Ring Medical Case Study Analysis

Ring Medical is currently one of the most significant food chains worldwide. It was founded by Ivey in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and reduce mortality rate. At the exact same time, the Page bros from Switzerland likewise found The Anglo-Swiss Condensed Milk Business. The 2 became rivals at first but later combined in 1905, resulting in the birth of Ring Medical.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from different countries and tries to make choices thinking about the whole world. Ring Medical currently has more than 500 factories around the world and a network spread across 86 countries.

Purpose

The function of Ring Medical Corporation is to improve the lifestyle of individuals by playing its part and providing healthy food. It wants to help the world in shaping a healthy and better future for it. It likewise wants to motivate people to live a healthy life. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Ring Medical's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. It wants to be innovative and concurrently comprehend the needs and requirements of its customers. Its vision is to grow quick and offer items that would satisfy the needs of each age. Ring Medical imagines to establish a trained labor force which would help the company to grow
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Mission

Ring Medical's objective is that as currently, 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 range of options that are healthy and best in taste. It is focused on providing the best food to its consumers throughout the day and night.

Products.

Ring Medical has a wide range of items that it provides to its customers. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has actually set its goals and goals. These objectives and goals are noted below.
• One objective of the company is to reach absolutely no land fill status. (Business, aboutus, 2017).
• Another objective of Ring Medical is to waste minimum food throughout production. Frequently, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its packaging in such a way that it would help it to reduce those issues and would also guarantee the shipment of high quality of its items to its clients.
• Meet international requirements of the environment.
• Develop a relationship based upon trust with its consumers, company partners, workers, and government.

Critical Issues

Recently, Business Business is focusing more towards the method of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. The target of the company is not achieved as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibition H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may result in the decreased income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based on the idea of Nutritious, Health and Wellness (NHW). This technique handles the concept to bringing modification in the customer choices about food and making the food stuff much healthier concerning about the health problems.
The vision of this strategy is based on the secret technique i.e. 60/40+ which just indicates that the items will have a score of 60% on the basis of taste and 40% is based on its nutritional value. The items will be produced with additional dietary value in contrast to all other products in market gaining it a plus on its nutritional content.
This strategy was embraced to bring more yummy plus healthy foods and beverages in market than ever. In competitors with other business, with an objective of keeping its trust over clients as Business Business has actually gotten more trusted by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real amount of costs shows that the sales are increasing at a greater rate than its R&D costs, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This sign also 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 development rather than payment of debts. This increasing debt ratio pose a threat of default of Business to its investors and could lead a decreasing share costs. In terms of increasing financial obligation ratio, the company ought to not invest much on R&D and should pay its present financial obligations to decrease the danger for investors.
The increasing threat of investors with increasing debt ratio and declining share costs can be observed by huge decrease of EPS of Ring Medical stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This sluggish development also hinder company to further 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 estimations and Graphs given in the Exhibitions D and E.

TWOS Analysis

2 analysis can be used to obtain numerous methods based upon the SWOT Analysis given above. A short summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business should introduce more ingenious items by big amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the company. It might likewise supply Business a long term competitive advantage over its rivals.
The global growth of Business ought to be focused on market recording of developing nations by expansion, attracting more clients through client's commitment. As establishing nations are more populous than industrialized countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Ring Medical ought to do cautious acquisition and merger of companies, as it might impact the customer's and society's understandings about Business. It ought to acquire and merge with those business which have a market track record of healthy and nutritious business. It would enhance the understandings of customers about Business.
Business should not only invest its R&D on innovation, instead of it must likewise concentrate on the R&D costs over examination of cost of different healthy items. This would increase cost performance of its products, which will result in increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business needs to relocate to not only establishing however also to developed nations. It ought to widens its geographical expansion. This wide geographical expansion towards establishing and developed countries would decrease the threat of potential losses in times of instability in various nations. It must expand its circle to numerous nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Ring Medical ought to carefully control its acquisitions to prevent the danger of mistaken belief from the customers about Business. It should obtain and merge with those nations having a goodwill of being a healthy business in the market. This would not only enhance the perception of consumers about Business but would also increase the sales, profit margins and market share of Business. It would likewise allow the company to use its prospective resources effectively on its other operations instead of acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon four aspects; age, gender, earnings and profession. For example, Business produces several items associated with children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Ring Medical products are quite budget-friendly by practically all levels, but its significant targeted clients, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in nearly 86 countries. Its geographical division is based upon 2 primary factors i.e. average earnings level of the customer along with the climate of the area. Singapore Business Company'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 life style of the consumer. Business 3 in 1 Coffee target those consumers whose life style is quite busy and don't have much time.

Behavioral Segmentation

Ring Medical behavioral segmentation is based upon the mindset understanding and awareness of the customer. Its extremely nutritious items target those consumers who have a health mindful mindset towards their usages.

Ring Medical Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand name, there are 2 alternatives:
Option: 1
The Business needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the company, increasing the wealth of the company. Nevertheless, spending on R&D would be sunk cost.
2. The business can resell the acquired units in the market, if it stops working to implement its technique. However, amount spend on the R&D might not be revived, and it will be considered totally sunk cost, if it do not give potential results.
3. Investing in R&D provide slow growth in sales, as it takes long time to present an item. Nevertheless, acquisitions supply quick outcomes, as it offer the business currently developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send out a signal of company's inefficiency of establishing ingenious products, and would lead to consumer's discontentment as well.
3. Big acquisitions than R&D would extend the product line of the business by the items which are already present in the market, making business unable to present new innovative products.
Alternative: 2.
The Company ought to spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the business to produce more ingenious items.
2. It would offer the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted consumers by introducing those items which can be provided to a completely new market segment.
4. Innovative items will offer long term benefits and high market share in long term.
Cons:
1. It would decrease the earnings margins of the business.
2. In case of failure, the entire 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 business, which might provide an unfavorable signal to the investors, and might result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Pros:
1. It would allow the business to present brand-new ingenious products with less danger of converting the spending on R&D into sunk cost.
2. It would provide a favorable signal to the investors, as the general possessions of the business would increase with its considerable R&D costs.
3. It would not affect the profit margins of the company at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the business's total wealth as well as in regards to innovative products.
Cons:
1. Risk of conversion of R&D spending into sunk expense, greater than option 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Intro of less number of ingenious products than alternative 2 and high number of ingenious items than alternative 1.

Ring Medical Conclusion

Business has actually stayed the top market gamer for more than a years. It has actually institutionalised its methods and culture to align itself with the market changes and customer behavior, which has ultimately allowed it to sustain its market share. Though, Business has actually developed substantial market share and brand name identity in the urban markets, it is advised that the company must concentrate on the rural areas in terms of developing brand commitment, awareness, and equity, such can be done by creating a particular brand allocation strategy through trade marketing methods, that draw clear difference in between Ring Medical items and other competitor products. Ring Medical must leverage its brand 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 permit the company to develop brand name equity for freshly presented and currently produced products on a greater platform, making the efficient usage of resources and brand image in the market.

Ring Medical Exhibits