Julian Bond Common Cause Case Study Solution

Business is currently one of the biggest food chains worldwide. It was founded by Henri Julian Bond Common Cause in 1866, a German Pharmacist who initially launched "FarineLactee"; a mix of flour and milk to feed babies and decrease mortality rate.
Business is now a multinational company. Unlike other international business, it has senior executives from various nations and tries to make choices thinking about the whole world. Julian Bond Common Cause currently has more than 500 factories around the world and a network spread across 86 countries.

Purpose

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 company is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Julian Bond Common Cause's vision is to supply its customers with food that is healthy, high in quality and safe to consume. It wishes to be innovative and simultaneously comprehend the needs and requirements of its consumers. Its vision is to grow quickly and offer items that would please the requirements of each age. Julian Bond Common Cause pictures to develop a well-trained labor force which would help the business to grow
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Mission

Julian Bond Common Cause's mission is that as currently, it is the leading business in the food market, it believes in 'Great Food, Excellent Life". Its mission is to supply its consumers with a variety of choices that are healthy and finest in taste as well. It is focused on providing the best food to its consumers throughout the day and night.

Products.

Business has a large range of items that it uses to its clients. Its items include food for babies, cereals, dairy items, snacks, chocolates, food for family pet and bottled water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 employees. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the business has actually laid down its objectives and goals. These objectives and goals are listed below.
• One objective of the business is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another objective of Julian Bond Common Cause is to waste minimum food during production. Frequently, the food produced is squandered even prior to it reaches the clients.
• Another thing that Business is working on is to enhance its product packaging in such a way that it would help it to minimize those complications and would likewise guarantee the delivery of high quality of its products to its customers.
• Meet worldwide standards of the environment.
• Build a relationship based upon trust with its customers, service partners, employees, and government.

Critical Issues

Recently, Business Business is focusing more towards the method of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. The target of the company is not attained as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based on the principle of Nutritious, Health and Wellness (NHW). This method deals with the concept to bringing modification in the client choices about food and making the food stuff healthier concerning about the health problems.
The vision of this technique is based on the secret approach i.e. 60/40+ which just suggests that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary worth. The items will be manufactured with extra dietary worth in contrast to all other products in market getting it a plus on its dietary content.
This technique was adopted to bring more tasty plus healthy foods and beverages in market than ever. In competitors with other business, with an objective of maintaining its trust over consumers as Business Business has gained more relied on by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing actual quantity of costs shows 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 portion of sales is declining. This indicator likewise shows a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of debts. This increasing financial obligation ratio position a hazard of default of Business to its investors and could lead a declining share costs. For that reason, in regards to increasing financial obligation ratio, the firm ought to not spend much on R&D and needs to pay its current debts to decrease the threat for investors.
The increasing risk of financiers with increasing debt ratio and decreasing share costs can be observed by big decline of EPS of Julian Bond Common Cause stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow understanding building of consumers. This slow growth also prevent 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 calculations and Charts given up the Exhibitions D and E.

TWOS Analysis

2 analysis can be used to derive different techniques based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative products by large amount of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the business. It could likewise supply Business a long term competitive advantage over its rivals.
The worldwide expansion of Business must be concentrated on market catching of developing nations by expansion, attracting more customers through client's loyalty. As establishing nations are more populated than developed countries, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Julian Bond Common Cause must do mindful acquisition and merger of companies, as it might impact the consumer's and society's perceptions about Business. It must obtain and combine with those companies which have a market reputation of healthy and nutritious business. It would enhance the perceptions of customers about Business.
Business should not only spend its R&D on development, rather than it needs to likewise focus on the R&D spending over examination of cost of different nutritious items. This would increase cost effectiveness of its items, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not only establishing but likewise to industrialized countries. It should broadens its geographical expansion. This wide geographical expansion towards developing and established nations would minimize the danger of potential losses in times of instability in various countries. It ought to broaden its circle to various countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Julian Bond Common Cause must carefully manage its acquisitions to prevent the risk of misconception from the consumers about Business. It must get and merge with those countries having a goodwill of being a healthy business in the market. This would not just improve the perception of customers about Business however would also increase the sales, profit margins and market share of Business. It would also make it possible for the business to utilize its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on four aspects; age, gender, earnings and profession. Business produces a number of items related to babies i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary products. Julian Bond Common Cause items are rather cost effective by nearly all levels, however its significant targeted consumers, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in nearly 86 countries. Its geographical division is based upon two main elements i.e. average income level of the consumer as well as 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 division of Business is based upon the character and lifestyle of the client. Business 3 in 1 Coffee target those consumers whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Julian Bond Common Cause behavioral division is based upon the attitude knowledge and awareness of the consumer. For instance its extremely healthy products target those consumers who have a health conscious attitude towards their intakes.

Julian Bond Common Cause Alternatives

In order to sustain the brand in the market and keep the client intact with the brand name, there are 2 alternatives:
Option: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the company, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The company can resell the gotten systems in the market, if it fails to implement its technique. Quantity invest on the R&D might not be revived, and it will be thought about totally sunk expense, if it do not give prospective outcomes.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to introduce an item. Acquisitions supply fast results, as it supply the company already established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the company to face misunderstanding of consumers about Business core worths of healthy and healthy items.
2 Big costs on acquisitions than R&D would send out a signal of company's inadequacy of developing innovative products, and would results in customer's frustration.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are already present in the market, making business not able to present brand-new innovative products.
Option: 2.
The Business ought to spend more on its R&D rather than acquisitions.
Pros:
1. It would allow the company to produce more innovative items.
2. It would provide the business a strong competitive position in the market.
3. It would allow the business to increase its targeted consumers by introducing those items which can be provided to an entirely brand-new market sector.
4. Innovative products will supply long term benefits and high market share in long term.
Cons:
1. It would decrease the revenue margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would affect the business at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could provide a negative signal to the investors, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Pros:
1. It would allow the company to introduce brand-new innovative items with less risk of transforming the spending on R&D into sunk expense.
2. It would offer a positive signal to the financiers, as the overall properties of the business would increase with its considerable R&D spending.
3. It would not impact the revenue margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in terms of the company's overall wealth as well as in regards to ingenious products.
Cons:
1. Risk of conversion of R&D spending into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Introduction of less number of innovative items than alternative 2 and high number of ingenious products than alternative 1.

Julian Bond Common Cause Conclusion

It has institutionalized its techniques and culture to align itself with the market changes and client habits, which has actually ultimately allowed it to sustain its market share. Business has actually developed substantial market share and brand name identity in the metropolitan markets, it is recommended that the company must focus on the rural locations in terms of developing brand name loyalty, awareness, and equity, such can be done by producing a specific brand allocation method through trade marketing strategies, that draw clear distinction between Julian Bond Common Cause products and other rival products.

Julian Bond Common Cause Exhibits