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Peter Woodson A Case Study Solution

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Peter Woodson A Case Study Analysis

Peter Woodson A is presently among the biggest food cycle worldwide. It was founded by Ivey in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate. At the exact same time, the Page bros from Switzerland likewise found The Anglo-Swiss Condensed Milk Business. The 2 ended up being competitors in the beginning but in the future combined in 1905, resulting in the birth of Peter Woodson A.
Business is now a global company. Unlike other international companies, it has senior executives from different nations and attempts to make decisions considering the whole world. Peter Woodson A currently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

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

Vision

Peter Woodson A's vision is to provide its clients with food that is healthy, high in quality and safe to eat. It wants to be ingenious and simultaneously comprehend the needs and requirements of its consumers. Its vision is to grow quickly and offer items that would satisfy the needs of each age. Peter Woodson A pictures to establish a well-trained labor force which would help the company to grow
.

Mission

Peter Woodson A's objective is that as currently, it is the leading company in the food market, it thinks in 'Great Food, Good Life". Its objective is to provide its consumers with a range of options that are healthy and best in taste as well. It is focused on supplying the very best food to its clients throughout the day and night.

Products.

Business has a vast array of products that it offers to its customers. Its items include food for babies, cereals, dairy products, snacks, chocolates, food for family pet and bottled water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 employees. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has laid down its objectives and goals. These goals and objectives are listed 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 motivates its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Peter Woodson A is to lose minimum food throughout production. Frequently, the food produced is wasted even before it reaches the clients.
• Another thing that Business is dealing with is to enhance its product packaging in such a way that it would help it to lower the above-mentioned issues and would also ensure the delivery of high quality of its items to its consumers.
• Meet global requirements of the environment.
• Build a relationship based upon trust with its consumers, business partners, workers, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the method 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 method. 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%, offered in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based on the concept of Nutritious, Health and Health (NHW). This technique deals with the idea to bringing modification in the customer preferences about food and making the food things much healthier concerning about the health issues.
The vision of this technique is based on the key method i.e. 60/40+ which just means that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary worth. The products will be manufactured with additional nutritional worth in contrast to all other items in market acquiring it a plus on its nutritional content.
This method was embraced to bring more delicious plus nutritious foods and drinks in market than ever. In competitors with other business, with an intent of keeping its trust over clients as Business Company has acquired more relied on by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing actual quantity of costs shows that the sales are increasing at a greater rate than its R&D spending, and enable the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is decreasing. This indicator likewise reveals a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio posture a hazard of default of Business to its financiers and could lead a declining share prices. In terms of increasing debt ratio, the firm ought to not spend much on R&D and needs to pay its existing financial obligations to decrease the threat for financiers.
The increasing danger of investors with increasing debt ratio and decreasing share prices can be observed by big decline of EPS of Peter Woodson A stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This sluggish development also prevent business to more 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 up the Displays D and E.

TWOS Analysis


TWOS analysis can be used to derive different techniques based upon the SWOT Analysis given above. A short summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative items by large amount of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the company. It might also offer Business a long term competitive advantage over its competitors.
The worldwide growth of Business must be concentrated on market catching of establishing nations by expansion, attracting more consumers through customer's commitment. As establishing nations are more populous than developed countries, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisPeter Woodson A needs to do mindful acquisition and merger of companies, as it might impact the consumer's and society's perceptions about Business. It must acquire and merge with those business which have a market credibility of healthy and nutritious business. It would enhance the understandings of customers about Business.
Business needs to not only spend its R&D on innovation, instead of it ought to likewise focus on the R&D spending over assessment of cost of numerous nutritious products. This would increase expense efficiency of its items, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should relocate to not just establishing but likewise to industrialized countries. It needs to expands its geographical growth. This large geographical expansion towards developing and established countries would lower the threat of potential losses in times of instability in numerous countries. It must broaden its circle to various nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It ought to get and combine with those countries having a goodwill of being a healthy business in the market. It would likewise enable the company to utilize its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 aspects; age, gender, earnings and occupation. Business produces numerous products related to children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Peter Woodson A products are rather budget friendly by nearly all levels, but its significant targeted clients, 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 nations. Its geographical division is based upon 2 main elements i.e. average income level of the consumer along with the environment of the area. For example, Singapore Business Company's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the client. For example, Business 3 in 1 Coffee target those clients whose lifestyle is rather busy and don't have much time.

Behavioral Segmentation

Peter Woodson A behavioral segmentation is based upon the attitude knowledge and awareness of the consumer. For instance its extremely nutritious items target those consumers who have a health mindful attitude towards their usages.

Peter Woodson A Alternatives

In order to sustain the brand in the market and keep the client intact with the brand, there are two choices:
Alternative: 1
The Business must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the company, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk expense.
2. The company can resell the acquired units in the market, if it stops working to execute its strategy. However, amount invest in the R&D could not be restored, and it will be considered completely sunk expense, if it do not give prospective results.
3. Investing in R&D offer slow development in sales, as it takes long time to present a product. However, acquisitions provide fast results, as it supply the company already developed item, which can be marketed right after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core values of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send out a signal of company's inefficiency of developing innovative items, and would results in customer's dissatisfaction.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making business unable to introduce new innovative items.
Alternative: 2.
The Business should spend more on its R&D rather than acquisitions.
Pros:
1. It would enable the company to produce more innovative items.
2. It would supply the business a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted clients by presenting those products which can be used to a completely new market segment.
4. Innovative products will provide long term benefits and high market share in long term.
Cons:
1. It would reduce the profit margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk cost, and would impact the business at big. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might offer a negative signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to present new innovative items with less risk of converting the spending on R&D into sunk expense.
2. It would offer a positive signal to the financiers, as the total possessions of the business 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 offer the company a strong long term market position in regards to the business's general wealth in addition to in terms of ingenious products.
Cons:
1. Danger of conversion of R&D spending into sunk cost, higher than option 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less number of innovative items than alternative 2 and high number of innovative products than alternative 1.

Peter Woodson A Conclusion

RecommendationsIt has actually institutionalised its strategies and culture to align itself with the market changes and customer behavior, which has actually eventually allowed it to sustain its market share. Business has developed significant market share and brand name identity in the city markets, it is recommended that the business must focus on the rural locations in terms of developing brand loyalty, awareness, and equity, such can be done by developing a specific brand allowance strategy through trade marketing tactics, that draw clear distinction in between Peter Woodson A products and other competitor items.

Peter Woodson A Exhibits

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

Altering criteria of worldwide food.
Boosted market share.
Changing understanding towards much healthier products
Improvements in R&D and also QA divisions.

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

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible considering that 2000
Greatest after Organisation with less growth than Organisation 7th Most affordable
R&D Spending Greatest because 2008 Highest possible after Organisation 5th Most affordable
Net Profit Margin Greatest considering that 2002 with rapid development from 2002 to 2014 Due to sale of Alcon in 2012. Nearly equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and health variable Highest possible variety of brand names with lasting techniques Largest confectionary as well as processed foods brand worldwide Biggest milk products and mineral water brand name on the planet
Segmentation Center and also top center degree consumers worldwide Private customers along with household team Every age and also Earnings Client Teams Middle as well as upper center level consumers worldwide
Number of Brands 3rd 6th 1st 7th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 37877 544595 857221 498982 623425
Net Profit Margin 7.74% 7.29% 86.44% 2.77% 67.47%
EPS (Earning Per Share) 97.19 9.78 4.52 4.22 37.39
Total Asset 457658 155684 432585 589643 42228
Total Debt 65811 39192 25447 14352 36419
Debt Ratio 21% 71% 28% 57% 52%
R&D Spending 8614 1989 5112 4933 4474
R&D Spending as % of Sales 8.54% 6.67% 2.76% 9.34% 3.57%

Peter Woodson A Executive Summary Peter Woodson A Swot Analysis Peter Woodson A Vrio Analysis Peter Woodson A Pestel Analysis
Peter Woodson A Porters Analysis Peter Woodson A Recommendations