The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Solution

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Business is presently one of the most significant food chains worldwide. It was founded by Henri The Risk Management Foundation Of The Harvard Medical Institutions Inc in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed infants and decrease death rate.
Business is now a transnational company. Unlike other international business, it has senior executives from different nations and attempts to make decisions thinking about the entire world. The Risk Management Foundation Of The Harvard Medical Institutions Inc presently has more than 500 factories around the world and a network spread across 86 nations.


The purpose of The Risk Management Foundation Of The Harvard Medical Institutions Inc Corporation is to enhance the lifestyle of individuals by playing its part and providing healthy food. It wants to help the world in shaping a healthy and better future for it. It likewise wishes to motivate people to live a healthy life. While making certain that the company is being successful in the long run, that's how it plays its part for a much better and healthy future


The Risk Management Foundation Of The Harvard Medical Institutions Inc's vision is to supply its customers with food that is healthy, high in quality and safe to consume. Business pictures to establish a trained workforce which would help the company to grow


The Risk Management Foundation Of The Harvard Medical Institutions Inc's mission is that as currently, it is the leading business in the food industry, it thinks in 'Great Food, Excellent Life". Its mission is to supply its customers with a variety of options that are healthy and best in taste. It is concentrated on offering the very best food to its consumers throughout the day and night.


The Risk Management Foundation Of The Harvard Medical Institutions Inc has a wide range of products that it uses to its consumers. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has set its goals and objectives. These objectives and objectives are noted below.
• One goal of the company is to reach zero land fill status. (Business, aboutus, 2017).
• Another goal of The Risk Management Foundation Of The Harvard Medical Institutions Inc is to lose minimum food throughout production. Frequently, the food produced is lost 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 minimize the above-mentioned issues and would likewise ensure the delivery of high quality of its items to its consumers.
• Meet international standards of the environment.
• Build a relationship based on trust with its customers, company partners, workers, and 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. Nevertheless, the target of the company is not accomplished as the sales were anticipated to grow higher at the rate of 10% annually and the operating margins to increase by 20%, given in Exhibition H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it might result in the declined income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the concept of Nutritious, Health and Wellness (NHW). This strategy handles the concept to bringing modification in the client choices about food and making the food things healthier worrying about the health problems.
The vision of this method is based on the secret approach i.e. 60/40+ which merely means 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 made with extra dietary worth in contrast to all other products in market getting it a plus on its dietary content.
This method was embraced to bring more delicious plus nutritious foods and beverages in market than ever. In competitors with other business, with an intention of maintaining its trust over consumers as Business Business has actually acquired more trusted by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing actual quantity of costs 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 sign also reveals 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 rather than payment of financial obligations. This increasing financial obligation ratio pose a risk of default of Business to its financiers and might lead a decreasing share costs. In terms of increasing financial obligation ratio, the company must not invest much on R&D and must pay its current debts to reduce the threat for financiers.
The increasing danger of financiers with increasing financial obligation ratio and declining share rates can be observed by substantial decrease of EPS of The Risk Management Foundation Of The Harvard Medical Institutions Inc stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow development likewise impede business 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 calculations and Charts given in the Exhibits D and E.

TWOS Analysis

2 analysis can be used to obtain numerous techniques 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 must present more ingenious items by large amount of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the profit margins for the business. It might likewise supply Business a long term competitive advantage over its competitors.
The global expansion of Business ought to be concentrated on market recording of developing countries by expansion, attracting more clients through consumer's loyalty. As establishing nations are more populous than developed nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe Risk Management Foundation Of The Harvard Medical Institutions Inc ought to do careful acquisition and merger of organizations, as it might impact the consumer's and society's understandings about Business. It ought to get and merge with those business which have a market credibility of healthy and nutritious companies. It would enhance the perceptions of customers about Business.
Business needs to not only spend its R&D on development, instead of it ought to likewise focus on the R&D costs over assessment of cost of different nutritious products. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just developing but likewise to industrialized nations. It should widens its geographical expansion. This wide geographical expansion towards developing and developed nations would lower the danger of possible losses in times of instability in numerous nations. It should broaden its circle to different countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

The Risk Management Foundation Of The Harvard Medical Institutions Inc should wisely manage its acquisitions to avoid the danger of misconception from the customers about Business. It must acquire and combine with those countries having a goodwill of being a healthy company in the market. This would not just improve the understanding of consumers about Business but would also increase the sales, earnings margins and market share of Business. It would likewise enable the company to utilize its prospective resources effectively on its other operations instead of acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon four elements; age, gender, income and profession. For example, Business produces a number of products connected to infants i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. The Risk Management Foundation Of The Harvard Medical Institutions Inc items are quite budget-friendly by almost all levels, however its significant targeted customers, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its presence in almost 86 nations. Its geographical division is based upon 2 primary aspects i.e. typical earnings level of the consumer in addition to the environment of the area. 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 personality and lifestyle of the consumer. For example, Business 3 in 1 Coffee target those customers whose life style is quite busy and don't have much time.

Behavioral Segmentation

The Risk Management Foundation Of The Harvard Medical Institutions Inc behavioral division is based upon the mindset knowledge and awareness of the consumer. Its highly nutritious products target those customers who have a health conscious mindset towards their intakes.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand, there are 2 choices:
Option: 1
The Company should invest more on acquisitions than on the R&D.
1. Acquisitions would increase total assets of the company, increasing the wealth of the business. Nevertheless, spending on R&D would be sunk cost.
2. The business can resell the gotten units in the market, if it fails to implement its method. However, quantity spend on the R&D might not be restored, and it will be thought about entirely sunk cost, if it do not offer potential results.
3. Investing in R&D supply slow development in sales, as it takes very long time to introduce a product. Acquisitions offer fast results, as it offer the company currently developed item, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core values of healthy and healthy products.
2 Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing ingenious items, and would results in consumer's frustration also.
3. Big acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making company not able to introduce brand-new innovative products.
Option: 2.
The Company ought to invest more on its R&D instead of acquisitions.
1. It would allow the business to produce more ingenious items.
2. It would supply the company a strong competitive position in the market.
3. It would allow the business to increase its targeted consumers by presenting those products which can be used to a completely brand-new market sector.
4. Innovative items will provide 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 whole costs on R&D would be thought about as sunk expense, and would impact the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could provide an unfavorable signal to the financiers, and could result I decreasing stock rates.
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 ingenious products with less danger of converting the spending on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the general assets of the business would increase with its substantial R&D spending.
3. It would not impact the earnings margins of the business at a large rate as compare to alternative 2.
4. It would offer the company a strong long term market position in regards to the company's overall wealth as well as in terms of innovative products.
1. Risk of conversion of R&D costs into sunk expense, greater than alternative 1 lower than alternative 2.
2. Danger of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Introduction of less number of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Conclusion

RecommendationsBusiness has stayed the leading market gamer for more than a decade. It has institutionalized its strategies and culture to align itself with the market modifications and customer behavior, which has ultimately allowed it to sustain its market share. Business has established substantial market share and brand name identity in the city markets, it is recommended that the company needs to focus on the rural areas in terms of developing brand commitment, awareness, and equity, such can be done by creating a specific brand allowance technique through trade marketing strategies, that draw clear distinction in between The Risk Management Foundation Of The Harvard Medical Institutions Inc items and other rival products. Moreover, Business needs to take advantage of its brand picture 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 business to develop brand equity for newly presented and currently produced products on a higher platform, making the effective usage of resources and brand name image in the market.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Exhibits

PESTEL Analysis
Governmental assistance

Altering standards of global food.
Boosted market share. Altering understanding in the direction of healthier products Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such effect as it is good. Concerns over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 8000 Highest possible after Company with less development than Business 4th Least expensive
R&D Spending Highest possible because 2004 Highest after Company 4th Least expensive
Net Profit Margin Highest possible because 2005 with quick development from 2003 to 2017 As a result of sale of Alcon in 2019. Virtually equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and health and wellness element Highest variety of brands with lasting methods Biggest confectionary and also processed foods brand name on the planet Largest milk products and also mineral water brand on the planet
Segmentation Middle and upper center degree customers worldwide Specific clients in addition to household team Any age as well as Income Consumer Teams Middle and top middle level customers worldwide
Number of Brands 6th 2nd 2nd 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 22682 321456 975417 847967 525975
Net Profit Margin 8.47% 8.99% 65.91% 7.11% 51.14%
EPS (Earning Per Share) 88.47 6.54 7.29 2.22 26.73
Total Asset 199618 533676 871237 286877 24962
Total Debt 79537 18691 78859 93951 14626
Debt Ratio 59% 85% 77% 13% 59%
R&D Spending 2189 5541 7426 3898 5261
R&D Spending as % of Sales 9.18% 3.25% 6.26% 4.18% 5.98%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations