Attorney Client Privilege Case Study Solution

Case Study Solution And Analysis

Home >> Ivey >> Attorney Client Privilege >>

Attorney Client Privilege Case Study Analysis

Attorney Client Privilege is currently among the greatest food cycle worldwide. It was established by Ivey in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate. At the very same time, the Page bros from Switzerland also discovered The Anglo-Swiss Condensed Milk Business. The two ended up being competitors at first but in the future combined in 1905, resulting in the birth of Attorney Client Privilege.
Business is now a global company. Unlike other multinational companies, it has senior executives from various nations and attempts to make choices thinking about the whole world. Attorney Client Privilege currently has more than 500 factories worldwide and a network spread across 86 nations.


The purpose of Business Corporation is to boost the quality of life of individuals by playing its part and providing healthy food. While making sure that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future


Attorney Client Privilege's vision is to provide its customers with food that is healthy, high in quality and safe to consume. Business imagines to develop a well-trained workforce which would help the business to grow


Attorney Client Privilege's mission is that as currently, it is the leading company in the food industry, it believes in 'Great Food, Excellent Life". Its objective is to provide its customers with a variety of options that are healthy and best in taste. It is focused on supplying the very best food to its clients throughout the day and night.


Attorney Client Privilege has a large variety of products that it offers to its clients. 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 actually laid down its objectives and objectives. These goals and objectives are listed below.
• One objective of the business is to reach no landfill status. It is pursuing no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Attorney Client Privilege is to squander minimum food throughout production. Frequently, the food produced is wasted even prior to it reaches the clients.
• 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 complications and would likewise ensure the shipment of high quality of its products to its clients.
• Meet international requirements of the environment.
• Build a relationship based on trust with its consumers, business partners, staff members, and federal government.

Critical Issues

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

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business strategy is based on the principle of Nutritious, Health and Wellness (NHW). This technique handles the idea to bringing change in the customer preferences about food and making the food stuff healthier concerning about the health issues.
The vision of this technique is based on the key technique i.e. 60/40+ which just suggests that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be manufactured with extra nutritional worth in contrast to all other products in market gaining it a plus on its nutritional material.
This strategy was embraced to bring more yummy plus healthy foods and beverages in market than ever. In competitors with other business, with an intention of maintaining its trust over consumers as Business Business has gained more relied on by clients.

Quantitative Analysis.

R&D Spending 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 portion of sales is declining. This indicator also shows a thumbs-up to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing financial obligation ratio posture a threat of default of Business to its financiers and could lead a declining share rates. For that reason, in terms of increasing debt ratio, the company should not invest much on R&D and should pay its present debts to reduce the threat for investors.
The increasing danger of investors with increasing debt ratio and declining share rates can be observed by huge decrease of EPS of Attorney Client Privilege stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow development also impede company to additional 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 Displays D and E.

TWOS Analysis

2 analysis can be utilized to derive different techniques based upon the SWOT Analysis given above. A quick summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative products by big amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the company. It might also supply Business a long term competitive advantage over its competitors.
The global growth of Business must be concentrated on market catching of developing countries by growth, bring in more clients through customer's loyalty. As developing nations are more populated than developed nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisAttorney Client Privilege should do careful acquisition and merger of organizations, as it could impact the customer's and society's understandings about Business. It needs to acquire and merge with those business which have a market reputation of healthy and nutritious companies. It would improve the understandings of consumers about Business.
Business ought to not only invest its R&D on innovation, rather than it should also focus on the R&D spending over examination of expense of various healthy products. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only developing however likewise to developed countries. It must broadens its geographical growth. This large geographical expansion towards developing and developed countries would lower the threat of potential losses in times of instability in various nations. It should broaden its circle to different nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Attorney Client Privilege needs to wisely manage its acquisitions to prevent the risk of misunderstanding from the customers about Business. It ought to acquire and merge with those countries having a goodwill of being a healthy company in the market. This would not only improve the perception of consumers about Business however would likewise increase the sales, profit margins and market share of Business. It would also make it possible for the company to use its potential resources effectively on its other operations instead of acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon four elements; age, gender, earnings and profession. For instance, Business produces numerous items connected to children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Attorney Client Privilege items are quite budget-friendly by practically all levels, but its significant targeted clients, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its existence in nearly 86 nations. Its geographical division is based upon two main elements i.e. average earnings level of the customer along with the climate of the area. For instance, Singapore Business Company's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and lifestyle of the consumer. Business 3 in 1 Coffee target those consumers whose life style is quite hectic and do not have much time.

Behavioral Segmentation

Attorney Client Privilege behavioral segmentation is based upon the mindset understanding and awareness of the customer. Its extremely healthy items target those consumers who have a health mindful mindset towards their consumptions.

Attorney Client Privilege Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand name, there are 2 alternatives:
Alternative: 1
The Business ought to invest more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the company, increasing the wealth of the business. Nevertheless, spending on R&D would be sunk cost.
2. The business can resell the gotten units in the market, if it fails to execute its technique. Nevertheless, quantity spend on the R&D could not be revived, and it will be thought about totally sunk cost, if it do not offer prospective results.
3. Investing in R&D supply slow development in sales, as it takes very long time to introduce an item. However, acquisitions supply fast results, as it provide the business currently developed product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and healthy items.
2 Large costs on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing ingenious products, and would lead to consumer's discontentment as well.
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 not able to introduce brand-new ingenious items.
Alternative: 2.
The Business needs to invest more on its R&D rather than acquisitions.
1. It would make it possible for the company to produce more ingenious products.
2. It would supply the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted customers by presenting those products which can be used to a totally new market segment.
4. Ingenious products will supply long term advantages and high market share in long run.
1. It would decrease the profit margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would affect the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might supply an unfavorable signal to the financiers, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present brand-new innovative items with less risk of converting the costs on R&D into sunk cost.
2. It would provide a positive signal to the financiers, as the total properties of the business would increase with its substantial R&D spending.
3. It would not affect the profit margins of the business at a large 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 in addition to in terms of ingenious items.
1. Threat of conversion of R&D spending into sunk expense, higher than alternative 1 lower than alternative 2.
2. Risk of misunderstanding about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Intro of less number of ingenious products than alternative 2 and high number of innovative items than alternative 1.

Attorney Client Privilege Conclusion

RecommendationsBusiness has remained the top market player for more than a years. It has actually institutionalised its techniques and culture to align itself with the marketplace modifications and client behavior, which has actually ultimately allowed it to sustain its market share. Though, Business has established considerable market share and brand name identity in the metropolitan markets, it is recommended that the business must focus on the backwoods in terms of developing brand loyalty, awareness, and equity, such can be done by creating a particular brand name allotment technique through trade marketing methods, that draw clear difference in between Attorney Client Privilege items and other competitor items. Additionally, Business needs to take advantage of its brand name picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will permit the company to establish brand equity for recently presented and already produced products on a greater platform, making the efficient use of resources and brand name image in the market.

Attorney Client Privilege Exhibits

PESTEL Analysis
Governmental assistance

Altering standards of international food.
Improved market share.
Altering assumption towards much healthier items
Improvements in R&D as well as QA divisions.

Intro of E-marketing.
No such impact as it is good.
Problems over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 6000
Highest after Business with much less growth than Business 8th Lowest
R&D Spending Highest given that 2007 Highest possible after Business 2nd Cheapest
Net Profit Margin Highest possible because 2005 with fast growth from 2002 to 2015 Due to sale of Alcon in 2015. Practically equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and wellness factor Highest possible number of brand names with lasting methods Largest confectionary and processed foods brand on the planet Biggest milk products and also mineral water brand worldwide
Segmentation Middle and also upper middle level consumers worldwide Individual consumers together with family group All age and also Earnings Consumer Groups Center and upper center level consumers worldwide
Number of Brands 8th 3rd 6th 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 25575 361793 443479 178333 542655
Net Profit Margin 8.55% 8.65% 41.63% 8.81% 17.65%
EPS (Earning Per Share) 22.73 4.39 8.66 6.27 54.51
Total Asset 245244 571957 291862 487115 32523
Total Debt 58361 59797 12628 76854 97469
Debt Ratio 13% 32% 65% 46% 59%
R&D Spending 7481 5462 2683 3135 3766
R&D Spending as % of Sales 8.58% 7.13% 9.98% 2.76% 8.51%

Attorney Client Privilege Executive Summary Attorney Client Privilege Swot Analysis Attorney Client Privilege Vrio Analysis Attorney Client Privilege Pestel Analysis
Attorney Client Privilege Porters Analysis Attorney Client Privilege Recommendations