221631 156295 962551
Net Profit Margin 7.27% 4.41% 74.35% 3.33% 34.38%
EPS (Earning Per Share) 89.41 3.31 2.66 4.92 35.83
Total Asset 713362 196258 754886 324141 97616
Total Debt 92186 19773 96589 78633 66283
Debt Ratio 11% 69% 48% 53% 67%
R&D Spending 7263 1439 2562 5887 7886
R&D Spending as % of Sales 4.85% 4.44% 4.76% 1.76% 2.72%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations