Asahi Glass Co: Diversification Strategy Case Study Help

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Asahi Glass Co: Diversification Strategy Case Analysis

Asahi Glass Co: Diversification Strategy Case Study Help is a popular name of a New York based, world's leading organization in the food and drink industry. Case Study Solution is a prominent brand in practical treats, foods and drinks with its existence in about 200 countries. Significant brand names of the business include; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive benefit of the company is its ability to market the item at everywhere locations. Moreover, the company is doing efforts to make item development as its new source of competitive advantage.

The report includes a deep analysis of numerous aspects of the social responsibilities of major business in the food and drink industry in general, and Case Solution in specific. It also provides an analysis of the growing health and environmental concerns consisting of weight problems, cardiovascular disease, environmental devastation etc. in the Western nations and the function of the business in the food and beverage industry to deal with these issues. The report also offers an assessment of the level of sustainability and CSR in the Asahi Glass Co: Diversification Strategy Case Study Analysis's business strategy together with the decision of how Case Study Help produces value for its consumers. Additionally, the report likewise provides certain tactical alternatives for Case Analysis to integrate the criticism over its social responsibility with certain suggestions and an application strategy.

Problems Identification

The huge food and drink business was going through a criticism over its duty towards different social and ecological problems consisting of; obesity, heart diseases, environmental destruction etc. These criticisms lead, to rethink about the business method of Asahi Glass Co: Diversification Strategy Case Study Analysis. The David J Collis has recognized that the total society, the way of life of individuals and individuals at whole have actually been altered now. In this situation with increasing patterns towards much healthier items and the increasing ecological concerns, Case Study Help must alter its instructions towards much healthier products. business had taken particular vital steps regarding the ecological impacts of its products, but, these steps are not enough to end up the criticism over the company's obligation towards social and eco-friendly issues. The required to take particular strategic actions to change the market position of its certain popular brands and present Online Case Study Help as a business producing healthy products in the market. In this regard, Case Study Analysis and other food and beverage companies must utilize their power to move the customer taste towards healthier products to get rid of the restrictions in the development of food market.

Important Analysis

For the couple of years, customer food patterns have actually been changed considerably. The shift from using natural food to made food has actually extremely affected the health of the consumers. Despite of the discovery of modern health techniques, the general health of individuals in couple of decades have been highly impacted. Presently about 1 billion of individuals In United States are overweight and at least 300 countless them have obesity. Children also dealing with the problem of weight problems. The ratios of obesity in 1980s are rather various from the present ratios. Despite of discovery of health strategies and modern-day ways to manage weight problems and other diseases, the ratio of weight problems has actually been doubled form the level of 1980. All of the information related to the health problems with the incorporation of made food in the market describe the prevalence of the health problems related to food system. These problems are indirectly the result of different practices of the food and beverage companies for developing value for their consumers.

Worth Development at Asahi Glass Co: Diversification Strategy Case Study Analysis

Asahi Glass Co: Diversification Strategy Case Study Analysis being a giant company in the food and beverage industry, supplies high worth to its customers by different methods. Value development in the food and drink industry is done through 2 ways i.e. taste and schedule of the item. Case Study Help has a competitive benefit in supplying its items everywhere globally. Its marketing capability makes it able to target a big base of customers. The business is presented in about 200 nations with a large number of popular international brand names. The everywhere presence of the business items supplies high value to consumers.

Furthermore, the company produces value for its consumers by methods of supplying large number of tasty food consisting of salt, fat and sugar, which are the ingredients that are straight connected with the emotional core of the customer's brain. The Asahi Glass Co: Diversification Strategy Case Study Solution along with other huge food and beverages business create value for its customers by controling these components in its products. Case Study Analysis along with other giant business is interested in discovering ways to increase the consumer value from its products through exploiting the vulnerability.

In addition to it, the company also produces value by means of incorporating the healthy point in its items. The company has actually done certain efforts in order to provide healthy products and reduce the share of Asahi Glass Co: Diversification Strategy Case Study Analysis in general environmental destruction. Case Study Help has taken particular steps associated with the sustainability of people and environment consisting of the 2009 statement of the ambitious goals and commitments connected to Case Study Help items, market and the community.

All of these methods have actually been successful at developing value for the Case Study Help customers. Increasing health associated concerns have raised the criticism for Case Study Help.

Constructive Role of Major Food and Drink Companies in Dealing With Social and Ecological Expenses Associated with the Industry

Major food and drink business including Asahi Glass Co: Diversification Strategy Case Study Help and so on can play a constructive role in attending to social and ecological costs associated with the industry. The ecological expenses connected to food and beverage industry consist of the ecological devastation due to the increase of nitrogen which has led to the decreased water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors leads to ecological destruction which could be a huge risk to the presence of mankind in future.

Significant reason for these ecological modifications is mass use of nitrogen rich fertilizers and the active ingredients by the food and drink companies. Food and beverage business ought to play an useful role in addressing these problems to remove their growth constraints related to the criticism from the environmental neighborhoods.

In order to address these issues, the companies could either decrease their use of nitrogen rich active ingredients or take particular steps to reduce the quantity of nitrogen in the overall environment. The business ought to prevent use of nitrogen fertilizers and need to search out the products of those farmers that do not utilize fertilizers for their crop. The companies might likewise invest in reducing greenhouse gas emissions worldwide. For instance, the companies could utilize renewable energy sources at their production plant to compensate the greenhouse gas emissions from the use of nitrogen-rich products.

In addition to the eco-friendly costs there are certain social costs connected with the food and drink market which should be attended to by the giant food and beverage business to accomplish the market development and to prevent the criticism from the environmental communities. Social expenses related to the market includes the increasing health issues connected to weight problems, cardiovascular disease, diabetes etc. The giant business could play an useful role in dealing with these concerns.

The business might move towards healthier items by minimizing the quantity of harmful substances in their processed foods i.e. dioxin, which could result in deadly human diseases. Together with it, the business must utilize more nutritious components instead of derivatives of Corn and Soy to increase variety of calories from their items. The companies might also do efforts to move consumer tastes towards healthy products as they have actually managed the customer taste for few years. In this method the giant food and beverage companies could play a positive role in dealing with social and eco-friendly costs related to the industry.

Assessment of Sustainability at Asahi Glass Co: Diversification Strategy Case Study Analysis

There was a possible shift in the corporate technique and goals at Case Study Analysis. The new CEO was focused on purchasing much healthier items for achieving sustainable development for the business along with providing much healthier future for the people and the world both. Under the new vision, the motto of the business was likewise changed from the "enjoyable for you" to "much better for you".

Human Sustainability

company got Quaker Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy drinks and natural beverages to introduce various much healthier items in its portfolio. Despite of being considered a Case Analysis's healthy brand, the products of Quake Oats included a number of ingredients which were harmful to health.

Along with the inculcation of healthy brands in its portfolio through acquisitions, Asahi Glass Co: Diversification Strategy Case Study Solution has actually taken specific sustainability steps for its market locations. One of major examples in this regard is the Business's marketing method related to schools. The company markets just low calories and healthy beverages options in schools.

Another action taken by Case Study Analysis towards human sustainability is the shift of its focus towards research and advancement for introducing new and healthy items in its portfolio. The company has actually increased its research study and advancement budget plan and has actually introduced an army of health scientists to create specific healthy items.

Ecological Sustainability

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

On the basis of above analysis, it might be determined that the business has actually taken numerous steps towards human and ecological sustainability. These steps are still not enough to attain the preferred commercial growth and to minimize the criticism over the social responsibility of Case Study Analysis.

Alternatives

Particular long term tactical options could be derived for the business on the basis of above analysis. These options can be evaluated on the basis of the fact that how the alternative would make it possible for the company to accomplish its goal of prospective development and lower the criticism over the business. Moreover, the alternatives might be evaluated on the basis of the time frame that would be taken by an alternative to be executed together with the cost and risks related to the alternative

Alternative-1: introduction of a New Product line Associated with Healthy Foods and Beverages

The primary step that Asahi Glass Co: Diversification Strategy Case Study Help might take is to present a brand-new product line related to healthy food and beverages. Although, the company has currently introduced specific heath associated brands, but, the number of these brands in its portfolio is not prospective to lower the criticism and achieve potential growth. Therefore, the business ought to introduce a vast array of healthier products by utilizing its significant research study and development expenditures. The benefits and drawbacks associated with the introduction of a healthy line of product in the portfolio are provided listed below:

Pros:

• Capability to target a great deal of customers i.e. health conscious consumers.
• Decrease of the criticism of ecological worried societies and community advancement organizations.
• Fulfillment of the social duty by compensation of the dangerous items with healthy items.
• Might be carried out within few years i.e. 3 to 5 years.

Cons:

• Threat of failure of the new items in the market i.e. customers may not like the taste and might not accept the healthier items due to the addictive nature of hazardous products.
• The hazardous products in the item portfolio may make the incorporation of healthy products fail to lower criticism.
• Substantial cost of research and advancement needed to build new healthy items.

Alternative-2: High level Acquisition of Health associated Companies

Another alternative choice to achieve the possible development and reduce the criticism is to get the health related business at a high level. Investment in these kind of companies would permit Asahi Glass Co: Diversification Strategy Case Study Help to present a big range of much healthier items within a short time period with no need of considerable research and advancement expenses. The advantages and disadvantages associated with alternative 3 are offered below:

Pros:

• Saving of big amount of research study and advancement expenses for new product advancement.
• Incorporation of new products within two years.
• Capability to target a great deal of consumers i.e. health conscious customers.
• Decrease of the criticism of environmental worried societies and neighborhood development organizations.
• Satisfaction of the social responsibility by settlement of the dangerous products with healthy items.

Cons:

• The acquisition might not prove to alter the image of Asahi Glass Co: Diversification Strategy Case Study Solution as in case of Quaker Oats.
• Requirement of big quantity of capital.
• Threat of failure of the brand-new products in the market i.e. consumers may not like the taste and may decline the much healthier items due to the addicting nature of dangerous products.
• The hazardous items in the item portfolio may make the incorporation of healthy items fail to reduce criticism.

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

Another alternative option for Asahi Glass Co: Diversification Strategy Case Study Solution is to change all of its dangerous products with healthier products. This could be a big shift in business method and business model at company. The replacement of hazardous products with much healthier products would totally change the marketplace position of the business and would require a large number of essential steps to be taken. The benefits and drawbacks related to alternative 3 are provided listed below:

Pros:

• Modification of market position of Asahi Glass Co: Diversification Strategy Case Study Help
• Capability to target a great deal of customers i.e. health mindful consumers.
• End of all of the criticism of ecological worried societies and community development organizations.
• Fulfillment of the social responsibility

Cons:

• Danger of failure of the new products in the market i.e. customers might not like the taste and may not accept the much healthier products due to the addicting nature of harmful items.
• Big cost of research and development required to construct brand-new healthy products.
• Staff member might withstand over the change in business design and company strategy.
• Number of years required for the application.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the company's CSR, problems faced by the company and the existing market situation, Asahi Glass Co: Diversification Strategy Case Study Solution is suggested to think about alternative 2 of high level of acquisition of health related business. As the acquisitions would enable the company to conserve of substantial amount of research study and advancement costs for brand-new item advancement. Along with it, acquisitions would permit incorporation of brand-new products within two years in addition to the capability to target a great deal of customers. Furthermore, the acquisitions would lead to the reduction of the criticism from the concerned organizations.However, the alternative would need substantial quantity of investment funds. Additionally, the companies might not have the ability to reduce the criticism. With a careful analysis of the acquisition with an aggressive marketing projects, business might show to be successful in attaining the targets.

This Asahi Glass Co: Diversification Strategy case study is writen by : David J Collis

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