The Dark Side Of Information Technology Case Study Analysis

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Business is currently one of the biggest food chains worldwide. It was established by Henri The Dark Side Of Information Technology in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate.
Business is now a transnational business. Unlike other international companies, it has senior executives from different countries and tries to make choices thinking about the whole world. The Dark Side Of Information Technology currently has more than 500 factories worldwide and a network spread throughout 86 countries.


The function of Business Corporation is to boost the quality of life of individuals by playing its part and providing healthy food. While making sure that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future


The Dark Side Of Information Technology's vision is to offer its customers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and simultaneously understand the needs and requirements of its customers. Its vision is to grow quickly and provide products that would please the requirements of each age. The Dark Side Of Information Technology imagines to establish a well-trained labor force which would help the company to grow


The Dark Side Of Information Technology's objective is that as currently, it is the leading company in the food industry, it thinks in 'Excellent Food, Great Life". Its mission is to offer its customers with a range of options that are healthy and best in taste as well. It is focused on offering the best food to its consumers throughout the day and night.


Business has a wide variety of items that it uses to its customers. Its items consist of food for infants, cereals, dairy products, snacks, chocolates, food for animal and mineral water. It has around four hundred and fifty (450) factories all over the world and around 328,000 workers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has actually put down its objectives and goals. These goals and goals are noted below.
• One goal of the company is to reach zero landfill status. (Business, aboutus, 2017).
• Another goal of The Dark Side Of Information Technology is to waste minimum food throughout production. Most often, the food produced is wasted even before 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 reduce those complications and would likewise guarantee the shipment of high quality of its items to its customers.
• Meet global requirements of the environment.
• Build a relationship based upon trust with its consumers, business partners, workers, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the business is not attained as the sales were anticipated to grow greater at the rate of 10% each year and the operating margins to increase by 20%, given in Exhibit H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may lead to the decreased income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based on the concept of Nutritious, Health and Wellness (NHW). This strategy deals with the idea to bringing modification in the consumer preferences about food and making the food stuff much healthier worrying about the health issues.
The vision of this technique is based upon the secret approach i.e. 60/40+ which simply means that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be made with additional nutritional value in contrast to all other items in market acquiring it a plus on its nutritional material.
This strategy was embraced to bring more yummy plus nutritious foods and drinks in market than ever. In competitors with other companies, with an objective of retaining its trust over customers as Business Company has gained more trusted by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D spending, 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 indication also shows a thumbs-up 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 pose a hazard of default of Business to its investors and could lead a decreasing share rates. In terms of increasing financial obligation ratio, the company must not invest much on R&D and ought to pay its current debts to reduce the threat for investors.
The increasing risk of financiers with increasing financial obligation ratio and decreasing share prices can be observed by big decline of EPS of The Dark Side Of Information Technology stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow perception building of consumers. This sluggish growth also prevent business to more invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Graphs given in the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be used to derive different strategies based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more ingenious items by big quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the business. It might also offer Business a long term competitive advantage over its rivals.
The worldwide expansion of Business need to be concentrated on market recording of developing countries by growth, bring in more clients through consumer's commitment. As establishing countries are more populous than developed countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe Dark Side Of Information Technology ought to do careful acquisition and merger of organizations, as it could affect the client's and society's perceptions about Business. It should acquire and merge with those business which have a market reputation of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business ought to not just spend its R&D on development, rather than it should also concentrate on the R&D spending over examination of cost of various healthy products. This would increase expense performance of its items, which will result in increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business needs to relocate to not just developing but also to industrialized countries. It must broadens its geographical growth. This wide geographical growth towards establishing and established countries would reduce the danger of potential losses in times of instability in numerous nations. It should expand its circle to various countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It needs to obtain and merge with those countries having a goodwill of being a healthy business in the market. It would likewise make it possible for the business to utilize its potential resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on 4 elements; age, gender, income and profession. For instance, Business produces several items related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary items. The Dark Side Of Information Technology items are quite budget friendly by practically all levels, but its major targeted customers, 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 almost 86 countries. Its geographical segmentation is based upon 2 main aspects i.e. average income level of the customer along with the climate of the area. For instance, Singapore Business Business's division is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the customer. Business 3 in 1 Coffee target those consumers whose life style is rather hectic and don't have much time.

Behavioral Segmentation

The Dark Side Of Information Technology behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its highly healthy products target those customers who have a health mindful mindset towards their intakes.

The Dark Side Of Information Technology Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand name, there are two alternatives:
Alternative: 1
The Business needs to spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Nevertheless, costs 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. Amount spend on the R&D might not be restored, and it will be thought about completely sunk expense, if it do not offer prospective results.
3. Spending on R&D offer sluggish development in sales, as it takes very long time to present an item. However, acquisitions provide fast results, as it supply the company already developed item, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to face misunderstanding of consumers about Business core values of healthy and healthy products.
2 Big costs on acquisitions than R&D would send a signal of business's inefficiency of developing innovative products, and would results in customer's discontentment as well.
3. Big acquisitions than R&D would extend the product line of the company by the items which are already present in the market, making company not able to present brand-new ingenious products.
Alternative: 2.
The Company should spend more on its R&D instead of acquisitions.
1. It would enable the business to produce more ingenious items.
2. It would supply the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted consumers by presenting those items which can be provided to a totally brand-new market segment.
4. Ingenious items will supply long term benefits and high market share in long run.
1. It would decrease the revenue margins of the business.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would affect the company at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might supply a negative signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present new ingenious products with less threat of transforming the costs on R&D into sunk expense.
2. It would supply a positive signal to the financiers, as the overall assets of the business would increase with its significant R&D costs.
3. It would not affect the earnings margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in regards to the business's total wealth in addition to in terms of ingenious products.
1. Threat of conversion of R&D spending into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of ingenious products than alternative 2 and high number of innovative items than alternative 1.

The Dark Side Of Information Technology Conclusion

RecommendationsIt has actually institutionalized its methods and culture to align itself with the market modifications and consumer behavior, which has actually eventually enabled it to sustain its market share. Business has developed considerable market share and brand name identity in the urban markets, it is recommended that the business needs to focus on the rural locations in terms of establishing brand loyalty, awareness, and equity, such can be done by creating a specific brand allotment strategy through trade marketing techniques, that draw clear distinction between The Dark Side Of Information Technology items and other rival items.

The Dark Side Of Information Technology Exhibits

PESTEL Analysis
Governmental assistance

Altering requirements of international food.
Enhanced market share.
Transforming assumption in the direction of much healthier products
Improvements in R&D and QA divisions.

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

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 1000
Highest after Service with much less development than Service 2nd Cheapest
R&D Spending Highest possible given that 2006 Highest possible after Organisation 3rd Lowest
Net Profit Margin Highest because 2008 with rapid growth from 2002 to 2017 Due to sale of Alcon in 2017. Nearly equal to Kraft Foods Consolidation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and health variable Highest possible variety of brands with lasting methods Largest confectionary and processed foods brand on the planet Largest milk products and bottled water brand name in the world
Segmentation Center as well as top middle level customers worldwide Private customers in addition to home team All age as well as Revenue Customer Groups Middle and upper middle level consumers worldwide
Number of Brands 9th 9th 2nd 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 79969 364469 222249 543981 629644
Net Profit Margin 7.78% 2.81% 84.93% 8.22% 76.63%
EPS (Earning Per Share) 75.77 9.52 7.18 7.91 33.16
Total Asset 329857 421834 765385 633222 91312
Total Debt 12372 21376 82159 75851 39275
Debt Ratio 25% 52% 94% 95% 54%
R&D Spending 9666 1859 3141 2538 2299
R&D Spending as % of Sales 3.59% 1.34% 1.36% 3.91% 1.49%

The Dark Side Of Information Technology Executive Summary The Dark Side Of Information Technology Swot Analysis The Dark Side Of Information Technology Vrio Analysis The Dark Side Of Information Technology Pestel Analysis
The Dark Side Of Information Technology Porters Analysis The Dark Side Of Information Technology Recommendations