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Introduction

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Analysis is currently one of the most significant food chains worldwide. It was founded by Henri The Risk Management Foundation Of The Harvard Medical Institutions Inc in 1866, a German Pharmacist who initially introduced "Farine Lactee"; a mix of flour and milk to reduce and feed babies mortality rate. At the exact same time, the Page siblings from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Company. The two became competitors at first however later on merged in 1905, resulting in the birth of The Risk Management Foundation Of The Harvard Medical Institutions Inc.

The Risk Management Foundation Of The Harvard Medical Institutions Inc is now a multinational company. Unlike other multinational companies, it has senior executives from various nations and tries to make choices considering the whole world. The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Analysis currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The purpose of The Risk Management Foundation Of The Harvard Medical Institutions Inc Corporation is to enhance the quality of life of people by playing its part and offering healthy food. 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 supply its consumers with food that is healthy, high in quality and safe to eat. The Risk Management Foundation Of The Harvard Medical Institutions Inc imagines to establish a well-trained workforce which would assist the business to grow.

Objective.

Nestlé's objective is that as currently, it is the leading business in the food market, it believes in 'Excellent Food, Great Life". Its objective is to supply its customers with a range of options that are healthy and finest in taste as well. It is focused on offering the best food to its customers throughout the day and night.

Products.

The Risk Management Foundation Of The Harvard Medical Institutions Inc has a wide range of items that it uses to its customers. In 2011, The Risk Management Foundation Of The Harvard Medical Institutions Inc was noted as the most rewarding company.

Objectives and objectives.

• Bearing in mind the vision and objective of the corporation, the company has laid down its objectives and goals. These goals and objectives are listed below.
• One objective of the business is to reach no landfill status.
• Another goal of The Risk Management Foundation Of The Harvard Medical Institutions Inc is to squander minimum food throughout production. Usually, the food produced is lost even prior to it reaches the clients.
• Another thing that The Risk Management Foundation Of The Harvard Medical Institutions Inc is working on is to improve its product packaging in such a way that it would assist it to decrease the above-mentioned issues and would likewise ensure the delivery of high quality of its products to its consumers.
• Meet global requirements of the environment.
• Develop a relationship based on trust with its customers, service partners, employees, and federal government.

Critical Problems.

Recently, The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Help Company is focusing more towards the technique of NHW and investing more of its revenues on the R&D technology. The country is investing more on mergers and acquisitions to support its NHW method. The target of the company is not attained as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H.

Situational Analysis.

Analysis of Existing Strategy, Vision and Goals.

The present The Risk Management Foundation Of The Harvard Medical Institutions Inc strategy is based upon the idea of Nutritious, Health and Wellness (NHW). This strategy deals with the idea to bringing change in the client choices about food and making the food things healthier concerning about the health concerns.

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

This method was adopted to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other companies, with an intention of retaining its trust over consumers as The Risk Management Foundation Of The Harvard Medical Institutions Inc Company has actually acquired more relied on by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis utilized to measure the position of company in the market is done by utilizing PESTLE analysis, provided in Exhibit A. The Risk Management Foundation Of The Harvard Medical Institutions Inc works under the rules and guidelines directed by federal government and food authority. The company is more focused on its products and services to make sure about the product quality and safety.

Political.

The Risk Management Foundation Of The Harvard Medical Institutions Inc is considerably supported by Federal government to fulfill all the requirements of requirements like acts of health and safety. In efforts to make great food, The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Help is changing the standards of food and beverage production.

Economic.

Initiation of business where the capital earnings of each individual matters for the increased net sale as this varies country-to-country. The economy of the The Risk Management Foundation Of The Harvard Medical Institutions Inc Company in U.S. is growing year by year with variable items launch especially focusing on the nutritional food for babies.

Social.

The social environment keeps on changing with regard to time like the mindset of the customer along with their way of lives. Any service or product of any business can not achieve success till the company is not concerned about the living system of the consumer. The Risk Management Foundation Of The Harvard Medical Institutions Inc is taking measures to satisfy its objectives as the world remains in search of healthy and delicious food.

Technological.

In the development of service, tactical procedures are somewhat compulsory. The Risk Management Foundation Of The Harvard Medical Institutions Inc is one of the top well-known multinational company and by time it purchases various departments to take its products to new level. The Risk Management Foundation Of The Harvard Medical Institutions Inc is spending more on its R&D to make its items healthier and nutritious supplying customers with health benefits.

Legal.

There is no such impact of legal aspects of The Risk Management Foundation Of The Harvard Medical Institutions Inc as it is more worried over its laws and policies.

Environmental

The Risk Management Foundation Of The Harvard Medical Institutions Inc, in regards to ecological impact is dedicated to operate in eco-friendly environment with preservation 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 Five Forces Model).

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Solution has gotten a variety of business that assisted it in diversity and growth of its product's profile. This is the detailed description of the Porter's model of five forces of The Risk Management Foundation Of The Harvard Medical Institutions Inc Business, given in Exhibition B.

Competitiveness.

The Risk Management Foundation Of The Harvard Medical Institutions Inc is one of the top business in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. The Risk Management Foundation Of The Harvard Medical Institutions Inc is running well in this race for last 150 years. The competition of other companies with The Risk Management Foundation Of The Harvard Medical Institutions Inc is rather high.

Hazard of New Entrants.

A variety of barriers are there for the brand-new entrants to occur in the customer food industry. Just a few entrants prosper in this market as there is a requirement to comprehend the customer need which requires time while current rivals are well aware and has actually progressed with the customer loyalty over their products with time. There is low threat of new entrants to The Risk Management Foundation Of The Harvard Medical Institutions Inc as it has quite big network of circulation internationally dominating with well-reputed image.

Bargaining Power of Suppliers.

In the food and beverage market, The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Analysis owes the biggest share of market requiring greater number of supply chains. In response, The Risk Management Foundation Of The Harvard Medical Institutions Inc has also been worried for its providers as it thinks in long-term relations.

Bargaining Power of Buyers.

There is high bargaining power of the buyers due to fantastic competition. Switching expense is rather low for the consumers as lots of business sale a number of comparable products. This seems to be a fantastic danger for any business. Hence, The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Solution makes certain to keep its clients pleased. This has led The Risk Management Foundation Of The Harvard Medical Institutions Inc to be among the devoted business in eyes of its buyers.

Risk of Replacements.

There has actually been a fantastic hazard of substitutes as there are alternatives of a few 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 utilize resulting in the reduced sale. Thus, The Risk Management Foundation Of The Harvard Medical Institutions Inc started highlighting the health benefits of its products to cope up with the substitutes.

Competitor Analysis.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Help covers a number of the popular customer brands like Package Kat and Nescafe and so on. About 29 brands amongst all of its brand names, each brand earned an earnings of about $1billion in 2010. Its huge part of sale remains in North America constituting about 42% of its all sales. In Europe and U.S. the leading significant brand names offered by The Risk Management Foundation Of The Harvard Medical Institutions Inc in these states have a terrific reliable share of market. The Risk Management Foundation Of The Harvard Medical Institutions Inc, Unilever and DANONE are 2 large markets of food and beverages as well as its primary rivals. In the year 2010, The Risk Management Foundation Of The Harvard Medical Institutions Inc had actually earned its annual profit by 26% boost because of its increased food and beverages sale particularly in cooking things, ice-cream, drinks based upon tea, and frozen food. On the other hand, DANONE, due to the increasing costs of shares resulting a boost of 38% in its earnings. The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Help lowered its sales cost by the adjustment of a brand-new accounting treatment. Unilever has variety of workers about 230,000 and functions in more than 160 countries and its London headquarter too. It has actually become 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 The Risk Management Foundation Of The Harvard Medical Institutions Inc. Unilever shares a market share of about 7.7 with The Risk Management Foundation Of The Harvard Medical Institutions Inc ending up being ranking and very first DANONE as third. The Risk Management Foundation Of The Harvard Medical Institutions Inc draws in regional costumers by its low cost of the product with the local taste of the products keeping its top place in the international market. The Risk Management Foundation Of The Harvard Medical Institutions Inc company has about 280,000 workers and functions in more than 197 countries edging its competitors in lots of regions. The Risk Management Foundation Of The Harvard Medical Institutions Inc has likewise lowered its expense of supply by presenting E-marketing in contrast to its rivals.

Keep in mind: A brief contrast of The Risk Management Foundation Of The Harvard Medical Institutions Inc with its close rivals is given in Display C.

SWOT Analysis.

The internal analysis and external of the business likewise can be done through SWOT Analysis, summed up in the Exhibit F.

Strengths.

• The Risk Management Foundation Of The Harvard Medical Institutions Inc has an experience of about 140 years, making it possible for company to much better carry out, in various circumstances.
• Nestlé's has presence in about 86 countries, making it a global leader in Food and Drink Industry.
• The Risk Management Foundation Of The Harvard Medical Institutions Inc has more than 2000 brands, which increase the circle of its target customers. These brand names include child foods, animal food, confectionary products, beverages and so on. Famous brands of The Risk Management Foundation Of The Harvard Medical Institutions Inc include; Maggi, Kit-Kat, Nescafe, and so on
• The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Solution has large amount of costs on R&D as compare to its rivals, making the company to introduce more nutritious and ingenious items. This innovation offers the company a high competitive position in long term.
• After adopting its NHW Technique, the business has done large quantity of mergers and acquisitions which increase the sales growth and enhance market position of The Risk Management Foundation Of The Harvard Medical Institutions Inc.
• The Risk Management Foundation Of The Harvard Medical Institutions Inc is a widely known brand with high customer's loyalty and brand recall. This brand loyalty of consumers increases the opportunities of easy market adoption of numerous new brands of The Risk Management Foundation Of The Harvard Medical Institutions Inc.
Weaknesses.
• Acquisitions of those company, like; Kraft frozen Pizza organisation can offer a negative signal to The Risk Management Foundation Of The Harvard Medical Institutions Inc consumers about their compromise over their core competency of much healthier foods.
• The growth I sales as compare to the company's financial investment in NHW Method are rather various. It will take long to change the perception of individuals ab out The Risk Management Foundation Of The Harvard Medical Institutions Inc as a business selling healthy and healthy items.

Opportunities.

• Presenting more health related products allows the business to capture the marketplace in which customers are quite conscious about health.
• Developing countries like India and China has largest markets in the world. Hence broadening the market towards developing nations can improve the The Risk Management Foundation Of The Harvard Medical Institutions Inc business by increasing sales volume.
• Continue acquisitions and joint endeavors increases the marketplace share of the business.
• Increased relationships with schools, hotel chains, dining establishments and so on can likewise increase the variety of The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Help consumers. For instance, instructors can recommend their students to acquire The Risk Management Foundation Of The Harvard Medical Institutions Inc items.

Hazards.

• Financial instability in countries, which are the potential markets for The Risk Management Foundation Of The Harvard Medical Institutions Inc, can develop several concerns for The Risk Management Foundation Of The Harvard Medical Institutions Inc.
• Shifting of items from typical to healthier, leads to additional expenses and can lead to decline company's profit margins.
• As The Risk Management Foundation Of The Harvard Medical Institutions Inc has an intricate supply chain, therefore failure of any of the level of supply chain can lead the company to face specific issues.

Segmentation Analysis

Group Division

The market segmentation of The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Help is based upon four elements; age, profession, income and gender. For example, The Risk Management Foundation Of The Harvard Medical Institutions Inc produces several items associated with children i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary items. The Risk Management Foundation Of The Harvard Medical Institutions Inc items are rather inexpensive by practically all levels, but its major targeted consumers, in regards to income level are middle and upper middle level clients.

Geographical Division

Geographical segmentation of The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Analysis is made up of its existence in almost 86 nations. Its geographical segmentation is based upon two primary factors i.e. typical income level of the consumer along with the climate of the region. Singapore The Risk Management Foundation Of The Harvard Medical Institutions Inc Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Division

Psychographic division of The Risk Management Foundation Of The Harvard Medical Institutions Inc is based upon the character and life style of the consumer. The Risk Management Foundation Of The Harvard Medical Institutions Inc 3 in 1 Coffee target those customers whose life style is quite busy and don't have much time.

Behavioral Division

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Help behavioral segmentation is based upon the attitude understanding and awareness of the client. For example its highly healthy items target those customers who have a health conscious attitude towards their consumptions.

VRIO Analysis

The VRIO analysis of The Risk Management Foundation Of The Harvard Medical Institutions Inc Business is a broad variety analysis providing the company with an opportunity to get a practical competitive advantage versus its rivals in the food and beverage industry, summarized in Exhibit I.

Valuable

The resources utilized by the The Risk Management Foundation Of The Harvard Medical Institutions Inc business are important for the business or not. Such as the resources like finance, human resources, management of operations and experts in marketing. This are some of the essential important aspects of for the identification of competitive benefit.

Rare

The important resources used by The Risk Management Foundation Of The Harvard Medical Institutions Inc are costly or even rare. , if these resources are typically discovered that it would be much easier for the rivals and the brand-new competitors in the market to effortlessly move in competitors.

Imitation

The imitation process is pricey for the rivals of The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Help Business. However, it can be done just in two different methods i.e. product duplication which is produced and produced by The Risk Management Foundation Of The Harvard Medical Institutions Inc Business and launching of the alternative of the items with changing cost. This increases the threat of interruption to the current structure of the market.

Organization

This component of VRIO analysis deals with the compatibility of the company to place in the market making productive use of its valuable resources which are difficult to imitate. Often, the development of management is completely based on the firm's execution method and team. Therefore, this polishes the abilities of the company by time based on the decisions made by firm for the progression of its strategic capitals.

Quantitative Analysis

R&D Costs as a percentage of sales are decreasing with increasing actual quantity of costs reveals that the sales are increasing at a greater rate than its R&D costs, and allow the company to more invest in R&D.

Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This sign also reveals a green light to the R&D spending, acquisitions and mergers.

Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing financial obligation ratio position a danger of default of The Risk Management Foundation Of The Harvard Medical Institutions Inc to its financiers and might lead a declining share rates. For that reason, in regards to increasing financial obligation ratio, the firm needs to not spend much on R&D and ought to pay its existing debts to decrease the danger for financiers.

The increasing risk of financiers with increasing financial obligation ratio and decreasing share costs can be observed by big decline of EPS of The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Solution stocks.

The sales development of business is likewise low as compare to its acquisitions and mergers due to slow understanding building of consumers. This sluggish development also hinder business to further invest in its mergers and acquisitions.( The Risk Management Foundation Of The Harvard Medical Institutions Inc, The Risk Management Foundation Of The Harvard Medical Institutions Inc Financial Reports, 2006-2010).

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

TWOS Analysis.

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

Strategies to make use of Opportunities utilizing Strengths.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Help should present more innovative products by large quantity of R&D Spending and mergers and acquisitions. It could increase the market share of The Risk Management Foundation Of The Harvard Medical Institutions Inc and increase the revenue margins for the company. It might also supply The Risk Management Foundation Of The Harvard Medical Institutions Inc a long term competitive benefit over its rivals.

The global expansion of The Risk Management Foundation Of The Harvard Medical Institutions Inc must be concentrated on market catching of developing nations by expansion, drawing in more clients through customer's loyalty. As developing countries are more populous than developed nations, it might increase the client circle of The Risk Management Foundation Of The Harvard Medical Institutions Inc.

Methods to Conquer Weaknesses to Exploit Opportunities.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Solution must do careful acquisition and merger of organizations, as it could affect the customer's and society's perceptions about The Risk Management Foundation Of The Harvard Medical Institutions Inc. It should obtain and merge with those companies which have a market track record of healthy and nutritious business. It would improve the perceptions of consumers about The Risk Management Foundation Of The Harvard Medical Institutions Inc.

The Risk Management Foundation Of The Harvard Medical Institutions Inc should not only spend its R&D on development, rather than it should likewise concentrate on the R&D spending over examination of cost of various healthy products. This would increase cost performance of its items, which will result in increasing its sales, due to decreasing costs, and margins.

Methods to utilize strengths to get rid of hazards.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Analysis ought to transfer to not only developing but likewise to industrialized countries. It ought to broadens its geographical growth. This wide geographical expansion towards establishing and developed countries would reduce the risk of potential losses in times of instability in numerous countries. It should widen its circle to different countries like Unilever which runs in about 170 plus countries.

Strategies to conquer weaknesses to avoid dangers.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Analysis ought to sensibly manage its acquisitions to prevent the danger of misconception from the consumers about The Risk Management Foundation Of The Harvard Medical Institutions Inc. This would not only enhance the perception of consumers about The Risk Management Foundation Of The Harvard Medical Institutions Inc but would likewise increase the sales, earnings margins and market share of The Risk Management Foundation Of The Harvard Medical Institutions Inc.

Alternatives.

In order to sustain the brand name in the market and keep the client intact with the brand name, there are 2 alternatives:.

Alternative: 1.

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

Pros:.

1. Acquisitions would increase overall assets of the business, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the acquired systems in the market, if it stops working to implement its method. However, quantity invest in the R&D could not be revived, and it will be thought about completely sunk expense, if it do not offer prospective outcomes.
3. Investing in R&D offer slow growth in sales, as it takes very long time to introduce an item. Nevertheless, acquisitions supply fast results, as it provide the business already established product, which can be marketed soon after the acquisition.

Cons:.

1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to deal with misunderstanding of customers about The Risk Management Foundation Of The Harvard Medical Institutions Inc core values of nutritious and healthy products.
2. Large costs on acquisitions than R&D would send a signal of business's ineffectiveness of establishing innovative items, and would lead to consumer's discontentment as well.
3. Big acquisitions than R&D would extend the line of product of the business by the products which are currently present in the market, making company unable to present new innovative products.

Option: 2

The Business must invest more on its R&D rather than acquisitions.

Pros:

1. It would allow the business to produce more ingenious items.
2. It would provide the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by presenting those items which can be used to a completely brand-new market sector.
4. Ingenious items will provide long term advantages and high market share in long term.

Cons:

1. It would reduce the earnings margins of the business.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would affect the company at big. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might supply an unfavorable signal to the financiers, and could result I decreasing stock costs.

Alternative 3:

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

Pros:

1. It would enable the company to introduce brand-new ingenious items with less risk of transforming the spending on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the total properties of the company would increase with its substantial R&D costs.
3. It would not impact the revenue margins of the business at a large rate as compare to alternative 2.
4. It would supply the business a strong long term market position in regards to the business's overall wealth in addition to in terms of innovative items.

Cons:

1. Danger of conversion of R&D spending into sunk cost, higher than alternative 1 lower than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Intro of less number of ingenious items than alternative 2 and high number of ingenious items than alternative 1.

Suggestion

With the deep analysis of the above alternatives, it is recommended that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just present innovative and new products in the market it would also lower the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share rates also, as financiers are willing to invest more in companies with substantial R&D costs and boost in the total worth of the company.

Action and application Technique

Technique can be executed efficiently by developing specific short-term as well as long term strategies. These strategies might be as follows;

Short-term Strategy (0-1 year).

• Under the short term plan The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Help need to perform numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which produce most of its revenue.
• Examine the existing target audience in addition to the market section which is not consist of in the business's circle.
• Analyze the existing financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that how much quantity ought to be invested in R&D.

Mid Term Plan (1-5 years).

• Get those organizations in which the company has possible experience to deal with. Get most beneficial companies with a strong commitment to health, to construct the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about The Risk Management Foundation Of The Harvard Medical Institutions Inc values and vision and to avoid prospective threat of sunk cost.

Long Term Strategy (1-10 years).

• Obtain companies with health along with taste aspect, as the base for the The Risk Management Foundation Of The Harvard Medical Institutions Inc as a company producing healthy products has actually been built under midterm plan and now the company could move towards taste aspect also to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.

Conclusion.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Solution has developed considerable market share and brand name identity in the metropolitan markets, it is advised that the company ought to focus on the rural locations in terms of developing brand name awareness, equity, and commitment, such can be done by creating a specific brand allotment technique through trade marketing tactics, that draw clear distinction between The Risk Management Foundation Of The Harvard Medical Institutions Inc products and other competitor items. This will allow the company to establish brand name equity for recently introduced and currently produced products on a higher platform, making the reliable use of resources and brand image in the market.