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Information Technology At Cirque Du Soleil Looking Back Moving Forward Case Study Solution

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Information Technology At Cirque Du Soleil Looking Back Moving Forward Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was established by Henri Information Technology At Cirque Du Soleil Looking Back Moving Forward in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate.
Business is now a multinational company. Unlike other multinational companies, it has senior executives from various countries and attempts to make choices thinking about the entire world. Information Technology At Cirque Du Soleil Looking Back Moving Forward presently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The purpose of Business Corporation is to boost 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

Vision

Information Technology At Cirque Du Soleil Looking Back Moving Forward's vision is to supply its consumers 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
.

Mission

Information Technology At Cirque Du Soleil Looking Back Moving Forward's mission is that as currently, it is the leading company in the food market, it thinks in 'Good Food, Excellent Life". Its objective is to offer its consumers with a range of choices that are healthy and best in taste. It is concentrated on providing the best food to its customers throughout the day and night.

Products.

Business has a wide variety of items that it offers to its consumers. Its items include food for infants, cereals, dairy items, snacks, chocolates, food for pet and bottled water. It has around 4 hundred and fifty (450) factories worldwide and around 328,000 employees. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has actually set its objectives and goals. These goals and objectives are listed below.
• One objective of the company is to reach no garbage dump status. It is working toward no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Information Technology At Cirque Du Soleil Looking Back Moving Forward is to squander minimum food during production. Usually, the food produced is squandered even prior to it reaches the consumers.
• Another thing that Business is working on is to enhance its product packaging in such a method that it would help it to lower those complications and would likewise ensure the delivery of high quality of its products to its customers.
• Meet international standards of the environment.
• Build a relationship based on trust with its consumers, business partners, employees, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the technique of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the company is not achieved as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based on the concept of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing change in the client preferences about food and making the food things healthier concerning about the health issues.
The vision of this strategy is based upon the secret method i.e. 60/40+ which simply implies that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional value. The items will be manufactured with extra nutritional value in contrast to all other products in market gaining it a plus on its nutritional material.
This method was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other business, with an intent of maintaining its trust over consumers as Business Business has actually gained more trusted by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real quantity of costs reveals that the sales are increasing at a higher rate than its R&D costs, and enable the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This sign also reveals a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing financial obligation ratio position a threat of default of Business to its financiers and could lead a declining share rates. For that reason, in terms of increasing debt ratio, the firm ought to not spend much on R&D and should pay its current debts to decrease the risk for investors.
The increasing threat of investors with increasing debt ratio and declining share prices can be observed by substantial decrease of EPS of Information Technology At Cirque Du Soleil Looking Back Moving Forward stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception structure of consumers. This slow growth also hinder 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 calculations and Graphs given in the Exhibits D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative products by big quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the profit margins for the business. It might also provide Business a long term competitive advantage over its competitors.
The worldwide expansion of Business should be concentrated on market recording of establishing nations by growth, bring in more clients through client's commitment. As developing countries are more populated than developed nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisInformation Technology At Cirque Du Soleil Looking Back Moving Forward should do mindful acquisition and merger of organizations, as it might impact the client's and society's understandings about Business. It must obtain and merge with those companies which have a market reputation of healthy and nutritious companies. It would enhance the understandings of customers about Business.
Business needs to not just spend its R&D on innovation, instead of it should also focus on the R&D spending over examination of cost of various healthy items. This would increase cost effectiveness of its items, which will result in increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business must move to not only developing however also to developed countries. It must widen its circle to numerous countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Information Technology At Cirque Du Soleil Looking Back Moving Forward ought to carefully manage its acquisitions to prevent the danger of misunderstanding from the consumers about Business. It should acquire and combine with those countries having a goodwill of being a healthy company in the market. This would not just improve the perception of consumers about Business however would likewise increase the sales, revenue margins and market share of Business. It would likewise allow the company to use its prospective resources effectively on its other operations instead of acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon four factors; age, gender, income and occupation. Business produces numerous items related to babies i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. Information Technology At Cirque Du Soleil Looking Back Moving Forward items are rather cost effective by almost all levels, but its significant targeted clients, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its presence in nearly 86 nations. Its geographical division is based upon 2 primary aspects i.e. average income level of the customer as well as the climate of the region. For instance, 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 character and lifestyle of the client. Business 3 in 1 Coffee target those consumers whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Information Technology At Cirque Du Soleil Looking Back Moving Forward behavioral segmentation is based upon the attitude knowledge and awareness of the consumer. For instance its extremely healthy items target those consumers who have a health mindful attitude towards their consumptions.

Information Technology At Cirque Du Soleil Looking Back Moving Forward Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand, there are 2 alternatives:
Option: 1
The Business must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the company, increasing the wealth of the company. However, costs on R&D would be sunk expense.
2. The company can resell the acquired systems in the market, if it stops working to execute its method. Quantity spend on the R&D could not be revived, and it will be thought about totally sunk cost, if it do not offer prospective results.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to present an item. Nevertheless, acquisitions supply fast outcomes, as it provide the business currently developed item, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to deal with mistaken belief of consumers about Business core worths of healthy and healthy products.
2 Big spending on acquisitions than R&D would send out a signal of business's inadequacy of establishing ingenious products, and would lead to consumer's frustration also.
3. Large 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 present brand-new innovative products.
Option: 2.
The Company needs to spend more on its R&D rather than acquisitions.
Pros:
1. It would allow the business to produce more innovative products.
2. It would supply the company a strong competitive position in the market.
3. It would allow the company to increase its targeted customers by introducing those products which can be provided to an entirely brand-new market segment.
4. Ingenious items will offer long term advantages and high market share in long run.
Cons:
1. It would reduce the revenue margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, and would impact the business at large. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might provide a negative signal to the financiers, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to introduce brand-new ingenious products with less risk of transforming the spending on R&D into sunk cost.
2. It would supply a favorable signal to the investors, as the overall assets of the company would increase with its significant R&D spending.
3. It would not impact the earnings margins of the company at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in regards to the company's overall wealth in addition to in regards to ingenious items.
Cons:
1. Threat of conversion of R&D costs into sunk cost, greater than option 1 lesser than alternative 2.
2. Risk of misconception about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Intro of less number of ingenious products than alternative 2 and high number of innovative items than alternative 1.

Information Technology At Cirque Du Soleil Looking Back Moving Forward Conclusion

RecommendationsBusiness has remained the top market gamer for more than a decade. It has institutionalized its techniques and culture to align itself with the marketplace changes and client behavior, which has eventually allowed it to sustain its market share. Though, Business has actually established significant market share and brand identity in the city markets, it is suggested that the business must focus on the backwoods in regards to establishing brand name commitment, awareness, and equity, such can be done by producing a particular brand name allotment method through trade marketing strategies, that draw clear distinction between Information Technology At Cirque Du Soleil Looking Back Moving Forward products and other rival items. Additionally, Business must leverage its brand picture 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 establish brand equity for freshly presented and already produced items on a higher platform, making the efficient use of resources and brand image in the market.

Information Technology At Cirque Du Soleil Looking Back Moving Forward Exhibits

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

Changing standards of international food.
Boosted market share.
Altering perception towards healthier items
Improvements in R&D and also QA departments.

Introduction of E-marketing.
No such impact as it is beneficial.
Worries over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 8000
Greatest after Company with much less growth than Business 9th Most affordable
R&D Spending Highest possible given that 2009 Highest after Company 5th Least expensive
Net Profit Margin Highest since 2006 with quick growth from 2009 to 2016 Due to sale of Alcon in 2013. Practically equal to Kraft Foods Incorporation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health and wellness aspect Highest number of brands with lasting methods Biggest confectionary and also refined foods brand worldwide Largest milk products and mineral water brand in the world
Segmentation Middle and upper center level consumers worldwide Private customers in addition to family group Any age and Income Client Groups Center and also top middle degree consumers worldwide
Number of Brands 2nd 9th 5th 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 35713 381579 954756 773728 558971
Net Profit Margin 8.49% 3.67% 77.38% 7.69% 51.89%
EPS (Earning Per Share) 43.85 4.51 2.66 8.18 81.35
Total Asset 437646 213952 696713 443514 16597
Total Debt 96623 54173 18823 86373 91581
Debt Ratio 11% 62% 81% 58% 23%
R&D Spending 6516 3741 3497 2437 5958
R&D Spending as % of Sales 4.43% 7.81% 8.42% 7.49% 2.45%

Information Technology At Cirque Du Soleil Looking Back Moving Forward Executive Summary Information Technology At Cirque Du Soleil Looking Back Moving Forward Swot Analysis Information Technology At Cirque Du Soleil Looking Back Moving Forward Vrio Analysis Information Technology At Cirque Du Soleil Looking Back Moving Forward Pestel Analysis
Information Technology At Cirque Du Soleil Looking Back Moving Forward Porters Analysis Information Technology At Cirque Du Soleil Looking Back Moving Forward Recommendations