Valuing Project Achieve Case Study Solution

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Valuing Project Achieve Case Study Solution

Business is presently one of the biggest food chains worldwide. It was established by Henri Valuing Project Achieve in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed infants and decrease death rate.
Business is now a global business. Unlike other international business, it has senior executives from various countries and tries to make choices considering the whole world. Valuing Project Achieve presently has more than 500 factories around the world and a network spread across 86 nations.


The purpose of Valuing Project Achieve Corporation is to improve the quality of life of people by playing its part and offering healthy food. It wants to help the world in shaping a healthy and much better future for it. It likewise wants to motivate people to live a healthy life. While making certain that the business is being successful in the long run, that's how it plays its part for a better and healthy future


Valuing Project Achieve'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 comprehend the needs and requirements of its clients. Its vision is to grow quickly and provide products that would satisfy the needs of each age group. Valuing Project Achieve visualizes to develop a trained workforce which would help the company to grow


Valuing Project Achieve's mission is that as currently, it is the leading company in the food industry, it thinks in 'Great Food, Good Life". Its objective is to provide its consumers with a range of choices that are healthy and finest in taste too. It is concentrated on offering the best food to its customers throughout the day and night.


Valuing Project Achieve has a wide range of items that it uses to its customers. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has actually set its objectives and objectives. These goals and objectives are noted below.
• One goal of the business is to reach absolutely no land fill status. It is working toward absolutely no waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Valuing Project Achieve is to lose minimum food during production. Usually, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to minimize the above-mentioned problems and would likewise guarantee the delivery of high quality of its products to its customers.
• Meet global requirements of the environment.
• Develop a relationship based upon trust with its consumers, organisation partners, employees, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its profits on the R&D technology. 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%, offered in Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it might lead to the decreased income 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 strategy handles the idea to bringing change in the customer choices about food and making the food things healthier concerning about the health issues.
The vision of this strategy is based on the key technique i.e. 60/40+ which merely implies that the items will have a rating of 60% on the basis of taste and 40% is based upon its dietary value. The products will be manufactured with extra dietary worth in contrast to all other items in market acquiring it a plus on its dietary content.
This technique was embraced to bring more tasty plus nutritious foods and beverages in market than ever. In competitors with other business, with an intention of keeping its trust over consumers as Business Business has gained more trusted by costumers.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing actual amount of costs shows that the sales are increasing at a greater rate than its R&D spending, and allow 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 spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio pose a hazard of default of Business to its financiers and could lead a decreasing share costs. For that reason, in regards to increasing debt ratio, the company should not spend much on R&D and ought to pay its existing debts to decrease the threat for investors.
The increasing threat of financiers with increasing debt ratio and decreasing share costs can be observed by big decrease of EPS of Valuing Project Achieve stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish development also hinder business to more invest in 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 Exhibitions D and E.

TWOS Analysis

2 analysis can be utilized to obtain various strategies 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 needs to introduce more innovative items by big quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the company. It might also provide Business a long term competitive benefit over its rivals.
The international growth of Business ought to be concentrated on market capturing of establishing nations by expansion, attracting more clients through consumer's commitment. As establishing nations are more populous than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisValuing Project Achieve needs to do cautious acquisition and merger of organizations, as it could affect the consumer's and society's understandings about Business. It should obtain and combine with those companies which have a market credibility of healthy and nutritious business. It would enhance the perceptions of consumers about Business.
Business needs to not just spend its R&D on development, rather than it ought to also focus on the R&D spending over assessment of cost of different nutritious items. This would increase expense efficiency of its products, which will result in increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just developing however likewise to developed countries. It should broaden its circle to numerous countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Valuing Project Achieve must carefully control its acquisitions to avoid the risk of misunderstanding from the consumers about Business. It must acquire and combine with those countries having a goodwill of being a healthy business in the market. This would not just enhance the understanding of customers about Business however would also increase the sales, earnings margins and market share of Business. It would also enable the business to utilize its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon four elements; age, gender, earnings and profession. Business produces a number of items related to children i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. Valuing Project Achieve products are rather affordable by almost all levels, but its major targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its presence in practically 86 nations. Its geographical segmentation is based upon two primary elements i.e. average earnings level of the consumer along with the climate of the region. Singapore Business Company's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and lifestyle of the consumer. For instance, Business 3 in 1 Coffee target those customers whose life style is quite hectic and do not have much time.

Behavioral Segmentation

Valuing Project Achieve behavioral division is based upon the mindset knowledge and awareness of the client. Its highly nutritious items target those consumers who have a health conscious mindset towards their intakes.

Valuing Project Achieve Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand name, there are two options:
Alternative: 1
The Company needs to spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The business can resell the gotten systems in the market, if it stops working to implement its strategy. Amount invest on the R&D could not be revived, and it will be considered completely sunk cost, if it do not provide possible outcomes.
3. Spending on R&D offer slow growth in sales, as it takes very long time to introduce a product. However, acquisitions provide quick results, as it offer the business already developed product, which can be marketed right 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 deal with mistaken belief of consumers about Business core worths of healthy and nutritious products.
2 Large costs on acquisitions than R&D would send a signal of company's ineffectiveness of developing innovative products, and would outcomes in consumer's discontentment.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making company unable to present new ingenious products.
Alternative: 2.
The Business must invest more on its R&D rather than acquisitions.
1. It would make it possible for the business to produce more innovative products.
2. It would supply the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those items which can be offered to an entirely new market section.
4. Ingenious items will supply long term benefits and high market share in long run.
1. It would decrease the revenue margins of the business.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would affect the company at big. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could offer a negative signal to the financiers, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to introduce brand-new ingenious products with less danger of converting the costs on R&D into sunk expense.
2. It would provide a favorable signal to the investors, as the total possessions of the business would increase with its significant R&D spending.
3. It would not impact the revenue margins of the business at a large rate as compare to alternative 2.
4. It would supply the company a strong long term market position in terms of the business's overall wealth as well as in regards to innovative items.
1. Danger of conversion of R&D spending into sunk cost, greater than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less number of innovative products than alternative 2 and high variety of innovative items than alternative 1.

Valuing Project Achieve Conclusion

RecommendationsBusiness has remained the top market player for more than a decade. It has institutionalized its methods and culture to align itself with the market modifications and consumer habits, which has actually eventually allowed it to sustain its market share. Though, Business has established substantial market share and brand name identity in the metropolitan markets, it is recommended that the business needs to concentrate on the rural areas in regards to developing brand loyalty, awareness, and equity, such can be done by developing a specific brand name allowance strategy through trade marketing strategies, that draw clear difference between Valuing Project Achieve items and other rival items. Moreover, Business needs to utilize its brand name 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 permit the company to establish brand equity for newly introduced and already produced items on a greater platform, making the effective use of resources and brand image in the market.

Valuing Project Achieve Exhibits

PESTEL Analysis
Governmental assistance

Transforming requirements of international food.
Boosted market share. Altering assumption in the direction of healthier items Improvements in R&D and QA departments.

Intro of E-marketing.
No such effect as it is beneficial. Concerns over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 1000 Highest after Service with less growth than Service 1st Least expensive
R&D Spending Highest given that 2002 Highest possible after Organisation 7th Most affordable
Net Profit Margin Greatest considering that 2002 with quick development from 2007 to 2011 Because of sale of Alcon in 2011. Virtually equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness aspect Highest variety of brand names with sustainable techniques Biggest confectionary as well as refined foods brand worldwide Largest milk products as well as bottled water brand in the world
Segmentation Center and also top middle degree customers worldwide Individual consumers along with home group Every age and Revenue Consumer Teams Center and also upper middle level consumers worldwide
Number of Brands 2nd 3rd 4th 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 18149 724596 451776 938725 355313
Net Profit Margin 3.11% 3.88% 25.94% 4.99% 39.89%
EPS (Earning Per Share) 31.72 2.25 9.55 8.14 55.17
Total Asset 127656 439447 136256 215578 48989
Total Debt 74119 23465 41417 71847 56287
Debt Ratio 82% 93% 65% 82% 37%
R&D Spending 2241 5936 8591 5798 4134
R&D Spending as % of Sales 9.58% 8.57% 6.28% 4.44% 9.52%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations