Urban Water Partners A Case Study Solution

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Urban Water Partners A Case Study Solution

Urban Water Partners A is presently among the biggest food cycle worldwide. It was established by Harvard in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate. At the very same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two became rivals at first but later on merged in 1905, resulting in the birth of Urban Water Partners A.
Business is now a global company. Unlike other international business, it has senior executives from various nations and tries to make decisions thinking about the whole world. Urban Water Partners A presently has more than 500 factories around the world and a network spread across 86 nations.


The purpose of Urban Water Partners A Corporation is to boost the lifestyle of individuals by playing its part and providing healthy food. It wants to help the world in forming a healthy and much better future for it. It likewise wants to motivate individuals to live a healthy life. While making certain that the company is being successful in the long run, that's how it plays its part for a much better and healthy future


Urban Water Partners A's vision is to offer its customers with food that is healthy, high in quality and safe to consume. It wants to be innovative and all at once understand the requirements and requirements of its consumers. Its vision is to grow quick and supply products that would please the requirements of each age. Urban Water Partners A pictures to establish a well-trained workforce which would help the company to grow


Urban Water Partners A's mission is that as presently, it is the leading business in the food industry, it believes in 'Great Food, Great Life". Its objective is to supply its customers with a range of choices that are healthy and finest in taste. It is concentrated on supplying the very best food to its consumers throughout the day and night.


Urban Water Partners A has a large variety of items that it offers to its clients. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually laid down its objectives and goals. These goals and objectives are noted below.
• One goal of the company is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another goal of Urban Water Partners A is to lose minimum food during production. Usually, the food produced is squandered even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its packaging in such a way that it would help it to lower those issues and would likewise guarantee the delivery of high quality of its products to its customers.
• Meet international requirements of the environment.
• Construct a relationship based on trust with its customers, organisation partners, staff members, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique of NHW and investing more of its earnings on the R&D technology. 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%, offered in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based upon the concept of Nutritious, Health and Wellness (NHW). This technique deals with the idea to bringing modification in the customer preferences about food and making the food things much healthier concerning about the health problems.
The vision of this method is based upon the key method i.e. 60/40+ which simply indicates that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary value. The items will be made with additional dietary worth in contrast to all other products in market getting it a plus on its dietary material.
This method was embraced to bring more tasty plus nutritious foods and drinks in market than ever. In competition with other companies, with an objective of retaining its trust over consumers as Business Company has gotten more trusted by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indicator also 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 financial obligations. This increasing financial obligation ratio present a danger of default of Business to its investors and could lead a declining share prices. For that reason, in terms of increasing debt ratio, the firm needs to not spend much on R&D and needs to pay its existing debts to decrease the threat for financiers.
The increasing risk of financiers with increasing financial obligation ratio and declining share rates can be observed by substantial decline of EPS of Urban Water Partners A stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow growth likewise 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 computations and Graphs given up the Displays D and E.

TWOS Analysis

2 analysis can be used to derive various techniques based on the SWOT Analysis offered above. A quick summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business must present 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 revenue margins for the company. It could also offer Business a long term competitive advantage over its rivals.
The international growth of Business ought to be focused on market recording of establishing nations by growth, drawing in more clients through consumer's loyalty. As developing nations are more populous than developed nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisUrban Water Partners A must do cautious acquisition and merger of companies, as it could affect the customer's and society's perceptions about Business. It should obtain and combine with those companies which have a market track record of healthy and nutritious companies. It would improve the perceptions of consumers about Business.
Business should not only spend its R&D on innovation, instead of it must also focus on the R&D costs over examination of cost of various healthy products. This would increase cost effectiveness of its items, which will lead to increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business should relocate to not only developing however likewise to developed nations. It needs to broadens its geographical expansion. This wide geographical growth towards establishing and developed countries would decrease the threat of possible losses in times of instability in various nations. It ought to widen its circle to numerous countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Urban Water Partners A needs to sensibly control its acquisitions to avoid the danger of misunderstanding from the consumers about Business. It needs to get and merge with those countries having a goodwill of being a healthy business in the market. This would not just improve the understanding of consumers about Business but would also increase the sales, earnings margins and market share of Business. It would also allow the business to use its potential resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on 4 aspects; age, gender, earnings and profession. Business produces numerous items related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Urban Water Partners A products are quite affordable by almost all levels, however its major targeted customers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in almost 86 nations. Its geographical division is based upon 2 main factors i.e. average income level of the customer in addition to the environment of the area. For instance, Singapore Business Company's division 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 life style of the client. Business 3 in 1 Coffee target those customers whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Urban Water Partners A behavioral segmentation is based upon the mindset understanding and awareness of the customer. For example its extremely nutritious products target those clients who have a health mindful mindset towards their usages.

Urban Water Partners A Alternatives

In order to sustain the brand in the market and keep the consumer undamaged with the brand, there are two choices:
Option: 1
The Business must spend more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the company, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The business can resell the obtained systems in the market, if it fails to implement its strategy. Amount invest on the R&D might not be restored, and it will be considered totally sunk expense, if it do not offer possible results.
3. Investing in R&D supply sluggish growth in sales, as it takes long time to present an item. However, acquisitions offer fast outcomes, as it offer the company already developed product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to deal with misconception of consumers about Business core values of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of developing innovative items, and would results in customer's dissatisfaction also.
3. Big acquisitions than R&D would extend the line of product of the business by the products which are currently present in the market, making business not able to present brand-new innovative items.
Option: 2.
The Business must spend more on its R&D rather than acquisitions.
1. It would make it possible for the company to produce more innovative items.
2. It would offer the business a strong competitive position in the market.
3. It would allow the company to increase its targeted consumers by introducing those products which can be offered to a completely brand-new market section.
4. Innovative products will supply long term benefits and high market share in long run.
1. It would reduce the revenue margins of the business.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would impact the business at big. 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 decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to present new ingenious products with less danger of converting the spending on R&D into sunk cost.
2. It would provide a favorable signal to the financiers, as the overall possessions of the company would increase with its considerable R&D costs.
3. It would not affect the revenue margins of the company at a large rate as compare to alternative 2.
4. It would supply the company a strong long term market position in regards to the business's general wealth along with in regards to ingenious items.
1. Risk of conversion of R&D spending into sunk cost, greater than alternative 1 lesser than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less variety of ingenious products than alternative 2 and high number of innovative products than alternative 1.

Urban Water Partners A Conclusion

RecommendationsBusiness has actually remained the leading market player for more than a years. It has actually institutionalised its methods and culture to align itself with the market changes and consumer habits, which has actually eventually allowed it to sustain its market share. Business has established substantial market share and brand identity in the urban markets, it is suggested that the business ought to focus on the rural areas in terms of developing brand commitment, awareness, and equity, such can be done by producing a particular brand name allocation technique through trade marketing tactics, that draw clear difference between Urban Water Partners A products and other rival items. Additionally, Business ought to take advantage of its brand picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will permit the business to develop brand equity for freshly introduced and currently produced items on a higher platform, making the reliable use of resources and brand image in the market.

Urban Water Partners A Exhibits

PESTEL Analysis
Governmental assistance

Altering criteria of international food.
Enhanced market share. Altering assumption towards healthier products Improvements in R&D as well as QA divisions.

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

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible because 6000 Highest after Company with much less development than Service 7th Cheapest
R&D Spending Highest possible because 2005 Greatest after Business 9th Cheapest
Net Profit Margin Highest considering that 2005 with quick growth from 2006 to 2011 As a result of sale of Alcon in 2017. Almost equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health aspect Greatest number of brand names with lasting practices Biggest confectionary and refined foods brand name on the planet Biggest milk items and bottled water brand on the planet
Segmentation Center and upper center level customers worldwide Individual consumers in addition to house group Any age as well as Income Customer Groups Middle and also top center degree consumers worldwide
Number of Brands 3rd 2nd 7th 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 21441 385259 198226 924675 118549
Net Profit Margin 2.51% 9.68% 81.41% 4.23% 21.13%
EPS (Earning Per Share) 59.48 6.53 8.57 4.27 58.68
Total Asset 862749 737258 982769 692937 22232
Total Debt 52244 65468 49299 18718 34485
Debt Ratio 51% 98% 36% 67% 23%
R&D Spending 2338 8388 6756 5617 6136
R&D Spending as % of Sales 4.99% 7.26% 6.39% 4.58% 5.45%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations