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Rockeford Inc Case Study Help

Business is presently one of the greatest food chains worldwide. It was founded by Henri Rockeford Inc in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate.
Business is now a global company. Unlike other multinational business, it has senior executives from different nations and tries to make decisions thinking about the whole world. Rockeford Inc currently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The purpose of Rockeford Inc Corporation is to boost the quality of life of individuals by playing its part and offering healthy food. It wishes to help the world in forming a healthy and better future for it. It also wishes to encourage people 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 much better and healthy future

Vision

Rockeford Inc's vision is to provide its customers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and at the same time comprehend the requirements and requirements of its customers. Its vision is to grow fast and offer products that would please the needs of each age group. Rockeford Inc imagines to develop a well-trained labor force which would help the company to grow
.

Mission

Rockeford Inc's objective is that as currently, it is the leading company in the food industry, it thinks in 'Great Food, Excellent Life". Its objective is to offer its customers with a range of choices that are healthy and finest in taste. It is concentrated on offering the best food to its customers throughout the day and night.

Products.

Rockeford Inc has a broad variety of items that it uses to its customers. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has actually laid down its goals and goals. These objectives and goals are listed below.
• One goal of the business is to reach zero garbage dump status. It is pursuing no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Rockeford Inc is to lose minimum food during production. Usually, the food produced is squandered even before 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 reduce those issues and would also ensure the shipment of high quality of its products to its consumers.
• Meet worldwide requirements of the environment.
• Develop a relationship based upon trust with its consumers, organisation partners, staff members, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the method 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 strategy. The target of the business is not accomplished as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Display H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it might result in the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business strategy is based upon the principle of Nutritious, Health and Health (NHW). This strategy deals with the concept to bringing change in the consumer choices about food and making the food stuff much healthier concerning about the health issues.
The vision of this strategy is based upon the secret method i.e. 60/40+ which simply means that the products will have a score of 60% on the basis of taste and 40% is based upon its dietary value. The products will be made with additional nutritional value in contrast to all other products in market gaining it a plus on its dietary material.
This technique was adopted to bring more tasty plus nutritious foods and drinks in market than ever. In competitors with other companies, with an objective of keeping its trust over clients as Business Company has acquired more relied on by costumers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual quantity of spending shows that the sales are increasing at a higher rate than its R&D spending, and enable the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This sign also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio position a danger of default of Business to its investors and might lead a declining share prices. In terms of increasing debt ratio, the company needs to not spend much on R&D and should pay its current financial obligations to decrease the threat for financiers.
The increasing risk of financiers with increasing debt ratio and decreasing share costs can be observed by huge decrease of EPS of Rockeford Inc stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of consumers. This sluggish development also hinder company to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given in the Displays D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business ought to introduce more ingenious 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 likewise supply Business a long term competitive benefit over its competitors.
The international growth of Business must be concentrated on market catching of developing nations by expansion, attracting more customers through client's commitment. As developing nations are more populous than developed countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisRockeford Inc must do cautious acquisition and merger of organizations, as it might affect the client's and society's understandings about Business. It should obtain and combine with those business which have a market reputation of healthy and healthy business. It would enhance the understandings of customers about Business.
Business needs to not just invest its R&D on innovation, instead of it needs to also focus on the R&D costs over examination of cost of different nutritious products. This would increase expense efficiency of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just developing but likewise to developed nations. It ought to expand its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Rockeford Inc ought to carefully control its acquisitions to prevent the risk of misunderstanding from the customers about Business. It should get and combine 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 likewise increase the sales, profit margins and market share of Business. It would likewise enable the business to utilize its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon 4 factors; age, gender, income and profession. For example, Business produces a number of products related to children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. Rockeford Inc items are rather economical by almost all levels, but its major targeted clients, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is made up of its presence in practically 86 nations. Its geographical division is based upon 2 primary elements i.e. average earnings level of the customer along with the climate of the area. For example, Singapore Business Business's segmentation 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 consumer. Business 3 in 1 Coffee target those clients whose life design is quite hectic and do not have much time.

Behavioral Segmentation

Rockeford Inc behavioral division is based upon the attitude understanding and awareness of the consumer. Its highly healthy items target those consumers who have a health conscious attitude towards their usages.

Rockeford Inc Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand name, there are two choices:
Option: 1
The Company must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the business, increasing the wealth of the business. Nevertheless, spending on R&D would be sunk cost.
2. The company can resell the acquired units in the market, if it fails to implement its method. However, amount spend on the R&D could not be restored, and it will be considered totally sunk cost, if it do not give possible results.
3. Spending on R&D offer sluggish growth in sales, as it takes very long time to present a product. However, acquisitions supply quick outcomes, as it provide the business currently developed item, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to face mistaken belief of consumers about Business core worths of healthy and nutritious products.
2 Large costs on acquisitions than R&D would send a signal of business's ineffectiveness of establishing innovative products, and would lead to consumer's dissatisfaction also.
3. Large acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making company unable to present brand-new ingenious items.
Alternative: 2.
The Company needs to spend more on its R&D rather than acquisitions.
Pros:
1. It would allow the business to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted clients by presenting those items which can be provided to an entirely brand-new market section.
4. Innovative items will supply long term advantages and high market share in long term.
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 company at big. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might provide an unfavorable signal to the financiers, and might 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 new ingenious products with less threat of transforming the spending on R&D into sunk cost.
2. It would offer a positive signal to the investors, as the general properties of the company would increase with its significant R&D costs.
3. It would not affect 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 regards to the business's overall wealth in addition to in terms of ingenious products.
Cons:
1. Threat of conversion of R&D costs into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high variety of ingenious items than alternative 1.

Rockeford Inc Conclusion

RecommendationsBusiness has stayed the leading market gamer for more than a decade. It has institutionalised its techniques and culture to align itself with the market modifications and client habits, which has eventually allowed it to sustain its market share. Though, Business has established considerable market share and brand name identity in the urban markets, it is advised that the company should focus on the rural areas in terms of developing brand commitment, awareness, and equity, such can be done by producing a particular brand name allotment technique through trade marketing methods, that draw clear difference in between Rockeford Inc products and other competitor products. Furthermore, Business needs to utilize its brand name 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 company to develop brand name equity for newly presented and currently produced products on a greater platform, making the effective use of resources and brand name image in the market.

Rockeford Inc Exhibits

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

Altering requirements of worldwide food.
Enhanced market share.
Changing assumption towards much healthier items
Improvements in R&D as well as QA divisions.

Intro of E-marketing.
No such impact as it is beneficial.
Concerns over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 5000
Greatest after Business with less development than Business 9th Most affordable
R&D Spending Highest considering that 2005 Highest after Service 6th Most affordable
Net Profit Margin Highest given that 2002 with fast growth from 2007 to 2018 As a result of sale of Alcon in 2014. Almost equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health factor Highest possible number of brand names with sustainable methods Biggest confectionary and also refined foods brand name worldwide Largest milk items and mineral water brand worldwide
Segmentation Middle and top center level consumers worldwide Specific clients in addition to house group All age and also Revenue Customer Teams Middle and also upper center degree customers worldwide
Number of Brands 5th 6th 8th 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 91557 936795 335357 847852 755645
Net Profit Margin 1.91% 3.94% 72.13% 6.99% 65.67%
EPS (Earning Per Share) 94.69 8.45 8.22 2.96 15.79
Total Asset 169162 911245 944353 795691 98116
Total Debt 44754 68772 48656 77695 36966
Debt Ratio 15% 57% 53% 51% 22%
R&D Spending 9294 8496 2459 1957 3333
R&D Spending as % of Sales 5.32% 6.19% 8.81% 6.29% 3.18%

Rockeford Inc Executive Summary Rockeford Inc Swot Analysis Rockeford Inc Vrio Analysis Rockeford Inc Pestel Analysis
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