Asahi Glass Company Diversification Strategy Case Study Analysis

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Asahi Glass Company Diversification Strategy Case Solution

Asahi Glass Company Diversification Strategy Case Study Analysis is a well-known name of a New York based, world's leading organization in the food and drink industry. Case Study Analysis is a leading brand name in convenient treats, foods and drinks with its existence in about 200 nations. Major brand names of the business include; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive benefit of the business is its capability to market the product at everywhere places. Furthermore, the company is doing efforts to make product development as its new source of competitive benefit.

The report includes a deep analysis of various aspects of the social responsibilities of significant business in the food and drink industry in general, and Case Help in specific. It also provides an analysis of the growing health and ecological concerns including obesity, cardiovascular disease, environmental devastation and so on in the Western countries and the role of the business in the food and drink industry to address these issues. The report also offers an assessment of the degree of sustainability and CSR in the Asahi Glass Company Diversification Strategy Case Study Analysis's business method together with the decision of how Case Study Solution produces worth for its consumers. Moreover, the report also offers particular tactical alternatives for Case Analysis to include the criticism over its social responsibility with specific recommendations and an implementation plan.

Concerns Recognition

The giant food and drink business was going through a criticism over its duty towards various social and environmental issues consisting of; weight problems, heart diseases, ecological devastation etc. These criticisms lead, to reconsider about the business method of Asahi Glass Company Diversification Strategy Case Study Help. The David J Collis has actually understood that the overall society, the lifestyle of people and individuals at whole have actually been changed now. In this circumstance with increasing patterns towards much healthier items and the increasing environmental concerns, Case Study Help should alter its direction towards much healthier products. company had taken particular vital steps relating to the environmental impacts of its items, but, these steps are not enough to end up the criticism over the business's obligation towards social and environmental problems. Therefore, the is required to take specific strategic steps to alter the market position of its certain popular brands and present Asahi Glass Company Diversification Strategy Case Study Help as a business producing healthy items in the market. In this regard, Case Study Help and other food and beverage business ought to use their power to move the consumer taste towards healthier products to get rid of the constraints in the development of food industry.

Vital Analysis

For the few decades, consumer food patterns have actually been changed dramatically. The shift from making use of health food to produced food has extremely impacted the health of the customers. Despite of the discovery of modern-day health methods, the overall health of individuals in couple of years have been highly affected. Presently about 1 billion of the people In US are obese and at least 300 million of them have obesity. Children also facing the problem of weight problems. The ratios of weight problems in 1980s are quite various from the existing ratios. Despite of discovery of health techniques and modern-day ways to control weight problems and other illness, the ratio of weight problems has actually been doubled form the level of 1980. All of the information associated with the health concerns with the incorporation of manufactured food in the market describe the occurrence of the health issues related to food system. These issues are indirectly the outcome of various practices of the food and beverage business for developing worth for their customers.

Worth Development at Asahi Glass Company Diversification Strategy Case Study Solution

Asahi Glass Company Diversification Strategy Case Study Help being a giant company in the food and drink market, offers high value to its consumers by various means. Case Study Solution has a competitive benefit in providing its items far and wide internationally. The business is provided in about 200 countries with a large number of popular global brand names.

The company produces worth for its customers by means of supplying large number of delicious food products including salt, fat and sugar, which are the active ingredients that are straight connected with the psychological core of the consumer's brain. The Asahi Glass Company Diversification Strategy Case Study Analysis together with other huge food and drinks companies create value for its consumers by manipulating these ingredients in its items. Case Study Solution in addition to other huge business is interested in discovering ways to increase the customer worth from its products through exploiting the vulnerability.

Together with it, the business likewise develops worth by means of integrating the healthy point in its items. The company has actually done particular efforts in order to supply healthy products and reduce the share of Asahi Glass Company Diversification Strategy Case Study Analysis in overall ecological devastation. Case Study Analysis has actually taken specific actions connected to the sustainability of individuals and environment consisting of the 2009 announcement of the enthusiastic objectives and dedications associated with Case Study Help items, marketplace and the community.

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

Positive Function of Significant Food and Beverage Companies in Dealing With Social and Ecological Costs Related To the Industry

Indeed, significant food and drink companies consisting of business, etc. can play a positive function in addressing social and environmental expenses associated with the market. The ecological costs associated with food and drink industry include the environmental devastation due to the increase of nitrogen which has actually led to the reduced water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors leads to environmental destruction which could be a big risk to the existence of mankind in future.

Major cause of these ecological modifications is mass use of nitrogen abundant fertilizers and the components by the food and beverage business. For that reason, food and drink companies should play a positive function in resolving these concerns to remove their growth restrictions connected to the criticism from the ecological neighborhoods.

In order to deal with these issues, the companies could either minimize their usage of nitrogen abundant ingredients or take particular steps to lower the amount of nitrogen in the overall environment. The companies need to avoid use of nitrogen fertilizers and must locate the items of those farmers that do not utilize fertilizers for their crop. Moreover, the business could likewise buy minimizing greenhouse gas emissions worldwide. The companies might use renewable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich products.

Together with the ecological costs there are certain social costs associated with the food and drink industry which should be dealt with by the huge food and drink companies to accomplish the market development and to prevent the criticism from the environmental communities. Social costs related to the market consists of the increasing health concerns related to obesity, heart problem, diabetes and so on. Nevertheless, the huge business could play a positive role in resolving these issues.

The companies could move towards more healthy products by reducing the amount of harmful substances in their processed foods i.e. dioxin, which might lead to lethal human diseases. In addition to it, the companies ought to utilize more nutritious ingredients rather than derivatives of Corn and Soy to increase variety of calories from their products. The companies might likewise do efforts to move customer tastes towards healthy items as they have managed the customer taste for couple of years. In this method the giant food and beverage companies could play a positive role in attending to social and eco-friendly costs connected to the market.

Evaluation of Sustainability at Asahi Glass Company Diversification Strategy Case Study Help

There was a possible shift in the business technique and goals at Case Study Analysis. The brand-new CEO was focused on investing in healthier items for achieving sustainable development for the company together with providing healthier future for individuals and the world both. Under the brand-new vision, the motto of the company was also altered from the "fun for you" to "better for you".

Human Sustainability

The company announced specific objectives and commitments related to human sustainability and the environmental sustainability. Asahi Glass Company Diversification Strategy Case Study Help acquired Quaker Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy drinks and organic beverages to introduce various healthier products in its portfolio. However, despite of being thought about a Case Study Solution's healthy brand name, the products of Quake Oats included several ingredients which were hazardous to health. These harmful ingredients were not advertised which have actually ended up being the base for criticism over the healthy brands of Asahi Glass Company Diversification Strategy Case Study Help.

Along with the inculcation of healthy brand names in its portfolio through acquisitions, Asahi Glass Company Diversification Strategy Case Study Help has taken certain sustainability steps for its market locations. One of major examples in this regard is the Company's marketing strategy associated to schools. The business markets only low calories and healthy beverages choices in schools.

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

Environmental Sustainability

Along with the human sustainability, Asahi Glass Company Diversification Strategy Case Study Analysis has actually taken a number of steps towards ecological sustainability. The company has devoted to various goals connected to water, land, packaging, environment modification and neighborhood. In this regard, the company devoted to reduce its product packaging by countless tones to prevent high quantity of wastages. Additionally, the business has devoted to minimize greenhouse gas emissions along with the achievement of effectiveness in the energy use. business has actually likewise tried certain philanthropic activities consisting of a commitment to provide safe drinking water to 3 million people in developing countries by 2015.

On the basis of above analysis, it might be determined that the business has taken several actions towards human and ecological sustainability. These steps are still not sufficient to attain the wanted commercial growth and to reduce the criticism over the social obligation of Case Study Help.

Alternatives

Certain long term strategic alternatives might be obtained for the company on the basis of above analysis. These alternatives can be examined on the basis of the reality that how the option would allow the company to achieve its goal of potential development and reduce the criticism over the company. The options might be evaluated on the basis of the time frame that would be taken by an alternative to be carried out along with the cost and risks related to the alternative

Alternative-1: introduction of a New Product line Connected to Healthy Foods and Beverages

The initial step that Asahi Glass Company Diversification Strategy Case Study Analysis might take is to present a brand-new product line associated with healthy food and drinks. The business has already presented particular heath related brand names, but, the number of these brand names in its portfolio is not potential to reduce the criticism and accomplish possible development. Therefore, the business needs to introduce a large range of healthier items by utilizing its substantial research study and development expenditures. The advantages and disadvantages associated with the introduction of a healthy product line in the portfolio are given below:

Pros:

• Ability to target a great deal of consumers i.e. health conscious consumers.
• Reduction of the criticism of ecological concerned societies and community advancement organizations.
• Satisfaction of the social duty by settlement of the hazardous items with healthy items.
• Could be executed within few years i.e. 3 to 5 years.

Cons:

• Danger of failure of the new products in the market i.e. consumers may not like the taste and might decline the healthier items due to the addictive nature of dangerous products.
• The harmful items in the item portfolio may make the incorporation of healthy items fail to lower criticism.
• Huge expense of research study and advancement required to build new healthy products.

Alternative-2: High level Acquisition of Health related Companies

Another alternative choice to attain the potential development and lower the criticism is to acquire the health related business at a high level. Financial investment in these type of companies would enable Asahi Glass Company Diversification Strategy Case Study Analysis to introduce a large variety of much healthier products within a short time duration without any need of considerable research and development expenditures. The benefits and drawbacks related to alternative 3 are offered below:

Pros:

• Saving of big amount of research and development costs for brand-new item development.
• Incorporation of new items within 2 years.
• Capability to target large number of customers i.e. health conscious consumers.
• Reduction of the criticism of environmental concerned societies and community development companies.
• Fulfillment of the social responsibility by compensation of the dangerous items with healthy products.

Cons:

• The acquisition may not show to alter the image of Asahi Glass Company Diversification Strategy Case Study Help as in case of Quaker Oats.
• Requirement of substantial amount of capital.
• Threat of failure of the brand-new items in the market i.e. customers may not like the taste and might decline the much healthier items due to the addictive nature of hazardous products.
• The dangerous items in the product portfolio may make the incorporation of healthy items fail to decrease criticism.

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

Another alternative choice for Asahi Glass Company Diversification Strategy Case Study Analysis is to change all of its hazardous products with much healthier items. The replacement of harmful products with healthier products would totally alter the market position of the company and would need a large number of required steps to be taken.

Pros:

• Change of market position of Asahi Glass Company Diversification Strategy Case Study Help
• Capability to target a great deal of consumers i.e. health conscious customers.
• End of all of the criticism of ecological concerned societies and community advancement companies.
• Satisfaction of the social obligation

Cons:

• Risk of failure of the brand-new products in the market i.e. customers might not like the taste and may decline the much healthier items due to the addictive nature of hazardous items.
• Substantial cost of research and advancement needed to build brand-new healthy products.
• Staff member might resist over the change in business design and company technique.
• Number of years needed for the application.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the business's CSR, concerns faced by the business and the existing industry situation, Asahi Glass Company Diversification Strategy Case Study Solution is suggested to think about alternative 2 of high level of acquisition of health associated companies. As the acquisitions would enable the business to save of substantial quantity of research study and development costs for brand-new product development. In addition to it, acquisitions would allow incorporation of brand-new items within two years along with the ability to target a great deal of consumers. The acquisitions would result in the decrease of the criticism from the worried organizations.However, the alternative would require huge quantity of financial investment funds. The organizations may not be able to lower the criticism. However, with a cautious analysis of the acquisition with an aggressive marketing campaigns, Asahi Glass Company Diversification Strategy Case Study Help might prove to be effective in achieving the targets.

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

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