Strategy, Analysis and Evaluation

Strategy, Analysis and Evaluation

STRATEGIC RECOMMENDATIONS FOR WIMM BILL DANN

Report prepared by: Georges A. Bouverat Reg. # 200556668 Kinsey Jennifer Quinton Reg. # Kinsey Kenneth W. Gregson Reg. # 200563139 Kinsey Robert Reynolds Reg. # Kinsey Stephen Hopkinson Reg. # Kinsey Anna C. Seidel Reg. # 200653802 Ledaig

20 June 2011

1/39

Strategy, Analysis and Evaluation

Executive Summary (300-400 words)
From Workbook, pg 121: “…should be a short, high-level report in its own right, in which you should communicate concisely the key opportunities and challenges, the recommendations you wish to make, together with a statement which sets out the benefits and advantages the case study organisation are likely to gain in the future as a consequence of your report. … should discuss briefly implications of each of the key opportunities and challenges identified from analysis. …provide enough detail and understanding for the CEO…also provide a discussion of the strategic benefits to be gained by the org. together with a note about resource implications in the future. ...each major recommendation is discussed in a short concise paragraph of its own….” Goal: 300 – 400 words

20 June 2011

2/39

Strategy, Analysis and Evaluation

Table of Contents
1 Introduction (100-200 words)...............................................................................................4 2 Environmental Analysis (700 words)...................................................................................5 2.1 Transactional Environment...........................................................................................5 2.2 Internal Environment.....................................................................................................6 3 Key Strategic Issues and Constraints (200 words)..............................................................8 4 Conclusions (200-300 words)..............................................................................................9 5 Recommendation (700 words)...........................................................................................10 6 References (check referencing style)................................................................................11 7 Appendices........................................................................................................................13 Appendix A PESTLE Analysis..........................................................................................13 Appendix B WBD Sectors.................................................................................................16 Appendix C Five Forces Analysis – Russian Dairy, Drinks and Baby Food......................17 Appendix D WBD Resources............................................................................................21 Appendix E WBD Market Segmentation...........................................................................22 Appendix F WBD Markets, Market Share & Competition ................................................24 Appendix G Relative Strengths of WBD and Top 10 Global Leaders in Food...................25 Appendix H Russian Consumer Values ...........................................................................26 Appendix I Stakeholder Analysis......................................................................................27 Appendix J 7 Why’s..........................................................................................................28 Appendix K WBD SWOT Analysis ...................................................................................29 Appendix L Strategic Option Generation – TOWS ...........................................................31 Strategic Option Generation – Ansoff Matrix ...................................................................32 Appendix M Options to be considered..............................................................................34 Appendix N Option Evaluation – Suitability.......................................................................37 Appendix O Option Evaluation – Stakeholder Expectations..............................................39

20 June 2011

3/39

20 June 2011 4/39 .) From Workbook.Strategy. Analysis and Evaluation 1 Introduction (100-200 words) Assumptions/Fundamentals (Aim to maximise value in 5 years to make it attractive for sale. The recommendations aim to enhance FPEK’s existing competencies. Thus enabling FPEK to develop and sustain competitive advantage in the highly competitive branded products market segment of the packaging industry. This will add value to the both the company and its customers.” Goal: 100-200 words Sample content/Comments: Field Packaging Example from Intranet: This report outlines medium term (3 – 5 years) strategic recommendations for the business strategy for Field Packaging East Kilbride (FPEK). pg 121 “…include a brief not about the approach adopted to undertake the strategic analysis…note about the purpose of the report and how it could be used by the organisation in the future. in which it operates. These recommendations are based upon a comprehensive strategic analysis of FPEK’s current and likely future situation.

Competitive forces The sectors in which WBD operates (dairy.Strategy. There is a strong need for organisations to address this demand by supplying more innovative products of higher quality to the market (such as premium-range yogurts and healthy snacks). Marks and Spencer. The need for good distribution and regional suppliers acts as a barrier to entry. Russia is seeing a rise of the middle class. Analysis and Evaluation 2 Environmental Analysis (700 words) 2. These figures suggest that the future for WBD dairy lies with strategic customers. the Russian consumer market continues to be attractive to global players. Wal-Mart . In recent years. The potential buying power of major retailers (eg. Market It is estimated that the grocery market in Russia will reach $186 Billion USD by 2010 which will be good for WBD’s future in the dairy market 6.1 Transactional Environment Social Despite a projected decline in population of 10 million by 2010 6. Globalisation With an increase in globalisation. beverage and baby food) are attractive to companies and offer the potential for significant growth (see C). The increasing demand for premiumisation is putting pressure on Russian companies to improve quality due to the perception that international companies offer higher quality (see C). major supermarkets) can put pressure on food producers and WBD is highly reliant on industry leaders Cargill for supplying juice concentrate and Tetrapak for supplying packaging. continued growth in GDP (5% per annum). 20 June 2011 5/39 . such as major supermarkets. 45% of it will be sold there as compared to 28% in 2006 6. although they are overcoming this by establishing production facilities in Russia (see C). which has now reached 4 million adults and children 6. A dominant force is the unique Russian context acting as a barrier to entry for international companies. there is a shift towards food being sold in supermarkets so that by 2010. healthy products and increased convenience from the retail sector. a decrease in unemployment and increases in disposable income. Anchan and other Global retail chains have looked to expand into Russia. of the 25 food retailers currently. so is demanding higher quality. however. premium. This segment has a taste for westernised affluence. only 6 are International 6. In urban centres especially.

Russia continues to be uncertain. WBD considers one of its competitive advantages to be “that it is neither regional nor Moscow-centered but is a truly national Russian manufacturer” 6. large product range. volatile and governmentally restrictive 6. Analysis and Evaluation Dangers There are a number of areas of concern for WBD in the future. accessibility – see H) and underpin a competitive advantage for the company: • • • • • • Manufacturing facilities across Russia and CIS in the most resource-rich areas 6 Distribution centres providing access to local markets and 2000+ Moscow shops 6 Access to funding as a floated company on the NYSE 6. as a strategic imperative. Politically. with a focus on “trade and Point of Sale marketing. centralized key account management for all business leading to economies of skill and scale in dealing with large customers” 6. such as market leading position. This section considers WBD’s strategic capability. it is important to determine the adequacy and suitability of its resources and competencies. health additives. they build on the consumer values (such as strong yet local brand.000 staff with Russian market knowledge 6 Strong dairy and juice brands 6 Management team focusing on value and driving down costs 6 Many of the strengths displayed by the top 10 food leaders globally (see GG) are mirrored on a country-wide basis by WBD in Russia. Corruption is also an ongoing limitation for organisations 6. 2. in terms of the SWOT analysis. The following resources are considered to be unique to WBD as they are not readily copied or obtained by competitors. then it will be more susceptible to corruption and political influence. with reference both to its competitors and crucially the values of consumers. enabling investment in innovation 21. WBD is investing heavily in marketing and innovation to grow brand equity and market share 6. 20 June 2011 6/39 . investment in acquisition and innovation. A present threat for WBD.2 Internal Environment In order for WBD to survive and prosper. The most recent company presentation highlights. is that if it grows too big.Strategy. It is important to consider whether WBD’s resources are deployed effectively to create a set of core competencies. an investment in the sales team and ‘route to market’ control. According to its website.

WBD adopts a marketing focus to understand consumer demands and excellent people management to make the most of the breadth and deep experience of staff to produce and sustain strong brands. Analysis and Evaluation We used the “7 Whys” technique (see J) to help better understand the underlying causes of WBD’s dominant market position. To leverage its strong financial position. 20 June 2011 7/39 .Strategy. It suggests that WBD’s sound financial systems and access to funding have enabled good investment decisions for research and development and acquisition of regional manufacturing plants.

e. which will have the greatest impact on WBD. 6 6 The market will exhibit the following competing trends: • • • • • Premiumisation 6 Convenience 6.g.Strategy. Danone. The result of this is projected 13% annual growth rate in spending on food & beverages 6. Economy Despite the political influences the Russian economy will continue to stabilise. A growing middle class with increased spending power will emerge 6. Corruption at all levels of society will present considerable constraints to economic development 6. Analysis and Evaluation 3 Key Strategic Issues and Constraints (200 words) The key strategic issues. Convenience foods and affordable restaurants will be in demand by the busy middle class.g milk and fruit concentrate 6.g. are: Politics Russian politics will see increasing authoritarianism and statism in economic policy 6. 6 6 Decreasing life expectancy in the poorer sections of society will prompt trend towards healthier nutrition. Tesco will assume a significant role in the market. Strategic customers such as restaurant and supermarket chains e. 6 20 June 2011 8/39 . 6 Health consciousness 6 Return to traditional tastes 6 Low-income preference for low-cost nectars and traditional dairy products 6 Raw Materials & Logistics Growth will be constrained by raw material supply problems e. Unilever. Increases in transportation and packaging costs due to rising oil prices and currency fluctuations may restrict growth. Competitive Situation Double-digit growth will attract multinationals to the Russian food & drink market. Food & Drink Trends Growing westernisation of Russian culture will take place in the upper and middle classes.

• The political situation in Russia is a constant threat to future developments. • Marketing orientation is a necessity in consumer businesses but for WBD a key to taking advantage of the growing economy and increasing market share lies in operations and logistics improvements. (See M for complete list of identified opportunities and N & O for process of option selection. while at the same time building new and lasting competencies in operations and logistics. strong operations and logistics processes and a reliable supply of raw materials are pre-requisites for making these partnerships work. However. • WBD’s current marketing-focussed strategy addresses the identified trends in food and drinks in Russia. This should be developed further. Optimising operations will address the identified raw materials and logistics constraints and remove a current obstruction to growth.) 20 June 2011 9/39 . WBD must monitor this but should not allow the possibility of political change to restrict its plans for strategic growth. there are opportunities for distribution agreements and own-branding. • WBD can take advantage of the growth of supermarket chains and other retailers in Russia by establishing strategic partnerships with them at an early stage in their development. • Knowledge of the Russian market (cities and regions) is an existing WBD competency and competitive advantage. Analysis and Evaluation 4 Conclusions (200-300 words) The following conclusions can be drawn from a review of the environmental analysis and identified key issues. Besides building competencies in strategic account management. This should be maintained since quickly satisfying changing consumer needs is key to maintaining and growing market share. Focussing a future strategy on these areas will expand WBD’s competitive advantage and create strong barriers to entry.Strategy. as it is a barrier to entry to non-Russian entrants to the food and beverage market.

pg 122 “…develop your strategic response to safeguard the organisation from threats or capture the opportunity identified…discuss the ways and means to achieve these objectives. showing different options and how they were generated and evaluated for suitability. Workbook. Option/Issues ranking matrix. This will then link back to external analysis.Strategy. financial evaluation. This can be done using the strategy clock. I think we can also lever current branded products to get us into the low price own brand ("Shop Shite" as Robert MacIntosh referred to it). This doesn't mean make everything high value. There do need to be high-quality appendices to back this up though. 20 June 2011 10/39 . only the final one. of course some will be. feasibility tests. Comment that final recommendation was submitted to (and approved by) remarkable person (Ian). Note: I don’t think we need to include all our discussed options. …recommendations include actions to capture customer value and actions to develop distinctive competencies…to achieve sustainable competitive advantage. see chapter 6 of workbook. We need to use the existing DC's to lever the current products to new locations on the strategy clock. email response from Ian? Goal: 700 words Using data from the Strategy Clock & Distinctive Competences (DC) The CSF's identified above then need to be achieved or realised. pg 111).” Appendices: Ansoff Matrix. acceptability. …building a coherent argument…key is ability to synthesise and integrate findings… think … about implications of your recommendations in terms of creating a sustainable competitive advantage…consider resource implications and actions necessary for implementation. Analysis and Evaluation 5 Recommendation (700 words) Recommended (final) strategic response(s). evidence and feasibility (Workbook.

com. pg.] [27.] WBD Segmentation in WBD Memorandum.] EIU Industry Forecast Food. February 2007 WBD Memorandum. Europe. Kim Iskyan. London: Aug 18. 1 “COMPANIES INTERNATIONAL: Danone's Russia man moves to Wimm Bill Dann”. 2005. 2007 [3. Analysis and Evaluation 6 References (check referencing style) [1.] [11. cee-foodindustry. NY. Mark Lehane. Proquest.nz.] [16. 16 May 2007 “CEE markets support beverage giants' ambitions for European expansion”. Russia.] [25. Financial Times. Euroweek. 2007 [7.] EIU Viewswire.] Open Season. FY2006.danone. Apr 2007.] WBD Case Study. 2003 S Massey.cargill. from company website www. http://www.] [14.co. 2006.] FCO Country Profile – Russia. Business Insights. 2006 Exploring Corporate Strategy. International Herald Tribune. January. 4 April 2007 “Milk supply dries up as demand spills over”. Iss 4 Russia economy: Criminals in the marketplace? EIU ViewsWire. EIU Viewswire.] [18.] [24. Global Finance.] [20. July 2006 “Pyaterochka's $800m loan sets pace for Russian M&A finance in fresh sectors”. New Zealand Trade and Enterprise.] WBD Investor Presentation.] Sector Profile on Food and Beverage in the Russian Market. nzherald.] [26. 6 February 2007 Danone Annual Report.] [12. 30 April 2007 “Rising juice demand helps Troya Ultra in Russia”.] [23. 11/39 20 June 2011 .tetrapak. Andrew Jack Cargill company website. Just Food.com/ [10. Scholes and Whittington. beverage and tobacco. ceefoodindustry. Global Finance.] [15. 6 February 2006 [4. 2006. 18 October 2006 CIA World Fact Book Russia feels effects of emerging markets turmoil.] [13.] [21. Flex News. http://www. 21 March 2006 “As wages rise in Eastern Europe. 22. businesses look elsewhere”.com. 2006 Company Profile: Competition Analysis. Jul 1. FT Prentice Hall. GSB Strathclyde.] [22. London (UK).] [17. Essex Associate British Foods plc. Vol 21. Russia. 19 Jan 2007.] [28.Strategy. April 2007 [5. New York [6.com/ Tetrapak company website.com Customer Loyalty: Devising successful strategies in food and drink. 7th ed. Pg.] [19. April 2007 [8. Hamburg. 2004. New York: Nov 1. Business Insights.] Consumer Foodservice. Johnson.wbd. 24 Jan 2007.] WBD company website http://www. The Top10 Global Leaders in Food. company website [9.com/ “Russia: Wimm-Bill-Dann Opens Baby Food Plant”. [2.

Financial Times. UK.Strategy. Analysis and Evaluation 2006 [29.] [31. London.] [30.com. October 25 2004 Difference that Russians enjoy – Profile McDonald’s. Dec 1995 20 June 2011 12/39 .] Wal-Mart expansion should focus on Russia – report. Neil Buckley. 16 May 2005 BBC Country Profile Western Retailer. Progressive Grocer. cee-foodindustry. Larry Shaeffer.] [32.

Analysis and Evaluation 7 Appendices Appendix A PESTLE Analysis Political QuickTimeª and a decompressor are needed to see this picture. QuickTimeª and a decompressor are needed to see this picture. 8. QuickTimeª and a decompressor are needed to see this picture. uncertainty and corruption remain serious problems”. 6 • Consumer Price inflation at 9.3% in 2006. 6 • Driving away from resource-driven export economy towards domestic demand for goods and services 6 • Steady growth in household income and rapid growth in consumer financing (Incr of 11% in personal consumption = incr of 80% of GDP) 6 • The Top 5 players in the food industry only control 8% of the market. 6 • War with Chechnya. QuickTimeª and a decompressor are needed to see this picture.2 billion. 6 • Demographic decline will present growing economic and labour-force challenge.7% in 2006. Legal Social Technological Source: Exploring Corporate Strategy 6 Political Fact • Money laundering is still rife 6 • Vladimir Putin is not standing for re-election when his term expires in September 2007 6 • Russia is likely to enter into the WTO by 2008 6 • Increasing statism in economic policy is hindering growth 6 • The slow pace of institutional change (and other factors) will lead to decreasing of growth economy 6 • “Over regulation. WBD QuickTimeª and a decompressor are needed to see this picture. bomb attacks from Chechen militants in Moscow and other cities 6 Economic Fact • Russia’s economy is powering ahead. 6 • In 2005.Strategy. 6 • Market opening up to Western conglomerates 6 • Western Companies investing in Emerging Markets such as Russia. despite still relative volatility 6 • Lending to individuals increased by 85% in 2005 6 • Global emerging market correction slowed Russia’s market by 7% after its boom in 2006 of up 70%. Economic Environmental QuickTimeª and a decompressor are needed to see this picture. making Russia 20 June 2011 13/39 .8% in 2007. GDP up 6. predicted up further 6% 2007. the Russian grocery market equalled about US$ 144. 6 • GDP expected to rise Annually by 5% until 2011. QuickTimeª and a decompressor are needed to see this picture. due to fragmentation still.

Strategy. 6 20 June 2011 14/39 . There are more customers per store in Russia than any other country. Tander (Magnit).524 in 2006 and is set to overtake traditional distribution channels such as open markets.a population that is becoming more affluent and a middle class that is growing steadily. 6 Due to rising wages. 6 • Government limiting immigration (only allowing 6Mn permits this year) 6 • In 2006.8 billion. 6 The top 5 grocery retailers by net grocery turnover in 2005 were Metro Group (Metro. Auchan (Auchan. the UK and Italy. 6 Russian consumer market continues to grow. Their number exploded from 8.991 in 2003 to 20. 6 About 30% of food is sold via hyper. The top 25 retailers.4bn in sales--has the muscle to expand nationally to the untapped regional markets beyond the urban centres. 6 • Small but growing middle class 6 • 129 Macdonalds retaurants in Russia in 36 cities. per capita consumer spending will increase by 75% to approximately US$ 4.600. tuberculosis and. 6 • The Russian grocery market is highly fragmented and there is no retailer covering or dominating the whole country. declining unemployment and developing western lifestyles. Their share of the market accounted for around 30% in 2006. Real). 6 Social Fact • Russia is not only angry. consumers will increasingly equate high prices with high quality. 6 • Labour force 73. Analysis and Evaluation • • • • • • • • the 5th largest market throughout continental Europe. 6 Modern retail chains (hypermarkets. creating a true retail heavyweight that--with 880 stores and US$2. increasingly.88 million 6 • 17. but dying: the population is shrinking by around 750.000 per year. 6 Russia's largest food retailer Pyaterochka announced its merger with supermarket chain Perekriostok. making market entry within the next year vital for Wal-Mart if it is to stay ahead of the competition.2% in 2005. France. only 28% of food was sold through supermarkets. 6 Estimates that Russian market is worth around €108. out of which there are currently only 6 international players reached a combined market share of only 9. Atak) and Uniland Holding (Dixi. making it the fifth largest market in Europe.8% of pop below poverty line 6 • 400 daily newspaper titles. 6 It is estimated that the grocery market will account for US$ 186 billion by 2010. 6 • Predictions that the population will decrease by 10 million over the next 10 years. as well as rising personal and disposable income levels. heart disease. more companies are expected to take an interest. which are predicted to grow by 48% by 2009. supermarkets and discounters) growing fast. containing 85% of all purchasing power. a drop mostly driven by the catastrophic rate of death--by violence. regional press strong." said the IGD chief executive Joanne Denney-Finch. Predicted that by 2010. behind Germany. AIDS--among working-age men. "It is a developing market that offers large-scale growth opportunities. Urban Russia accounts for 73% of the total population.and supermarkets. 6 • Russia is a huge consumer market with a population of 142 million. Megamart). 45% will be sold there. helped by decreasing inflation and consistent growth in GDP. X5 Retail Group (a consolidation of Pyaterochka Holding and Perekriostok).

gas. soil contamination from chemicals. 6 • Government has illicit crop eradication programme. Analysis and Evaluation Technological Fact • Main communications across Russia are by air and rail. and prices have risen dramatically over the last few years. 6 • Nearly 1Mn km of roadways 6 • Retail market has developed faster than the infrastructure needed to support it. radioactive contamination. and the rates are a far more reasonable $880 per square metre. Much of country lacks proper soils and climates (either too cold or too dry) for agriculture. which levy duties. 6 Legal Fact • It takes 2 years to get permits to set up companies in Russia. Duties in central Moscow are as high as $2. 6 20 June 2011 15/39 . so barrier to entry for new suppliers. meaning that delivery reliability is poor. coal Agricultural pollution. 6 • low level of technology and time-worn operational methods. some companies (such as Auchan) have positioned their stores outside the city limits. 6 Environmental Fact • Wide natural resource base – oil.Strategy. groundwater contamination from toxic waste. 6 • Import tariffs can vary from 5 to 20%. abandoned stocks of obsolete pesticides. Road system not well developed. and as a result. Here it is the Moscow regional (rather than municipal) authorities. depending on the product and its origin.000 a month per square metre. 6 • Land in Russia is also taxed by the local authorities.

Analysis and Evaluation Appendix B Dairy • • • • Drinks • • • • • • • WBD Sectors What sectors does WBD operate (or potentially) operate in? traditional products yogurt and dairy desserts health orientated enriched products Cheese products produced from juice concentrate traditional berry-juice-based drinks Other juice-based drinks Mineral water liquid dairy for infants powdered formula and cereal fruit & veg purees and juice for infants Baby food 20 June 2011 16/39 .Strategy.

although might struggle to do this with global companies having in-country production facilities and other Russian competitors. Experience – WBD has experience in sector with established relationships with buyers and suppliers. Suppliers Competitive Rivalry Buyers Bargaining power Threat of substitutes Substitutes Source: Exploring Corporate Strategy 6 Potential entrants Economies of scale – is there a critical mass of business required in the Russian market for viability? Low production costs is a driver 6. and is seeking further control over distribution 6. QuickTimeª and a decompressor are needed to see this picture. Would WBD retaliate to try and prevent new companies entering the market? WBD could price aggressively with importers due to its reduced cost base of local production. entry QuickTimeª and a decompressor are needed to see this picture. supplies and distribution (and its ability to share facilities across its product range). What is the threat of government action if WBD grows its market position. Is there a threat from overseas companies operating at lower costs? The trend has been for international companies to set up local production facilities in Russia 6. but there is some concern over Russian franchise legislation which is making Russia potentially less attractive than other countries 6. Analysis and Evaluation Appendix C Five Forces Analysis – Russian Dairy.Strategy. Bargaining power QuickTimeª and a decompressor are needed to see this picture. and how would government react to global companies trying to enter the Russian market? The use of franchising is an industry standard for market expansion. Need good distribution channels – what is potential for buying/merging with existing distribution? WBD owns its distribution network and has increased product range to fully exploit it 6. Unlikely as Russia has the potential to be self-sufficient. 20 June 2011 17/39 . thereby putting price pressures on importers 6. Threat of QuickTimeª and a decompressor are needed to see this picture. Drinks and Baby Food Potential Entrants QuickTimeª and a decompressor are needed to see this picture.

WBD is supplied by the world’s largest provider (Cargill) which puts WBD in a relatively weak position although Cargill is keen to improve supply chain management for its clients which is a statement of positive intent 6 and there is no evidence that Cargill wishes to compete directly with food processing companies. There is potential for strong buyer power if this trend continues. As the number of supermarkets is growing rapidly (see A). Despite its dominance. In the case of the Russian Diary sector. or alternatively what is the likelihood of convergence either between product types or the dairy sector with other sectors (eg juice)? Are there any products from other sectors that could potentially compete with dairy? Increasing affluence is creating a substitution affect on home cooking from a growing market for eating out and pre-prepared food. and there is the possibility of forward integration. The Russian juice sector is highly reliant on imported ingredients 6. However the picture in the Russian supermarket sector is changing. Analysis and Evaluation Suppliers Conditions for high supplier power are where there is a concentration of suppliers. Switching costs between suppliers are relatively low.Strategy. There is the possibility of backward integration. 20 June 2011 18/39 . the Russian climate. This is not the case with the Russian Dairy sector where supplies are unreliable (see K). WBD has a track record of acquisition of regional dairies. suppliers decide to compete with buyers. although the number of supermarkets is growing rapidly. Tetrapak (like Cargill) appears not to move into the food processing industry and is keen to work with its clients for mutual benefit 6. WBD also uses Tetra-Pack packaging which again makes them reliant on a dominant supplier. switching costs between suppliers are high. eg. this reduces the potential for supermarket power. problems with logistics and availability of local food processors creates a barrier to entry for new entrants 6. Substitutes Is there a threat from new dairy products replacing existing range. Buyers Conditions for high buyer power include a concentration of buyers. there has been merger and acquisition activity. Furthermore . vitamins. ie. supermarkets set up in competition with – or acquire the supplier. ie. There is increasing emphasis on healthy alternatives which is increasing demand for products focussing on bio. For juice concentrate. low-fat and children’s products 6. small number of supermarket retailers squeezing milk suppliers. such as between the two leading supermarkets Pyaterochka and Perekryostok 6.

The Russian Food sector is growing (see K). In the Baby food sector. Danone. Other competitors in Dairy include Russian company Petmol. Nestle is seeking growth in the Russian baby food sector as is Swedish company Semper (see F). where differing sets of forces apply. but could make it difficult to drive down prices in these areas. beverage and baby food sectors are attractive to companies and offer the potential for significant growth 6. Dairy. WBD has held take-over talks with Danone in the past and Danone has a reported stake of 7% in WBD 6. WBD competes with global companies Nestle and Nutricia in addition to Russian companies Unimilk and Lebedyansky (one of the leaders in Russian baby food market and the largest juice producer in Eastern Europe) (see F). 5 Forces conclusions As growing sectors. quality and branding 6.Strategy. WBD’s main competitor for traditional dairy Unimilk is active in acquiring dairies and investing in technology. There is also a dominance in the market of supplying juice concentrate (by Cargill) and packaging (by Tetrapak) which puts them in powerful positions although there is no indication that they are exploiting this position. with the potential for more backward integration (such as the acquisition of regional dairies). The potential buying power of major retailers can put pressure on dairy producers. and experience in. The need for good distribution and regional suppliers acts as a barrier to entry. Analysis and Evaluation Competitive rivalry How competitive is the sector? Are there any other competitors of similar size to create potential for competition? Or are there one or two dominant organisations in the sector making it less competitive? Some of the bigger global food companies are looking at growing markets. the Russian market and there has been mixed success with franchising as a means to expand into Russia. Parmalat and Campina. This competitive environment is resulting in innovations in packaging. This could lead to further backward integration from supermarkets acquiring their own production capability. WBD would expect therefore some growth as a result of this. The Drinks sector has a number of major local players who dominate 85% of the market [10]. Changes to the main drivers could occur through developments in the supermarket sector (eg further mergers and acquisition). A trend for international companies has been to establish production facilities in Russia 6. although there are signs that this is changing 6. and international companies Ehrmann. An increased demand for premiumisation could put pressure on Russian companies to improve quality due to the 20 June 2011 19/39 . including Russia. such as Danone 6. and Russian. The sectors can be segmented into two subgroups: companies that are global. A dominant force is the unique Russian context acting as a barrier to entry for international companies where new entrants need knowledge of..

bio and low fat products. 20 June 2011 20/39 . A shift to more eating out will also see growth in the restaurant/café/and pre-prepared food sector. Analysis and Evaluation perception that international companies offer higher quality 6. and there is a growing demand for health.Strategy.

000 staff with knowledge of the Russian market including an experienced management team (many senior managers from competitors) 6 Intellectual capital • • 1100 types of dairy product 6 170 types of juice product 6 20 June 2011 21/39 . Analysis and Evaluation Appendix D Physical • • • WBD Resources 24 manufacturing facilities linking dairy and juice production in 20 cities in Russia and CIS – in the most resource-rich areas for milk production 6 Its own distribution centres in 26 cities in Russia and abroad providing access to local markets 6 Relationships with 2000+ shops in Moscow 6 Financial resources • Access to funding as a floated company on the NYSE 6 Human resources • 21.Strategy.

Analysis and Evaluation Appendix E WBD Market Segmentation WBD Segmentation – Dairy 6 20 June 2011 22/39 .Strategy.

Strategy. Analysis and Evaluation WBD Segmentation – Juice 6 20 June 2011 23/39 .

6 Traditional Dairy Enriched Dairy Desserts & Yogurt 28% 41% Drinks Juice 19. such as Unimilk smaller producers in other regions Danone. Purees and Juice for infants leader 20 June 2011 24/39 . 2006 29% Competition local producers.4% Together the local players control 85% Mineral Water Fragmented market Baby Food Liquid Dairy for Infants Powdered Formula & Cereal Fruit & Veg. Petersburg. Market Share & Competition Market Share. owned by Coca-Cola) Nidan (Novosibirsk) Pepsi’s “Aqua Minerale” Coca-Cola’s “BonAqua” Borzhomi Narzan Saint Springs Unimilk (Russian) Nestlé Nutricia Lebedyansky Source: WBD Memorandum. Analysis and Evaluation Appendix F Market Dairy WBD Markets. Petmol Danone Campina Ehrmann (all continuing to invest in Russia) Lebedyansky (Lipetsk region) Multon (St.Strategy.

6 Cadbury Schweppes Danone General Mills Heinz Kellogg Kraft Mars Nestle PepsiCo Unilever 20 June 2011 25/39 . 6 Robust growth. 6 Market leadership. Global market presence. Strong dairy and juice brands. Wide product portfolio. (K WBD SWOT Analysis) Strong performance in beverages and confectionery. 6 Market leadership. Consistent performance. Distribution centres provide access to local markets and 2000+ Moscow shops. Vast geographical presence. Growth in emerging markets. Active in worldwide markets. 6 Market leadership. 6 Brand name and market leadership. Strong financial performance and consolidation of businesses. Access to funding as a floated company on the NYSE enables investment in innovation. Wide range of products. Powerful go-to market systems. Management team focusing on value and driving down costs.Strategy. Strong brand equity. Strong brand portfolio. Strong R&D focus. Improvement in overall profitability. 6 Strong brand name. 6 Leading market position.000 staff with Russian market knowledge. Improved operational efficiency. 6 Leading market position. Leading brands. 21. Strong brand name stretching across many products. Exceptional performance by Adams. Well-diversified business portfolio. High brand equity. 6 Brand name and market leadership. Analysis and Evaluation Appendix G Company Wimm Bill Dann Relative Strengths of WBD and Top 10 Global Leaders in Food Strengths Manufacturing facilities across Russia and CIS in the most resource-rich areas. Wide range of products. Performance of US beverages. Innovative product launches. Successful acquisition and joint venture strategies. Competitive return on assets and equity.

size (volume). design/visual appeal (foreign name). combination products (food & health) 6 Location. statement about current or desired lifestyle (psychological factors). uniformity & clarity (4C’s) 6 Value-for-money 6 Price 6 Novelty 6 Innovation 6 Health benefits – additives (bio. high-fibre 6 Convenience – drinkable. vitamins). spoonable (including spoon). accessibility.Strategy. availability (distance to travel) 6 Regional differences in tastes and habits 6 Local brands (more important in country than city) 6 Preference for local products as perceived to be healthier and better value for money 6 20 June 2011 26/39 . low-fat. portability 6 Branding – image. Analysis and Evaluation Appendix H • • • • • • • • • • • • • Russian Consumer Values Quality 6 Packaging – handling.

Strategy. Analysis and Evaluation Appendix I High Power Low Interest Stakeholder Analysis High Power High Interest Strategic Customers WBD Shareholders Suppliers End User Consumers Government WBD Employees Competitors Low Power Low Interest Low Power High Interest 20 June 2011 27/39 .

Strategy. Analysis and Evaluation Appendix J 7 Why’s 20 June 2011 28/39 .

experienced new people from outside the company hired for leading positions 6 • Finding & hiring qualified personnel in growing market 6 OPPORTUNITIES • Diversification into higher value segments. 6 • Established Brand in Russia 6. chocolate.Strategy. premium-range yoghurt. when imports struggled due to the weakness of the Rouble 6 • Entrepreneurial management: rented a production line in an existing factory to get started. dairy deserts. 6 • Diverse product basket 6 • Understanding of Russian Market 6 • Survivors. flavoured water) 6. F Improve the 29/39 .g. 6 • Ambitious. 6. 6 • Diversification into growing market for Baby & children’s food 6 • Diversification into non-directly related fields. Analysis and Evaluation Appendix K STRENGTHS WBD SWOT Analysis WEAKNESSES • Lack of recognition abroad 6 • Lack of networks and contacts in foreign markets • Lack of internal innovation  reliance on M&A for new products 6.g. insufficient local supplies of milk 6 • World-wide reduction in milk-supply 6 • Regulation of milk supply in Russia 6 • Margins for dairy under pressure due to increase in raw milk prices 6 • Price-sensitive consumers may start to prefer lowcost/low margin juice & nectar 6 • Increasing local competition in all sectors (Lebedyansky) 6. e. 6 • Reliance on (primitive) dairy farmers 6 • Russian climate limits fruit supply to certain seasons • fragmented 6 • reporting 6 Internally Weak financial • Occupy leading position in the market 6. sparking. 6. • High quality products 6. tea 6 • Acquisition of other dairies to get geographical coverage 6 • M&A in water to gain consolidated market 6 • 20 June 2011 THREATS • Unreliable. yogurt drinks.g. prospered during the financial crisis due to being the local producer. soft drinks (e. icecream. e. 6.

6 • Growing upper/middle class.g. IT) • Operational efficiency improvements (at dairies) 6 • Changing market. gas • Joint venture. 6 • Increasing health consciousness 6. to gain capital and distribution 6 • Growing Russian Market for dairy. Nestlé. JIT delivery. increasing distribution through supermarkets (strategic customers) (A) • Low wages 6 • Abundant natural resources. drinks. Danone producing locally (increased demand for milk. 6 • Corruption and crime 6 • Underdevelope d Russian banking system 6 • Unstable currency & exchange rate 6 20 June 2011 30/39 . baby food. water. with Danone or Pepsi Co.g. lower costs of locally produced products  decreased profitability for WBD) 6 • Increased price of fuel could impact transportation costs & profitability 6 • Increased cost of petroleum-based products may impact cost of packaging 6 • Political uncertainty 6. E. Analysis and Evaluation supply chain (logistics.g. e. greater supply of money available 6. e. confectionery 6. order intake. 6 • Changeable regulatory environment 6. 6 • Increased demand for premium products 6 • Competition from foreign Multinationals.Strategy.

T4) T3: Regulation of milk supply in Russia and fruit suppliers to offset potential shortages and price increases. Build good corporate governance and ethics into business and T12: Corruption and crime T13: Underdeveloped Russian banking system use influence to spread best practise through the market/politics. NestlŽ. sparking. (W6.S8 : T10 . ice-cream. W6-W8 : T10-T14) T9: Increased cost of petroleum-based products may impact cost of T9) packaging T10: Political uncertainty . S7. at the same time improving overall cost position. O12. Option 1: Utilise market position & knowledge to diversify into higher value segments yogurt drinks. to gain capital and distribution Option 5: Sell current market position & knowledge to interested multinational to gain O12: Growing Russian Market for dairy. thus lowering T4: Margins for dairy under pressure due to increase in raw milk prices costs to increase competitive postition vis-a-vis other local & international T5: Price-sensitive consumers may start to prefer low-cost/low margin juice Option 16: Develop relationships with international packaging suppliers to take manufacturers. S5 : T5) Option 17: Build strong internal structures and culture (develop culture of openness. S4. W7 : O11) O11: Joint venture. water. soft drinks (e. drinks. T7) advantage of best possible prices for packaging and reduce costs. thereby restructuring internally and fully confectionery O13: Growing upper/middle class. qualified workforce. flavoured water) (premiumisation. (S1-S3 : O14) O15: Increased demand for premium products T1: Unreliable. when W6: Internally fragmented imports struggled due to the weakness of the Rouble S7: Entrepreneurial management: rented a production line in an existing factory to get W7: Weak financial reporting External Factors started. (S6-S8 : T8. e. O12. By doing so become a company Russians want to work for. W8 : O6. ice-cream) (W3: O1-O3. Analysis and Evaluation Appendix L Strategic Option Generation – TOWS STRENGTHS WEAKNESSES S1: Occupy leading position in the market W1: Lack of recognition abroad Internal Factors S2: Established Brand in Russia W2: Lack of networks and contacts in foreign markets S3: High quality products W3: Lack of internal innovation and reliance on M&A for new products S4: Diverse product basket W4: Reliance on (primitive) dairy farmers S5: Understanding of Russian Market W5: Russian climate limits fruit supply to certain seasons S6: Survivors.g. (W2 : T9) & nectar T6: Increasing local competition in all sectors (Lebedyansky) . e. experienced new people from outside the company hired for leading W8: Finding & hiring qualified personnel in growing market positions O1: Diversification into higher value segments. S8: Ambitious.g. Option 11: Overcome the lack of innovation culture by developing new products to address diversification trend. chocolate.g. (S6. Option 10: Build political connections to influence regulations and reduce impact of T11: Changeable regulatory environment . W6. capital and experience (JV or sale) (S1. Further acquisitions to improve (W4-W5 : O4) O7: Operational efficiency improvements (at dairies) geographic coverage and reduce transportation distances. insufficient local supplies of milk Option 7: Leverage strong position. confectionery. ˆ decreased profitability for WBD) trust. IT) fruit plants and streamlining logistics process.. JIT delivery.T4. O15) O3: Diversification into non-directly related fields.) (S1-S5 : O1-O3. greater supply of money available . O9) position and (perception) of quality products. (W3.Strategy. (S1. thus attracting THREATS and packaging costs. prospered during the financial crisis due to being the local producer. S6. .g. S2. baby-food. O13. Build R&D division with view to branching out into new O15) O2: Diversification into growing market for Baby & childrenÕs food product groups (e.g. S5. (S5 . dairy deserts. E. ethics. (W3 : T1 . T7: Competition from foreign Multinationals. and good corporate govenance) to better cope with external T8: Increased price of fuel could impact transportation costs & profitability Option 9: Focus on logistics and packaging concepts to offset rise in transportation threats. T6. S8 : T1 . S8 : O8) organisation to reduce fragmentation and inefficiencies while opening doors to O10: Abundant OPPORTUNITIES natural resources.g. W2. gas international markets (W1. O14. with Danone or Pepsi Co. political uncertainty.T12) T14: Unstable currency & exchange rate 20 June 2011 31/39 . Danone producing Option 8: Offer low-price range of products so as not to neglect price-sensitive locally (increased demand for milk. Option 2: Build on experience in acquisitions to further buy-in and grow market share tea to growing water market (S8 : O5) O4: Acquisition of other dairies to get geographical coverage Option 12: Acquisition or JV with dairies and fruit producers. ice-cream. O7. baby food. premium-range yoghurt. S5 : O11) Option 14: Overhaul operations & logistics. O6-O7) O8: Changing market. possibility of "own Option 13: Sell out to multinational who would restructure management & O9: Low wages brands" (S5. S8 : O4. lower costs of locally produced products customers (S1. increasing distribution through supermarkets Option 4: Leverage understanding of market and its dynamics to build relationships (strategic customers) with strategic customers such as growing supermarket chains.g. e.. utilising available resources and competencies. order intake. Build new competencies in Option 6: Address market trend towards health and supplements using strong brand O14: Increasing health consciousness operations & logistics as competitive differentiator. innovation. e. understanding of market dynamics and Option 15: Build innovation culture by developing products with less reliance on milk T2: World-wide reduction in milk-supply established relationships to build stronger alliances and partnerships with dairies and fruit as raw materials. either in Russia or O5: M&A in water to gain consolidated market Option 3: Improve operations and introduce cost savings by upgrading dairy and neighbooring countries to reduce reliance on poor Russian producers and climate O6: Improve the supply chain (logistics.

ice cream. so WBD could focus more on the regions with poor market coverage. Analysis and Evaluation Strategic Option Generation – Ansoff Matrix The Ansoff Matrix used for the identification of possible directions and options available to an organisation for future strategic development 6. WBD to focus on building links and partnerships with strategic customers such as supermarkets (better client management).Strategy. Option 28 WBD to respond quickly to changing consumer demands for healthier. Option 22. biscuits) where they already have regional presence and infrastructure. onthe-go. Option 19: Greater emphasis on increase promotional spend within the marketing mix (research. 20 June 2011 Option 26 Through internal research and development develop a new product within the Russian consumer market that competes with competitors that makes WBD an attractive future acquisition target. Option 21: Strengthen current market by increased rate of acquisition of Dairy/Beverage/baby food companies. Option 20 Market is growing therefore attracting international organisations and in some regions the market is saturated. sales promotion) of key products to general public to increase product awareness and brand identification. ice cream (General Mills). communication. Products Markets Existing Existing Protect and build Theory: The strategy is concerned with gaining a greater proportion of the current market through two ways: consolidation (downsizing and maintenance) or Market penetration (gaining market share) Option 18 WBD to withdrawal from one or more of their less profitable sectors (beverage/baby food) by marginalising their 1000 product range and by keeping products than are identifiable by the consumer and have a lengthy product life cycle. New Product Development Theory: This strategy is when an organisation delivers modified or new products to existing markets through either existing or newly acquired capabilities. For examples confectionery (Cadbury Schweppes). 32/39 . organic (Heinz). tea/coffee (Nestle). pre-prepared foods through increased investment in R&D because most competitors will be adapting new product ranges. advertisement. biscuits (Danone) Option 27 Could also continue with mergers and acquisitions in new product sectors (Chocolate. Option 29 WBD to forge working partnerships with global company with bigger R&D capability to help increase and improve product development in the current markets.

This will be determined by the current market coverage and the organisations capability for market expansion. fitness and lifestyle. universities. 20 June 2011 33/39 .Strategy. public sector. Analysis and Evaluation Products Markets New Existing Market Development Theory: A strategy in which an organisation would offer existing products in new markets. large institutions (schools. buy health and leisure clubs in Europe/America and develop a company essence that communicates health. corporate environment) Option 25 WBD to offer their current product line as the “own label brand” for major supermarkets. (starbucks) restaurants. Option 24 WBD to target most consumer segments by developing links with strategic customers like cafes. capacity and knowledge to make this strategy successful. Option 23 Take existing product range into new geographical areas (Eastern and Western European countries with no current presence) New Diversification Theory: A high-risk strategy in which the organisation moves away from their current market and products and attempts to generate growth through different means. It requires the organisation to have the capability. Option 30 Using the strong distinction competencies of WBD (great people making good acquisitions). Option 31 Continue to build and strengthen logistics & distribution processes/competencies and become provider of logistics solutions to other businesses.

sales promotion) of key products to general public to increase product awareness and brand identification. so WBD could focus more on the regions with poor market coverage. This option focuses on developing distinctive competencies to ensure future competitiveness. Error: Reference source not found).. (Ansoff) Option 28: WBD to respond quickly to changing consumer demands for healthier. Longer-term focus. Analysis and Evaluation Appendix M Options to be considered Options with numbers (Option 1) are taken from TOWS and Ansoff Matrices (L. Address trends. Fits with identified marketing trends. OPTIONS Option A: Marketing.. Requires clear definition and addressing of market segments. requires culture change (this might cause it to be eliminated in the 34/39 REASONING “Marketing” option. communication.g. baby-food. Option 20: Market is growing therefore attracting international organisations and in some regions the market is saturated. 5 Forces. (Ansoff) Option B: Regions. Option 11: Overcome the lack of innovation culture by developing new products to address diversification trend. ice-cream. (TOWS) Option 8: Offer low-price range of products so as not to neglect price-sensitive customers (TOWS) Option 18: WBD to withdrawal from one or more of their less profitable sectors (beverage/baby food) by marginalising their 1000 product range and by keeping products than are identifiable by the consumer and have a lengthy product life cycle. ice-cream) (from TOWS) Option 15: Build innovation culture by developing products with less reliance on milk and fruit as raw Addresses more than “just” marketing and economics (5F). Increase Russian-wide market share. 20 June 2011 . Build R&D division with view to branching out into new product groups (e. pre-prepared foods through increased investment in R&D because most competitors will be adapting new product ranges.Strategy. (Ansoff) Option C: Innovation. on-the-go. Option 1: Utilise market position & knowledge to diversify into higher value segments (premiumisation. advertisement. PESTEL. (Ansoff) Option 19: Greater emphasis on increased promotional spend within the marketing mix (research. increase marketing spending.. Increased R&D. (Ansoff) Option 21: Strengthen current market by increased rate of acquisition of Dairy/Beverage/baby food companies. Innovation & new competencies. confectionery. Options with letters (Option A) are combinations of choices for consideration.) (TOWS) Option 6: Address market trend towards health and supplements using strong brand position and (perception) of quality products.

own branding. A company with excellent operations & logistics processes in a country the size of Russia is also a more interesting acquisition target or JV partner for a non-Russian multinational. (Ansoff) Option F: Operations & Logistics. Development of new products for existing market. Option 29: WBD to forge working partnerships with global company with bigger R&D capability to help increase and improve product development in the current markets. But leave in because of focus on competencies. biscuits) where they already have regional presence and infrastructure. Focus on strategic customers – also builds competencies. (from TOWS) Option 16: Develop relationships with international packaging suppliers to take advantage of best possible prices for packaging and reduce costs. Particularly in a country the size of Russia. For examples . (from TOWS) Option D: New Products. new competitive advantage. possibility of "own brands" (from TOWS) Option 22: WBD to focus on building links and partnerships with strategic customers such as supermarkets (better client management). biscuits (Danone). thereby restructuring internally and fully utilising available resources and competencies. ice cream. (Ansoff) Option E: JV. (from TOWS) Option G: Strategic Partnerships. Option 26 Through internal research and development develop a new product within the Russian consumer market that competes with competitors that makes WBD an attractive future acquisition target. Moving position on the strategic clock. R&D partnership with multinational. Build relationships with supermarkets. (Ansoff) Option 27: Could also continue with mergers and acquisitions in new product sectors (Chocolate. at the same time improving overall cost position. organic (Heinz). (from TOWS) Option 14: Overhaul operations & logistics. Further acquisitions to improve geographic coverage and reduce transportation distances. There is always potential for improvements in operations & logistics. Also builds distinctive competency. making WBD more attractive for future sale. Option 3: Improve operations and introduce cost savings by upgrading dairy and fruit plants and streamlining logistics process. This option allows building competitive advantage (being very good at distribution) – thus building a barrier to entry (5F). 35/39 . i.confectionery (Cadbury Schweppes). (from TOWS) Option 9: Focus on logistics and packaging concepts to offset rise in transportation and packaging costs. Option 4: Leverage understanding of market and its dynamics to build relationships with strategic customers such as growing supermarket chains. (Ansoff) 20 June 2011 first pass). tea/coffee (Nestle). Operations improvements.Strategy. Analysis and Evaluation materials. ice cream (General Mills). Build new competencies in operations & logistics as competitive differentiator.e.

Continuation of current business idea /strategy. thus lowering costs to increase competitive position vis-à-vis other local & international manufacturers. there was a severe lack of competencies or the option was too radical a change from the current strategy or culture. universities. Build supplier relationships with restaurants.… Option 24: WBD to target most consumer segments by developing links with strategic customers like cafes. (Ansoff) Option H: Strategic Customers. (Ansoff) Option I: M&A. Primary reasons being that a time frame of 5 years was considered too short for their implementation. Become Russian logistics provider. (from TOWS) Option 12: Acquisition or JV with dairies and fruit producers. large institutions (schools. 20 June 2011 36/39 . Option 5: Sell current market position & knowledge to interested multinational to gain capital and experience (JV or sale) (from TOWS) Option 13: Sell out to multinational who would restructure management & organisation to reduce fragmentation and inefficiencies while opening doors to international markets (from TOWS) Option K: Diversification. (starbucks) restaurants. Analysis and Evaluation Option 25: WBD to offer their current product line as the “own label brand” for major supermarkets. Increasing size of WBD could make it target for political interference. Option 31: Continue to build and strengthen logistics & distribution processes/competencies and become provider of logistics solutions to other businesses. public sector. Growth through further acquisitions. (Ansoff) Other initially identified options were not considered. corporate environment). Option expressed by expert opinion (Ian).Strategy. either in Russia or neighbouring countries to reduce reliance on poor Russian producers and climate (from TOWS) Option J: Sale. understanding of market dynamics and established relationships to build stronger alliances and partnerships with dairies and fruit suppliers to offset potential shortages and price increases. Option 7: Leverage strong position. Sale to multinational may reduce this impact (PESTEL). Immediate sale of WBD to multinational.

3 1.3 1.7 2.5 1.3 2.5 2. Analysis and Evaluation Appendix N Option Evaluation – Suitability All options were scored according to their impact on the identified Key Issues (see Key Strategic Issues and Constraints (200 words)). 20 June 2011 37/39 .0 2.0 2.3 0.0 0.3 1.3 1.7 2.5 2.3 -1.7 0.5 2. Options Key Issues Politics Economy Competitive Situation Marketing / Food & Drink Trends Raw Material & Logistics Average 20% 20% 20% 20% 20% -0.3 -0. Scores were -3 to +3.7 1.8 0.5 2.5 1.7 1.2 1.7 -0.7 0. No relationship or impact scores 0.3 0.2 0.0 1. H chosen for further consideration – Stakeholder Evaluation.2 0.7 2. G.2 1. D.5 Option A Option B Option C Option D Option E Option F Option G Option H Option I Option J Option K Options A.4 -1. where +3 represents a highly positive interaction and -3 a highly negative interaction.8 -0.0 1.2 -0.8 -0.3 1.7 1.3 1.0 0.5 1.8 1.2 1.7 2.2 1.2 1.5 2.0 1.5 0.3 1.5 -0. F.3 2.3 1.5 0.Strategy.2 2.3 -1.7 2.2 -0.3 1. see O.7 -0.0 2.3 1.3 -0.5 1.

5 -2.0 Key Issues & Constraints Economy Competitive Situation Marketing / Food & Raw Material & Drink Trends Logistics Sum Option Option Option Option Option Option Option Option Option Option Option A B C D E F G H I J K 20 June 2011 38/39 . Analysis and Evaluation Option Evaluation .5 0.Strategy.5 1.Suitability 3.5 -1.0 Politics -0.0 -1.0 0.5 2.0 2.0 1.

Analysis and Evaluation Appendix O Option Evaluation – Stakeholder Expectations Remaining options were ranked 1-5 by importance to different stakeholder groups. Options Stakeholders Strategic Customers (Supermarkets) WBD Employees WBD Shareholders 2 End User Consumers Suppliers 2 Sum 12 14 18 18 13 1 5 4 3 3 1 5 3 4 5 2 4 1 Option A Option D Option F Option G. where 5 is highest impact/importance and 1 is lowest. 20 June 2011 39/39 .Strategy. Option H 1 4 2 5 3 3 5 2 4 1 Options F & G received identical high scores for both suitability and stakeholder expectations.

Sign up to vote on this title
UsefulNot useful