American International Group Inc Case Study Help

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American International Group Inc Case Solution

American International Group Inc Case Study Analysis is a widely known name of a New york city based, world's leading company in the food and drink industry. Case Study Analysis is a prominent brand in hassle-free snacks, foods and drinks with its presence in about 200 countries. Significant brands of the company consist of; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive advantage of the company is its ability to market the item at far and wide places. The business is doing efforts to make product development as its new source of competitive advantage.

The report includes a deep analysis of various aspects of the social obligations of significant business in the food and beverage industry in basic, and business in specific. The report likewise supplies an assessment of the extent of sustainability and CSR in the American International Group Inc Case Study Help's service strategy along with the decision of how Case Study Analysis develops value for its customers.

Concerns Identification

Case Study Solution had actually taken particular vital steps relating to the environmental impacts of its items, however, these actions are not enough to end up the criticism over the business's duty towards social and environmental problems. This is required to take certain tactical actions to change the market position of its particular popular brand names and present Case Study Analysis as a company producing healthy products in the market. In this regard, business and other food and beverage companies should utilize their power to move the consumer taste towards healthier items to get rid of the constraints in the growth of food market.

Crucial Analysis

The shift from the use of natural food to manufactured food has highly impacted the health of the customers. All of the data related to the health concerns with the incorporation of made food in the market discuss the prevalence of the health concerns related to food system. These concerns are indirectly the result of various practices of the food and drink business for creating value for their consumers.

Value Production at American International Group Inc Case Study Solution

American International Group Inc Case Study Solution being a huge business in the food and drink industry, provides high worth to its consumers by numerous methods. Case Study Analysis has a competitive benefit in supplying its items far and wide globally. The company is provided in about 200 countries with a large number of famous international brand names.

The company develops worth for its consumers by means of offering large number of yummy food items consisting of salt, fat and sugar, which are the ingredients that are directly linked with the emotional core of the customer's brain. The American International Group Inc Case Study Help along with other huge food and beverages companies produce value for its consumers by manipulating these ingredients in its products. Case Study Analysis together with other huge business is interested in finding ways to increase the customer value from its items through making use of the vulnerability.

Together with it, the business likewise develops worth by ways of including the healthy point in its items. The business has actually done particular efforts in order to offer healthy items and reduce the share of American International Group Inc Case Study Solution in total environmental destruction. Case Study Solution has taken particular actions associated with the sustainability of people and environment consisting of the 2009 announcement of the ambitious goals and dedications related to Case Study Analysis products, market and the neighborhood.

All of these means have been successful at creating worth for the Case Study Solution customers. Increasing health related problems have actually raised the criticism for Case Study Solution.

Constructive Function of Significant Food and Drink Companies in Attending To Social and Ecological Expenses Connected With the Industry

Indeed, significant food and beverage business consisting of company, etc. can play a positive role in resolving social and ecological costs connected with the market. The eco-friendly expenses associated with food and drink market include 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 leads to ecological destruction which might be a huge danger to the existence of humanity in future.

Major reason for these ecological changes is mass use of nitrogen abundant fertilizers and the active ingredients by the food and drink business. For that reason, food and beverage business need to play a positive function in attending to these problems to remove their development restraints associated with the criticism from the environmental communities.

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

In addition to the eco-friendly costs there are particular social expenses related to the food and drink industry which need to be resolved by the huge food and beverage business to accomplish the industry development and to avoid the criticism from the environmental neighborhoods. Social costs connected with the market consists of the increasing health concerns associated with weight problems, cardiovascular disease, diabetes etc. The huge business might play a constructive role in resolving these problems.

The business could move towards healthier items by reducing the amount of harmful substances in their processed foods i.e. dioxin, which could lead to fatal human illness. Together with it, the companies should utilize more healthy components rather than derivatives of Corn and Soy to increase number of calories from their products. The companies could likewise do efforts to move consumer tastes towards healthy products as they have managed the customer taste for couple of years. In this method the huge food and drink business could play a positive function in dealing with social and eco-friendly costs connected to the industry.

Assessment of Sustainability at American International Group Inc Case Study Analysis

There was a possible shift in the business method and objectives at Case Study Analysis. The new CEO was focused on buying much healthier items for attaining sustainable development for the company along with supplying much healthier future for individuals and the planet both. Under the new vision, the motto of the business was likewise altered from the "fun for you" to "much better for you".

Human Sustainability

The company announced specific goals and commitments associated with human sustainability and the environmental sustainability. American International Group Inc Case Study Help acquired Quaker Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy beverages and organic drinks to present numerous much healthier products in its portfolio. Nevertheless, despite of being considered a Case Study Help's healthy brand, the items of Quaker Oats contained several ingredients which were harmful to health. These dangerous components were not promoted which have actually ended up being the base for criticism over the healthy brands of American International Group Inc Case Study Solution.

Along with the inculcation of healthy brand names in its portfolio through acquisitions, American International Group Inc Case Study Help has taken particular sustainability actions for its market locations. Among significant examples in this regard is the Business's marketing technique related to schools. The company markets only low calories and healthy drinks choices in schools.

Another action taken by Case Study Analysis towards human sustainability is the shift of its focus towards research and advancement for presenting brand-new and healthy products in its portfolio. The business has actually increased its research and advancement budget plan and has introduced an army of health researchers to design certain healthy products.

Environmental Sustainability

In this regard, the business committed to reduce its product packaging by millions of tones to avoid high quantity of wastages. The company has dedicated to minimize 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 actually taken a number of actions towards human and environmental sustainability. These steps are still not adequate to attain the preferred industrial growth and to reduce the criticism over the social obligation of Case Study Solution.

Alternatives

Particular long term tactical alternatives might 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 option would make it possible for the company to attain its goal of potential development 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 option to be executed along with the cost and threats related to the option

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

The initial step that American International Group Inc Case Study Solution might take is to introduce a brand-new line of product related to healthy food and drinks. Although, the company has actually already introduced certain heath associated brands, however, the variety of these brand names in its portfolio is not prospective to decrease the criticism and attain prospective growth. The company should present a large range of healthier products by using its substantial research and development expenses. The benefits and drawbacks related to the intro of a healthy line of product in the portfolio are offered below:

Pros:

• Ability to target large number of customers i.e. health conscious consumers.
• Decrease of the criticism of environmental concerned societies and neighborhood advancement companies.
• Fulfillment of the social duty by settlement of the hazardous items with healthy items.
• Could be implemented within few years i.e. 3 to 5 years.

Cons:

• Risk of failure of the brand-new products in the market i.e. customers may not like the taste and might decline the healthier products due to the addicting nature of dangerous 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 construct brand-new healthy items.

Alternative-2: High level Acquisition of Health associated Companies

Another alternative choice to accomplish the prospective growth and minimize the criticism is to get the health associated companies at a high level. Financial investment in these kind of business would enable American International Group Inc Case Study Solution to present a large variety of much healthier products within a short time duration without any need of considerable research and development expenditures. The pros and cons related to alternative 3 are offered below:

Pros:

• Conserving of substantial quantity of research study and development expenses for new item development.
• Incorporation of new items within two years.
• Ability to target a great deal of customers i.e. health conscious consumers.
• Reduction of the criticism of environmental worried societies and community advancement companies.
• Fulfillment of the social obligation by compensation of the hazardous items with healthy items.

Cons:

• The acquisition may not prove to change the image of American International Group Inc Case Study Help as in case of Quaker Oats.
• Requirement of big amount of capital.
• Risk of failure of the new products in the market i.e. consumers might not like the taste and may decline the healthier items due to the addicting nature of harmful items.
• The dangerous items in the product portfolio may make the incorporation of healthy items stop working to reduce criticism.

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

Another alternative option for American International Group Inc Case Study Help is to replace all of its harmful products with much healthier items. This might be a huge shift in the business strategy and the business model at business. The replacement of hazardous items with much healthier items would totally change the marketplace position of the company and would require a large number of needed actions to be taken. The advantages and disadvantages connected to alternative 3 are provided below:

Pros:

• Change of market position of American International Group Inc Case Study Help
• Ability to target a great deal of customers i.e. health conscious consumers.
• End of all of the criticism of ecological worried societies and community advancement organizations.
• Satisfaction of the social duty

Cons:

• Danger of failure of the brand-new products in the market i.e. consumers might not like the taste and might not accept the much healthier products due to the addicting nature of harmful items.
• Huge cost of research and advancement required to build new healthy products.
• Employee may withstand over the change in the business model and business method.
• Variety of years needed for the application.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the business's CSR, problems faced by the company and the existing market scenario, Case Study Solution is suggested to think about alternative 2 of high level of acquisition of health related companies. As the acquisitions would enable the business to conserve of huge amount of research study and advancement costs for new item advancement. Along with it, acquisitions would allow incorporation of brand-new products within two years along with the ability to target large number of customers.

This American International Group Inc case study is writen by : Vivek Gupta

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