Preferred Customer Service At Us Airways Case Study Analysis

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Preferred Customer Service At Us Airways Case Study Analysis

Business is currently one of the greatest food chains worldwide. It was established by Henri Preferred Customer Service At Us Airways in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed babies and reduce mortality rate.
Business is now a multinational business. Unlike other international companies, it has senior executives from various nations and attempts to make decisions thinking about the entire world. Preferred Customer Service At Us Airways currently has more than 500 factories worldwide and a network spread across 86 countries.


The purpose of Preferred Customer Service At Us Airways Corporation is to enhance the lifestyle of people by playing its part and providing healthy food. It wishes to help the world in forming a healthy and better future for it. It also wishes to motivate people to live a healthy life. While making certain that the business is succeeding in the long run, that's how it plays its part for a better and healthy future


Preferred Customer Service At Us Airways's vision is to provide its clients with food that is healthy, high in quality and safe to eat. Business envisions to develop a well-trained workforce which would help the company to grow


Preferred Customer Service At Us Airways's mission is that as presently, it is the leading company in the food industry, it thinks in 'Excellent Food, Great Life". Its objective is to provide its consumers with a range of choices that are healthy and best in taste also. It is concentrated on offering the best food to its consumers throughout the day and night.


Business has a large range of items that it provides to its consumers. Its items include food for babies, cereals, dairy items, treats, chocolates, food for animal and bottled water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 workers. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has laid down its goals and objectives. These goals and goals are listed below.
• One goal of the company is to reach absolutely no garbage dump status. (Business, aboutus, 2017).
• Another goal of Preferred Customer Service At Us Airways is to squander minimum food during production. Usually, the food produced is lost even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its product packaging in such a method that it would help it to reduce the above-mentioned problems and would likewise guarantee the shipment of high quality of its items to its customers.
• Meet global requirements of the environment.
• Construct a relationship based on trust with its customers, service partners, employees, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. 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 expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based on the idea of Nutritious, Health and Wellness (NHW). This method handles the concept to bringing modification in the client choices about food and making the food stuff healthier concerning about the health concerns.
The vision of this technique is based upon the secret approach 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 nutritional value. The products will be made with extra nutritional worth in contrast to all other products in market acquiring it a plus on its nutritional content.
This method was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competition with other companies, with an intent of keeping its trust over customers as Business Business has gotten more relied on by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing actual quantity of costs reveals that the sales are increasing at a greater rate than its R&D spending, and enable the company to more invest in R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is declining. This indicator likewise shows a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio present a threat of default of Business to its financiers and could lead a declining share prices. Therefore, in regards to increasing financial obligation ratio, the company must not spend much on R&D and should pay its current financial obligations to reduce the risk for investors.
The increasing danger of investors with increasing financial obligation ratio and decreasing share prices can be observed by substantial decrease of EPS of Preferred Customer Service At Us Airways stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish growth also hinder business to more 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 Charts given up the Exhibitions D and E.

TWOS Analysis

2 analysis can be used to obtain different strategies based on the SWOT Analysis given above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative products by large quantity of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the company. It might also provide Business a long term competitive advantage over its competitors.
The worldwide expansion of Business must be focused on market catching of establishing nations by growth, drawing in more consumers through customer's commitment. As establishing nations are more populous than developed nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisPreferred Customer Service At Us Airways should do careful acquisition and merger of companies, as it could impact the customer's and society's perceptions about Business. It ought to get and merge with those companies which have a market reputation of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business ought to not just invest its R&D on development, instead of it needs to also focus on the R&D costs over evaluation of expense of various healthy items. This would increase expense effectiveness of its items, which will result in increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only developing however also to developed countries. It needs to broaden its circle to different countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It should obtain and merge with those countries having a goodwill of being a healthy company in the market. It would likewise enable the company to use its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on four elements; age, gender, earnings and profession. Business produces a number of products related to children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Preferred Customer Service At Us Airways products are quite inexpensive by practically all levels, but its significant targeted clients, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in nearly 86 countries. Its geographical division is based upon 2 main aspects i.e. typical income level of the consumer as well as the climate of the area. For example, Singapore Business Business's segmentation 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 lifestyle of the customer. Business 3 in 1 Coffee target those clients whose life style is rather busy and don't have much time.

Behavioral Segmentation

Preferred Customer Service At Us Airways behavioral division is based upon the attitude understanding and awareness of the consumer. Its extremely nutritious products target those customers who have a health conscious mindset towards their usages.

Preferred Customer Service At Us Airways Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are 2 choices:
Alternative: 1
The Company ought to spend more on acquisitions than on the R&D.
1. Acquisitions would increase total possessions of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The company can resell the gotten systems in the market, if it fails to implement its strategy. However, amount invest in the R&D might not be revived, and it will be thought about entirely sunk cost, if it do not offer prospective outcomes.
3. Spending on R&D provide slow development in sales, as it takes long period of time to introduce a product. Acquisitions supply fast outcomes, as it offer the business currently developed product, which can be marketed quickly after the acquisition.
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to face 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 company's inadequacy of establishing innovative products, and would results in consumer's dissatisfaction as well.
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 unable to introduce new innovative items.
Alternative: 2.
The Business should spend more on its R&D instead of acquisitions.
1. It would allow the business to produce more ingenious products.
2. It would supply the company a strong competitive position in the market.
3. It would allow the company to increase its targeted clients by introducing those items which can be provided to an entirely brand-new market sector.
4. Ingenious products will offer long term advantages and high market share in long run.
1. It would decrease the profit margins of the business.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would affect the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could offer a negative signal to the investors, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to introduce new innovative products with less danger of transforming the costs on R&D into sunk expense.
2. It would offer a positive signal to the financiers, as the overall possessions of the business would increase with its substantial R&D costs.
3. It would not affect the earnings margins of the business at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the company's general wealth along with in terms of innovative items.
1. Danger of conversion of R&D costs into sunk cost, higher than option 1 lower than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of innovative items than alternative 2 and high number of ingenious items than alternative 1.

Preferred Customer Service At Us Airways Conclusion

RecommendationsIt has actually institutionalised its strategies and culture to align itself with the market changes and consumer habits, which has actually eventually enabled it to sustain its market share. Business has actually established considerable market share and brand identity in the metropolitan markets, it is recommended that the business needs to focus on the rural areas in terms of developing brand loyalty, awareness, and equity, such can be done by developing a particular brand allocation method through trade marketing methods, that draw clear difference between Preferred Customer Service At Us Airways products and other competitor products.

Preferred Customer Service At Us Airways Exhibits

PESTEL Analysis
Governmental assistance

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

Introduction of E-marketing.
No such influence as it is favourable. Issues over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 8000 Greatest after Organisation with less growth than Organisation 1st Most affordable
R&D Spending Highest because 2007 Greatest after Service 8th Cheapest
Net Profit Margin Greatest since 2005 with fast development from 2007 to 2015 As a result of sale of Alcon in 2018. Practically equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health aspect Greatest number of brands with lasting methods Largest confectionary and also processed foods brand on the planet Biggest milk items as well as bottled water brand on the planet
Segmentation Middle and also upper middle degree consumers worldwide Specific clients together with household team Every age and also Revenue Customer Teams Middle as well as top center degree customers worldwide
Number of Brands 9th 5th 6th 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 12882 416643 784233 836749 579388
Net Profit Margin 4.26% 6.97% 48.59% 7.94% 65.88%
EPS (Earning Per Share) 41.13 6.84 7.33 6.68 69.71
Total Asset 765974 297547 943216 826962 91233
Total Debt 13921 79692 82882 89617 61265
Debt Ratio 36% 58% 83% 39% 99%
R&D Spending 9759 8426 2835 1961 6843
R&D Spending as % of Sales 9.99% 3.97% 2.41% 7.77% 6.43%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations