Asahi Glass Company: Diversification Strategy Case Study Analysis

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Asahi Glass Company: Diversification Strategy Case Help

Asahi Glass Company: Diversification Strategy Case Study Solution is a popular name of a New York based, world's leading organization in the food and beverage industry. business is a leading brand name in practical treats, foods and drinks with its presence in about 200 nations.

The report includes a deep analysis of numerous aspects of the social responsibilities of major business in the food and beverage industry in general, and business in specific. The report also supplies an evaluation of the level of sustainability and CSR in the Asahi Glass Company: Diversification Strategy Case Study Help's organisation strategy along with the determination of how Case Study Help produces value for its consumers.

Problems Identification

Case Study Analysis had actually taken specific crucial actions regarding the ecological effects of its products, but, these actions are not enough to end up the criticism over the company's obligation towards social and ecological issues. This is needed to take particular strategic steps to change the market position of its certain famous brands and present Case Study Solution as a company producing healthy items in the market. In this regard, business and other food and beverage companies need to use their power to shift the customer taste towards much healthier items to remove the restraints in the development of food industry.

Critical Analysis

For the few decades, customer food patterns have been changed considerably. The shift from using natural food to manufactured food has actually extremely impacted the health of the consumers. Despite of the discovery of modern health methods, the total health of individuals in couple of decades have actually been extremely affected. Presently about 1 billion of the people In US are obese and at least 300 countless 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 methods and contemporary methods to control weight problems and other illness, the ratio of obesity has been doubled form the level of 1980. All of the information related to the health issues with the incorporation of manufactured food in the market discuss the prevalence of the health concerns associated with food system. These issues are indirectly the result of different practices of the food and beverage companies for developing worth for their customers.

Worth Production at Asahi Glass Company: Diversification Strategy Case Study Solution

Asahi Glass Company: Diversification Strategy Case Study Help being a huge company in the food and drink industry, supplies high value to its clients by various methods. Case Study Solution has a competitive advantage in providing its items far and broad worldwide. The company is presented in about 200 countries with a big number of well-known international brand names.

Moreover, the business develops worth for its consumers by means of providing a great deal of tasty foodstuff including salt, fat and sugar, which are the active ingredients that are straight connected with the emotional core of the consumer's brain. The Asahi Glass Company: Diversification Strategy Case Study Analysis along with other huge food and beverages companies develop value for its customers by manipulating these components in its items. Case Study Analysis along with other huge business is interested in discovering methods to increase the customer worth from its items through making use of the vulnerability.

Along with it, the company likewise produces worth by methods of integrating the healthy point in its items. The company has actually done certain efforts in order to offer healthy items and decrease the share of Asahi Glass Company: Diversification Strategy Case Study Help in total environmental destruction. Case Study Analysis has taken particular steps related to the sustainability of people and environment consisting of the 2009 statement of the enthusiastic goals and commitments connected to Case Study Solution items, market and the community.

All of these methods have actually been successful at creating value for the Case Study Analysis customers. Increasing health associated problems have raised the criticism for Case Study Solution.

Positive Function of Major Food and Drink Business in Resolving Social and Ecological Expenses Associated with the Market

Significant food and drink companies including Asahi Glass Company: Diversification Strategy Case Study Help etc. can play a positive function in addressing social and eco-friendly expenses associated with the market. The ecological costs related to food and beverage industry include the ecological destruction due to the influx of nitrogen which has resulted in the reduced 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 risk to the presence of humanity in future.

Significant reason for these environmental modifications is mass use of nitrogen abundant fertilizers and the components by the food and drink business. For that reason, food and drink companies ought to play a positive function in addressing these issues to eliminate their development restraints connected to the criticism from the ecological communities.

The business ought to avoid usage of nitrogen fertilizers and ought to search out the products of those farmers that do not use fertilizers for their crop. The business might utilize renewable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich products.

Together with the eco-friendly costs there are certain social expenses associated with the food and beverage market which must be dealt with by the huge food and beverage business to attain the industry development and to prevent the criticism from the environmental communities. Social costs connected with the market consists of the increasing health problems connected to obesity, heart problem, diabetes etc. Nevertheless, the huge companies might play a positive function in attending to these problems.

The business could move towards more healthy products by lowering the quantity of toxic compounds in their processed foods i.e. dioxin, which could result in fatal human diseases. The business could likewise do efforts to shift customer tastes towards healthy items as they have actually controlled the consumer taste for couple of years.

Examination of Sustainability at Asahi Glass Company: Diversification Strategy Case Study Help

There was a potential shift in the corporate strategy and goals at Case Study Solution. The brand-new CEO was focused on investing in much healthier items for accomplishing sustainable development for the company along with providing much healthier future for individuals and the planet both. Under the new vision, the slogan of the company was also altered from the "fun for you" to "better for you".

Human Sustainability

The business announced specific goals and commitments related to human sustainability and the environmental sustainability. Asahi Glass Company: Diversification Strategy Case Study Help acquired Quake Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy beverages and organic beverages to introduce numerous healthier products in its portfolio. Despite of being thought about a Case Study Help's healthy brand, the items of Quaker Oats consisted of several ingredients which were harmful to health. These hazardous components were not promoted which have actually become the base for criticism over the healthy brands of Asahi Glass Company: Diversification Strategy Case Study Analysis.

In addition to the inculcation of healthy brands in its portfolio through acquisitions, Asahi Glass Company: Diversification Strategy Case Study Solution has taken certain sustainability actions for its market places. Among significant examples in this regard is the Company's marketing technique related to schools. The company markets just low calories and healthy drinks choices in schools.

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

Environmental Sustainability

Along with the human sustainability, Asahi Glass Company: Diversification Strategy Case Study Help has taken several actions towards environmental sustainability. The business has actually devoted to different objectives associated with water, land, packaging, environment modification and community. In this regard, the company devoted to decrease its packaging by countless tones to avoid high quantity of wastages. The company has devoted to lower greenhouse gas emissions along with the accomplishment of effectiveness in the energy use. business has also tried specific humanitarian activities including a commitment to offer safe drinking water to 3 million people in establishing nations by 2015.

On the basis of above analysis, it might be identified that the business has taken a number of actions towards human and environmental sustainability. Nevertheless these steps are still not adequate to attain the desired industrial development and to minimize the criticism over the social responsibility of Asahi Glass Company: Diversification Strategy Case Study Solution.

Alternatives

Certain long term strategic alternatives could be derived for the company 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 possible development and minimize the criticism over the business. Additionally, the alternatives could be examined on the basis of the time frame that would be taken by an option to be executed in addition to the expense and risks connected to the alternative

Alternative-1: introduction of a New Line of product Connected to Healthy Foods and Beverages

The first action that Asahi Glass Company: Diversification Strategy Case Study Help might take is to introduce a new product line related to healthy food and drinks. The business must introduce a broad variety of much healthier items by utilizing its considerable research and development expenses.

Pros:

• Ability to target large number of customers i.e. health mindful customers.
• Decrease of the criticism of environmental concerned societies and community advancement organizations.
• Fulfillment of the social obligation by compensation of the harmful items with healthy items.
• Could be implemented within few years i.e. 3 to 5 years.

Cons:

• Threat of failure of the brand-new items in the market i.e. customers might not like the taste and may decline the healthier items due to the addictive nature of dangerous products.
• The hazardous items in the item portfolio might make the incorporation of healthy products fail to lower criticism.
• Substantial expense of research and advancement required to construct new healthy items.

Alternative-2: High level Acquisition of Health related Business

Another alternative choice to attain the potential development and minimize the criticism is to acquire the health related companies at a high level. Financial investment in these type of companies would enable Asahi Glass Company: Diversification Strategy Case Study Analysis to introduce a big range of healthier products within a short time period without any need of substantial research and advancement expenditures. The pros and cons associated with alternative 3 are given below:

Pros:

• Saving of substantial quantity of research and advancement expenses for new item advancement.
• Incorporation of new items within two years.
• Ability to target large number of customers i.e. health conscious consumers.
• Reduction of the criticism of ecological concerned societies and neighborhood development organizations.
• Satisfaction of the social responsibility by payment of the hazardous products with healthy items.

Cons:

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

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

Another alternative option for Asahi Glass Company: Diversification Strategy Case Study Solution is to change all of its hazardous products with healthier items. The replacement of hazardous products with much healthier items would entirely alter the market position of the business and would require a large number of needed actions to be taken.

Pros:

• Change of market position of Asahi Glass Company: Diversification Strategy Case Study Solution
• Capability to target large number of customers i.e. health conscious customers.
• End of all of the criticism of environmental concerned societies and community development organizations.
• Satisfaction of the social responsibility

Cons:

• Danger of failure of the brand-new products in the market i.e. customers might not like the taste and might decline the much healthier products due to the addictive nature of harmful items.
• Big expense of research study and advancement required to develop brand-new healthy items.
• Employee might withstand over the modification in business model and company technique.
• Number of years required for the implementation.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the business's CSR, problems faced by the business and the present market circumstance, Asahi Glass Company: Diversification Strategy Case Study Analysis is recommended to think about alternative 2 of high level of acquisition of health related business. As the acquisitions would enable the company to conserve of huge amount of research study and advancement costs for brand-new product development. Along with it, acquisitions would allow incorporation of new products within two years together with the capability to target a great deal of customers. Furthermore, the acquisitions would result in the reduction of the criticism from the concerned organizations.However, the option would need big amount of investment funds. The companies might not be able to decrease the criticism. With a careful analysis of the acquisition with an aggressive marketing campaigns, business could show to be successful in attaining the targets.

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

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