Philips Group - 1990 Case Study Solution

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Philips Group - 1990 Case Analysis

Philips Group - 1990 Case Study Analysis is a widely known name of a New York based, world's leading organization in the food and drink industry. company is a prominent brand name in convenient treats, foods and beverages with its existence in about 200 nations.

The report contains a deep analysis of various aspects of the social obligations of major companies in the food and drink industry in basic, and Case Analysis in specific. It also provides an analysis of the growing health and environmental concerns consisting of obesity, heart diseases, environmental destruction etc. in the Western countries and the function of the business in the food and beverage industry to resolve these concerns. The report likewise provides an assessment of the degree of sustainability and CSR in the Philips Group - 1990 Case Study Analysis's organisation strategy in addition to the determination of how Case Study Help produces value for its customers. Additionally, the report also supplies specific strategic alternatives for Case Analysis to incorporate the criticism over its social obligation with specific recommendations and an application plan.

Problems Identification

Case Study Help had taken certain important actions regarding the ecological effects of its items, however, these actions are not enough to end up the criticism over the company's duty towards social and ecological problems. This is needed to take particular tactical actions to alter the market position of its certain well-known brands and present Case Study Solution as a business producing healthy products in the market. In this regard, company and other food and beverage business must utilize their power to move the consumer taste towards much healthier items to remove the restraints in the growth of food industry.

Vital Analysis

For the few years, consumer food patterns have actually been altered significantly. The shift from using natural food to made food has actually extremely affected the health of the customers. Despite of the discovery of contemporary health techniques, the total health of people in couple of decades have actually been highly affected. Currently about 1 billion of individuals In United States are overweight and at least 300 million of them have weight problems. Kids likewise facing the problem of obesity. The ratios of obesity in 1980s are quite different from the existing ratios. Despite of discovery of health methods and modern ways to control weight problems and other illness, the ratio of obesity has been doubled form the level of 1980. All of the information connected to the health concerns with the incorporation of made food in the market describe the occurrence of the health issues related to food system. These problems are indirectly the outcome of different practices of the food and beverage companies for producing value for their consumers.

Value Development at Philips Group - 1990 Case Study Solution

Philips Group - 1990 Case Study Help being a giant company in the food and beverage market, offers high value to its clients by various methods. Case Study Help has a competitive advantage in offering its items far and large globally. The company is provided in about 200 countries with a large number of famous worldwide brands.

The company creates value for its consumers by ways of offering large number of tasty food products including salt, fat and sugar, which are the ingredients that are straight linked with the psychological core of the consumer's brain. The Philips Group - 1990 Case Study Analysis together with other huge food and drinks business create value for its consumers by controling these components in its products. Case Study Solution together with other giant companies is interested in finding methods to increase the customer value from its products through making use of the vulnerability.

Along with it, the business likewise develops value by means of integrating the healthy point in its products. The company has done certain efforts in order to provide healthy items and reduce the share of Philips Group - 1990 Case Study Help in general ecological devastation. Case Study Solution has taken particular actions associated with the sustainability of individuals and environment including the 2009 announcement of the enthusiastic goals and dedications related to Case Study Help items, marketplace and the neighborhood.

All of these ways have achieved success at producing worth for the business consumers. Nevertheless, these methods have likewise result in the increased environmental concerns and the criticism over the company's role in increasing health and ecological challenges. The incorporation of active ingredients like salt, fat and sugar in the business products for producing customer value faces high quantity of criticism. These components are the primary reason for certain deadly diseases in human consisting of weight problems, diabetes, cardiovascular disease etc. Increasing health associated issues have actually raised the criticism for Philips Group - 1990 Case Study Help.

Useful Function of Major Food and Beverage Business in Attending To Social and Ecological Expenses Related To the Industry

Major food and drink companies including Philips Group - 1990 Case Study Help and so on can play a constructive function in resolving social and ecological costs associated with the market. The eco-friendly expenses connected to food and beverage market consist of the ecological devastation due to the increase of nitrogen which has actually resulted in the lowered water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors leads to environmental devastation which could be a big danger to the existence of humankind in future.

Major reason for these environmental modifications is mass usage of nitrogen abundant fertilizers and the components by the food and beverage business. Food and beverage companies should play an useful role in resolving these problems to remove their development restrictions related to the criticism from the ecological communities.

In order to address these concerns, the business could either lower their use of nitrogen rich ingredients or take specific steps to reduce the quantity of nitrogen in the total environment. The business ought to prevent use of nitrogen fertilizers and should seek the products of those farmers that do not use fertilizers for their crop. Furthermore, the companies might likewise purchase decreasing greenhouse gas emissions worldwide. For example, the business might use renewable energy sources at their production plant to compensate the greenhouse gas emissions from the use of nitrogen-rich products.

Together with the ecological expenses there are specific social expenses connected with the food and drink market which must be attended to by the huge food and beverage companies to attain the market development and to prevent the criticism from the environmental neighborhoods. Social expenses related to the market includes the increasing health concerns connected to weight problems, heart disease, diabetes etc. The giant business could play a constructive function in resolving these concerns.

The business could move towards more healthy products by reducing the quantity of poisonous substances in their processed foods i.e. dioxin, which might result in deadly human diseases. The business could also do efforts to move customer tastes towards healthy items as they have actually managed the customer taste for few decades.

Evaluation of Sustainability at Philips Group - 1990 Case Study Solution

There was a prospective shift in the business strategy and objectives at Case Study Analysis. The new CEO was concentrated on investing in much healthier products for accomplishing sustainable development for the company together with offering healthier future for the people and the planet both. Under the brand-new vision, the motto of the company was also changed from the "enjoyable for you" to "better for you".

Human Sustainability

The business announced particular objectives and dedications related to human sustainability and the environmental sustainability. Philips Group - 1990 Case Study Analysis acquired Quake Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy drinks and organic beverages to present numerous much healthier products in its portfolio. However, despite of being considered a Case Study Help's healthy brand name, the products of Quaker Oats contained several components which were dangerous to health. These harmful active ingredients were not marketed which have actually become the base for criticism over the healthy brand names of Philips Group - 1990 Case Study Solution.

Along with the inculcation of healthy brands in its portfolio through acquisitions, Philips Group - 1990 Case Study Help has taken certain sustainability steps for its market places. One of significant examples in this regard is the Company's marketing method associated to schools. The company markets just low calories and healthy beverages options in schools.

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

Environmental Sustainability

In this regard, the business committed to decrease its packaging by millions of tones to prevent high amount of wastes. The business has actually devoted to decrease greenhouse gas emissions along with the achievement of effectiveness in the energy usage.

On the basis of above analysis, it could be identified that the company has taken a number of actions towards human and environmental sustainability. These actions are still not enough to accomplish the desired commercial growth and to reduce the criticism over the social responsibility of Case Study Analysis.

Alternatives

Certain long term strategic alternatives could be derived for the company on the basis of above analysis. These alternatives can be evaluated on the basis of the reality that how the option would allow the company to attain its objective of prospective growth and decrease the criticism over the business. The options might be evaluated on the basis of the time frame that would be taken by an alternative to be implemented along with the expense and threats related to the alternative

Alternative-1: introduction of a New Line of product Associated with Healthy Foods and Beverages

The initial step that Philips Group - 1990 Case Study Analysis might take is to present a new line of product related to healthy food and drinks. Although, the company has actually already presented certain heath related brand names, but, the number of these brand names in its portfolio is not potential to reduce the criticism and achieve potential growth. For that reason, the business ought to introduce a wide range of healthier items by utilizing its considerable research study and development expenditures. The pros and cons associated with the introduction of a healthy line of product in the portfolio are given below:

Pros:

• Ability to target large number of consumers i.e. health conscious customers.
• Decrease of the criticism of ecological concerned societies and neighborhood development organizations.
• Fulfillment of the social duty by settlement of the dangerous items with healthy items.
• Could be carried out within couple of years i.e. 3 to 5 years.

Cons:

• Threat of failure of the brand-new items in the market i.e. consumers might not like the taste and may decline the healthier products due to the addictive nature of harmful items.
• The dangerous products in the product portfolio may make the incorporation of healthy items fail to minimize criticism.
• Huge expense of research study and development needed to build new healthy products.

Alternative-2: High level Acquisition of Health associated Companies

Another alternative option to achieve the possible development and decrease the criticism is to acquire the health associated business at a high level. Investment in these type of business would allow Philips Group - 1990 Case Study Analysis to introduce a large range of much healthier items within a short time period without any requirement of considerable research study and advancement expenses. The advantages and disadvantages connected to alternative 3 are provided below:

Pros:

• Conserving of big amount of research and advancement costs for new product advancement.
• Incorporation of new items within 2 years.
• Capability to target large number of customers i.e. health mindful consumers.
• Reduction of the criticism of ecological concerned societies and community development organizations.
• Fulfillment of the social duty by compensation of the hazardous items with healthy items.

Cons:

• The acquisition may not prove to change the image of Philips Group - 1990 Case Study Solution as in case of Quake Oats.
• Requirement of big amount of capital.
• Threat of failure of the new items in the market i.e. customers might not like the taste and might decline the healthier items due to the addictive nature of harmful items.
• The dangerous products in the item portfolio might make the incorporation of healthy items stop working to minimize criticism.

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

Another alternative choice for Philips Group - 1990 Case Study Help is to change all of its dangerous products with healthier products. This might be a substantial shift in the business strategy and business design at company. The replacement of dangerous items with healthier products would completely change the marketplace position of the company and would need a large number of necessary actions to be taken. The benefits and drawbacks related to alternative 3 are given below:

Pros:

• Modification of market position of Philips Group - 1990 Case Study Help
• Ability to target a great deal of customers i.e. health mindful consumers.
• End of all of the criticism of environmental concerned societies and neighborhood development companies.
• Satisfaction of the social responsibility

Cons:

• Risk of failure of the new items in the market i.e. consumers might not like the taste and might not accept the healthier products due to the addictive nature of dangerous items.
• Big expense of research study and advancement required to construct brand-new healthy items.
• Worker might withstand over the modification in the business design and organisation strategy.
• Number of years required for the application.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the business's CSR, issues faced by the company and the existing industry circumstance, Philips Group - 1990 Case Study Solution is suggested to consider alternative 2 of high level of acquisition of health associated business. As the acquisitions would enable the company to conserve of huge quantity of research study and development costs for new item advancement. Together with it, acquisitions would enable incorporation of brand-new items within 2 years together with the ability to target a great deal of customers. Additionally, the acquisitions would result in the decrease of the criticism from the worried organizations.However, the alternative would need big amount of investment funds. The organizations may not be able to minimize the criticism. With a mindful analysis of the acquisition with an aggressive marketing projects, company might show to be successful in attaining the targets.

This Philips Group - 1990 case study is writen by : Christopher A Bartlett

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