Menu

Yola Managing Multiple Challenges Case Study Analysis

Case Study Solution And Analysis


Home >> Ivey >> Yola Managing Multiple Challenges >>

Yola Managing Multiple Challenges Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was established by Henri Yola Managing Multiple Challenges in 1866, a German Pharmacist who initially launched "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate.
Business is now a multinational business. Unlike other international companies, it has senior executives from different countries and attempts to make decisions thinking about the whole world. Yola Managing Multiple Challenges currently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

The purpose of Yola Managing Multiple Challenges Corporation is to boost the quality of life of people by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and much better future for it. It also wishes to encourage individuals to live a healthy life. While making certain that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Yola Managing Multiple Challenges's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and all at once understand the requirements and requirements of its clients. Its vision is to grow quick and provide items that would please the needs of each age group. Yola Managing Multiple Challenges imagines to establish a trained labor force which would help the company to grow
.

Mission

Yola Managing Multiple Challenges's objective is that as presently, it is the leading company in the food market, it thinks in 'Great Food, Good Life". Its mission is to supply its customers with a range of options that are healthy and finest in taste. It is concentrated on supplying the very best food to its customers throughout the day and night.

Products.

Yola Managing Multiple Challenges has a large variety of items that it uses to its customers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has laid down its objectives and goals. These objectives and goals are noted below.
• One goal of the business is to reach zero landfill status. It is working toward no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Yola Managing Multiple Challenges is to squander minimum food during production. Usually, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to decrease the above-mentioned complications and would likewise guarantee the shipment of high quality of its items to its consumers.
• Meet international requirements of the environment.
• Construct a relationship based upon trust with its customers, company partners, employees, and federal government.

Critical Issues

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 company is not accomplished as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based on the idea of Nutritious, Health and Wellness (NHW). This strategy deals with the idea to bringing modification in the consumer choices about food and making the food stuff healthier concerning about the health issues.
The vision of this technique is based upon the secret method 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 upon its nutritional worth. The products will be manufactured with additional nutritional value in contrast to all other items in market acquiring it a plus on its nutritional content.
This strategy was adopted to bring more tasty plus healthy foods and beverages in market than ever. In competitors with other companies, with an objective of keeping its trust over consumers as Business Company has actually gotten more trusted by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing real quantity of spending shows that the sales are increasing at a greater rate than its R&D spending, and allow the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is declining. This indicator likewise 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 financial obligation ratio position a hazard of default of Business to its financiers and might lead a declining share costs. For that reason, in regards to increasing financial obligation ratio, the company should not invest much on R&D and ought to pay its current debts to decrease the risk for financiers.
The increasing threat of investors with increasing financial obligation ratio and decreasing share prices can be observed by substantial decrease of EPS of Yola Managing Multiple Challenges stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development also impede business to additional spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given up the Exhibitions D and E.

TWOS Analysis


TWOS analysis can be utilized to derive numerous strategies based upon the SWOT Analysis given above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious products by big quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the business. It could also supply Business a long term competitive benefit over its rivals.
The international expansion of Business must be focused on market recording of developing countries by expansion, drawing in more consumers through client's commitment. As developing countries are more populous than developed nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisYola Managing Multiple Challenges needs to do mindful acquisition and merger of organizations, as it might affect the client's and society's understandings about Business. It should obtain and merge with those business which have a market reputation of healthy and healthy companies. It would improve the understandings of consumers about Business.
Business should not only spend its R&D on innovation, instead of it should also concentrate on the R&D spending over evaluation of expense of different healthy products. This would increase expense efficiency of its items, which will lead to increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing however likewise to industrialized nations. It ought to broaden its circle to numerous nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It must acquire and combine with those nations having a goodwill of being a healthy company in the market. It would also allow the company to utilize its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on four factors; age, gender, income and profession. For example, Business produces several items connected to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Yola Managing Multiple Challenges products are quite affordable by almost all levels, but its significant targeted customers, in terms of income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in almost 86 nations. Its geographical segmentation is based upon two main aspects i.e. typical earnings level of the customer in addition to the climate of the area. Singapore Business Business's segmentation 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 lifestyle of the consumer. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Yola Managing Multiple Challenges behavioral segmentation is based upon the mindset understanding and awareness of the client. Its highly nutritious items target those consumers who have a health conscious mindset towards their consumptions.

Yola Managing Multiple Challenges Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand name, there are two alternatives:
Alternative: 1
The Business must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the company, increasing the wealth of the company. However, 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. Quantity invest on the R&D might not be revived, and it will be considered totally sunk cost, if it do not give possible outcomes.
3. Investing in R&D offer slow growth in sales, as it takes long period of time to introduce an item. Acquisitions provide fast results, as it provide the business already established item, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the company to face misunderstanding of customers about Business core worths of healthy and healthy products.
2 Large spending on acquisitions than R&D would send a signal of company's ineffectiveness of establishing innovative items, and would outcomes in consumer's discontentment.
3. Big acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making business unable to present new ingenious products.
Option: 2.
The Business ought to invest more on its R&D rather than acquisitions.
Pros:
1. It would enable the business to produce more ingenious 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 customers by introducing those items which can be offered to a totally new market sector.
4. Innovative products will provide long term benefits and high market share in long term.
Cons:
1. It would reduce the revenue margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk cost, and would impact the company at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which could provide a negative 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 allow the business to introduce brand-new ingenious products with less risk of converting the spending on R&D into sunk expense.
2. It would supply a positive signal to the financiers, as the overall properties of the company would increase with its significant R&D spending.
3. It would not affect the profit margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in terms of the business's total wealth in addition to in regards to innovative products.
Cons:
1. Threat of conversion of R&D costs into sunk cost, greater than option 1 lesser than alternative 2.
2. Danger of misunderstanding about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Introduction of less number of innovative items than alternative 2 and high number of innovative products than alternative 1.

Yola Managing Multiple Challenges Conclusion

RecommendationsBusiness has actually remained the top market gamer for more than a decade. It has institutionalized its methods and culture to align itself with the marketplace changes and customer habits, which has actually ultimately enabled it to sustain its market share. Business has actually established considerable market share and brand name identity in the metropolitan markets, it is recommended that the company needs to focus on the rural areas in terms of establishing brand name commitment, awareness, and equity, such can be done by creating a specific brand allotment strategy through trade marketing techniques, that draw clear distinction in between Yola Managing Multiple Challenges items and other rival products. Yola Managing Multiple Challenges needs to leverage its brand image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will enable the business to develop brand name equity for recently presented and currently produced products on a higher platform, making the effective usage of resources and brand image in the market.

Yola Managing Multiple Challenges Exhibits

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

Changing requirements of worldwide food.
Boosted market share.
Changing perception towards healthier items
Improvements in R&D as well as QA departments.

Intro of E-marketing.
No such effect as it is beneficial.
Problems over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest because 6000
Highest after Company with less growth than Business 7th Lowest
R&D Spending Highest possible considering that 2001 Highest possible after Service 3rd Most affordable
Net Profit Margin Highest possible since 2008 with quick development from 2004 to 2016 Because of sale of Alcon in 2013. Nearly equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness element Highest possible variety of brands with sustainable methods Biggest confectionary and processed foods brand on the planet Largest milk items and also bottled water brand worldwide
Segmentation Center as well as top middle degree customers worldwide Private clients along with family team All age as well as Earnings Consumer Teams Center and top center level consumers worldwide
Number of Brands 6th 9th 8th 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 78548 653486 593392 696219 824423
Net Profit Margin 6.61% 8.95% 75.97% 4.45% 62.86%
EPS (Earning Per Share) 51.53 1.39 6.93 5.13 87.81
Total Asset 998779 259954 435387 696238 69495
Total Debt 23265 63841 68491 12642 89185
Debt Ratio 95% 58% 34% 39% 82%
R&D Spending 6385 2835 3671 8797 9682
R&D Spending as % of Sales 2.18% 7.15% 2.98% 1.14% 9.99%

Yola Managing Multiple Challenges Executive Summary Yola Managing Multiple Challenges Swot Analysis Yola Managing Multiple Challenges Vrio Analysis Yola Managing Multiple Challenges Pestel Analysis
Yola Managing Multiple Challenges Porters Analysis Yola Managing Multiple Challenges Recommendations