Symed Development Inc Case Study Analysis

Business is presently one of the biggest food chains worldwide. It was founded by Henri Symed Development Inc in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed infants and reduce mortality rate.
Business is now a multinational business. Unlike other international business, it has senior executives from different countries and attempts to make choices considering the entire world. Symed Development Inc currently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The purpose of Symed Development Inc Corporation is to enhance the quality of life of people by playing its part and offering healthy food. It wants to help the world in forming a healthy and better future for it. It also wants to motivate people to live a healthy life. 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

Symed Development Inc's vision is to offer its customers with food that is healthy, high in quality and safe to consume. Business visualizes to develop a well-trained labor force which would help the company to grow
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Mission

Symed Development Inc's objective is that as currently, it is the leading business in the food industry, it believes in 'Great Food, Excellent Life". Its mission is to provide its consumers with a range of options that are healthy and finest in taste. It is focused on providing the best food to its customers throughout the day and night.

Products.

Symed Development Inc has a broad variety of items that it uses to its consumers. In 2011, Business was listed as the most gainful organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has laid down its goals and goals. These goals and goals are listed below.
• One objective of the business is to reach no garbage dump status. It is pursuing zero waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Symed Development Inc is to squander minimum food throughout production. Usually, the food produced is wasted even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to lower the above-mentioned complications and would also ensure the shipment of high quality of its items to its customers.
• Meet worldwide requirements of the environment.
• Build a relationship based on trust with its consumers, organisation partners, staff members, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW technique. Nevertheless, the target of the company is not accomplished as the sales were expected to grow greater at the rate of 10% annually and the operating margins to increase by 20%, given up Display H. There is a need to focus more on the sales then the innovation technology. Otherwise, it may result in the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based upon the concept of Nutritious, Health and Wellness (NHW). This method handles the concept to bringing modification in the customer choices about food and making the food things much healthier worrying about the health concerns.
The vision of this method is based upon the key technique i.e. 60/40+ which just indicates that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional value. The products will be made with extra nutritional value in contrast to all other products in market getting it a plus on its dietary content.
This method was adopted to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other companies, with an objective of maintaining its trust over customers as Business Business has gained more trusted by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing actual amount of costs reveals that the sales are increasing at a greater rate than its R&D spending, and allow the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This sign also reveals a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing financial obligation ratio pose a risk of default of Business to its investors and could lead a decreasing share prices. In terms of increasing financial obligation ratio, the company needs to not invest much on R&D and must pay its existing financial obligations to decrease the risk for investors.
The increasing risk of financiers with increasing debt ratio and declining share rates can be observed by big decrease of EPS of Symed Development Inc stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow growth likewise impede 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 computations and Graphs given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be utilized to derive different strategies based on the SWOT Analysis given above. A short summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative products 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 business. It might also provide Business a long term competitive benefit over its rivals.
The global expansion of Business need to be focused on market catching of establishing countries by growth, attracting more clients through client's commitment. As establishing nations are more populous than developed nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Symed Development Inc must do mindful acquisition and merger of organizations, as it might impact the customer's and society's understandings about Business. It ought to acquire and combine with those companies which have a market credibility of healthy and healthy business. It would improve the understandings of consumers about Business.
Business needs to not only spend its R&D on development, rather than it must also concentrate on the R&D costs over assessment of expense of different healthy products. This would increase expense effectiveness of its products, which will lead to increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business needs to transfer to not only establishing however also to industrialized countries. It needs to broadens its geographical expansion. This wide geographical growth towards developing and developed countries would decrease the threat of possible losses in times of instability in different nations. It should widen its circle to various countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to get and merge with those nations having a goodwill of being a healthy company in the market. It would likewise allow the business to utilize its possible resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on 4 aspects; age, gender, earnings and occupation. Business produces several items related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Symed Development Inc products are quite cost effective by nearly all levels, however its significant targeted clients, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its presence in practically 86 countries. Its geographical division is based upon two primary factors i.e. average earnings level of the customer along with the climate of the area. 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 segmentation of Business is based upon the personality and life style of the consumer. For example, Business 3 in 1 Coffee target those customers whose lifestyle is quite busy and do not have much time.

Behavioral Segmentation

Symed Development Inc behavioral division is based upon the attitude knowledge and awareness of the consumer. For example its highly nutritious products target those clients who have a health mindful attitude towards their consumptions.

Symed Development Inc Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand name, there are two choices:
Alternative: 1
The Business ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. Spending 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 method. Quantity spend on the R&D might not be restored, and it will be considered totally sunk cost, if it do not give prospective outcomes.
3. Spending on R&D supply slow development in sales, as it takes very long time to present a product. Nevertheless, acquisitions supply fast results, as it offer the business currently established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the company to face mistaken belief of customers about Business core worths of healthy and healthy items.
2 Big spending on acquisitions than R&D would send a signal of company's inadequacy of establishing innovative products, and would lead to consumer's discontentment too.
3. Big acquisitions than R&D would extend the line of product of the business by the products which are currently present in the market, making company unable to introduce brand-new innovative items.
Alternative: 2.
The Company ought to spend more on its R&D rather than acquisitions.
Pros:
1. It would allow 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 business to increase its targeted clients by presenting those products which can be offered to a totally brand-new market section.
4. Ingenious items will offer long term benefits and high market share in long term.
Cons:
1. It would decrease the revenue margins of the business.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would affect the business at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which could provide an unfavorable signal to the financiers, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Pros:
1. It would permit the company to present new innovative items with less danger of transforming the costs on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the total possessions of the company would increase with its considerable R&D spending.
3. It would not affect the profit margins of the business at a big rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the company's overall wealth along with in terms of ingenious items.
Cons:
1. Danger of conversion of R&D spending into sunk cost, greater than option 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Intro of less variety of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Symed Development Inc Conclusion

Business has actually remained the leading market gamer for more than a years. It has institutionalised its techniques and culture to align itself with the marketplace changes and customer behavior, which has actually ultimately permitted it to sustain its market share. Though, Business has developed significant market share and brand name identity in the city markets, it is advised that the business ought to concentrate on the backwoods in regards to developing brand name commitment, awareness, and equity, such can be done by creating a particular brand name allocation technique through trade marketing methods, that draw clear distinction between Symed Development Inc products and other rival items. Furthermore, Business should take advantage of its brand picture 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 establish brand equity for newly presented and currently produced items on a higher platform, making the efficient use of resources and brand image in the market.

Symed Development Inc Exhibits