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West Ham United Football Clubs Olympic Stadium Move Case Study Solution

West Ham United Football Clubs Olympic Stadium Move is presently one of the greatest food chains worldwide. It was founded by Harvard in 1866, a German Pharmacist who initially launched "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate. At the very same time, the Page brothers from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The 2 ended up being competitors in the beginning however later combined in 1905, leading to the birth of West Ham United Football Clubs Olympic Stadium Move.
Business is now a global business. Unlike other international companies, it has senior executives from various nations and attempts to make decisions thinking about the entire world. West Ham United Football Clubs Olympic Stadium Move presently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The function of West Ham United Football Clubs Olympic Stadium Move Corporation is to enhance the quality of life of people by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and better future for it. It also wants to encourage individuals to live a healthy life. While making certain that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

West Ham United Football Clubs Olympic Stadium Move'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 at the same time comprehend the requirements and requirements of its clients. Its vision is to grow fast and offer items that would satisfy the requirements of each age. West Ham United Football Clubs Olympic Stadium Move visualizes to develop a well-trained labor force which would help the company to grow
.

Mission

West Ham United Football Clubs Olympic Stadium Move's objective is that as presently, it is the leading business in the food market, it believes in 'Good Food, Good Life". Its mission is to supply its customers with a range of options that are healthy and best in taste. It is focused on providing the very best food to its consumers throughout the day and night.

Products.

Business has a vast array of products that it offers to its consumers. Its products include food for infants, cereals, dairy items, treats, chocolates, food for family pet and mineral water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the company has laid down its goals and objectives. These goals and objectives are noted below.
• One goal of the business is to reach zero landfill status. (Business, aboutus, 2017).
• Another objective of West Ham United Football Clubs Olympic Stadium Move is to squander minimum food throughout production. Frequently, the food produced is lost even prior to it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to lower the above-mentioned complications and would also ensure the delivery of high quality of its products to its consumers.
• Meet worldwide standards of the environment.
• Construct a relationship based upon trust with its consumers, business partners, workers, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the method of NHW and investing more of its revenues on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW technique. However, the target of the business is not attained as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibition H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may lead to the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based on the concept of Nutritious, Health and Wellness (NHW). This method handles the idea to bringing modification in the consumer preferences about food and making the food stuff much healthier worrying about the health issues.
The vision of this strategy is based upon the secret method i.e. 60/40+ which merely means that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary value. The products will be made with extra dietary worth in contrast to all other products in market gaining it a plus on its dietary content.
This strategy was embraced to bring more yummy plus healthy foods and beverages in market than ever. In competitors with other companies, with an objective of maintaining its trust over consumers as Business Company has gotten more trusted by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing actual quantity of spending reveals that the sales are increasing at a greater rate than its R&D spending, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise reveals a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio posture a hazard of default of Business to its investors and might lead a declining share prices. In terms of increasing financial obligation ratio, the firm ought to not spend much on R&D and ought to pay its current financial obligations to reduce the risk for financiers.
The increasing risk of financiers with increasing financial obligation ratio and decreasing share rates can be observed by substantial decline of EPS of West Ham United Football Clubs Olympic Stadium Move stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception structure of customers. This sluggish development also hinder company to further spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Graphs given in the Displays D and E.

TWOS Analysis


TWOS analysis can be used to derive different strategies based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by big amount of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the business. It might also provide Business a long term competitive advantage over its rivals.
The global expansion of Business need to be focused on market recording of establishing nations by growth, drawing in more consumers through client's loyalty. As establishing countries are more populated than developed countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisWest Ham United Football Clubs Olympic Stadium Move ought to do mindful acquisition and merger of companies, as it could affect the client's and society's understandings about Business. It should acquire and combine with those business which have a market track record of healthy and healthy companies. It would enhance the understandings of consumers about Business.
Business should not just invest its R&D on innovation, rather than it should likewise focus on the R&D costs over assessment of expense of different healthy items. This would increase expense performance of its items, which will lead to 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 also to industrialized nations. It needs to expand its circle to different nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to get and combine with those countries having a goodwill of being a healthy business in the market. It would likewise allow the company to use its potential resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon 4 factors; age, gender, earnings and occupation. For example, Business produces several items associated with children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary products. West Ham United Football Clubs Olympic Stadium Move items are rather affordable by almost all levels, but its significant targeted clients, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in practically 86 countries. Its geographical segmentation is based upon two primary elements i.e. typical income level of the customer as well as the environment of the region. Singapore Business Business's division 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 lifestyle of the client. For instance, Business 3 in 1 Coffee target those customers whose life style is quite busy and do not have much time.

Behavioral Segmentation

West Ham United Football Clubs Olympic Stadium Move behavioral division is based upon the mindset knowledge and awareness of the client. For example its extremely nutritious products target those consumers who have a health mindful attitude towards their usages.

West Ham United Football Clubs Olympic Stadium Move Alternatives

In order to sustain the brand name in the market and keep the customer intact with the brand, there are two options:
Option: 1
The Business must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. Spending on R&D would be sunk cost.
2. The business can resell the obtained units in the market, if it stops working to execute its strategy. Nevertheless, amount invest in the R&D could not be revived, and it will be considered entirely sunk expense, if it do not give possible outcomes.
3. Investing in R&D supply slow growth in sales, as it takes long time to present a product. Acquisitions provide fast outcomes, as it offer the business already established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face mistaken belief of customers about Business core worths of healthy and healthy items.
2 Big spending on acquisitions than R&D would send out a signal of company's inadequacy of establishing innovative products, and would results in customer's discontentment.
3. Big acquisitions than R&D would extend the product line of the business by the items which are already present in the market, making company not able to present new ingenious items.
Option: 2.
The Business ought to spend more on its R&D instead of acquisitions.
Pros:
1. It would allow the business to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted consumers by presenting those items which can be offered to a completely new market sector.
4. Ingenious products will supply long term advantages and high market share in long term.
Cons:
1. It would reduce the earnings margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk expense, 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 could provide an unfavorable signal to the investors, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to present brand-new ingenious products with less threat of transforming the spending on R&D into sunk cost.
2. It would provide a favorable signal to the financiers, as the total assets of the business would increase with its significant R&D costs.
3. It would not impact the earnings margins of the business at a big rate as compare to alternative 2.
4. It would offer the company a strong long term market position in terms of the business's overall wealth as well as in regards to innovative products.
Cons:
1. Risk of conversion of R&D spending into sunk cost, greater than option 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high number of ingenious items than alternative 1.

West Ham United Football Clubs Olympic Stadium Move Conclusion

RecommendationsIt has actually institutionalised its methods and culture to align itself with the market changes and customer behavior, which has ultimately enabled it to sustain its market share. Business has actually established substantial market share and brand identity in the urban markets, it is advised that the company needs to focus on the rural locations in terms of establishing brand loyalty, awareness, and equity, such can be done by developing a particular brand name allowance strategy through trade marketing tactics, that draw clear difference in between West Ham United Football Clubs Olympic Stadium Move items and other competitor items.

West Ham United Football Clubs Olympic Stadium Move Exhibits

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

Altering criteria of international food.
Boosted market share. Transforming understanding towards healthier items Improvements in R&D and QA divisions.

Introduction of E-marketing.
No such influence as it is beneficial. Issues over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 1000 Highest after Company with less development than Business 2nd Cheapest
R&D Spending Greatest considering that 2008 Highest possible after Service 3rd Least expensive
Net Profit Margin Highest possible given that 2004 with quick development from 2001 to 2017 As a result of sale of Alcon in 2012. Almost equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nourishment and also health and wellness aspect Greatest number of brand names with lasting methods Largest confectionary and processed foods brand name in the world Biggest dairy products as well as mineral water brand name in the world
Segmentation Middle and upper middle level consumers worldwide Private consumers together with house group Any age and Earnings Client Groups Center as well as top middle degree customers worldwide
Number of Brands 6th 2nd 7th 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 33121 186784 274861 921573 621917
Net Profit Margin 2.37% 9.39% 12.53% 1.61% 33.52%
EPS (Earning Per Share) 69.41 5.88 9.62 1.64 66.78
Total Asset 172322 419959 665858 228555 25818
Total Debt 97551 59716 41539 67453 56329
Debt Ratio 12% 46% 57% 25% 53%
R&D Spending 7592 2774 9723 5551 6345
R&D Spending as % of Sales 2.21% 5.75% 4.18% 7.64% 9.18%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations