Apollo Hospitals Differentiation Through Hospitality Case Study Solution

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Apollo Hospitals Differentiation Through Hospitality Case Study Analysis

Apollo Hospitals Differentiation Through Hospitality is presently one of the most significant food cycle worldwide. It was established by Kelloggs in 1866, a German Pharmacist who initially released "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two became competitors at first but later combined in 1905, leading to the birth of Apollo Hospitals Differentiation Through Hospitality.
Business is now a transnational company. Unlike other multinational companies, it has senior executives from different countries and attempts to make choices thinking about the whole world. Apollo Hospitals Differentiation Through Hospitality presently has more than 500 factories around the world and a network spread across 86 nations.


The function of Business Corporation is to enhance the quality of life of people by playing its part and offering healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a much better and healthy future


Apollo Hospitals Differentiation Through Hospitality's vision is to offer its clients with food that is healthy, high in quality and safe to eat. Business envisions to establish a trained labor force which would help the business to grow


Apollo Hospitals Differentiation Through Hospitality's mission is that as presently, it is the leading business in the food market, it thinks in 'Good Food, Great Life". Its mission is to supply its customers with a variety of options that are healthy and finest in taste also. It is concentrated on providing the best food to its consumers throughout the day and night.


Business has a vast array of products that it offers to its customers. Its products consist of food for infants, cereals, dairy items, treats, chocolates, food for animal and mineral water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 employees. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the business has set its goals and goals. These goals and objectives are noted below.
• One objective of the company is to reach zero landfill status. (Business, aboutus, 2017).
• Another objective of Apollo Hospitals Differentiation Through Hospitality is to waste minimum food throughout 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 those problems and would likewise ensure the delivery of high quality of its items to its consumers.
• Meet global requirements of the environment.
• Develop a relationship based upon trust with its consumers, business partners, employees, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique 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 technique. However, the target of the company is not accomplished as the sales were anticipated to grow greater at the rate of 10% each year and the operating margins to increase by 20%, given in Display H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may result in the declined revenue 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 Health (NHW). This technique deals with the idea to bringing change in the client preferences about food and making the food stuff much healthier worrying about the health issues.
The vision of this method is based upon the key technique i.e. 60/40+ which merely suggests 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 value in contrast to all other products in market getting it a plus on its dietary content.
This technique was adopted to bring more tasty 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 Company has gotten more relied on by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing 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 invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indicator also reveals a thumbs-up 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 financial obligations. This increasing debt ratio position a threat of default of Business to its financiers and could lead a decreasing share prices. In terms of increasing debt ratio, the company needs to not invest much on R&D and must pay its existing debts to reduce the threat for investors.
The increasing threat of investors with increasing debt ratio and decreasing share prices can be observed by big decline of EPS of Apollo Hospitals Differentiation Through Hospitality stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow development also prevent business to additional invest in 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

2 analysis can be utilized to derive numerous strategies based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more innovative products by big amount of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the company. It could likewise provide Business a long term competitive benefit over its competitors.
The international expansion of Business must be focused on market catching of establishing countries by growth, attracting more customers through client's loyalty. As establishing nations are more populous than industrialized nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisApollo Hospitals Differentiation Through Hospitality should do careful acquisition and merger of companies, as it might affect the client's and society's understandings about Business. It ought to get and merge with those business which have a market track record of healthy and healthy companies. It would improve the perceptions of customers about Business.
Business should not only spend its R&D on innovation, instead of it needs to also concentrate on the R&D spending over examination of expense of various healthy products. This would increase cost efficiency of its products, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not just developing but likewise to developed countries. It needs to widen its circle to various nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Apollo Hospitals Differentiation Through Hospitality needs to carefully control its acquisitions to avoid the danger of mistaken belief from the consumers about Business. It needs to get and combine with those countries having a goodwill of being a healthy business in the market. This would not just improve the understanding of customers about Business but would likewise increase the sales, earnings margins and market share of Business. It would likewise enable the business to utilize its prospective resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon four factors; age, gender, income and occupation. For example, Business produces a number of items associated with children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Apollo Hospitals Differentiation Through Hospitality items are rather inexpensive by nearly all levels, but its major targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its existence in almost 86 nations. Its geographical division is based upon two primary elements i.e. typical earnings level of the customer in addition to the environment of the area. For instance, 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 character and life style of the customer. For example, Business 3 in 1 Coffee target those customers whose lifestyle is rather busy and do not have much time.

Behavioral Segmentation

Apollo Hospitals Differentiation Through Hospitality behavioral segmentation is based upon the mindset knowledge and awareness of the customer. Its highly healthy products target those consumers who have a health conscious mindset towards their consumptions.

Apollo Hospitals Differentiation Through Hospitality Alternatives

In order to sustain the brand in the market and keep the customer intact with the brand, there are 2 alternatives:
Alternative: 1
The Company needs to spend more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the company, increasing the wealth of the company. Nevertheless, spending on R&D would be sunk expense.
2. The business can resell the acquired units in the market, if it stops working to implement its strategy. Quantity invest on the R&D might not be revived, and it will be considered entirely sunk expense, if it do not provide prospective results.
3. Investing in R&D provide slow development in sales, as it takes long period of time to introduce an item. Acquisitions offer fast outcomes, as it offer the business currently developed item, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and nutritious products.
2 Large costs on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing ingenious products, and would outcomes in consumer's dissatisfaction.
3. Large acquisitions than R&D would extend the line of product of the business by the items which are currently present in the market, making company unable to present brand-new ingenious products.
Option: 2.
The Company ought to spend more on its R&D instead of acquisitions.
1. It would make it possible for the company to produce more ingenious items.
2. It would provide the company a strong competitive position in the market.
3. It would enable the company to increase its targeted clients by introducing those items which can be provided to a totally brand-new market sector.
4. Ingenious products will offer long term benefits and high market share in long run.
1. It would reduce the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, and would affect the business at large. The risk is not in the case of 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 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 brand-new ingenious items with less risk of transforming the costs on R&D into sunk expense.
2. It would offer a positive signal to the financiers, as the general assets of the company would increase with its significant R&D spending.
3. It would not affect the profit margins of the business at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the business's general wealth as well as in regards to innovative products.
1. Threat of conversion of R&D costs into sunk cost, greater than option 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Intro of less number of ingenious items than alternative 2 and high variety of innovative items than alternative 1.

Apollo Hospitals Differentiation Through Hospitality Conclusion

RecommendationsBusiness has stayed the top market player for more than a decade. It has actually institutionalised its techniques and culture to align itself with the market changes and customer behavior, which has eventually permitted it to sustain its market share. Though, Business has actually developed considerable market share and brand identity in the urban markets, it is recommended that the company must concentrate on the backwoods in regards to establishing brand name commitment, awareness, and equity, such can be done by creating a specific brand name allotment strategy through trade marketing techniques, that draw clear distinction in between Apollo Hospitals Differentiation Through Hospitality products and other rival items. Apollo Hospitals Differentiation Through Hospitality needs to utilize its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will enable the business to establish brand equity for recently presented and already produced products on a higher platform, making the efficient use of resources and brand image in the market.

Apollo Hospitals Differentiation Through Hospitality Exhibits

PESTEL Analysis
Governmental assistance

Altering requirements of worldwide food.
Improved market share.
Altering perception towards much healthier products
Improvements in R&D and also QA departments.

Intro 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 Greatest because 1000
Greatest after Company with less development than Company 2nd Lowest
R&D Spending Greatest since 2004 Greatest after Service 5th Cheapest
Net Profit Margin Highest since 2004 with quick development from 2009 to 2014 As a result of sale of Alcon in 2014. Virtually equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health factor Highest possible variety of brands with lasting methods Biggest confectionary and also refined foods brand name on the planet Largest dairy items and mineral water brand name on the planet
Segmentation Middle as well as top center level consumers worldwide Specific consumers together with house group Any age as well as Earnings Consumer Teams Middle as well as upper center level customers worldwide
Number of Brands 3rd 5th 8th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 35248 646731 681267 933227 421577
Net Profit Margin 5.96% 1.75% 15.25% 8.78% 86.68%
EPS (Earning Per Share) 98.18 9.88 6.89 1.63 46.27
Total Asset 911795 112869 394825 473863 39359
Total Debt 32399 79897 87771 15775 72368
Debt Ratio 38% 64% 61% 91% 71%
R&D Spending 2464 6495 9622 5878 3779
R&D Spending as % of Sales 9.65% 7.63% 5.33% 2.73% 1.57%

Apollo Hospitals Differentiation Through Hospitality Executive Summary Apollo Hospitals Differentiation Through Hospitality Swot Analysis Apollo Hospitals Differentiation Through Hospitality Vrio Analysis Apollo Hospitals Differentiation Through Hospitality Pestel Analysis
Apollo Hospitals Differentiation Through Hospitality Porters Analysis Apollo Hospitals Differentiation Through Hospitality Recommendations