The Weather Company Creating Consumer Apps That Leverage Its Big Data Case Study Solution

Case Study Solution And Analysis

Home >> Kelloggs >> The Weather Company Creating Consumer Apps That Leverage Its Big Data >>

The Weather Company Creating Consumer Apps That Leverage Its Big Data Case Study Analysis

Business is presently one of the greatest food chains worldwide. It was founded by Henri The Weather Company Creating Consumer Apps That Leverage Its Big Data in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate.
Business is now a multinational company. Unlike other international companies, it has senior executives from various nations and tries to make decisions thinking about the whole world. The Weather Company Creating Consumer Apps That Leverage Its Big Data presently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of The Weather Company Creating Consumer Apps That Leverage Its Big Data Corporation is to boost the lifestyle of individuals by playing its part and supplying healthy food. It wishes to help the world in forming a healthy and better future for it. It likewise wishes to encourage people to live a healthy life. While making certain that the business is prospering in the long run, that's how it plays its part for a much better and healthy future


The Weather Company Creating Consumer Apps That Leverage Its Big Data's vision is to provide its clients with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and at the same time comprehend the requirements and requirements of its customers. Its vision is to grow fast and provide products that would satisfy the requirements of each age. The Weather Company Creating Consumer Apps That Leverage Its Big Data imagines to develop a trained workforce which would help the company to grow


The Weather Company Creating Consumer Apps That Leverage Its Big Data's mission is that as currently, it is the leading company in the food industry, it believes in 'Great Food, Great Life". Its mission is to supply its consumers with a range of choices that are healthy and finest in taste. It is concentrated on providing the very best food to its customers throughout the day and night.


The Weather Company Creating Consumer Apps That Leverage Its Big Data has a large range of items that it uses to its consumers. In 2011, Business was listed as the most gainful organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the business has laid down its objectives and objectives. These objectives and objectives are listed below.
• One objective of the business is to reach zero landfill status. (Business, aboutus, 2017).
• Another objective of The Weather Company Creating Consumer Apps That Leverage Its Big Data is to squander minimum food throughout production. Frequently, the food produced is lost even before it reaches the customers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to reduce those issues and would also ensure the delivery of high quality of its items to its customers.
• Meet worldwide requirements of the environment.
• Develop a relationship based on trust with its customers, business partners, workers, and federal 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 innovation. The country is investing more on acquisitions and mergers to support its NHW method. 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%, offered in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business strategy is based upon the principle of Nutritious, Health and Wellness (NHW). This strategy deals with the idea to bringing change in the consumer preferences about food and making the food stuff much healthier worrying about the health problems.
The vision of this technique is based on the secret approach i.e. 60/40+ which just implies that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary value. The products will be manufactured with extra dietary value in contrast to all other items in market acquiring it a plus on its dietary material.
This strategy was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competitors with other companies, with an intent of keeping its trust over customers as Business Business has gained more relied on by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing real amount of spending shows that the sales are increasing at a greater rate than its R&D spending, and permit the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This indication also reveals a thumbs-up to the R&D costs, 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 posture a hazard of default of Business to its investors and might lead a declining share costs. In terms of increasing financial obligation ratio, the company ought to not invest much on R&D and must pay its current financial obligations to reduce the risk for investors.
The increasing threat of investors with increasing financial obligation ratio and declining share rates can be observed by huge decrease of EPS of The Weather Company Creating Consumer Apps That Leverage Its Big Data stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow perception building of customers. This slow growth also hinder 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 computations and Graphs given in the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be utilized to obtain various methods based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business needs to present more ingenious products by big quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the company. It might likewise supply Business a long term competitive benefit over its rivals.
The worldwide growth of Business should be focused on market recording of developing countries by expansion, attracting more customers through client's loyalty. As developing nations are more populated than developed nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe Weather Company Creating Consumer Apps That Leverage Its Big Data ought to do careful acquisition and merger of companies, as it might affect the customer's and society's understandings about Business. It should acquire and combine with those business which have a market reputation of healthy and nutritious companies. It would improve the perceptions of customers about Business.
Business needs to not just spend its R&D on innovation, rather than it ought to also focus on the R&D costs over evaluation of cost of various nutritious items. This would increase cost efficiency of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business needs to transfer to not just developing but also to developed countries. It should expands its geographical expansion. This wide geographical expansion towards establishing and developed countries would minimize the risk of possible losses in times of instability in different nations. It should broaden its circle to various nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It should obtain and merge with those countries having a goodwill of being a healthy company in the market. It would likewise allow the business to utilize its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on four factors; age, gender, income and occupation. For example, Business produces several items related to children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. The Weather Company Creating Consumer Apps That Leverage Its Big Data products are rather economical by almost all levels, but its significant targeted clients, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its presence in nearly 86 nations. Its geographical division is based upon two main elements i.e. average income level of the consumer along with the environment of the area. For example, Singapore Business Company's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and life style of the consumer. Business 3 in 1 Coffee target those clients whose life style is quite hectic and do not have much time.

Behavioral Segmentation

The Weather Company Creating Consumer Apps That Leverage Its Big Data behavioral division is based upon the mindset understanding and awareness of the client. Its extremely healthy products target those consumers who have a health mindful attitude towards their intakes.

The Weather Company Creating Consumer Apps That Leverage Its Big Data Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand name, there are 2 choices:
Option: 1
The Business ought to invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the business, increasing the wealth of the business. However, spending on R&D would be sunk expense.
2. The company can resell the gotten systems in the market, if it fails to execute its strategy. Nevertheless, amount spend on the R&D might not be revived, and it will be thought about totally sunk cost, if it do not offer possible outcomes.
3. Investing in R&D provide sluggish growth in sales, as it takes long period of time to present an item. Acquisitions offer fast results, as it supply the company currently developed item, which can be marketed soon after the acquisition.
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the business to deal with mistaken belief of consumers about Business core values of healthy and healthy products.
2 Large costs on acquisitions than R&D would send a signal of business's ineffectiveness of developing innovative items, and would outcomes in consumer's discontentment.
3. Large acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making business not able to introduce new ingenious items.
Option: 2.
The Company must spend more on its R&D instead of acquisitions.
1. It would make it possible for the company to produce more ingenious items.
2. It would supply the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by introducing those products which can be offered to a totally brand-new market segment.
4. Innovative items will provide long term advantages and high market share in long term.
1. It would decrease the profit margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would impact the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which might offer an unfavorable signal to the investors, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to introduce new innovative items with less threat of converting the costs on R&D into sunk cost.
2. It would offer a favorable signal to the investors, as the overall possessions of the business would increase with its substantial R&D costs.
3. It would not impact the revenue 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 regards to the business's overall wealth in addition to in terms of ingenious products.
1. Risk of conversion of R&D spending into sunk expense, higher than alternative 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high variety of ingenious items than alternative 1.

The Weather Company Creating Consumer Apps That Leverage Its Big Data Conclusion

RecommendationsBusiness has actually remained the top market gamer for more than a years. It has institutionalized its strategies and culture to align itself with the marketplace modifications and client behavior, which has ultimately allowed it to sustain its market share. Though, Business has developed considerable market share and brand identity in the city markets, it is advised that the company ought to focus on the backwoods in terms of developing brand name commitment, awareness, and equity, such can be done by developing a particular brand allowance technique through trade marketing strategies, that draw clear distinction between The Weather Company Creating Consumer Apps That Leverage Its Big Data items and other competitor items. Additionally, Business ought to leverage its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will enable the company to establish brand equity for recently introduced and already produced products on a greater platform, making the effective use of resources and brand image in the market.

The Weather Company Creating Consumer Apps That Leverage Its Big Data Exhibits

PESTEL Analysis
Governmental assistance

Altering criteria of global food.
Boosted market share. Altering understanding in the direction of much healthier items Improvements in R&D and also QA departments.

Intro of E-marketing.
No such influence as it is good. Issues over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible because 6000 Highest possible after Business with less development than Service 3rd Most affordable
R&D Spending Greatest given that 2009 Greatest after Company 3rd Most affordable
Net Profit Margin Highest since 2002 with quick development from 2009 to 2016 As a result of sale of Alcon in 2012. Practically equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and health element Highest possible number of brands with sustainable techniques Biggest confectionary as well as refined foods brand worldwide Largest dairy items and also bottled water brand on the planet
Segmentation Center and top center level consumers worldwide Specific consumers along with home team Every age and Earnings Consumer Teams Center and upper middle level customers worldwide
Number of Brands 1st 7th 8th 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 87486 953176 152747 381495 581224
Net Profit Margin 6.17% 5.32% 61.79% 5.11% 15.21%
EPS (Earning Per Share) 33.75 7.34 8.73 2.54 87.75
Total Asset 148714 234349 397533 345853 81215
Total Debt 88178 95888 32733 47335 55454
Debt Ratio 19% 61% 82% 38% 98%
R&D Spending 7723 7992 1215 5325 8744
R&D Spending as % of Sales 6.17% 6.84% 3.37% 9.82% 2.87%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations