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Naukri Three Retention Dilemmas Case Study Solution

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Business is currently one of the greatest food chains worldwide. It was established by Henri Naukri Three Retention Dilemmas in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and decrease death rate.
Business is now a global company. Unlike other international companies, it has senior executives from different countries and tries to make decisions considering the whole world. Naukri Three Retention Dilemmas currently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

The function of Business Corporation is to improve the quality of life of people by playing its part and providing healthy food. While making sure that the business is succeeding in the long run, that's how it plays its part for a better and healthy future

Vision

Naukri Three Retention Dilemmas's vision is to offer its clients with food that is healthy, high in quality and safe to eat. It wants to be ingenious and simultaneously understand the needs and requirements of its customers. Its vision is to grow quick and provide items that would satisfy the needs of each age group. Naukri Three Retention Dilemmas visualizes to establish a trained labor force which would help the company to grow
.

Mission

Naukri Three Retention Dilemmas's objective is that as currently, it is the leading business in the food industry, it thinks in 'Good Food, Good Life". Its mission is to provide its customers with a variety of choices that are healthy and finest in taste. It is concentrated on supplying the very best food to its customers throughout the day and night.

Products.

Naukri Three Retention Dilemmas has a large range of items that it uses to its consumers. In 2011, Business was noted as the most rewarding 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 noted below.
• One objective of the company is to reach no land fill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Naukri Three Retention Dilemmas is to waste minimum food during production. Frequently, the food produced is lost even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to reduce the above-mentioned problems and would also ensure the delivery of high quality of its products to its customers.
• Meet worldwide standards of the environment.
• Build a relationship based on trust with its customers, business partners, employees, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the business 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%, provided in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the concept of Nutritious, Health and Health (NHW). This method deals with the concept to bringing change in the consumer choices about food and making the food things much healthier worrying about the health concerns.
The vision of this strategy is based on the secret approach i.e. 60/40+ which merely implies that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be made with extra dietary worth in contrast to all other products in market getting it a plus on its dietary content.
This method was embraced to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other companies, with an intent of maintaining its trust over consumers as Business Company has acquired more trusted by customers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing real amount of costs shows that the sales are increasing at a higher rate than its R&D spending, and enable the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This indication likewise 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 advancement instead of payment of debts. This increasing debt ratio posture a risk of default of Business to its investors and could lead a decreasing share costs. For that reason, in terms of increasing debt ratio, the firm ought to not spend much on R&D and needs to pay its current financial obligations to reduce the threat for investors.
The increasing risk of financiers with increasing debt ratio and decreasing share rates can be observed by big decrease of EPS of Naukri Three Retention Dilemmas stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow development likewise prevent company to further spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Graphs given in the Displays D and E.

TWOS Analysis


TWOS analysis can be utilized to obtain different methods based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more innovative items by big amount of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the company. It might likewise supply Business a long term competitive benefit over its rivals.
The international expansion of Business ought to be concentrated on market recording of establishing nations by growth, attracting more clients through client's commitment. As developing countries are more populated than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisNaukri Three Retention Dilemmas needs to do mindful acquisition and merger of organizations, as it could impact the client's and society's understandings about Business. It must obtain and merge with those business which have a market credibility of healthy and healthy companies. It would enhance the understandings of customers about Business.
Business should not only invest its R&D on development, rather than it must also concentrate on the R&D spending over examination of cost of different nutritious products. This would increase cost effectiveness of its items, which will lead to increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing but also to developed countries. It needs to broadens its geographical growth. This broad geographical growth towards developing and developed countries would decrease the threat of potential losses in times of instability in numerous nations. It needs to expand its circle to various nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Naukri Three Retention Dilemmas ought to sensibly manage its acquisitions to avoid the danger of misconception from the customers about Business. It should obtain and merge with those nations having a goodwill of being a healthy company in the market. This would not just enhance the perception of consumers about Business however would likewise increase the sales, earnings margins and market share of Business. It would also make it possible for the business to use its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon 4 aspects; age, gender, income and occupation. Business produces a number of items related to babies i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Naukri Three Retention Dilemmas products are quite inexpensive by almost all levels, but its major 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 nearly 86 nations. Its geographical division is based upon two primary aspects i.e. average income level of the consumer in addition to the climate of the region. For example, Singapore Business Company's division is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the client. Business 3 in 1 Coffee target those customers whose life design is quite hectic and don't have much time.

Behavioral Segmentation

Naukri Three Retention Dilemmas behavioral division is based upon the attitude knowledge and awareness of the customer. Its extremely healthy items target those customers who have a health conscious attitude towards their consumptions.

Naukri Three Retention Dilemmas Alternatives

In order to sustain the brand in the market and keep the consumer undamaged with the brand, there are two options:
Alternative: 1
The Business should spend more on acquisitions than on the R&D.
Pros:
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 method. Nevertheless, amount spend on the R&D might not be restored, and it will be considered entirely sunk expense, if it do not provide prospective results.
3. Spending on R&D supply sluggish development in sales, as it takes very long time to introduce an item. Acquisitions offer fast outcomes, as it supply the company currently developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the company to deal with misconception of consumers about Business core values of healthy and healthy products.
2 Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of developing innovative products, and would outcomes in consumer'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 company not able to introduce brand-new ingenious products.
Alternative: 2.
The Business needs to spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for 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 offered to an entirely brand-new market section.
4. Innovative items will provide long term benefits and high market share in long term.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk expense, and would affect the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which might offer an unfavorable 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 allow the business to introduce new ingenious products with less danger of converting the costs on R&D into sunk cost.
2. It would provide a favorable signal to the investors, as the total possessions of the business would increase with its considerable R&D spending.
3. It would not affect the earnings margins of the business at a big rate as compare to alternative 2.
4. It would supply the company a strong long term market position in terms of the company's overall wealth along with in regards to ingenious items.
Cons:
1. Risk of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less number of ingenious items than alternative 2 and high number of innovative items than alternative 1.

Naukri Three Retention Dilemmas Conclusion

RecommendationsIt has institutionalised its techniques and culture to align itself with the market changes and consumer habits, which has actually ultimately enabled it to sustain its market share. Business has developed substantial market share and brand identity in the metropolitan markets, it is recommended that the company ought to focus on the rural areas in terms of developing brand name commitment, awareness, and equity, such can be done by creating a particular brand allocation strategy through trade marketing techniques, that draw clear distinction between Naukri Three Retention Dilemmas items and other competitor items.

Naukri Three Retention Dilemmas Exhibits

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental assistance

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

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 Highest possible because 4000
Highest after Company with much less development than Organisation 6th Lowest
R&D Spending Highest considering that 2006 Highest possible after Business 9th Least expensive
Net Profit Margin Highest because 2005 with rapid development from 2009 to 2018 Due to sale of Alcon in 2016. Virtually equal to Kraft Foods Incorporation Almost equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness element Highest variety of brand names with lasting practices Biggest confectionary and refined foods brand name worldwide Biggest milk items and also bottled water brand in the world
Segmentation Center and also upper middle degree customers worldwide Private customers together with household team All age and Earnings Consumer Teams Center as well as upper middle degree consumers worldwide
Number of Brands 4th 6th 6th 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 22678 424389 744229 883792 312586
Net Profit Margin 4.95% 1.23% 91.78% 3.84% 46.77%
EPS (Earning Per Share) 66.18 8.93 1.25 7.28 67.46
Total Asset 387762 797484 168916 667262 22165
Total Debt 89982 86771 92416 79441 51475
Debt Ratio 39% 33% 32% 36% 11%
R&D Spending 3935 8453 7997 9328 5595
R&D Spending as % of Sales 1.66% 1.45% 2.38% 1.33% 4.76%

Naukri Three Retention Dilemmas Executive Summary Naukri Three Retention Dilemmas Swot Analysis Naukri Three Retention Dilemmas Vrio Analysis Naukri Three Retention Dilemmas Pestel Analysis
Naukri Three Retention Dilemmas Porters Analysis Naukri Three Retention Dilemmas Recommendations