Gibersons Glass Studio Case Study Analysis

Case Study Solution And Analysis

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Gibersons Glass Studio Case Study Solution

Business is presently one of the most significant food chains worldwide. It was established by Henri Gibersons Glass Studio in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed infants and decrease death rate.
Business is now a global company. Unlike other international business, it has senior executives from various nations and attempts to make choices considering the whole world. Gibersons Glass Studio presently has more than 500 factories worldwide and a network spread throughout 86 nations.


The purpose of Gibersons Glass Studio Corporation is to improve the quality of life of individuals by playing its part and supplying healthy food. It wishes to help the world in shaping a healthy and much better future for it. It likewise wants to encourage people to live a healthy life. While making certain that the company is prospering in the long run, that's how it plays its part for a better and healthy future


Gibersons Glass Studio's vision is to offer its customers with food that is healthy, high in quality and safe to eat. Business pictures to establish a well-trained workforce which would help the business to grow


Gibersons Glass Studio's mission is that as currently, it is the leading company in the food industry, it thinks in 'Great Food, Great Life". Its mission is to offer its consumers with a variety of choices that are healthy and finest in taste also. It is focused on providing the very best food to its clients throughout the day and night.


Gibersons Glass Studio has a broad variety of items that it offers to its clients. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has set its goals and goals. These goals and goals are noted below.
• One objective of the business is to reach no landfill status. (Business, aboutus, 2017).
• Another objective of Gibersons Glass Studio is to waste minimum food throughout production. Usually, the food produced is wasted even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to minimize the above-mentioned complications and would likewise ensure the delivery of high quality of its items to its clients.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its consumers, company partners, staff members, and government.

Critical Issues

Recently, Business Company 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 expected 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 need to focus more on the sales then the development technology. Otherwise, it might result in the decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the concept of Nutritious, Health and Wellness (NHW). This technique handles the idea to bringing change in the consumer preferences about food and making the food things much healthier worrying about the health problems.
The vision of this strategy is based upon the secret method i.e. 60/40+ which just means that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be manufactured with additional dietary worth in contrast to all other products in market gaining it a plus on its nutritional material.
This method was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competition with other business, with an objective of keeping its trust over clients as Business Company has acquired more trusted by customers.

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 costs, and permit the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This sign also reveals a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio present a danger of default of Business to its financiers and might lead a decreasing share prices. In terms of increasing debt ratio, the company should not invest much on R&D and should pay its present financial obligations to decrease the danger for investors.
The increasing risk of investors with increasing debt ratio and declining share prices can be observed by big decline of EPS of Gibersons Glass Studio stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This sluggish development also impede business to additional 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 calculations and Charts given up the Exhibits D and E.

TWOS Analysis

TWOS analysis can be used to obtain different techniques based upon the SWOT Analysis provided above. A brief summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative products by big quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It might likewise provide Business a long term competitive advantage over its competitors.
The global expansion of Business need to be focused on market recording of developing countries by expansion, bring in more consumers through consumer's loyalty. As establishing nations are more populated than developed nations, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisGibersons Glass Studio ought to do cautious acquisition and merger of companies, as it could impact the client's and society's understandings about Business. It needs to obtain and merge with those business which have a market credibility of healthy and nutritious companies. It would enhance the understandings of customers about Business.
Business ought to not only invest its R&D on innovation, rather than it should also concentrate on the R&D costs over assessment of expense of numerous healthy products. This would increase cost efficiency of its products, which will lead to increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business must relocate to not just developing however also to industrialized nations. It must broadens its geographical expansion. This wide geographical growth towards developing and developed countries would decrease the danger of potential losses in times of instability in numerous countries. It ought to widen its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Gibersons Glass Studio needs to wisely control its acquisitions to avoid the risk of mistaken belief from the customers about Business. It needs to acquire and combine with those countries having a goodwill of being a healthy company in the market. This would not just improve the understanding of consumers about Business but would also increase the sales, revenue margins and market share of Business. It would also make it possible for the company to use its possible resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on four elements; age, gender, earnings and profession. Business produces several items related to babies i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. Gibersons Glass Studio items are rather cost effective by nearly all levels, but its significant targeted clients, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in practically 86 nations. Its geographical segmentation is based upon 2 primary elements i.e. typical earnings level of the customer as well as the environment of the region. Singapore Business Company'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 life style of the consumer. Business 3 in 1 Coffee target those consumers whose life style is quite busy and don't have much time.

Behavioral Segmentation

Gibersons Glass Studio behavioral segmentation is based upon the mindset knowledge and awareness of the client. For example its extremely healthy products target those consumers who have a health mindful attitude towards their usages.

Gibersons Glass Studio Alternatives

In order to sustain the brand in the market and keep the client intact with the brand, there are two alternatives:
Option: 1
The Business should invest more on acquisitions than on the R&D.
1. Acquisitions would increase total assets of the company, increasing the wealth of the business. However, 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 method. Amount spend on the R&D might not be restored, and it will be thought about completely sunk cost, if it do not offer possible outcomes.
3. Spending on R&D provide slow development in sales, as it takes very long time to present an item. Nevertheless, acquisitions provide quick results, as it offer the company already established item, which can be marketed right after the acquisition.
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and healthy items.
2 Big costs on acquisitions than R&D would send a signal of business's ineffectiveness of developing ingenious items, and would lead to customer's discontentment too.
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 business not able to introduce new innovative items.
Option: 2.
The Company should spend more on its R&D instead of acquisitions.
1. It would enable the business to produce more innovative items.
2. It would supply the business a strong competitive position in the market.
3. It would allow the business to increase its targeted customers by introducing those products which can be used 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 earnings margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk cost, and would impact the business at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which could provide a negative signal to the financiers, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to introduce new ingenious products with less danger of converting the costs on R&D into sunk expense.
2. It would offer 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 affect the profit margins of the business at a large rate as compare to alternative 2.
4. It would offer the company a strong long term market position in regards to the business's total wealth along with in regards to innovative products.
1. Danger of conversion of R&D spending into sunk cost, greater than option 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less number of ingenious products than alternative 2 and high number of ingenious products than alternative 1.

Gibersons Glass Studio Conclusion

RecommendationsBusiness has remained the leading market gamer for more than a years. It has institutionalized its methods and culture to align itself with the market changes and client behavior, which has actually ultimately allowed it to sustain its market share. Though, Business has established substantial market share and brand identity in the urban markets, it is recommended that the company ought to focus on the backwoods in terms of establishing brand loyalty, awareness, and equity, such can be done by producing a specific brand name allowance technique through trade marketing methods, that draw clear difference between Gibersons Glass Studio products and other rival products. Gibersons Glass Studio must leverage its brand 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 business to develop brand equity for freshly presented and already produced items on a higher platform, making the efficient usage of resources and brand name image in the market.

Gibersons Glass Studio Exhibits

PESTEL Analysis
Governmental assistance

Changing criteria of global food.
Boosted market share. Transforming perception towards healthier products Improvements in R&D and QA departments.

Introduction of E-marketing.
No such influence as it is good. Problems over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 6000 Greatest after Business with much less growth than Service 1st Least expensive
R&D Spending Greatest since 2009 Highest possible after Company 6th Most affordable
Net Profit Margin Highest given that 2003 with fast development from 2003 to 2018 Due to sale of Alcon in 2016. Practically equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment and health and wellness factor Highest number of brands with sustainable techniques Largest confectionary and also refined foods brand name on the planet Biggest dairy items and bottled water brand name in the world
Segmentation Center and also top center level customers worldwide Specific consumers together with family group All age and also Revenue Customer Teams Middle as well as upper middle level customers worldwide
Number of Brands 6th 5th 1st 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 63498 122386 722482 871754 762324
Net Profit Margin 6.42% 8.54% 75.47% 1.53% 71.91%
EPS (Earning Per Share) 12.68 3.94 3.48 3.21 81.24
Total Asset 251226 631694 289242 419158 49957
Total Debt 42372 42415 31444 48584 87775
Debt Ratio 98% 96% 11% 11% 87%
R&D Spending 3942 6929 1798 4189 3486
R&D Spending as % of Sales 3.19% 5.29% 3.26% 8.33% 9.64%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations