Managing A Public Image Sophie Chen Case Study Analysis

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Business is currently one of the biggest food chains worldwide. It was founded by Henri Managing A Public Image Sophie Chen in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed infants and reduce mortality rate.
Business is now a transnational company. Unlike other international business, it has senior executives from various countries and attempts to make decisions considering the entire world. Managing A Public Image Sophie Chen currently has more than 500 factories worldwide and a network spread across 86 countries.


The function of Managing A Public Image Sophie Chen Corporation is to improve the quality of life of people by playing its part and supplying healthy food. It wants to help the world in forming a healthy and better future for it. It likewise wants to motivate individuals to live a healthy life. While making sure that the business is prospering in the long run, that's how it plays its part for a much better and healthy future


Managing A Public Image Sophie Chen's vision is to provide its customers with food that is healthy, high in quality and safe to eat. Business visualizes to develop a trained workforce which would help the business to grow


Managing A Public Image Sophie Chen's mission is that as currently, it is the leading business in the food market, it thinks in 'Great Food, Great Life". Its mission is to supply its customers with a variety of choices that are healthy and best in taste. It is focused on supplying the best food to its consumers throughout the day and night.


Managing A Public Image Sophie Chen has a large range of items that it offers to its consumers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has actually put down its objectives and goals. These objectives and goals are noted below.
• One objective of the business is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another objective of Managing A Public Image Sophie Chen is to squander minimum food throughout production. Most often, the food produced is lost even prior to it reaches the customers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to lower the above-mentioned complications and would likewise ensure the shipment of high quality of its items to its customers.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its consumers, organisation partners, employees, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the technique 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. However, the target of the business is not accomplished as the sales were expected to grow higher at the rate of 10% each year and the operating margins to increase by 20%, given up Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it might result in the declined profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based upon the concept of Nutritious, Health and Wellness (NHW). This technique deals with the concept to bringing change in the consumer choices about food and making the food things much healthier worrying about the health issues.
The vision of this technique is based upon the secret technique i.e. 60/40+ which merely suggests that the products will have a score of 60% on the basis of taste and 40% is based upon its dietary worth. The items will be produced with extra nutritional worth in contrast to all other products in market getting it a plus on its dietary content.
This method was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competitors with other companies, with an intent of keeping its trust over customers as Business Company has actually gotten more relied on by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing actual amount of costs reveals that the sales are increasing at a higher rate than its R&D costs, and enable the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This sign also reveals a thumbs-up to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing debt ratio position a threat of default of Business to its investors and might lead a declining share rates. For that reason, in regards to increasing financial obligation ratio, the firm needs to 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 debt ratio and declining share rates can be observed by substantial decline of EPS of Managing A Public Image Sophie Chen stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This sluggish growth 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 up the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be utilized to obtain various methods based on the SWOT Analysis provided above. A short summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative items by large amount of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the business. It could likewise supply Business a long term competitive benefit over its competitors.
The global expansion of Business need to be concentrated on market catching of establishing nations by growth, attracting more clients through client's commitment. As establishing nations are more populated than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisManaging A Public Image Sophie Chen must do careful acquisition and merger of companies, as it could affect the client's and society's perceptions about Business. It must get and merge with those business which have a market reputation of healthy and healthy business. It would enhance the understandings of consumers about Business.
Business needs to not only invest its R&D on development, rather than it needs to also focus on the R&D spending over examination of cost of numerous healthy products. This would increase cost performance of its items, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not just developing but likewise to developed countries. It should widen its circle to various countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

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

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based on four elements; age, gender, income and occupation. For example, Business produces numerous items associated with children i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Managing A Public Image Sophie Chen items are quite inexpensive by practically all levels, but its significant targeted consumers, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its presence in nearly 86 countries. Its geographical division is based upon 2 primary elements i.e. average income level of the consumer 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 segmentation of Business is based upon the character and life style of the consumer. For example, Business 3 in 1 Coffee target those consumers whose lifestyle is quite busy and do not have much time.

Behavioral Segmentation

Managing A Public Image Sophie Chen behavioral segmentation is based upon the attitude understanding and awareness of the consumer. Its highly nutritious products target those customers who have a health mindful attitude towards their usages.

Managing A Public Image Sophie Chen Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand, there are two alternatives:
Option: 1
The Company should spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the obtained systems in the market, if it fails to execute its method. However, amount spend on the R&D might not be revived, and it will be thought about entirely sunk cost, if it do not provide possible outcomes.
3. Investing in R&D provide sluggish development in sales, as it takes very long time to present an item. However, acquisitions offer fast outcomes, as it supply the company currently developed item, which can be marketed right after the acquisition.
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to deal with misconception of consumers about Business core worths of healthy and healthy products.
2 Large spending on acquisitions than R&D would send out a signal of company's inefficiency of establishing innovative items, and would results in consumer's discontentment.
3. Large acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making company unable to present new ingenious products.
Alternative: 2.
The Company must invest more on its R&D instead of acquisitions.
1. It would enable the company to produce more ingenious products.
2. It would supply the business a strong competitive position in the market.
3. It would allow the company to increase its targeted consumers by introducing those items which can be provided to a completely brand-new market section.
4. Innovative items will supply 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 spending on R&D would be thought about as sunk cost, and would impact the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could supply a negative signal to the investors, and could result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the company to introduce brand-new ingenious items with less threat of transforming the spending on R&D into sunk cost.
2. It would offer a favorable signal to the financiers, as the general assets of the business would increase with its substantial R&D spending.
3. It would not impact the profit margins of the company at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the company's general wealth along with in regards to innovative products.
1. Threat of conversion of R&D costs into sunk expense, higher than option 1 lesser than alternative 2.
2. Risk of misunderstanding about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of ingenious items than alternative 2 and high variety of innovative products than alternative 1.

Managing A Public Image Sophie Chen Conclusion

RecommendationsBusiness has actually stayed the leading market gamer for more than a years. It has institutionalised its techniques and culture to align itself with the marketplace changes and client behavior, which has actually eventually allowed it to sustain its market share. Business has established considerable market share and brand identity in the urban markets, it is suggested that the business should focus on the rural locations in terms of developing brand loyalty, awareness, and equity, such can be done by creating a specific brand allowance strategy through trade marketing methods, that draw clear distinction in between Managing A Public Image Sophie Chen products and other competitor products. Managing A Public Image Sophie Chen must take advantage of its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will allow the business to develop brand equity for newly introduced and currently produced items on a greater platform, making the efficient use of resources and brand image in the market.

Managing A Public Image Sophie Chen Exhibits

PESTEL Analysis
Governmental support

Changing standards of international food.
Improved market share.
Changing assumption towards much healthier items
Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such effect as it is beneficial.
Issues over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 2000
Highest possible after Company with much less development than Service 2nd Least expensive
R&D Spending Highest possible considering that 2001 Highest possible after Service 5th Cheapest
Net Profit Margin Highest considering that 2004 with fast growth from 2007 to 2016 Because of sale of Alcon in 2015. Almost equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and health aspect Highest possible variety of brand names with sustainable techniques Largest confectionary as well as processed foods brand worldwide Largest milk items and also mineral water brand name worldwide
Segmentation Middle as well as upper center level customers worldwide Specific customers along with household group Every age and Revenue Customer Teams Middle as well as top middle level customers worldwide
Number of Brands 7th 3rd 5th 7th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 58231 972712 957591 578827 754618
Net Profit Margin 5.61% 1.78% 13.38% 6.32% 82.28%
EPS (Earning Per Share) 69.18 6.64 2.26 9.81 32.83
Total Asset 916635 264666 313761 523826 66238
Total Debt 72732 12454 71427 97826 51748
Debt Ratio 55% 82% 75% 53% 73%
R&D Spending 9144 8592 7165 4348 5692
R&D Spending as % of Sales 5.36% 3.13% 7.69% 8.36% 7.68%

Managing A Public Image Sophie Chen Executive Summary Managing A Public Image Sophie Chen Swot Analysis Managing A Public Image Sophie Chen Vrio Analysis Managing A Public Image Sophie Chen Pestel Analysis
Managing A Public Image Sophie Chen Porters Analysis Managing A Public Image Sophie Chen Recommendations