Naukri Three Retention Dilemmas Case Study Analysis

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Naukri Three Retention Dilemmas Case Study Analysis

Business is presently one of the biggest food chains worldwide. It was established by Henri Naukri Three Retention Dilemmas in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate.
Business is now a transnational company. Unlike other multinational companies, it has senior executives from various countries and tries to make choices considering the whole world. Naukri Three Retention Dilemmas currently has more than 500 factories around the world and a network spread throughout 86 countries.


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


Naukri Three Retention Dilemmas's vision is to offer its consumers with food that is healthy, high in quality and safe to consume. It wants to be innovative and concurrently comprehend the needs and requirements of its consumers. Its vision is to grow quick and provide products that would please the requirements of each age group. Naukri Three Retention Dilemmas pictures to establish a trained workforce which would help the business to grow


Naukri Three Retention Dilemmas's mission is that as currently, it is the leading company in the food industry, it believes in 'Excellent Food, Excellent Life". Its mission is to provide its consumers with a variety of choices that are healthy and finest in taste also. It is concentrated on offering the very best food to its consumers throughout the day and night.


Naukri Three Retention Dilemmas has a broad range of products that it offers to its clients. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the business has actually laid down its goals and goals. These objectives and goals are listed below.
• One goal of the company is to reach no landfill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its staff members to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another goal of Naukri Three Retention Dilemmas is to lose minimum food during production. Most often, the food produced is squandered even before it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to reduce the above-mentioned complications and would also ensure the shipment of high quality of its products to its consumers.
• Meet worldwide standards of the environment.
• Build a relationship based on trust with its customers, company partners, employees, and government.

Critical Issues

Recently, Business Company 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 technique. The target of the business is not accomplished as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based upon the principle of Nutritious, Health and Health (NHW). This technique deals with the concept to bringing modification in the client choices about food and making the food things much healthier worrying about the health concerns.
The vision of this technique is based on the key method i.e. 60/40+ which simply means 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 produced with extra nutritional value in contrast to all other products in market getting it a plus on its nutritional material.
This strategy was embraced to bring more tasty plus nutritious foods and drinks in market than ever. In competitors with other business, with an objective of maintaining its trust over consumers as Business Company has actually gotten more trusted by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real quantity of spending reveals that the sales are increasing at a greater rate than its R&D costs, and permit 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 business is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of debts. This increasing financial obligation ratio present a threat of default of Business to its investors and might lead a declining share prices. In terms of increasing debt ratio, the company should not spend much on R&D and must pay its present financial obligations to reduce the danger for investors.
The increasing threat of financiers with increasing debt ratio and decreasing share rates can be observed by huge decrease of EPS of Naukri Three Retention Dilemmas stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow growth likewise hinder company to further 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 computations and Charts given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be utilized to obtain different techniques based upon the SWOT Analysis offered above. A quick summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more ingenious products by big amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the company. It might likewise offer Business a long term competitive advantage over its competitors.
The global growth of Business must be concentrated on market recording of establishing nations by expansion, attracting more consumers through customer's loyalty. As developing nations are more populated than developed nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisNaukri Three Retention Dilemmas should do mindful acquisition and merger of companies, as it could impact the consumer's and society's understandings about Business. It must obtain and merge with those companies which have a market reputation of healthy and healthy companies. It would enhance the understandings of customers about Business.
Business must not only invest its R&D on development, rather than it ought to likewise concentrate on the R&D spending over examination of expense of numerous healthy products. This would increase expense efficiency of its products, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should transfer to not only developing however also to industrialized countries. It must broadens its geographical growth. This wide geographical expansion towards establishing and developed nations would lower the risk of potential losses in times of instability in numerous nations. It should broaden its circle to various nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It should get and merge with those nations having a goodwill of being a healthy company in the market. It would likewise make it possible for the company to use its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on 4 elements; age, gender, earnings and occupation. For instance, Business produces a number of products connected to infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary items. Naukri Three Retention Dilemmas items are quite inexpensive by almost all levels, but its major targeted consumers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its existence in almost 86 countries. Its geographical segmentation is based upon 2 main elements i.e. average income level of the customer along with the environment of the area. Singapore Business Business's division is done on the basis of the weather condition 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 customer. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is quite busy and don't have much time.

Behavioral Segmentation

Naukri Three Retention Dilemmas behavioral segmentation is based upon the mindset knowledge and awareness of the client. Its highly healthy products target those customers who have a health mindful mindset towards their intakes.

Naukri Three Retention Dilemmas Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are 2 options:
Option: 1
The Business must invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The company can resell the obtained systems in the market, if it fails to implement its strategy. Nevertheless, amount spend on the R&D might not be restored, and it will be thought about entirely sunk cost, if it do not provide possible outcomes.
3. Spending on R&D offer slow development in sales, as it takes very long time to present a product. Acquisitions offer fast outcomes, as it offer the company currently developed product, which can be marketed soon after the acquisition.
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the business to face misconception of customers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of business's inadequacy of establishing innovative products, and would outcomes in consumer's frustration.
3. Large acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making business unable to present new ingenious items.
Alternative: 2.
The Company ought to invest more on its R&D rather than acquisitions.
1. It would make it possible for the business to produce more innovative products.
2. It would supply the company a strong competitive position in the market.
3. It would enable the business to increase its targeted clients by presenting those items which can be provided to an entirely new market section.
4. Innovative items will offer long term benefits and high market share in long term.
1. It would decrease the earnings margins of the business.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would impact the business at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present brand-new ingenious items with less risk of transforming the spending on R&D into sunk expense.
2. It would provide a favorable signal to the investors, as the general properties of the business would increase with its considerable R&D costs.
3. It would not impact the earnings margins of the business at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the company's total wealth as well as in regards to ingenious items.
1. Risk of conversion of R&D spending into sunk expense, greater than option 1 lower than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less number of innovative items than alternative 2 and high number of ingenious items than alternative 1.

Naukri Three Retention Dilemmas Conclusion

RecommendationsBusiness has remained the top market gamer for more than a decade. It has institutionalized its techniques and culture to align itself with the marketplace modifications and customer habits, which has actually eventually allowed it to sustain its market share. Business has developed significant market share and brand identity in the urban markets, it is advised that the business should focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by creating a specific brand name allowance strategy through trade marketing tactics, that draw clear distinction in between Naukri Three Retention Dilemmas products and other competitor products. Naukri Three Retention Dilemmas ought to utilize its brand name 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 allow the business to develop brand name equity for newly presented and already produced items on a greater platform, making the reliable usage of resources and brand name image in the market.

Naukri Three Retention Dilemmas Exhibits

PESTEL Analysis
Governmental assistance

Changing standards of worldwide food.
Improved market share. Changing understanding towards healthier products Improvements in R&D and QA divisions.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 9000 Highest after Service with less development than Organisation 6th Cheapest
R&D Spending Greatest considering that 2003 Highest possible after Company 6th Most affordable
Net Profit Margin Highest possible considering that 2006 with fast growth from 2007 to 2015 Due to sale of Alcon in 2011. Practically equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and health factor Highest possible variety of brand names with sustainable practices Largest confectionary as well as processed foods brand in the world Biggest dairy items and mineral water brand name on the planet
Segmentation Center and also top middle level consumers worldwide Specific customers in addition to home group All age as well as Earnings Client Groups Center and upper center level consumers worldwide
Number of Brands 7th 5th 7th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 55684 761125 666683 672169 728681
Net Profit Margin 7.23% 7.77% 54.44% 8.85% 18.12%
EPS (Earning Per Share) 62.31 1.89 6.24 5.15 41.13
Total Asset 852367 992924 386499 979883 48472
Total Debt 12578 75312 15836 21947 16286
Debt Ratio 32% 58% 91% 47% 77%
R&D Spending 1438 9836 3318 8347 9964
R&D Spending as % of Sales 8.84% 9.88% 6.97% 5.83% 7.43%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations