Learning When To Stop Momentum Case Study Analysis

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Learning When To Stop Momentum is currently one of the biggest food cycle worldwide. It was established by Ivey in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate. At the very same time, the Page bros from Switzerland likewise found The Anglo-Swiss Condensed Milk Company. The two ended up being rivals in the beginning but later combined in 1905, leading to the birth of Learning When To Stop Momentum.
Business is now a multinational company. Unlike other international companies, it has senior executives from different countries and tries to make choices considering the whole world. Learning When To Stop Momentum currently has more than 500 factories worldwide and a network spread throughout 86 nations.


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


Learning When To Stop Momentum's vision is to provide its customers with food that is healthy, high in quality and safe to consume. Business pictures to develop a well-trained labor force which would help the business to grow


Learning When To Stop Momentum's mission is that as presently, it is the leading company in the food industry, it believes in 'Good Food, Good Life". Its objective is to supply its consumers with a variety of options that are healthy and finest in taste. It is concentrated on offering the best food to its clients throughout the day and night.


Business has a wide range of items that it provides to its consumers. Its products consist of food for babies, cereals, dairy products, snacks, chocolates, food for animal and mineral water. It has around 4 hundred and fifty (450) factories worldwide and around 328,000 employees. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually put down its objectives and objectives. These objectives and objectives are listed below.
• One goal of the company is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another goal of Learning When To Stop Momentum is to waste minimum food throughout production. Usually, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its product packaging in such a way that it would help it to reduce the above-mentioned complications and would also guarantee the shipment of high quality of its products to its clients.
• Meet worldwide requirements of the environment.
• Construct a relationship based on trust with its consumers, company partners, employees, 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 innovation. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the company is not attained as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based on the idea of Nutritious, Health and Wellness (NHW). This strategy handles the concept to bringing modification in the client choices about food and making the food stuff healthier worrying about the health problems.
The vision of this technique is based on the key method i.e. 60/40+ which simply suggests that the items will have a rating of 60% on the basis of taste and 40% is based on its dietary value. The products will be produced with additional dietary worth in contrast to all other items in market getting it a plus on its nutritional content.
This technique was embraced to bring more delicious plus nutritious foods and beverages in market than ever. In competition with other business, with an intention of keeping its trust over consumers as Business Business has gotten more trusted by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and permit the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This indication likewise reveals a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing financial obligation ratio posture a risk of default of Business to its investors and might lead a declining share rates. In terms of increasing financial obligation ratio, the company needs to not spend much on R&D and must pay its present debts to decrease the threat for financiers.
The increasing threat of investors with increasing debt ratio and decreasing share prices can be observed by substantial decrease of EPS of Learning When To Stop Momentum stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception structure of consumers. This slow growth likewise prevent business 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 calculations and Charts given in the Displays D and E.

TWOS Analysis

TWOS analysis can be used to derive various techniques based upon the SWOT Analysis offered above. A brief summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative items by big quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the business. It could likewise provide Business a long term competitive benefit over its competitors.
The global growth of Business need to be concentrated on market catching of establishing countries by growth, bring in more clients through client's loyalty. As developing nations are more populated than industrialized nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisLearning When To Stop Momentum needs to do mindful acquisition and merger of organizations, as it could impact the customer's and society's perceptions about Business. It should acquire and merge with those business which have a market track record of healthy and healthy companies. It would improve the perceptions of consumers about Business.
Business needs to not just invest its R&D on innovation, instead of it should likewise focus on the R&D costs over evaluation of expense of different healthy items. This would increase cost performance of its products, which will result in 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 also to developed countries. It needs to widen its circle to different countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It must get and combine with those countries having a goodwill of being a healthy company in the market. It would also enable the business to utilize its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on four elements; age, gender, income and occupation. For instance, Business produces numerous items associated with infants i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Learning When To Stop Momentum products are quite budget friendly 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 made up of its existence in practically 86 countries. Its geographical division is based upon 2 primary factors i.e. typical income level of the customer as well as the environment of the region. Singapore Business Business's division 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 character and life style of the client. For example, Business 3 in 1 Coffee target those consumers whose life style is quite busy and do not have much time.

Behavioral Segmentation

Learning When To Stop Momentum behavioral division is based upon the mindset understanding and awareness of the client. For example its highly nutritious items target those consumers who have a health mindful mindset towards their usages.

Learning When To Stop Momentum Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand name, there are two options:
Alternative: 1
The Business must spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The business can resell the obtained units in the market, if it stops working to implement its technique. However, amount invest in the R&D might not be restored, and it will be thought about totally sunk cost, if it do not give possible outcomes.
3. Investing in R&D supply slow development in sales, as it takes long time to introduce an item. Nevertheless, acquisitions offer fast outcomes, as it provide the company currently established item, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to deal with misunderstanding of customers about Business core values of healthy and healthy products.
2 Large spending on acquisitions than R&D would send a signal of business's inefficiency of establishing ingenious products, and would results in consumer's dissatisfaction also.
3. Large acquisitions than R&D would extend the product line of the company by the items which are already present in the market, making business not able to present new innovative items.
Alternative: 2.
The Business ought to invest more on its R&D rather than acquisitions.
1. It would allow the company to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would allow the business to increase its targeted customers by introducing those items which can be used to a totally brand-new market section.
4. Innovative items will offer long term benefits and high market share in long run.
1. It would reduce the profit margins of the company.
2. In case of failure, the entire costs on R&D would be considered as sunk expense, and would impact the company at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which could offer an unfavorable signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to introduce brand-new innovative products with less threat of transforming the spending on R&D into sunk expense.
2. It would supply a favorable signal to the financiers, as the general possessions of the company would increase with its significant R&D spending.
3. It would not affect the revenue margins of the company at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the business's overall wealth as well as in regards to ingenious items.
1. Risk of conversion of R&D spending into sunk expense, greater than alternative 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Intro of less number of innovative items than alternative 2 and high number of innovative items than alternative 1.

Learning When To Stop Momentum Conclusion

RecommendationsBusiness has remained the top market gamer for more than a decade. It has actually institutionalised its methods and culture to align itself with the marketplace changes and consumer habits, which has eventually permitted it to sustain its market share. Business has actually developed substantial market share and brand identity in the urban markets, it is recommended that the company should focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by producing a specific brand allotment method through trade marketing strategies, that draw clear difference in between Learning When To Stop Momentum products and other rival items. Learning When To Stop Momentum should take advantage of its brand image 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 business to develop brand equity for newly introduced and currently produced items on a greater platform, making the reliable usage of resources and brand image in the market.

Learning When To Stop Momentum Exhibits

PESTEL Analysis
Governmental support

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

Intro of E-marketing.
No such influence as it is beneficial. Issues over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest considering that 1000 Greatest after Company with less growth than Organisation 2nd Cheapest
R&D Spending Highest possible because 2005 Greatest after Organisation 6th Most affordable
Net Profit Margin Greatest given that 2002 with rapid development from 2007 to 2019 As a result of sale of Alcon in 2012. Nearly equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment and health factor Highest possible number of brand names with sustainable methods Biggest confectionary as well as processed foods brand on the planet Biggest dairy items and bottled water brand on the planet
Segmentation Middle as well as upper center degree consumers worldwide Specific customers in addition to household group Every age and also Earnings Customer Teams Center and upper middle level customers worldwide
Number of Brands 5th 5th 8th 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 82524 617424 845577 866184 283257
Net Profit Margin 8.22% 1.43% 19.71% 2.85% 56.66%
EPS (Earning Per Share) 16.66 2.17 6.95 6.66 66.93
Total Asset 731615 322273 141372 767636 25923
Total Debt 43777 76247 61296 17889 79648
Debt Ratio 73% 61% 93% 61% 31%
R&D Spending 9975 8733 3954 3575 6845
R&D Spending as % of Sales 7.54% 2.36% 5.79% 9.15% 2.18%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations