Managing In An Information Age It Challenges And Opportunities Case Study Solution

Case Study Solution And Analysis

Home >> Kelloggs >> Managing In An Information Age It Challenges And Opportunities >>

Managing In An Information Age It Challenges And Opportunities Case Study Solution

Managing In An Information Age It Challenges And Opportunities is currently among the greatest food cycle worldwide. It was founded by Kelloggs in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate. At the same time, the Page siblings from Switzerland also found The Anglo-Swiss Condensed Milk Business. The 2 became competitors at first but later merged in 1905, leading to the birth of Managing In An Information Age It Challenges And Opportunities.
Business is now a transnational business. Unlike other international business, it has senior executives from different countries and tries to make decisions thinking about the whole world. Managing In An Information Age It Challenges And Opportunities currently has more than 500 factories worldwide and a network spread throughout 86 countries.


The function of Managing In An Information Age It Challenges And Opportunities Corporation is to improve the lifestyle of people by playing its part and providing healthy food. It wishes to help the world in shaping a healthy and much better future for it. It likewise wishes to motivate people to live a healthy life. While ensuring that the company is being successful in the long run, that's how it plays its part for a better and healthy future


Managing In An Information Age It Challenges And Opportunities's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and all at once understand the needs and requirements of its clients. Its vision is to grow fast and offer products that would satisfy the requirements of each age group. Managing In An Information Age It Challenges And Opportunities visualizes to establish a trained labor force which would help the company to grow


Managing In An Information Age It Challenges And Opportunities's objective is that as presently, it is the leading company in the food industry, it thinks in 'Great Food, Great Life". Its objective is to supply its consumers with a range of options that are healthy and best in taste. It is concentrated on supplying the best food to its customers throughout the day and night.


Managing In An Information Age It Challenges And Opportunities has a large range of items that it provides to its consumers. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has put down its goals and goals. These objectives and objectives are listed below.
• One goal of the company is to reach no land fill status. (Business, aboutus, 2017).
• Another goal of Managing In An Information Age It Challenges And Opportunities is to squander minimum food during production. Frequently, the food produced is wasted even before it reaches the consumers.
• Another thing that Business is working on is to improve its product packaging in such a method that it would help it to decrease the above-mentioned complications and would likewise ensure the shipment of high quality of its products to its customers.
• Meet global standards of the environment.
• Develop a relationship based on trust with its customers, service partners, workers, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the technique of NHW and investing more of its revenues on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW technique. However, the target of the business is not attained as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given up Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it might lead to the decreased profits 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 Wellness (NHW). This strategy handles the idea to bringing modification in the consumer preferences about food and making the food stuff much healthier worrying about the health problems.
The vision of this method is based upon the key method 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 upon its dietary worth. The items will be produced with additional dietary value in contrast to all other products in market gaining it a plus on its nutritional content.
This technique was adopted to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other business, with an objective of retaining its trust over consumers as Business Business has gained more trusted by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D costs, and permit the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This sign also shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio position a risk of default of Business to its financiers and could lead a decreasing share rates. In terms of increasing debt ratio, the company should not spend much on R&D and ought to pay its current debts to decrease the risk for investors.
The increasing risk of financiers with increasing financial obligation ratio and declining share rates can be observed by huge decrease of EPS of Managing In An Information Age It Challenges And Opportunities stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow perception building of customers. This sluggish development also prevent business 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 computations and Graphs given in the Exhibits D and E.

TWOS Analysis

2 analysis can be utilized to derive numerous methods based on the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative products by large quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the business. It could likewise provide Business a long term competitive benefit over its competitors.
The global expansion of Business must be concentrated on market catching of developing countries by expansion, bring in more clients through customer's loyalty. As developing countries are more populous than industrialized countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisManaging In An Information Age It Challenges And Opportunities should do careful acquisition and merger of companies, as it might impact the client's and society's understandings about Business. It should acquire and merge with those business which have a market credibility of healthy and healthy business. It would enhance the understandings of consumers about Business.
Business should not just spend its R&D on development, instead of it should likewise concentrate on the R&D costs over assessment of expense of various nutritious products. This would increase expense performance of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business must relocate to not just establishing but likewise to developed countries. It must expands its geographical growth. This broad geographical growth towards developing and established countries would decrease the threat of potential losses in times of instability in numerous countries. It should broaden its circle to numerous countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should acquire and combine with those nations having a goodwill of being a healthy business in the market. It would likewise allow the business to utilize its possible resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on four elements; age, gender, earnings and profession. For instance, Business produces a number of products connected to infants i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Managing In An Information Age It Challenges And Opportunities products are rather budget-friendly by nearly all levels, however its significant targeted customers, in terms of income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its existence in practically 86 nations. Its geographical segmentation is based upon 2 primary elements i.e. average income level of the consumer in addition to the environment of the region. Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and life style of the client. For example, Business 3 in 1 Coffee target those customers whose lifestyle is quite busy and don't have much time.

Behavioral Segmentation

Managing In An Information Age It Challenges And Opportunities behavioral segmentation is based upon the attitude understanding and awareness of the consumer. Its highly nutritious products target those customers who have a health conscious attitude towards their consumptions.

Managing In An Information Age It Challenges And Opportunities Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are 2 options:
Alternative: 1
The Company ought to invest more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the business, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk cost.
2. The company can resell the gotten units in the market, if it stops working to execute its method. Quantity invest on the R&D might not be restored, and it will be thought about entirely sunk expense, if it do not offer possible outcomes.
3. Spending on R&D offer sluggish development in sales, as it takes long time to present a product. Acquisitions provide fast outcomes, as it supply the business already established product, which can be marketed quickly after the acquisition.
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to deal with misunderstanding of customers about Business core values of healthy and healthy items.
2 Big spending on acquisitions than R&D would send out a signal of business's inadequacy of developing ingenious items, and would lead to consumer's dissatisfaction as well.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are currently present in the market, making business not able to introduce brand-new innovative products.
Option: 2.
The Business ought to invest more on its R&D rather than acquisitions.
1. It would enable the business to produce more innovative products.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted clients by introducing those items which can be used to an entirely brand-new market section.
4. Ingenious products will offer 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 entire spending on R&D would be considered as sunk expense, and would affect the company at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which could supply an unfavorable signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to introduce brand-new ingenious items with less threat of transforming the spending on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the general assets of the company would increase with its significant R&D spending.
3. It would not impact the revenue 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 terms of the business's general wealth as well as in terms of ingenious items.
1. Danger of conversion of R&D costs into sunk cost, greater than alternative 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Intro of less number of ingenious products than alternative 2 and high variety of ingenious items than alternative 1.

Managing In An Information Age It Challenges And Opportunities Conclusion

RecommendationsBusiness has actually remained the top market player for more than a years. It has actually institutionalised its methods and culture to align itself with the market changes and consumer behavior, which has actually ultimately permitted it to sustain its market share. Business has developed considerable market share and brand identity in the city markets, it is suggested that the company must focus on the rural areas in terms of establishing brand name commitment, awareness, and equity, such can be done by creating a particular brand name allowance strategy through trade marketing techniques, that draw clear distinction in between Managing In An Information Age It Challenges And Opportunities products and other competitor items. Managing In An Information Age It Challenges And Opportunities must 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 permit the business to establish brand equity for recently introduced and currently produced items on a greater platform, making the efficient use of resources and brand name image in the market.

Managing In An Information Age It Challenges And Opportunities Exhibits

PESTEL Analysis
Governmental assistance

Altering standards of worldwide food.
Improved market share. Altering assumption towards healthier items Improvements in R&D as well as QA divisions.

Introduction of E-marketing.
No such effect as it is favourable. Problems over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 2000 Highest possible after Service with much less development than Organisation 2nd Least expensive
R&D Spending Highest since 2008 Greatest after Business 7th Least expensive
Net Profit Margin Highest possible given that 2002 with rapid growth from 2001 to 2012 Due to sale of Alcon in 2016. Virtually equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness aspect Greatest variety of brands with lasting methods Largest confectionary as well as refined foods brand name on the planet Largest milk items and bottled water brand worldwide
Segmentation Center as well as upper center level customers worldwide Private clients along with household team Every age as well as Revenue Consumer Groups Center as well as top middle level consumers worldwide
Number of Brands 6th 2nd 3rd 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 27343 253655 275163 386365 997836
Net Profit Margin 7.92% 6.28% 88.74% 4.12% 59.15%
EPS (Earning Per Share) 32.29 8.63 4.73 1.89 83.76
Total Asset 811371 145435 156315 486116 97192
Total Debt 95171 98654 42478 82731 76363
Debt Ratio 65% 11% 77% 89% 68%
R&D Spending 2542 3252 8973 7234 1448
R&D Spending as % of Sales 4.41% 1.96% 5.49% 7.85% 8.89%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations