Floodgate On The Hunt For Thunderlizards Case Study Analysis

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Floodgate On The Hunt For Thunderlizards is presently one of the greatest food cycle worldwide. It was established by Kelloggs in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Business. The 2 became rivals in the beginning but later on merged in 1905, resulting in the birth of Floodgate On The Hunt For Thunderlizards.
Business is now a global company. Unlike other international business, it has senior executives from different countries and tries to make choices thinking about the whole world. Floodgate On The Hunt For Thunderlizards presently has more than 500 factories around the world and a network spread across 86 nations.


The function of Floodgate On The Hunt For Thunderlizards Corporation is to boost the lifestyle of individuals by playing its part and supplying healthy food. It wishes to help the world in shaping a healthy and much better future for it. It also wishes to encourage people to live a healthy life. While making certain that the company is prospering in the long run, that's how it plays its part for a much better and healthy future


Floodgate On The Hunt For Thunderlizards's vision is to supply its clients with food that is healthy, high in quality and safe to consume. It wishes to be innovative and concurrently understand the needs and requirements of its clients. Its vision is to grow quickly and supply items that would satisfy the requirements of each age. Floodgate On The Hunt For Thunderlizards imagines to establish a well-trained labor force which would help the company to grow


Floodgate On The Hunt For Thunderlizards's mission is that as presently, it is the leading company in the food market, it thinks in 'Great Food, Good Life". Its objective is to provide its customers with a range of choices that are healthy and finest in taste. It is concentrated on providing the best food to its clients throughout the day and night.


Floodgate On The Hunt For Thunderlizards has a large range 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 objective of the corporation, the business has set its objectives and objectives. These objectives and goals are listed below.
• One objective of the company is to reach zero land fill status. (Business, aboutus, 2017).
• Another goal of Floodgate On The Hunt For Thunderlizards is to lose minimum food during production. Most often, the food produced is wasted even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to decrease those issues and would likewise ensure the delivery of high quality of its items to its customers.
• Meet worldwide requirements of the environment.
• Construct a relationship based upon trust with its consumers, organisation partners, workers, and government.

Critical Issues

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 strategy. However, the target of the business 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 in Exhibit 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 method is based on the principle of Nutritious, Health and Health (NHW). This method handles the idea to bringing change in the consumer preferences about food and making the food stuff healthier concerning about the health concerns.
The vision of this strategy is based upon the secret technique i.e. 60/40+ which simply 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 products in market acquiring it a plus on its nutritional content.
This technique was embraced to bring more tasty plus nutritious foods and drinks in market than ever. In competitors with other companies, with an intention of keeping its trust over consumers as Business Business has actually gotten more relied on by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D costs, and permit the business to more invest in R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of debts. This increasing debt ratio position a risk of default of Business to its investors and might lead a declining share prices. Therefore, in terms of increasing financial obligation ratio, the company ought to not spend much on R&D and should pay its present debts to decrease the danger for financiers.
The increasing risk of financiers with increasing debt ratio and declining share costs can be observed by big decrease of EPS of Floodgate On The Hunt For Thunderlizards stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of customers. This sluggish development also prevent company to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Graphs given up the Displays D and E.

TWOS Analysis

TWOS analysis can be utilized to derive numerous methods based on the SWOT Analysis provided above. A brief summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative products by big quantity of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the business. It could also offer Business a long term competitive advantage over its rivals.
The worldwide expansion of Business ought to be focused on market catching of developing countries by expansion, attracting more customers through client's commitment. As developing nations are more populous than industrialized nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisFloodgate On The Hunt For Thunderlizards must do cautious acquisition and merger of organizations, as it could impact the consumer's and society's perceptions about Business. It needs to obtain and merge with those business which have a market credibility of healthy and nutritious business. It would enhance the perceptions of customers about Business.
Business should not just spend its R&D on innovation, instead of it must also focus on the R&D spending over assessment of expense of numerous healthy products. This would increase expense performance of its items, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

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

Strategies to overcome weaknesses to avoid threats

It ought to acquire and merge with those countries having a goodwill of being a healthy company in the market. It would likewise enable the business to use its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon four elements; age, gender, income and profession. Business produces a number of items related to babies i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Floodgate On The Hunt For Thunderlizards items are rather budget-friendly by almost all levels, but its major targeted clients, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in nearly 86 nations. Its geographical segmentation is based upon 2 main factors i.e. typical earnings level of the customer along with the environment of the region. Singapore Business Business's division 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 customer. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Floodgate On The Hunt For Thunderlizards behavioral division is based upon the attitude understanding and awareness of the client. Its extremely nutritious items target those customers who have a health mindful mindset towards their consumptions.

Floodgate On The Hunt For Thunderlizards Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand, there are 2 alternatives:
Option: 1
The Business ought to invest more on acquisitions than on the R&D.
1. Acquisitions would increase total assets of the business, increasing the wealth of the business. Spending on R&D would be sunk cost.
2. The company can resell the obtained systems in the market, if it stops working to execute its method. Nevertheless, quantity invest in the R&D could not be revived, and it will be considered completely sunk expense, if it do not give possible outcomes.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to introduce a product. Acquisitions provide quick results, as it supply the business already developed product, which can be marketed soon after the acquisition.
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 consumers about Business core values of healthy and healthy products.
2 Large costs on acquisitions than R&D would send out a signal of company's ineffectiveness of developing ingenious products, and would results in consumer's frustration.
3. Large acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making business not able to present new innovative products.
Alternative: 2.
The Company should spend more on its R&D instead of acquisitions.
1. It would make it possible for the company to produce more innovative items.
2. It would supply the company a strong competitive position in the market.
3. It would enable the business to increase its targeted clients by introducing those items which can be used to a totally new market segment.
4. Ingenious items will supply long term advantages and high market share in long term.
1. It would reduce the revenue margins of the company.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, and would impact the company at big. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the financiers, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present brand-new ingenious items with less danger of converting the spending on R&D into sunk cost.
2. It would provide a positive signal to the investors, as the overall assets of the company would increase with its considerable R&D costs.
3. It would not impact the revenue 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 general wealth in addition to in terms of ingenious products.
1. Danger of conversion of R&D costs into sunk cost, higher than option 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less number of innovative products than alternative 2 and high number of innovative products than alternative 1.

Floodgate On The Hunt For Thunderlizards Conclusion

RecommendationsIt has actually institutionalized its techniques and culture to align itself with the market changes and customer habits, which has actually eventually allowed 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 areas in terms of establishing brand name commitment, awareness, and equity, such can be done by developing a particular brand allotment technique through trade marketing strategies, that draw clear distinction in between Floodgate On The Hunt For Thunderlizards products and other competitor products.

Floodgate On The Hunt For Thunderlizards Exhibits

PESTEL Analysis
Governmental support

Transforming standards of worldwide food.
Enhanced market share. Transforming assumption in the direction of healthier items Improvements in R&D and also QA departments.

Intro of E-marketing.
No such influence as it is favourable. Concerns over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest since 8000 Highest after Business with much less development than Business 4th Cheapest
R&D Spending Highest since 2008 Highest possible after Organisation 7th Most affordable
Net Profit Margin Highest considering that 2004 with quick development from 2001 to 2011 Because of sale of Alcon in 2015. Almost equal to Kraft Foods Consolidation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as health and wellness element Highest number of brands with lasting methods Largest confectionary and refined foods brand name in the world Biggest dairy items as well as bottled water brand on the planet
Segmentation Middle and top center degree consumers worldwide Specific customers in addition to house group Every age and also Revenue Customer Groups Middle and also top center degree consumers worldwide
Number of Brands 9th 6th 1st 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 11512 323636 428652 612425 237466
Net Profit Margin 4.22% 5.68% 68.34% 9.39% 84.15%
EPS (Earning Per Share) 56.34 4.86 2.44 1.32 45.62
Total Asset 564893 219137 461116 417351 93263
Total Debt 21319 79845 68276 38842 39469
Debt Ratio 46% 66% 84% 86% 67%
R&D Spending 3743 1664 2993 6926 5478
R&D Spending as % of Sales 2.38% 2.25% 1.45% 4.88% 9.12%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations