Ecolab Inc G Institutional Sales Conference Case Study Analysis

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Business is presently one of the greatest food chains worldwide. It was established by Henri Ecolab Inc G Institutional Sales Conference in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate.
Business is now a transnational business. Unlike other international business, it has senior executives from various nations and tries to make decisions thinking about the whole world. Ecolab Inc G Institutional Sales Conference currently has more than 500 factories around the world and a network spread across 86 countries.


The function of Business Corporation is to improve the quality of life of people by playing its part and supplying 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


Ecolab Inc G Institutional Sales Conference's vision is to provide its clients with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and concurrently understand the needs and requirements of its consumers. Its vision is to grow quick and offer items that would satisfy the needs of each age. Ecolab Inc G Institutional Sales Conference imagines to develop a trained workforce which would help the company to grow


Ecolab Inc G Institutional Sales Conference's mission is that as presently, it is the leading business in the food market, it believes in 'Good Food, Excellent Life". Its mission is to provide its consumers with a variety of options that are healthy and best in taste too. It is concentrated on providing the very best food to its customers throughout the day and night.


Ecolab Inc G Institutional Sales Conference has a large 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 mission of the corporation, the business has laid down its objectives and goals. These goals and objectives are noted below.
• One objective of the business is to reach absolutely no garbage dump status. (Business, aboutus, 2017).
• Another objective of Ecolab Inc G Institutional Sales Conference is to squander minimum food throughout production. Usually, the food produced is squandered even before it reaches the consumers.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to lower those issues and would also ensure the delivery of high quality of its items to its customers.
• Meet worldwide requirements of the environment.
• Develop a relationship based upon trust with its customers, business partners, workers, and government.

Critical Issues

Recently, Business Company is focusing more towards the technique 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 strategy. The target of the company is not achieved as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H. There is a need to focus more on the sales then the development technology. Otherwise, it may lead to the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based on the idea of Nutritious, Health and Wellness (NHW). This method deals with the concept to bringing modification in the consumer choices about food and making the food stuff much healthier concerning about the health issues.
The vision of this strategy is based on the key approach i.e. 60/40+ which just indicates that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be made with additional nutritional value in contrast to all other products in market getting it a plus on its nutritional material.
This strategy was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competition with other business, with an intention of maintaining its trust over consumers as Business Business has gained more trusted by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing actual quantity of costs reveals that the sales are increasing at a higher rate than its R&D costs, and enable the business to more invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio present a danger of default of Business to its investors and could lead a decreasing share prices. Therefore, in terms of increasing financial obligation ratio, the company should not invest much on R&D and must pay its existing financial obligations to decrease the danger for financiers.
The increasing risk of financiers with increasing financial obligation ratio and decreasing share costs can be observed by huge decrease of EPS of Ecolab Inc G Institutional Sales Conference stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow growth also prevent company to more invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Graphs given up the Exhibits D and E.

TWOS Analysis

TWOS analysis can be used to obtain numerous methods based on the SWOT Analysis provided above. A short summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative products by big amount of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the business. It might also offer Business a long term competitive advantage over its rivals.
The global expansion of Business need to be focused on market catching of developing countries by growth, bring in more consumers through consumer's commitment. As developing nations are more populated than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisEcolab Inc G Institutional Sales Conference should do careful acquisition and merger of organizations, as it could affect the consumer's and society's understandings about Business. It needs to acquire and combine with those companies which have a market reputation of healthy and healthy companies. It would improve the perceptions of consumers about Business.
Business ought to not only spend its R&D on innovation, rather than it ought to also concentrate on the R&D costs over evaluation of expense of various healthy products. This would increase expense performance of its products, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing but likewise to industrialized nations. It ought to expands its geographical growth. This large geographical expansion towards developing and established countries would decrease the risk of potential losses in times of instability in numerous nations. It ought to expand its circle to various countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Ecolab Inc G Institutional Sales Conference must sensibly control its acquisitions to avoid the threat of misunderstanding from the customers about Business. It needs to acquire and combine with those nations having a goodwill of being a healthy business in the market. This would not just enhance the understanding of consumers about Business but would likewise increase the sales, revenue margins and market share of Business. It would also allow the business to use its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on 4 factors; age, gender, income and occupation. Business produces several items related to infants i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Ecolab Inc G Institutional Sales Conference products are rather budget-friendly by almost all levels, however its significant 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 existence in practically 86 nations. Its geographical segmentation is based upon 2 primary elements i.e. typical income level of the customer as well as the environment of the area. 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 clients whose life style is rather hectic and don't have much time.

Behavioral Segmentation

Ecolab Inc G Institutional Sales Conference behavioral division is based upon the attitude knowledge and awareness of the customer. For example its highly nutritious products target those consumers who have a health conscious attitude towards their consumptions.

Ecolab Inc G Institutional Sales Conference Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand name, there are 2 choices:
Alternative: 1
The Business ought to invest more on acquisitions than on the R&D.
1. Acquisitions would increase total possessions of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the acquired systems in the market, if it stops working to implement its technique. Amount invest on the R&D could not be restored, and it will be thought about totally sunk expense, if it do not provide possible results.
3. Investing in R&D offer sluggish development in sales, as it takes very long time to introduce an item. Acquisitions supply quick results, as it provide the company already established 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 company to deal with misunderstanding of customers about Business core values of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send out a signal of business's ineffectiveness of developing ingenious items, and would results in consumer's discontentment too.
3. Big acquisitions than R&D would extend the product line of the business by the items which are currently present in the market, making company unable to introduce new innovative products.
Alternative: 2.
The Business ought to spend more on its R&D instead of acquisitions.
1. It would allow the company to produce more innovative items.
2. It would offer the company a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by introducing those products which can be used to an entirely brand-new market section.
4. Ingenious items will supply long term benefits and high market share in long run.
1. It would decrease the profit margins of the company.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would impact the company at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which could supply an unfavorable signal to the investors, 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 business to introduce brand-new innovative items with less threat of transforming the spending on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the general assets of the business would increase with its considerable R&D costs.
3. It would not impact the profit margins of the company at a big rate as compare to alternative 2.
4. It would supply the company a strong long term market position in terms of the business's total wealth as well as in terms of ingenious items.
1. Threat of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less number of ingenious products than alternative 2 and high number of ingenious products than alternative 1.

Ecolab Inc G Institutional Sales Conference Conclusion

RecommendationsIt has actually institutionalized its methods and culture to align itself with the market changes and customer behavior, which has actually eventually enabled it to sustain its market share. Business has actually developed considerable market share and brand name identity in the urban markets, it is suggested that the business needs to focus on the rural locations in terms of developing brand commitment, awareness, and equity, such can be done by producing a specific brand allowance strategy through trade marketing techniques, that draw clear distinction between Ecolab Inc G Institutional Sales Conference products and other competitor products.

Ecolab Inc G Institutional Sales Conference Exhibits

PESTEL Analysis
Governmental assistance

Transforming standards of global food.
Boosted market share. Transforming assumption towards much healthier products Improvements in R&D and also QA divisions.

Intro of E-marketing.
No such effect as it is good. Issues over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 1000 Greatest after Service with less growth than Business 2nd Least expensive
R&D Spending Greatest because 2008 Greatest after Organisation 5th Lowest
Net Profit Margin Highest possible given that 2007 with fast development from 2009 to 2014 As a result of sale of Alcon in 2016. Almost equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness aspect Highest possible variety of brands with lasting techniques Largest confectionary and also refined foods brand name worldwide Biggest dairy products as well as mineral water brand on the planet
Segmentation Middle as well as top middle level customers worldwide Specific customers in addition to family group Any age and also Revenue Consumer Groups Center and upper middle level consumers worldwide
Number of Brands 2nd 1st 1st 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 76745 631621 555436 797834 681555
Net Profit Margin 6.32% 1.35% 43.79% 4.15% 66.21%
EPS (Earning Per Share) 93.46 1.45 2.91 8.82 94.19
Total Asset 578779 388395 278463 459244 22856
Total Debt 44955 27771 64735 14397 57989
Debt Ratio 16% 63% 71% 31% 37%
R&D Spending 4948 4975 6958 3225 5819
R&D Spending as % of Sales 1.51% 8.92% 5.61% 3.34% 9.96%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations