Managing A Public Image Sophie Chen Case Study Solution

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Managing A Public Image Sophie Chen Case Study Analysis

Business is presently one of the biggest food chains worldwide. It was established by Henri Managing A Public Image Sophie Chen in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed infants and decrease mortality rate.
Business is now a transnational company. Unlike other multinational business, it has senior executives from various countries and attempts to make choices thinking about the whole world. Managing A Public Image Sophie Chen presently has more than 500 factories worldwide and a network spread across 86 countries.


The purpose of Managing A Public Image Sophie Chen Corporation is to enhance the lifestyle of individuals by playing its part and offering healthy food. It wishes to help the world in forming a healthy and much better future for it. It also wants to motivate individuals to live a healthy life. While ensuring that the business is prospering in the long run, that's how it plays its part for a better and healthy future


Managing A Public Image Sophie Chen's vision is to supply its customers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and all at once comprehend the needs and requirements of its consumers. Its vision is to grow fast and provide products that would satisfy the requirements of each age group. Managing A Public Image Sophie Chen pictures to establish a trained labor force which would help the company to grow


Managing A Public Image Sophie Chen's objective is that as presently, it is the leading business in the food market, it thinks in 'Good Food, Excellent Life". Its objective is to provide its customers with a variety of options that are healthy and finest in taste too. It is focused on offering the best food to its customers throughout the day and night.


Managing A Public Image Sophie Chen has a broad variety of items that it provides to its customers. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the company has put down its objectives and goals. These objectives and goals are noted below.
• One objective of the business is to reach zero land fill 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 squandered even before it reaches the customers.
• Another thing that Business is dealing with is to enhance its product packaging in such a way that it would help it to reduce those problems and would likewise ensure the shipment of high quality of its products to its clients.
• Meet global standards of the environment.
• Construct a relationship based on 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 earnings on the R&D innovation. The country 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%, provided in Exhibition H.

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 technique deals with the idea to bringing change in the consumer preferences about food and making the food stuff much healthier worrying about the health issues.
The vision of this strategy is based upon the key technique i.e. 60/40+ which merely suggests that the products will have a rating of 60% on the basis of taste and 40% is based on its dietary worth. The items will be manufactured with additional dietary value in contrast to all other items in market getting it a plus on its dietary content.
This strategy was adopted to bring more tasty plus nutritious foods and drinks in market than ever. In competitors with other companies, with an intention of retaining its trust over clients as Business Company has actually gained more trusted by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing real amount of spending shows that the sales are increasing at a higher rate than its R&D spending, and allow the business to more invest in R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This indicator also 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 development instead of payment of debts. This increasing financial obligation ratio posture a risk of default of Business to its investors and could lead a declining share costs. In terms of increasing financial obligation ratio, the firm needs to not spend much on R&D and ought to pay its existing financial obligations to reduce the danger for investors.
The increasing danger of investors with increasing debt ratio and declining share rates can be observed by big decrease of EPS of Managing A Public Image Sophie Chen stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow development also impede 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 estimations and Charts given up the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be utilized to obtain various strategies based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business ought to present more ingenious items by big amount of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the company. It might also provide Business a long term competitive benefit over its competitors.
The global growth of Business should be focused on market capturing of developing countries by expansion, bring in more clients through consumer's loyalty. As developing nations are more populated than developed nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisManaging A Public Image Sophie Chen must do mindful acquisition and merger of companies, as it could affect the consumer's and society's understandings about Business. It must obtain and combine with those business which have a market reputation of healthy and healthy business. It would enhance the understandings of customers about Business.
Business ought to not just invest its R&D on innovation, rather than it ought to likewise concentrate on the R&D costs over evaluation of cost of various nutritious items. This would increase expense efficiency of its items, which will lead to increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just developing however likewise to developed 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

Managing A Public Image Sophie Chen needs to carefully manage its acquisitions to avoid the threat of mistaken belief from the customers about Business. It must acquire and merge with those countries having a goodwill of being a healthy business in the market. This would not only enhance the understanding of customers about Business but would likewise increase the sales, revenue margins and market share of Business. It would likewise make it possible for the business to use its prospective resources effectively on its other operations instead of acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on 4 aspects; age, gender, earnings and profession. Business produces a number of items related to children i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Managing A Public Image Sophie Chen items are rather economical by practically all levels, however its significant targeted consumers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is composed of its presence in nearly 86 countries. Its geographical segmentation is based upon two primary aspects i.e. typical earnings level of the customer in addition to the environment of the region. Singapore Business Company's segmentation is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the customer. For example, Business 3 in 1 Coffee target those consumers whose life style is quite busy and don't have much time.

Behavioral Segmentation

Managing A Public Image Sophie Chen behavioral segmentation is based upon the mindset knowledge and awareness of the consumer. Its extremely nutritious items target those consumers who have a health conscious attitude towards their consumptions.

Managing A Public Image Sophie Chen Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand name, there are 2 choices:
Option: 1
The Business needs to invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. However, spending on R&D would be sunk cost.
2. The business can resell the gotten units in the market, if it stops working to implement its strategy. However, quantity spend on the R&D could not be restored, and it will be thought about completely sunk cost, if it do not provide potential outcomes.
3. Spending on R&D supply slow development in sales, as it takes very long time to introduce an item. Acquisitions offer quick results, as it offer the company already developed product, which can be marketed quickly 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 consumers about Business core worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send a signal of company's inadequacy of establishing innovative products, and would lead to consumer's frustration too.
3. Big acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making business not able to introduce new ingenious items.
Alternative: 2.
The Company needs to spend more on its R&D rather than acquisitions.
1. It would allow the company to produce more ingenious products.
2. It would supply the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted clients by presenting those items which can be used to an entirely brand-new market sector.
4. Ingenious products will supply long term benefits and high market share in long term.
1. It would reduce the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, 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 an unfavorable signal to the financiers, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to introduce brand-new innovative products with less danger of converting the spending on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the total assets of the business would increase with its considerable R&D spending.
3. It would not impact the revenue margins of the company at a large rate as compare to alternative 2.
4. It would supply the company 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 spending into sunk cost, greater than alternative 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less variety of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Managing A Public Image Sophie Chen Conclusion

RecommendationsIt has institutionalized its strategies and culture to align itself with the market changes and client behavior, which has actually eventually enabled it to sustain its market share. Business has developed significant market share and brand identity in the metropolitan markets, it is recommended that the business ought to focus on the rural locations in terms of establishing brand name loyalty, awareness, and equity, such can be done by creating a particular brand allotment method through trade marketing tactics, that draw clear difference in between Managing A Public Image Sophie Chen items and other competitor items.

Managing A Public Image Sophie Chen Exhibits

PESTEL Analysis
Governmental support

Altering standards of global food.
Improved market share. Altering perception towards healthier items Improvements in R&D and QA divisions.

Introduction of E-marketing.
No such effect as it is good. Worries over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest considering that 6000 Greatest after Service with much less growth than Business 2nd Most affordable
R&D Spending Highest because 2005 Highest after Service 9th Most affordable
Net Profit Margin Highest because 2002 with fast growth from 2006 to 2011 Due to sale of Alcon in 2011. Practically equal to Kraft Foods Incorporation Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as wellness element Highest number of brands with lasting techniques Largest confectionary and also refined foods brand name in the world Biggest dairy items as well as bottled water brand in the world
Segmentation Center and upper center level consumers worldwide Individual clients together with family group Any age and Income Consumer Teams Middle as well as upper center degree customers worldwide
Number of Brands 8th 4th 6th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 71682 414844 198537 175416 164854
Net Profit Margin 7.87% 4.31% 85.52% 6.81% 14.35%
EPS (Earning Per Share) 41.41 6.59 2.71 2.98 16.18
Total Asset 979232 557357 589128 873181 19162
Total Debt 97169 42283 58965 16161 51526
Debt Ratio 21% 77% 65% 18% 73%
R&D Spending 2187 6946 5347 2857 8437
R&D Spending as % of Sales 1.14% 2.79% 9.49% 2.15% 9.96%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations