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Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Online Case Analysis

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Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Solution and Analysis


Intro

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is currently one of the greatest food chains worldwide. It was established by Henri Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump in 1866, a German Pharmacist who initially introduced "Farine Lactee"; a mix of flour and milk to feed babies and reduce death rate.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is now a transnational company. Unlike other multinational business, it has senior executives from various nations and attempts to make choices considering the whole world. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Analysis currently has more than 500 factories around the world and a network spread throughout 86 nations.

Function

The purpose of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Corporation is to boost the lifestyle of individuals by playing its part and supplying healthy food. It wishes to help the world in forming a healthy and better future for it. It likewise wishes to encourage people to live a healthy life. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Nestlé's vision is to provide its customers with food that is healthy, high in quality and safe to consume. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump envisions to establish a well-trained labor force which would assist the company to grow.

Objective.

Nestlé's objective is that as currently, it is the leading business in the food industry, it believes in 'Good Food, Good Life". Its mission is to offer its customers with a range of choices that are healthy and best in taste too. It is concentrated on providing the best food to its clients throughout the day and night.

Products.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump has a large variety of products that it provides to its customers. In 2011, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump was noted as the most gainful company.

Goals and Goals.

• Remembering the vision and mission of the corporation, the business has actually set its objectives and goals. These objectives and goals are listed below.
• One objective of the business is to reach absolutely no land fill status.
• Another objective of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is to squander minimum food during production. Most often, the food produced is wasted even prior to it reaches the clients.
• Another thing that Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is dealing with is to improve its packaging in such a way that it would help it to lower those problems and would likewise guarantee the delivery of high quality of its products to its clients.
• Meet international requirements of the environment.
• Develop a relationship based upon trust with its consumers, company partners, workers, and federal government.

Critical Issues.

Recently, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Business is focusing more towards the method of NHW and investing more of its profits on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the company is not achieved as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Display H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might result in the declined income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals.

The current Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump strategy is based on the concept of Nutritious, Health and Health (NHW). This method handles the idea to bringing modification in the customer choices about food and making the food stuff much healthier worrying about the health issues.

The vision of this strategy is based upon the key approach i.e. 60/40+ which just means that the items will have a score of 60% on the basis of taste and 40% is based on its dietary value. The products will be made with additional nutritional worth in contrast to all other items in market getting it a plus on its dietary material.

This method was embraced to bring more tasty plus nutritious foods and beverages in market than ever. In competitors with other business, with an objective of keeping its trust over customers as Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Business has acquired more trusted by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis used to measure the position of company in the market is done by using PESTLE analysis, provided in Exhibition A. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump works under the guidelines and rules directed by government and food authority. The company is more focused on its items and services to make sure about the item quality and security.

Political.

The political impact on the company is greatly affected by the government laws and guidelines. The business has to meet its requirements provided by government otherwise it needs to pay fine. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is significantly supported by Government to fulfill all the criteria of requirements like acts of health and safety. In efforts to manufacture excellent food, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is changing the standards of food and drink manufacturing. This might cause the violation of governmental rules and policies.

Economic.

Initiation of the business where the capital income of each private matters for the increased net sale as this varies country-to-country. The economy of the Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Business in U.S. is growing year by year with variable products launch especially concentrating on the nutritional food for babies.

Social.

The social environment keeps changing with respect to time like the attitude of the customer along with their way of lives. Any product or service of any business can not achieve success till the company is not worried about the living system of the customer. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is taking measures to satisfy its goals as the world remains in search of healthy and yummy food.

Technological.

In the advancement of service, tactical steps are somewhat necessary. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is among the top famous international company and by time it purchases various departments to take its items to new level. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is investing more on its R&D to make its products healthier and nutritious offering customers with health advantages.

Legal.

There is no such effect of legal aspects of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump as it is more worried over its policies and laws.

Environmental

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump, in terms of ecological impact is devoted to operate in environment-friendly environment with conservation of the natural resources and energy. If the resources used are recyclable or not, as due to the manufacturing of larger number of products there may be a risk.

Competitive Forces Analysis (Porter's 5 Forces Model).

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Solution has actually gotten a number of companies that helped it in diversity and growth of its item's profile. This is the extensive description of the Porter's design of 5 forces of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Business, given up Display B.

Competitiveness.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is one of the top business in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is running well in this race for last 150 years. The competition of other business with Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is rather high.

Threat of New Entrants.

A variety of barriers are there for the new entrants to occur in the customer food industry. Only a few entrants be successful in this market as there is a need to comprehend the consumer requirement which needs time while current rivals are well aware and has advanced with the customer loyalty over their products with time. There is low risk of brand-new entrants to Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump as it has quite large network of distribution internationally controling with well-reputed image.

Bargaining Power of Providers.

In the food and beverage industry, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump owes the largest share of market needing higher number of supply chains. This triggers it to be an idyllic purchaser for the suppliers. Thus, any of the provider has actually never revealed any grumble about cost and the bargaining power is also low. In response, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump has actually also been concerned for its suppliers as it thinks in long-term relations.

Bargaining Power of Buyers.

There is high bargaining power of the buyers due to great competition. Changing cost is quite low for the consumers as lots of business sale a variety of similar products. This seems to be an excellent hazard for any business. Hence, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Analysis ensures to keep its consumers satisfied. This has actually led Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump to be among the devoted business in eyes of its buyers.

Risk of Replacements.

There has actually been a terrific hazard of alternatives as there are alternatives of some of the Nestlé's products such as boiled water and pasteurized milk. There has likewise been a claim that some of its products are not safe to use resulting in the reduced sale. Thus, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump began highlighting the health advantages of its products to cope up with the alternatives.

Rival Analysis.

It has ended up being the second largest food and drink market in the West Europe with a market share of about 8.6% with just a difference of 0.3 points with Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump attracts regional customers by its low cost of the item with the regional taste of the items maintaining its first location in the international market. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Help business has about 280,000 workers and functions in more than 197 countries edging its competitors in lots of areas.

Keep in mind: A short comparison of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump with its close rivals is given up Exhibition C.

SWOT Analysis.

The internal analysis and external of the business also can be done through SWOT Analysis, summarized in the Exhibition F.

Strengths.

• Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump has an experience of about 140 years, allowing company to better perform, in numerous circumstances.
• Nestlé's has existence in about 86 nations, making it a worldwide leader in Food and Beverage Market.
• Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump has more than 2000 brands, which increase the circle of its target customers. These brand names consist of infant foods, pet food, confectionary products, beverages and so on. Famous brand names of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump consist of; Maggi, Kit-Kat, Nescafe, etc.
• Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Analysis has large amount of costs on R&D as compare to its competitors, making the business to launch more healthy and ingenious products. This innovation provides the company a high competitive position in long run.
• After adopting its NHW Method, the company has actually done big amount of mergers and acquisitions which increase the sales development and improve market position of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump.
• Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is a widely known brand name with high customer's loyalty and brand recall. This brand name loyalty of customers increases the chances of easy market adoption of numerous brand-new brand names of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump.
Weak points.
• Acquisitions of those business, like; Kraft frozen Pizza business can offer a negative signal to Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump customers about their compromise over their core competency of much healthier foods.
• The development I sales as compare to the company's investment in NHW Method are quite different. It will take long to change the perception of people ab out Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump as a company offering nutritious and healthy items.

Opportunities.

• Introducing more health associated items enables the business to record the marketplace in which consumers are quite conscious about health.
• Developing countries like India and China has biggest markets worldwide. For this reason expanding the marketplace towards developing nations can enhance the Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump business by increasing sales volume.
• Continue acquisitions and joint endeavors increases the marketplace share of the business.
• Increased relationships with schools, hotel chains, restaurants etc. can likewise increase the number of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Help customers. For instance, teachers can advise their trainees to acquire Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump products.

Risks.

• Financial instability in countries, which are the potential markets for Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump, can produce several concerns for Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump.
• Shifting of items from regular to much healthier, results in additional costs and can result in decrease company's revenue margins.
• As Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump has a complex supply chain, for that reason failure of any of the level of supply chain can lead the business to face specific problems.

Division Analysis

Demographic Division

The market segmentation of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Help is based upon four aspects; age, income, profession and gender. For example, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump produces a number of items connected to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump products are rather budget-friendly by practically all levels, but its major targeted clients, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Study Solution is composed of its presence in almost 86 nations. Its geographical division is based upon 2 main factors i.e. typical earnings level of the customer along with the environment of the region. Singapore Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Business's division is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump is based upon the personality and lifestyle of the consumer. For instance, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump 3 in 1 Coffee target those customers whose lifestyle is rather busy and don't have much time.

Behavioral Division

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Solution behavioral division is based upon the mindset understanding and awareness of the client. Its extremely healthy items target those clients who have a health mindful mindset towards their consumptions.

VRIO Analysis

The VRIO analysis of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Company is a broad range analysis offering the company with an opportunity to get a feasible competitive advantage versus its competitors in the food and beverage industry, summarized in Exhibit I.

Valuable

The resources utilized by the Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump business are important for the business or not. Such as the resources like financing, human resources, management of operations and specialists in marketing. This are some of the crucial important factors of for the recognition of competitive advantage.

Rare

The valuable resources used by Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump are even rare or pricey. , if these resources are commonly found that it would be easier for the competitors and the new competitors in the industry to effortlessly move in competition.

Replica

The replica procedure is costly for the rivals of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Analysis Company. It can be done just in 2 different methods i.e. item duplication which is produced and made by Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Business and introducing of the substitute of the items with switching cost. This increases the hazard of disruption to the current structure of the industry.

Organization

This component of VRIO analysis deals with the compatibility of the business to place in the market making productive usage of its valuable resources which are hard to imitate. Regularly, the development of management is completely dependent on the company's execution strategy and group. Thus, this polishes the skills of the company by time based on the choices made by firm for the development of its strategic capitals.

Quantitative Analysis

R&D Costs as a portion of sales are decreasing with increasing actual quantity of costs reveals that the sales are increasing at a higher rate than its R&D costs, and permit the business to more invest in R&D.

Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise shows a thumbs-up to the R&D costs, acquisitions and mergers.

Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio present a hazard of default of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump to its investors and could lead a declining share rates. Therefore, in terms of increasing debt ratio, the firm ought to not spend much on R&D and should pay its existing financial obligations to reduce the threat for financiers.

The increasing danger of investors with increasing financial obligation ratio and decreasing share costs can be observed by huge decline of EPS of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Analysis stocks.

The sales development of company is also low as compare to its acquisitions and mergers due to slow perception structure of consumers. This sluggish development also hinder business to additional spend on its mergers and acquisitions.( Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Financial Reports, 2006-2010).

Keep in mind: All the above analysis is done on the basis of charts and calculations given up the Displays D and E.

TWOS Analysis.

2 analysis can be used to derive various techniques based on the SWOT Analysis provided above. A short summary of TWOS Analysis is given in Exhibit H.

Techniques to exploit Opportunities using Strengths.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Help needs to present more ingenious items by large amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump and increase the profit margins for the company. It might also provide Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump a long term competitive benefit over its competitors.

The worldwide expansion of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump should be concentrated on market recording of developing nations by expansion, drawing in more customers through customer's loyalty. As establishing countries are more populous than industrialized nations, it could increase the customer circle of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump.

Methods to Conquer Weak Points to Make Use Of Opportunities.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Analysis should do mindful acquisition and merger of companies, as it might impact the client's and society's understandings about Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump. It ought to obtain and combine with those business which have a market track record of healthy and healthy companies. It would improve the perceptions of customers about Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump should not only invest its R&D on innovation, instead of it must likewise focus on the R&D costs over assessment of cost of various healthy products. This would increase cost efficiency of its products, which will result in increasing its sales, due to declining prices, and margins.

Methods to utilize strengths to get rid of threats.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump ought to move to not just developing but likewise to industrialized nations. It should widen its circle to different nations like Unilever which operates in about 170 plus nations.

Techniques to conquer weaknesses to prevent dangers.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump needs to sensibly control its acquisitions to prevent the danger of mistaken belief from the consumers about Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump. It ought to get and combine with those countries having a goodwill of being a healthy business in the market. This would not just enhance the understanding of consumers about Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump but would also increase the sales, revenue margins and market share of Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump. It would likewise allow the company to use its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Alternatives.

In order to sustain the brand in the market and keep the customer undamaged with the brand, there are two alternatives:.

Option: 1.

The Business must spend more on acquisitions than on the R&D.

Pros:.

1. Acquisitions would increase total assets of the business, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The business can resell the acquired units in the market, if it stops working to implement its technique. Quantity spend on the R&D might not be revived, and it will be considered totally sunk cost, if it do not offer potential results.
3. Investing in R&D offer sluggish development in sales, as it takes long period of time to introduce a product. Acquisitions provide fast results, as it offer the business already established product, which can be marketed quickly after the acquisition.

Cons:.

1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the company to deal with misunderstanding of customers about Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump core worths of healthy and nutritious items.
2. Large spending on acquisitions than R&D would send out a signal of company's inefficiency of developing innovative products, and would outcomes in consumer's frustration.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are already present in the market, making business not able to introduce brand-new innovative items.

Alternative: 2

The Company needs to spend more on its R&D rather than acquisitions.

Pros:

1. It would make it possible for the business to produce more innovative items.
2. It would supply the company a strong competitive position in the market.
3. It would allow the business to increase its targeted customers by presenting those items which can be used to an entirely brand-new market segment.
4. Innovative products will provide long term benefits and high market share in long term.

Cons:

1. It would reduce the profit margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk cost, and would impact the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which could supply a negative signal to the investors, and could result I declining stock prices.

Alternative 3:

Continue its acquisitions and mergers with substantial spending on in R&D Program.

Pros:

1. It would permit the business to introduce brand-new innovative items with less danger of transforming the spending on R&D into sunk cost.
2. It would offer a positive signal to the investors, as the total properties of the business would increase with its significant R&D spending.
3. It would not impact the profit margins of the business at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the business's total wealth along with in regards to innovative products.

Cons:

1. Threat of conversion of R&D costs into sunk expense, greater than option 1 lesser than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less number of ingenious items than alternative 2 and high variety of innovative products than alternative 1.

Suggestion

With the deep analysis of the above options, it is recommended that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just present brand-new and innovative items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates as well, as investors are willing to invest more in business with significant R&D costs and boost in the overall worth of the business.

Action and application Strategy

Method can be executed efficiently by developing certain short term as well as long term plans. These plans could be as follows;

Short-term Plan (0-1 year).

• Under the short term plan Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Solution should carry out numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate the majority of its earnings.
• Analyze the current target audience in addition to the market sector which is not include in the company's circle.
• Evaluate the existing monetary data to determine the amount that ought to be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the company to know that just how much quantity ought to be spent on R&D.

Mid Term Strategy (1-5 years).

• Get those companies in which the business has potential experience to handle. Acquire most favorable companies with a strong commitment to health, to construct the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump worths and vision and to prevent potential danger of sunk expense.

Long Term Plan (1-10 years).

• Obtain organizations with health in addition to taste aspect, as the base for the Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump as a company producing healthy items has actually been constructed under midterm strategy and now the business might move towards taste factor as well to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new items.

Conclusion.

Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump has actually stayed the leading market gamer for more than a decade. It has actually institutionalised its techniques and culture to align itself with the marketplace changes and customer behavior, which has ultimately permitted it to sustain its market share. Though, Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump has actually established substantial market share and brand identity in the urban markets, it is suggested that the business ought to concentrate on the rural areas in terms of establishing brand name awareness, loyalty, and equity, such can be done by creating a particular brand name allowance technique through trade marketing techniques, that draw clear difference between Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump Case Solution products and other competitor products. Taiwans High Speed Rail Public Private Partnership Hits A Speed Bump ought to utilize its brand image of healthy and safe food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will allow the business to develop brand equity for recently introduced and currently produced products on a higher platform, making the effective use of resources and brand name image in the market.