Cardosas Quest For Certification Case Study Solution

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Cardosas Quest For Certification is presently one of the biggest food cycle worldwide. It was established by Kelloggs in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate. At the very same time, the Page siblings from Switzerland likewise found The Anglo-Swiss Condensed Milk Company. The 2 ended up being rivals at first however in the future merged in 1905, resulting in the birth of Cardosas Quest For Certification.
Business is now a global company. Unlike other international companies, it has senior executives from different nations and tries to make choices considering the whole world. Cardosas Quest For Certification currently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of Business Corporation is to enhance the quality of life of people by playing its part and supplying 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


Cardosas Quest For Certification's vision is to supply its clients with food that is healthy, high in quality and safe to eat. Business envisions to establish a well-trained workforce which would help the business to grow


Cardosas Quest For Certification's objective is that as presently, it is the leading business in the food market, it believes in 'Good Food, Great Life". Its mission is to offer its consumers with a variety of choices that are healthy and finest in taste also. It is focused on providing the very best food to its consumers throughout the day and night.


Cardosas Quest For Certification has a broad range of items that it provides to its clients. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually set its goals and goals. These goals and goals are listed below.
• One objective of the business is to reach absolutely no land fill status. (Business, aboutus, 2017).
• Another objective of Cardosas Quest For Certification is to lose minimum food during production. Frequently, the food produced is squandered even before it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to lower those problems and would likewise ensure the delivery of high quality of its products to its consumers.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its consumers, company partners, workers, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the method of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW strategy. Nevertheless, the target of the business is not attained as the sales were expected to grow higher at the rate of 10% annually and the operating margins to increase by 20%, given up Display 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 present Business method is based upon the concept of Nutritious, Health and Health (NHW). This strategy handles the concept to bringing modification in the consumer choices about food and making the food stuff healthier concerning about the health problems.
The vision of this strategy is based on the key approach i.e. 60/40+ which just means that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary value. The items will be made with additional nutritional value in contrast to all other items in market getting it a plus on its nutritional content.
This technique was embraced to bring more delicious plus healthy foods and drinks in market than ever. In competition with other companies, with an objective of retaining its trust over consumers as Business Business has actually gotten more trusted by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing actual quantity of costs reveals that the sales are increasing at a greater rate than its R&D costs, and allow the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indication also shows 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 present a threat of default of Business to its investors and could lead a declining share rates. In terms of increasing debt ratio, the company ought to not invest much on R&D and should pay its present debts to decrease the risk for financiers.
The increasing threat of investors with increasing financial obligation ratio and decreasing share rates can be observed by substantial decline of EPS of Cardosas Quest For Certification stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of consumers. This slow development also hinder business to more 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 estimations and Charts given up the Displays D and E.

TWOS Analysis

2 analysis can be used to derive various techniques based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative items by big quantity of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the company. It might also offer Business a long term competitive benefit over its competitors.
The international growth of Business must be focused on market catching of establishing nations by expansion, bring in more customers through client's commitment. As establishing nations are more populated than developed countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisCardosas Quest For Certification needs to do careful acquisition and merger of companies, as it might affect the consumer's and society's understandings about Business. It should get and merge with those companies which have a market credibility of healthy and healthy companies. It would enhance the perceptions of customers about Business.
Business must not just spend its R&D on innovation, rather than it must likewise focus on the R&D spending over assessment of expense of various nutritious products. This would increase cost 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 ought to move to not just establishing however also to industrialized nations. It should expands its geographical expansion. This wide geographical expansion towards establishing and developed nations would minimize the threat of possible losses in times of instability in various countries. It must expand its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It needs to obtain and merge with those nations having a goodwill of being a healthy business in the market. It would also enable the business to use its potential resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon 4 aspects; age, gender, income and occupation. Business produces several items related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. Cardosas Quest For Certification products are quite budget friendly by almost all levels, but its major targeted customers, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in nearly 86 countries. Its geographical division is based upon two main elements i.e. typical income level of the customer in addition to the environment of the region. Singapore Business Company's segmentation 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 lifestyle of the consumer. For instance, Business 3 in 1 Coffee target those clients whose lifestyle is rather busy and don't have much time.

Behavioral Segmentation

Cardosas Quest For Certification behavioral division is based upon the attitude knowledge and awareness of the customer. Its highly healthy products target those consumers who have a health conscious attitude towards their intakes.

Cardosas Quest For Certification Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand, there are 2 choices:
Alternative: 1
The Company needs to invest more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the business, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk expense.
2. The business can resell the acquired systems in the market, if it fails to execute 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 give potential outcomes.
3. Spending on R&D supply slow development in sales, as it takes long time to present a product. However, acquisitions provide quick outcomes, as it offer the business already established item, which can be marketed right after the acquisition.
1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the business to deal with mistaken belief of consumers about Business core worths of healthy and healthy items.
2 Large spending on acquisitions than R&D would send a signal of company's inadequacy of developing ingenious products, and would lead to customer's discontentment also.
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 brand-new innovative items.
Option: 2.
The Business must invest more on its R&D rather than acquisitions.
1. It would make it possible for the business to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would enable the company to increase its targeted customers by introducing those items which can be provided to an entirely new market section.
4. Ingenious items will provide long term benefits and high market share in long run.
1. It would decrease the revenue margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk cost, and would affect the business at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of business, which could supply a negative signal to the financiers, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to present brand-new innovative items 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 total properties of the business would increase with its significant R&D spending.
3. It would not affect the profit margins of the company at a large rate as compare to alternative 2.
4. It would supply the company a strong long term market position in terms of the business's total wealth in addition to in regards to innovative items.
1. Threat of conversion of R&D spending into sunk expense, higher than alternative 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Introduction of less number of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Cardosas Quest For Certification Conclusion

RecommendationsBusiness has stayed the leading market gamer for more than a years. It has institutionalized its strategies and culture to align itself with the marketplace changes and consumer habits, which has actually eventually permitted it to sustain its market share. Business has actually developed considerable market share and brand identity in the metropolitan markets, it is suggested that the company should focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by producing a particular brand allotment method through trade marketing methods, that draw clear difference in between Cardosas Quest For Certification items and other competitor products. Cardosas Quest For Certification must leverage its brand name 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 allow the company to establish brand equity for freshly introduced and already produced products on a greater platform, making the effective use of resources and brand name image in the market.

Cardosas Quest For Certification Exhibits

PESTEL Analysis
Governmental support

Transforming requirements of worldwide food.
Enhanced market share.
Changing perception towards healthier items
Improvements in R&D and QA divisions.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible since 6000
Greatest after Service with much less development than Company 2nd Cheapest
R&D Spending Highest considering that 2005 Highest after Organisation 4th Most affordable
Net Profit Margin Highest possible since 2006 with quick development from 2005 to 2012 Because of sale of Alcon in 2013. Practically equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as wellness element Highest variety of brands with lasting methods Largest confectionary and also processed foods brand name on the planet Biggest dairy products and also mineral water brand name worldwide
Segmentation Center and also upper center level consumers worldwide Individual customers in addition to family team All age and also Revenue Customer Groups Middle as well as top middle level consumers worldwide
Number of Brands 5th 7th 7th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 96611 412755 783649 725627 645796
Net Profit Margin 2.65% 1.68% 43.19% 9.22% 18.72%
EPS (Earning Per Share) 72.64 3.29 9.72 8.18 78.79
Total Asset 892155 874769 578662 455193 95529
Total Debt 93692 82345 82514 51172 29439
Debt Ratio 86% 45% 78% 12% 31%
R&D Spending 9981 8577 9219 9553 7749
R&D Spending as % of Sales 3.96% 3.86% 7.86% 9.56% 4.51%

Cardosas Quest For Certification Executive Summary Cardosas Quest For Certification Swot Analysis Cardosas Quest For Certification Vrio Analysis Cardosas Quest For Certification Pestel Analysis
Cardosas Quest For Certification Porters Analysis Cardosas Quest For Certification Recommendations