Changing Channels Progressive Insurance Drive Insurance Case Study Analysis

Case Study Solution And Analysis

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Changing Channels Progressive Insurance Drive Insurance Case Study Solution

Changing Channels Progressive Insurance Drive Insurance is presently among the biggest food chains worldwide. It was established by Ivey in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate. At the exact same time, the Page siblings from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two became rivals at first however later combined in 1905, resulting in the birth of Changing Channels Progressive Insurance Drive Insurance.
Business is now a global business. Unlike other multinational business, it has senior executives from various nations and tries to make choices considering the whole world. Changing Channels Progressive Insurance Drive Insurance presently has more than 500 factories around the world and a network spread throughout 86 countries.


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


Changing Channels Progressive Insurance Drive Insurance's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. Business pictures to develop a trained labor force which would help the company to grow


Changing Channels Progressive Insurance Drive Insurance's mission is that as presently, it is the leading company in the food industry, it thinks in 'Excellent Food, Good Life". Its mission is to offer its consumers with a range of choices that are healthy and best in taste. It is concentrated on providing the very best food to its consumers throughout the day and night.


Changing Channels Progressive Insurance Drive Insurance has a large range of products that it uses to its customers. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has actually laid down its goals and objectives. These objectives and objectives are listed below.
• One goal of the business is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of Changing Channels Progressive Insurance Drive Insurance is to squander minimum food throughout production. Most often, the food produced is wasted even before it reaches the consumers.
• Another thing that Business is working on is to improve its product packaging in such a method that it would help it to decrease the above-mentioned problems and would likewise guarantee the delivery of high quality of its products to its clients.
• Meet global requirements of the environment.
• Build a relationship based upon trust with its consumers, business partners, employees, and government.

Critical Issues

Recently, Business Company 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 strategy. The target of the company is not accomplished 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 Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based upon the principle of Nutritious, Health and Wellness (NHW). This technique handles the concept to bringing modification in the customer choices about food and making the food things much healthier worrying about the health concerns.
The vision of this strategy is based on the secret approach i.e. 60/40+ which merely suggests 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 produced with additional nutritional value in contrast to all other products in market getting it a plus on its nutritional content.
This method was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competition with other companies, with an objective of maintaining its trust over consumers as Business Business has actually acquired more relied on by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D spending, and allow the company to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. 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 advancement instead of payment of debts. This increasing debt ratio pose a danger of default of Business to its investors and could lead a declining share prices. In terms of increasing debt ratio, the firm must not invest much on R&D and ought to pay its existing financial obligations to reduce the danger for financiers.
The increasing danger of investors with increasing debt ratio and declining share rates can be observed by substantial decrease of EPS of Changing Channels Progressive Insurance Drive Insurance stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow development also impede business to further 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 in the Exhibitions D and E.

TWOS Analysis

2 analysis can be used to derive different methods based on the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more innovative 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 international growth of Business need to be concentrated on market recording of establishing countries by growth, attracting more clients through consumer's commitment. As establishing countries are more populated than developed countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisChanging Channels Progressive Insurance Drive Insurance ought to do careful acquisition and merger of companies, as it could affect the client's and society's understandings about Business. It needs to get and combine with those companies which have a market credibility of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business must not only spend its R&D on development, instead of it should likewise focus on the R&D spending over assessment of cost of various healthy items. This would increase cost effectiveness of its products, which will result in increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business must move to not only developing however also to developed nations. It ought to widen its circle to different nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It should acquire and merge with those countries having a goodwill of being a healthy business in the market. It would likewise make it possible for the business to utilize its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on four elements; age, gender, earnings and occupation. For instance, Business produces a number of items connected to babies i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Changing Channels Progressive Insurance Drive Insurance items are rather economical by almost all levels, however its major targeted consumers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is made up of its presence in practically 86 nations. Its geographical segmentation is based upon two main elements i.e. average earnings level of the consumer along with the climate of the area. 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 segmentation of Business is based upon the personality and life style of the consumer. Business 3 in 1 Coffee target those clients whose life style is quite hectic and do not have much time.

Behavioral Segmentation

Changing Channels Progressive Insurance Drive Insurance behavioral division 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 intakes.

Changing Channels Progressive Insurance Drive Insurance Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand, there are 2 options:
Alternative: 1
The Business needs 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. However, costs on R&D would be sunk expense.
2. The company can resell the gotten systems in the market, if it fails to implement its strategy. Nevertheless, amount spend on the R&D might not be restored, and it will be considered completely sunk expense, if it do not offer prospective outcomes.
3. Spending on R&D provide slow growth in sales, as it takes long time to introduce a product. Nevertheless, acquisitions supply quick outcomes, as it provide the business already developed item, which can be marketed not long 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 face misconception of customers about Business core worths of healthy and healthy items.
2 Large costs on acquisitions than R&D would send a signal of company's inadequacy of establishing innovative items, and would outcomes in customer's frustration.
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 products.
Alternative: 2.
The Business must invest more on its R&D rather than acquisitions.
1. It would make it possible for the company to produce more ingenious items.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by presenting those items which can be used to a completely new market section.
4. Innovative items will provide long term advantages and high market share in long term.
1. It would reduce 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 impact the business at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which might supply a negative signal to the investors, and could result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to introduce new ingenious products with less danger of transforming the spending on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the total assets of the company would increase with its significant R&D spending.
3. It would not affect 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 regards to the company's total wealth along with in terms of ingenious items.
1. Threat of conversion of R&D spending into sunk cost, higher than option 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less number of ingenious products than alternative 2 and high number of ingenious products than alternative 1.

Changing Channels Progressive Insurance Drive Insurance Conclusion

RecommendationsIt has institutionalized its techniques and culture to align itself with the market modifications and consumer behavior, which has ultimately enabled it to sustain its market share. Business has actually established substantial market share and brand name identity in the city markets, it is recommended that the company ought to focus on the rural areas in terms of establishing brand name loyalty, awareness, and equity, such can be done by creating a specific brand name allotment technique through trade marketing techniques, that draw clear distinction between Changing Channels Progressive Insurance Drive Insurance items and other rival products.

Changing Channels Progressive Insurance Drive Insurance Exhibits

PESTEL Analysis
Governmental support

Altering criteria of global food.
Improved market share. Changing understanding in the direction of much healthier items Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such effect as it is good. Worries over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest because 3000 Highest after Service with less growth than Business 2nd Lowest
R&D Spending Highest possible considering that 2005 Highest after Organisation 3rd Cheapest
Net Profit Margin Highest given that 2008 with fast development from 2009 to 2013 As a result of sale of Alcon in 2012. Almost equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and also wellness aspect Highest variety of brand names with lasting practices Largest confectionary and also processed foods brand in the world Largest milk products and mineral water brand name worldwide
Segmentation Center as well as upper middle degree consumers worldwide Individual consumers in addition to household team All age and also Revenue Customer Groups Middle and also top center degree customers worldwide
Number of Brands 8th 6th 4th 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 46272 942511 998584 259635 852439
Net Profit Margin 4.82% 8.66% 98.84% 5.24% 32.51%
EPS (Earning Per Share) 79.65 1.11 2.81 1.48 26.75
Total Asset 783565 167183 911235 563296 92452
Total Debt 79628 31429 87275 98326 41551
Debt Ratio 63% 23% 58% 23% 75%
R&D Spending 2194 3475 6839 7337 9294
R&D Spending as % of Sales 4.66% 8.44% 1.52% 2.51% 2.48%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations