Loreal And The Body Shop: Acquisition Synergies Case Study Solution

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Loreal And The Body Shop: Acquisition Synergies Case Analysis

Loreal And The Body Shop: Acquisition Synergies Case Study Solution is a well-known name of a New York based, world's leading company in the food and beverage market. Case Study Solution is a leading brand in convenient snacks, foods and beverages with its presence in about 200 nations. Significant brands of the business consist of; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive advantage of the business is its ability to market the item at everywhere places. Additionally, the business is doing efforts to make item development as its new source of competitive advantage.

The report includes a deep analysis of different aspects of the social duties of significant business in the food and beverage market in basic, and Case Solution in specific. It likewise provides an analysis of the growing health and environmental problems consisting of weight problems, cardiovascular disease, ecological devastation and so on in the Western countries and the role of the business in the food and beverage industry to address these concerns. The report likewise offers an examination of the degree of sustainability and CSR in the Loreal And The Body Shop: Acquisition Synergies Case Study Help's service method in addition to the decision of how Case Study Solution develops worth for its customers. Moreover, the report likewise provides specific strategic alternatives for Case Analysis to include the criticism over its social duty with particular recommendations and an execution plan.

Issues Recognition

Case Study Solution had taken specific important actions relating to the environmental impacts of its items, but, these actions are not enough to end up the criticism over the company's obligation towards social and eco-friendly issues. This is needed to take certain tactical steps to alter the market position of its specific famous brands and present Case Study Help as a company producing healthy products in the market. In this regard, company and other food and beverage companies must utilize their power to shift the customer taste towards much healthier products to eliminate the restrictions in the development of food industry.

Crucial Analysis

The shift from the use of natural food to manufactured food has extremely affected the health of the customers. All of the information related to the health problems with the incorporation of produced food in the market explain the prevalence of the health concerns related to food system. These issues are indirectly the result of different practices of the food and beverage companies for creating worth for their customers.

Worth Production at Loreal And The Body Shop: Acquisition Synergies Case Study Analysis

Loreal And The Body Shop: Acquisition Synergies Case Study Analysis being a huge company in the food and drink industry, offers high value to its customers by numerous means. Case Study Analysis has a competitive benefit in providing its items far and wide worldwide. The business is provided in about 200 nations with a large number of popular global brand names.

Moreover, the company develops value for its consumers by methods of supplying large number of yummy food including salt, fat and sugar, which are the ingredients that are directly gotten in touch with the emotional core of the consumer's brain. The Loreal And The Body Shop: Acquisition Synergies Case Study Analysis along with other giant food and beverages business develop worth for its consumers by controling these components in its items. Case Study Analysis together with other giant companies is interested in finding methods to increase the consumer value from its products through making use of the vulnerability.

In addition to it, the company also develops worth by means of incorporating the healthy point in its items. The business has done certain efforts in order to provide healthy items and minimize the share of Loreal And The Body Shop: Acquisition Synergies Case Study Analysis in total ecological devastation. Case Study Help has taken particular actions connected to the sustainability of people and environment including the 2009 statement of the ambitious objectives and dedications associated with Case Study Help products, market and the neighborhood.

All of these ways have been effective at producing value for the Case Study Analysis consumers. Increasing health associated problems have raised the criticism for Case Study Help.

Useful Function of Major Food and Beverage Companies in Dealing With Social and Ecological Costs Associated with the Market

Major food and drink business including Loreal And The Body Shop: Acquisition Synergies Case Study Help and so on can play a positive role in addressing social and environmental costs associated with the industry. The eco-friendly costs associated with food and drink market consist of the environmental devastation due to the influx of nitrogen which has actually resulted in the decreased water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors results in environmental destruction which could be a big risk to the existence of humanity in future.

Major reason for these environmental modifications is mass use of nitrogen rich fertilizers and the components by the food and drink business. Therefore, food and beverage business should play a constructive role in addressing these concerns to eliminate their growth restraints associated with the criticism from the environmental neighborhoods.

The business need to prevent usage of nitrogen fertilizers and must browse out the products of those farmers that do not use fertilizers for their crop. The companies might use eco-friendly energy sources at their production plant to compensate the greenhouse gas emissions from the use of nitrogen-rich items.

Along with the ecological expenses there are particular social costs connected with the food and beverage industry which should be addressed by the huge food and drink companies to achieve the market growth and to prevent the criticism from the ecological neighborhoods. Social costs connected with the industry consists of the increasing health issues connected to obesity, heart problem, diabetes etc. Nevertheless, the giant companies could play an useful role in resolving these issues.

The business might move towards more healthy items by decreasing the quantity of hazardous compounds in their processed foods i.e. dioxin, which might result in lethal human illness. The business could also do efforts to move consumer tastes towards healthy items as they have actually managed the customer taste for few decades.

Evaluation of Sustainability at Loreal And The Body Shop: Acquisition Synergies Case Study Solution

There was a possible shift in the corporate technique and goals at Case Study Analysis. The new CEO was concentrated on buying much healthier items for accomplishing sustainable growth for the business in addition to providing healthier future for the people and the planet both. Under the new vision, the slogan of the company was likewise altered from the "enjoyable for you" to "better for you".

Human Sustainability

company got Quake Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy beverages and organic beverages to present different healthier items in its portfolio. Despite of being thought about a Case Help's healthy brand, the products of Quake Oats consisted of numerous active ingredients which were dangerous to health.

Along with the inculcation of healthy brands in its portfolio through acquisitions, Loreal And The Body Shop: Acquisition Synergies Case Study Analysis has actually taken specific sustainability actions for its market locations. One of major examples in this regard is the Business's marketing technique related to schools. The company markets only low calories and healthy beverages choices in schools.

Another step taken by Case Study Help towards human sustainability is the shift of its focus towards research and advancement for presenting brand-new and healthy items in its portfolio. The company has increased its research and advancement budget and has presented an army of health scientists to develop certain healthy products.

Ecological Sustainability

Along with the human sustainability, Loreal And The Body Shop: Acquisition Synergies Case Study Help has actually taken several steps towards ecological sustainability. The business has actually dedicated to numerous goals related to water, land, packaging, climate modification and community. In this regard, the company committed to minimize its product packaging by millions of tones to prevent high amount of wastages. Additionally, the business has actually devoted to minimize greenhouse gas emissions together with the achievement of efficiency in the energy usage. business has actually likewise attempted specific humanitarian activities including a commitment to provide safe drinking water to 3 million individuals in developing countries by 2015.

On the basis of above analysis, it might be figured out that the company has actually taken several actions towards human and environmental sustainability. These actions are still not adequate to achieve the wanted industrial development and to decrease the criticism over the social duty of Case Study Analysis.

Alternatives

Certain long term strategic alternatives might be obtained for the business on the basis of above analysis. These options can be evaluated on the basis of the truth that how the option would make it possible for the company to achieve its goal of potential development and lower the criticism over the business. Additionally, the options might be assessed on the basis of the time frame that would be taken by an option to be implemented together with the expense and dangers associated with the option

Alternative-1: intro of a New Product line Related to Healthy Foods and Beverages

The primary step that Loreal And The Body Shop: Acquisition Synergies Case Study Solution might take is to introduce a brand-new product line connected to healthy food and drinks. The company has already presented particular heath associated brands, however, the number of these brand names in its portfolio is not prospective to lower the criticism and achieve potential growth. The company should present a large range of healthier products by utilizing its substantial research and development expenditures. The advantages and disadvantages connected to the introduction of a healthy product line in the portfolio are given below:

Pros:

• Ability to target a great deal of customers i.e. health mindful consumers.
• Reduction of the criticism of ecological concerned societies and community development companies.
• Satisfaction of the social duty by settlement of the hazardous products with healthy products.
• Might be implemented within few years i.e. 3 to 5 years.

Cons:

• Risk of failure of the brand-new items in the market i.e. consumers may not like the taste and might decline the much healthier products due to the addictive nature of hazardous items.
• The harmful items in the product portfolio may make the incorporation of healthy products fail to lower criticism.
• Big cost of research study and development needed to build brand-new healthy products.

Alternative-2: High level Acquisition of Health associated Companies

Another alternative option to accomplish the possible development and minimize the criticism is to get the health associated business at a high level. Financial investment in these type of companies would enable Loreal And The Body Shop: Acquisition Synergies Case Study Analysis to present a large range of healthier items within a short time duration without any requirement of substantial research study and development expenses. The pros and cons connected to alternative 3 are given listed below:

Pros:

• Conserving of big amount of research study and advancement costs for brand-new item advancement.
• Incorporation of brand-new products within 2 years.
• Capability to target a great deal of customers i.e. health mindful consumers.
• Decrease of the criticism of ecological worried societies and neighborhood development organizations.
• Fulfillment of the social responsibility by compensation of the dangerous products with healthy products.

Cons:

• The acquisition may not show to alter the image of Loreal And The Body Shop: Acquisition Synergies Case Study Solution as in case of Quake Oats.
• Requirement of substantial quantity of capital.
• Risk of failure of the new items in the market i.e. customers might not like the taste and may not accept the healthier items due to the addicting nature of harmful items.
• The hazardous products in the product portfolio may make the incorporation of healthy products stop working to lower criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative choice for Loreal And The Body Shop: Acquisition Synergies Case Study Help is to replace all of its hazardous items with much healthier items. The replacement of dangerous items with much healthier items would entirely alter the market position of the company and would need a big number of essential actions to be taken.

Pros:

• Change of market position of Loreal And The Body Shop: Acquisition Synergies Case Study Analysis
• Capability to target large number of customers i.e. health mindful customers.
• End of all of the criticism of ecological worried societies and community development organizations.
• Fulfillment of the social duty

Cons:

• Threat of failure of the new products in the market i.e. customers might not like the taste and might not accept the much healthier items due to the addictive nature of hazardous products.
• Big expense of research study and development needed to construct brand-new healthy items.
• Worker may withstand over the change in the business model and service method.
• Number of years required for the execution.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the company's CSR, problems dealt with by the business and the current industry circumstance, Loreal And The Body Shop: Acquisition Synergies Case Study Solution is advised to think about alternative 2 of high level of acquisition of health related business. As the acquisitions would make it possible for the business to conserve of substantial amount of research and advancement costs for brand-new product development. Together with it, acquisitions would enable incorporation of new items within two years together with the capability to target a great deal of consumers. Moreover, the acquisitions would result in the decrease of the criticism from the concerned organizations.However, the option would need huge quantity of mutual fund. The companies may not be able to reduce the criticism. But, with a mindful analysis of the acquisition with an aggressive marketing projects, Loreal And The Body Shop: Acquisition Synergies Case Study Analysis could prove to be effective in attaining the targets.

This Loreal And The Body Shop: Acquisition Synergies case study is writen by : Ashok Som

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