Surveymonkey In 2014 Case Study Solution

Case Study Solution And Analysis

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Surveymonkey In 2014 Case Study Analysis

Surveymonkey In 2014 is presently among the biggest food chains worldwide. It was established by Kelloggs in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate. At the exact same time, the Page siblings from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two ended up being rivals initially but in the future combined in 1905, leading to the birth of Surveymonkey In 2014.
Business is now a global company. Unlike other international business, it has senior executives from various nations and tries to make choices considering the entire world. Surveymonkey In 2014 currently has more than 500 factories around the world and a network spread across 86 countries.


The purpose of Surveymonkey In 2014 Corporation is to boost the lifestyle 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 likewise wants to encourage 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


Surveymonkey In 2014's vision is to supply its customers with food that is healthy, high in quality and safe to eat. Business pictures to establish a trained workforce which would help the company to grow


Surveymonkey In 2014's mission is that as presently, it is the leading company in the food market, it thinks in 'Good Food, Good Life". Its mission is to supply its consumers with a range of choices that are healthy and finest in taste as well. It is concentrated on supplying the best food to its consumers throughout the day and night.


Surveymonkey In 2014 has a large variety of items that it offers to its consumers. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has put down its objectives and objectives. These goals and goals are noted below.
• One goal of the company is to reach zero landfill status. (Business, aboutus, 2017).
• Another goal of Surveymonkey In 2014 is to squander minimum food during production. Frequently, the food produced is wasted even before it reaches the customers.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to reduce those issues and would likewise ensure the delivery of high quality of its products to its clients.
• Meet global standards of the environment.
• Develop a relationship based on trust with its customers, company partners, staff members, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the method 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. The target of the company is not attained as the sales were anticipated to grow higher 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 present Business technique is based upon the concept of Nutritious, Health and Wellness (NHW). This strategy deals with the idea to bringing modification in the customer preferences about food and making the food stuff healthier worrying about the health problems.
The vision of this technique is based upon the secret approach i.e. 60/40+ which simply indicates that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be manufactured with additional dietary value in contrast to all other items in market getting it a plus on its nutritional material.
This technique was embraced to bring more tasty plus healthy foods and drinks in market than ever. In competitors with other business, with an intention of keeping its trust over consumers as Business Company has gotten more trusted by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and permit the company to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indicator also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing debt ratio present a danger of default of Business to its financiers and might lead a declining share rates. For that reason, in regards to increasing debt ratio, the company ought to not invest much on R&D and ought to pay its current financial obligations to decrease the threat for financiers.
The increasing threat of financiers with increasing debt ratio and declining share costs can be observed by big decline of EPS of Surveymonkey In 2014 stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow perception building of customers. This slow development also prevent company to additional spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Charts given in the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be used to obtain various methods based upon the SWOT Analysis offered above. A short 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 marketplace share of Business and increase the earnings margins for the company. It could likewise supply Business a long term competitive advantage over its rivals.
The international expansion of Business must be concentrated on market capturing of establishing countries by expansion, attracting more consumers through customer's commitment. As establishing nations are more populous than industrialized nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisSurveymonkey In 2014 needs to do cautious acquisition and merger of companies, as it might affect the customer's and society's understandings about Business. It must obtain and merge with those business which have a market credibility of healthy and healthy business. It would enhance the perceptions of customers about Business.
Business needs to not just spend its R&D on development, instead of it should likewise focus on the R&D spending over assessment of expense of various healthy products. This would increase cost performance of its products, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business ought to relocate to not just establishing but also to developed countries. It needs to expands its geographical growth. This large geographical growth towards establishing and developed countries would lower the danger of possible losses in times of instability in numerous countries. It ought to widen its circle to numerous nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Surveymonkey In 2014 ought to wisely control its acquisitions to avoid the threat of misunderstanding from the consumers about Business. It must obtain and combine with those countries having a goodwill of being a healthy business in the market. This would not only improve the understanding of consumers about Business but would likewise increase the sales, revenue margins and market share of Business. It would also enable the business to utilize its potential resources effectively 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 on 4 factors; age, gender, income and profession. Business produces several products related to infants i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. Surveymonkey In 2014 items are rather affordable by nearly all levels, but its major targeted consumers, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in nearly 86 countries. Its geographical division is based upon two main elements i.e. average earnings level of the customer as well as the environment of the region. For example, Singapore Business Company'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 character and life style of the consumer. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is rather busy and do not have much time.

Behavioral Segmentation

Surveymonkey In 2014 behavioral division is based upon the attitude understanding and awareness of the consumer. For example its extremely nutritious products target those customers who have a health conscious mindset towards their consumptions.

Surveymonkey In 2014 Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand name, there are two options:
Alternative: 1
The Business ought to spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the business, increasing the wealth of the business. However, costs on R&D would be sunk cost.
2. The company can resell the acquired units in the market, if it stops working to implement its technique. Nevertheless, amount spend on the R&D could not be restored, and it will be considered completely sunk expense, if it do not provide prospective results.
3. Spending on R&D offer slow growth in sales, as it takes very long time to introduce an item. Nevertheless, acquisitions offer fast outcomes, as it provide the company currently established item, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the business to face misconception of consumers about Business core worths of healthy and healthy items.
2 Big costs on acquisitions than R&D would send a signal of business's inadequacy of developing innovative items, and would results in consumer's frustration.
3. Large acquisitions than R&D would extend the product line of the company by the items which are already present in the market, making company unable to present brand-new innovative products.
Alternative: 2.
The Company needs to spend more on its R&D instead of acquisitions.
1. It would allow the business to produce more innovative items.
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 consumers by introducing those products which can be used to a totally new market segment.
4. Innovative products will provide long term advantages and high market share in long term.
1. It would reduce the earnings margins of the company.
2. In case of failure, the whole costs on R&D would be thought about as sunk expense, and would affect the company at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which could offer a negative signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to introduce brand-new innovative items with less danger of converting the spending on R&D into sunk cost.
2. It would offer a favorable signal to the investors, as the general properties of the business would increase with its significant R&D costs.
3. It would not affect the profit margins of the company at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the company's general wealth in addition to in regards to innovative items.
1. Danger of conversion of R&D spending into sunk expense, higher than alternative 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of innovative items than alternative 2 and high variety of innovative products than alternative 1.

Surveymonkey In 2014 Conclusion

RecommendationsBusiness has remained the leading market player for more than a years. It has institutionalised its techniques and culture to align itself with the marketplace modifications and consumer habits, which has actually eventually permitted it to sustain its market share. Business has developed considerable market share and brand identity in the metropolitan markets, it is advised that the company should focus on the rural areas in terms of establishing brand name commitment, awareness, and equity, such can be done by creating a specific brand allowance technique through trade marketing tactics, that draw clear distinction in between Surveymonkey In 2014 items and other competitor items. Surveymonkey In 2014 must utilize its brand name image 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 company 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.

Surveymonkey In 2014 Exhibits

PESTEL Analysis
Governmental support

Changing requirements of international food.
Boosted market share. Altering understanding in the direction of much healthier items Improvements in R&D and QA divisions.

Introduction of E-marketing.
No such influence as it is good. Worries over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest since 5000 Highest possible after Company with much less development than Company 3rd Least expensive
R&D Spending Highest possible given that 2004 Highest possible after Business 7th Least expensive
Net Profit Margin Greatest considering that 2005 with rapid growth from 2009 to 2015 Due to sale of Alcon in 2018. Almost equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nourishment and wellness element Highest possible number of brands with sustainable techniques Largest confectionary as well as processed foods brand on the planet Largest dairy products as well as bottled water brand worldwide
Segmentation Middle as well as top center degree consumers worldwide Specific clients together with household group Every age and also Revenue Consumer Groups Middle as well as upper middle degree customers worldwide
Number of Brands 1st 6th 2nd 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 18756 365826 971864 475767 366638
Net Profit Margin 3.68% 9.95% 81.96% 5.96% 54.85%
EPS (Earning Per Share) 28.84 1.12 6.26 7.17 98.28
Total Asset 571456 399243 263433 413897 54443
Total Debt 74593 23667 46451 37226 32712
Debt Ratio 37% 99% 71% 62% 34%
R&D Spending 3789 3985 7219 1458 3186
R&D Spending as % of Sales 2.84% 3.61% 8.81% 2.36% 7.86%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations