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Kulicke And Soffa Industries Inc In China Transferring Knowledge A Case Study Analysis

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Kulicke And Soffa Industries Inc In China Transferring Knowledge A Case Study Analysis

Business is presently one of the biggest food chains worldwide. It was founded by Henri Kulicke And Soffa Industries Inc In China Transferring Knowledge A in 1866, a German Pharmacist who initially launched "FarineLactee"; a mix of flour and milk to feed babies and decrease mortality rate.
Business is now a transnational business. Unlike other multinational business, it has senior executives from various nations and tries to make choices thinking about the whole world. Kulicke And Soffa Industries Inc In China Transferring Knowledge A currently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The function of Kulicke And Soffa Industries Inc In China Transferring Knowledge A Corporation is to enhance the quality of life of individuals by playing its part and providing healthy food. It wants to help the world in forming a healthy and much better future for it. It also wants to encourage individuals to live a healthy life. While making certain that the company is succeeding in the long run, that's how it plays its part for a better and healthy future

Vision

Kulicke And Soffa Industries Inc In China Transferring Knowledge A's vision is to provide its customers with food that is healthy, high in quality and safe to eat. Business pictures to develop a trained labor force which would help the company to grow
.

Mission

Kulicke And Soffa Industries Inc In China Transferring Knowledge A's mission is that as presently, it is the leading business in the food industry, it believes in 'Great Food, Excellent Life". Its mission is to offer its customers with a variety of choices that are healthy and best in taste as well. It is concentrated on providing the best food to its customers throughout the day and night.

Products.

Kulicke And Soffa Industries Inc In China Transferring Knowledge A has a broad range of products that it provides to its customers. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the business has put down its objectives and objectives. These objectives and goals are listed below.
• One goal of the business is to reach absolutely no garbage dump status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It encourages its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Kulicke And Soffa Industries Inc In China Transferring Knowledge A is to lose minimum food during production. Usually, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to reduce the above-mentioned complications and would likewise guarantee the delivery of high quality of its items to its customers.
• Meet global requirements of the environment.
• Build a relationship based on trust with its customers, service partners, staff members, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW method. The target of the business is not accomplished as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based on the principle of Nutritious, Health and Health (NHW). This strategy deals with the concept to bringing modification in the consumer preferences about food and making the food things healthier concerning about the health problems.
The vision of this method is based on the key technique i.e. 60/40+ which just suggests that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The items will be made with extra dietary value in contrast to all other products in market getting it a plus on its nutritional content.
This strategy was adopted to bring more yummy plus nutritious foods and beverages in market than ever. In competition with other business, with an objective of keeping its trust over customers as Business Business has actually gotten more trusted by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real amount of costs shows that the sales are increasing at a greater rate than its R&D spending, and permit the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This indication likewise shows 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 development instead of payment of debts. This increasing debt ratio position a risk of default of Business to its financiers and might lead a declining share prices. In terms of increasing financial obligation ratio, the firm ought to not spend much on R&D and must pay its current financial obligations to decrease the risk for financiers.
The increasing danger of investors with increasing financial obligation ratio and decreasing share costs can be observed by big decrease of EPS of Kulicke And Soffa Industries Inc In China Transferring Knowledge A stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow growth likewise impede company to further 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


TWOS analysis can be used to derive numerous strategies based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative products by large amount of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the company. It could likewise provide Business a long term competitive benefit over its rivals.
The worldwide expansion of Business should be concentrated on market catching of establishing countries by growth, attracting more customers through customer's loyalty. As establishing countries are more populous than industrialized nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisKulicke And Soffa Industries Inc In China Transferring Knowledge A must do mindful acquisition and merger of organizations, as it might affect the consumer's and society's understandings about Business. It must obtain and combine with those business which have a market reputation of healthy and healthy business. It would improve the understandings of consumers about Business.
Business needs to not just spend its R&D on development, rather than it must also focus on the R&D costs over examination of cost of various nutritious products. This would increase cost performance of its products, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business needs to transfer to not only developing however likewise to developed nations. It ought to broadens its geographical growth. This broad geographical expansion towards establishing and developed nations would reduce the danger of prospective losses in times of instability in various countries. It must widen its circle to different countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Kulicke And Soffa Industries Inc In China Transferring Knowledge A ought to sensibly control its acquisitions to avoid the risk of misconception from the customers about Business. It must obtain and merge with those nations having a goodwill of being a healthy company in the market. This would not only improve the understanding of consumers about Business however would also increase the sales, profit margins and market share of Business. It would also enable the business to utilize its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on four aspects; age, gender, earnings and profession. Business produces numerous items related to infants i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Kulicke And Soffa Industries Inc In China Transferring Knowledge A products are rather budget friendly by nearly all levels, however its major targeted customers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in almost 86 countries. Its geographical division is based upon two main aspects i.e. average income level of the consumer as well as the environment of the area. 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 client. Business 3 in 1 Coffee target those consumers whose life design is quite hectic and do not have much time.

Behavioral Segmentation

Kulicke And Soffa Industries Inc In China Transferring Knowledge A behavioral segmentation is based upon the attitude understanding and awareness of the client. Its extremely healthy products target those customers who have a health conscious mindset towards their usages.

Kulicke And Soffa Industries Inc In China Transferring Knowledge A 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 Company needs to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the business, increasing the wealth of the business. Spending on R&D would be sunk cost.
2. The business can resell the obtained units in the market, if it stops working to implement its method. Amount spend on the R&D could not be restored, and it will be thought about completely sunk expense, if it do not give potential outcomes.
3. Investing in R&D provide sluggish growth in sales, as it takes long period of time to introduce an item. Nevertheless, acquisitions supply fast outcomes, as it provide the company already developed product, 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 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 business's ineffectiveness of developing ingenious items, and would results in customer's frustration also.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making company not able to introduce new ingenious products.
Option: 2.
The Business must spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the business to produce more innovative items.
2. It would provide the business a strong competitive position in the market.
3. It would allow the business to increase its targeted customers by introducing those products which can be used to a completely new market sector.
4. Innovative products will supply long term benefits and high market share in long run.
Cons:
1. It would decrease the earnings margins of the company.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would impact the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could supply an unfavorable signal to the financiers, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to present brand-new innovative items with less risk of transforming the costs on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the overall possessions of the company would increase with its substantial 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 offer the business a strong long term market position in regards to the company's total wealth along with in regards to innovative items.
Cons:
1. Danger of conversion of R&D spending into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less number of innovative products than alternative 2 and high number of innovative products than alternative 1.

Kulicke And Soffa Industries Inc In China Transferring Knowledge A Conclusion

RecommendationsIt has actually institutionalized its methods and culture to align itself with the market changes and customer behavior, which has actually eventually permitted it to sustain its market share. Business has actually developed considerable market share and brand identity in the city markets, it is suggested that the company ought to focus on the rural locations in terms of developing brand name commitment, awareness, and equity, such can be done by developing a particular brand name allotment method through trade marketing methods, that draw clear distinction in between Kulicke And Soffa Industries Inc In China Transferring Knowledge A products and other competitor items.

Kulicke And Soffa Industries Inc In China Transferring Knowledge A Exhibits

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

Altering criteria of worldwide food.
Improved market share.
Altering perception in the direction of healthier products
Improvements in R&D and also QA divisions.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 6000
Greatest after Organisation with much less growth than Business 4th Cheapest
R&D Spending Highest possible since 2009 Greatest after Company 8th Least expensive
Net Profit Margin Greatest because 2009 with rapid development from 2003 to 2012 Due to sale of Alcon in 2017. Nearly equal to Kraft Foods Unification Practically equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness aspect Highest number of brand names with lasting techniques Largest confectionary as well as processed foods brand name in the world Biggest dairy products and bottled water brand name worldwide
Segmentation Middle and also upper middle degree customers worldwide Specific consumers in addition to household team Every age and also Revenue Customer Teams Middle and also upper middle degree consumers worldwide
Number of Brands 4th 9th 1st 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 32726 686481 452866 618651 448338
Net Profit Margin 9.72% 9.13% 16.63% 3.55% 82.72%
EPS (Earning Per Share) 25.24 4.47 4.43 4.98 56.74
Total Asset 559449 276825 656897 829972 39831
Total Debt 38526 34439 73298 52462 79994
Debt Ratio 55% 46% 95% 88% 58%
R&D Spending 3934 1373 1228 7267 5394
R&D Spending as % of Sales 5.25% 6.66% 1.43% 1.16% 9.19%

Kulicke And Soffa Industries Inc In China Transferring Knowledge A Executive Summary Kulicke And Soffa Industries Inc In China Transferring Knowledge A Swot Analysis Kulicke And Soffa Industries Inc In China Transferring Knowledge A Vrio Analysis Kulicke And Soffa Industries Inc In China Transferring Knowledge A Pestel Analysis
Kulicke And Soffa Industries Inc In China Transferring Knowledge A Porters Analysis Kulicke And Soffa Industries Inc In China Transferring Knowledge A Recommendations