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United Way Case Study Solution and Analysis


United Way Case Study Analysis is currently among the biggest food chains worldwide. It was founded by Henri United Way in 1866, a German Pharmacist who first launched "Farine Lactee"; a mix of flour and milk to feed infants and reduce mortality rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Company. The two ended up being rivals in the beginning but later on combined in 1905, leading to the birth of United Way.

United Way is now a transnational business. Unlike other multinational business, it has senior executives from different nations and tries to make decisions thinking about the entire world. United Way Case Study Analysis presently has more than 500 factories around the world and a network spread across 86 countries.


The purpose of United Way Corporation is to improve the quality of life of people by playing its part and providing healthy food. While making sure that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future


Nestlé's vision is to offer its consumers with food that is healthy, high in quality and safe to consume. United Way imagines to develop a trained workforce which would help the company to grow.


Nestlé's mission is that as currently, it is the leading business in the food market, it believes in 'Excellent Food, Good Life". Its objective is to offer its consumers with a variety of choices that are healthy and finest in taste. It is focused on providing the best food to its clients throughout the day and night.


United Way Case Study Analysis has a wide range of items that it offers to its consumers. Its products include food for infants, cereals, dairy products, snacks, chocolates, food for family pet and mineral water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 staff members. In 2011, United Way was noted as the most rewarding company.

Objectives and objectives.

• Bearing in mind the vision and mission of the corporation, the business has actually set its goals and goals. These goals and goals are listed below.
• One goal of the business is to reach absolutely no garbage dump status.
• Another goal of United Way is to squander minimum food during production. Most often, the food produced is squandered even prior to it reaches the consumers.
• Another thing that United Way is dealing with is to enhance its product packaging in such a method that it would assist it to reduce those complications and would likewise ensure the delivery of high quality of its items to its customers.
• Meet global standards of the environment.
• Develop a relationship based on trust with its customers, company partners, employees, and government.

Vital Problems.

Recently, United Way Business is focusing more towards the method of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on mergers and acquisitions to support its NHW method. However, the target of the company is not attained as the sales were anticipated to grow greater at the rate of 10% each year and the operating margins to increase by 20%, given in Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it might lead to the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Existing Method, Vision and Goals.

The existing United Way technique is based upon the principle of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing modification in the client choices about food and making the food things much healthier worrying about the health concerns.

The vision of this strategy is based on the key technique i.e. 60/40+ which just indicates that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be made with extra nutritional worth in contrast to all other items in market gaining it a plus on its nutritional content.

This strategy was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other business, with an intent of keeping its trust over consumers as United Way Company has gained more relied on by clients.

Microenvironment Analysis (PESTEL Analysis).

The analysis used to measure the position of business in the market is done by utilizing PESTLE analysis, offered in Exhibit A. United Way works under the regulations and rules 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 security.


The political impact on the business is significantly affected by the government laws and policies. The business has to meet its requirements provided by federal government otherwise it needs to pay fine. United Way is greatly supported by Government to satisfy all the requirements of requirements like acts of health and safety. In efforts to make great food, United Way is changing the requirements of food and beverage manufacturing. This may cause the infraction of governmental rules and guidelines.


Initiation of the business where the capital earnings of each private matters for the increased net sale as this varies country-to-country. The economy of the United Way Business in U.S. is growing year by year with variable items launch particularly focusing on the nutritional food for babies.


The social environment keeps on changing with regard to time like the mindset of the customer as well as their lifestyles. Any product or service of any business can not achieve success until the company is not concerned about the living system of the consumer. United Way is taking measures to satisfy its objectives as the world is in search of healthy and tasty food.


In the advancement of company, tactical procedures are rather obligatory. United Way is one of the top well-known international firm and by time it invests in various departments to take its products to brand-new level. United Way is spending more on its R&D to make its items much healthier and healthy providing customers with health advantages.


There is no such effect of legal aspects of United Way as it is more concerned over its regulations and laws.


United Way, in terms of ecological impact is devoted to operate in eco-friendly environment with preservation of the natural deposits and energy. If the resources used are recyclable or not, as due to the production of larger number of items there may be a hazard.

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

United Way Case Study Solution has actually acquired a variety of business that helped it in diversification and development of its product's profile. This is the extensive description of the Porter's model of 5 forces of United Way Business, given in Exhibit B.


United Way is one of the leading company in this competitive market with a number of strong competitors like Unilever, Kraft foods and Group DANONE. United Way is running well in this race for last 150 years. The competitors of other business with United Way is rather high.

Hazard of New Entrants.

A variety of barriers are there for the new entrants to take place in the customer food industry. Just a couple of entrants be successful in this market as there is a requirement to comprehend the customer need which requires time while recent competitors are well aware and has actually progressed with the consumer commitment over their items with time. There is low danger of new entrants to United Way as it has quite big network of circulation internationally controling with well-reputed image.

Bargaining Power of Providers.

In the food and drink industry, United Way owes the largest share of market requiring higher number of supply chains. This causes it to be a picturesque purchaser for the providers. Any of the supplier has actually never expressed any grumble about price and the bargaining power is also low. In response, United Way has likewise been worried for its suppliers as it thinks in long-lasting relations.

Bargaining Power of Buyers.

Hence, United Way makes sure to keep its customers pleased. This has actually led United Way to be one of the faithful business in eyes of its purchasers.

Danger of Replacements.

There has actually been a fantastic danger of alternatives as there are replacements of some of the Nestlé's products such as boiled water and pasteurized milk. There has actually also been a claim that some of its products are not safe to utilize resulting in the reduced sale. Hence, United Way started highlighting the health benefits of its items to cope up with the alternatives.

Rival Analysis.

It has actually ended up being the second biggest food and beverage market in the West Europe with a market share of about 8.6% with just a distinction of 0.3 points with United Way. United Way attracts local costumers by its low expense of the product with the local taste of the products preserving its first place in the worldwide market. United Way Case Study Solution business has about 280,000 staff members and functions in more than 197 countries edging its competitors in lots of areas.

Note: A brief comparison of United Way with its close competitors is given in Exhibition C.

SWOT Analysis.

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


• United Way has an experience of about 140 years, enabling business to better perform, in various circumstances.
• Nestlé's has presence in about 86 nations, making it a global leader in Food and Beverage Market.
• United Way has more than 2000 brand names, which increase the circle of its target consumers. Famous brands of United Way consist of; Maggi, Kit-Kat, Nescafe, etc.
• United Way Case Study Solution has large big quantity spending on R&D as compare to its competitorsRivals making the company to launch release innovative ingenious nutritious productsItems
• After embracing its NHW Technique, the company has done large quantity of mergers and acquisitions which increase the sales development and improve market position of United Way.
• United Way is a well-known brand with high customer's loyalty and brand name recall. This brand commitment of customers increases the chances of easy market adoption of different new brands of United Way.
Weak points.
• Acquisitions of those business, like; Kraft frozen Pizza organisation can provide a negative signal to United Way customers about their compromise over their core proficiency of healthier foods.
• The development I sales as compare to the company's investment in NHW Method are rather different. It will take long to change the perception of individuals ab out United Way as a business offering healthy and nutritious products.


• Presenting more health associated items makes it possible for the company to capture the marketplace in which customers are rather mindful about health.
• Developing countries like India and China has biggest markets worldwide. For this reason broadening the market towards developing countries can increase the United Way company by increasing sales volume.
• Continue acquisitions and joint ventures increases the marketplace share of the company.
• Increased relationships with schools, hotel chains, dining establishments etc. can also increase the variety of United Way Case Study Analysis consumers. Instructors can recommend their trainees to acquire United Way items.


• Economic instability in countries, which are the possible markets for United Way, can produce a number of problems for United Way.
• Shifting of items from regular to much healthier, results in extra expenses and can result in decrease business's revenue margins.
• As United Way has an intricate supply chain, for that reason failure of any of the level of supply chain can lead the business to face particular issues.

Segmentation Analysis

Market Division

The market segmentation of United Way Case Study Solution is based on four factors; age, income, gender and occupation. For instance, United Way produces several items related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. United Way products are quite budget friendly by practically all levels, but its major targeted clients, in terms of income level are upper and middle middle level consumers.

Geographical Division

Geographical segmentation of United Way Case Study Help is composed of its existence in almost 86 nations. Its geographical segmentation is based upon 2 primary factors i.e. average income level of the customer along with the climate of the region. Singapore United Way Company's division is done on the basis of the weather condition of the region i.e. hot, cold or warm.

Psychographic Segmentation

Psychographic division of United Way is based upon the personality and life style of the customer. For instance, United Way 3 in 1 Coffee target those clients whose life style is rather busy and do not have much time.

Behavioral Division

United Way Case Analysis behavioral segmentation is based upon the attitude understanding and awareness of the customer. For example its highly healthy products target those clients who have a health mindful mindset towards their consumptions.

VRIO Analysis

The VRIO analysis of United Way Company is a broad range analysis providing the organization with a chance to obtain a viable competitive benefit versus its rivals in the food and drink market, summed up in Display I.


The resources used by the United Way company are important for the company or not. Such as the resources like finance, personnels, management of operations and experts in marketing. This are a few of the essential important factors of for the recognition of competitive benefit.


The valuable resources made use of by United Way are costly or even uncommon. If these resources are frequently found that it would be simpler for the competitors and the new competitors in the industry to effortlessly relocate competitors.


The imitation process is pricey for the rivals of United Way Case Help Company. Nevertheless, it can be done only in 2 various techniques i.e. product duplication which is produced and produced by United Way Business and introducing of the replacement of the products with changing cost. This increases the risk of disturbance to the recent structure of the industry.


This part of VRIO analysis handle the compatibility of the company to position in the market making efficient usage of its valuable resources which are tough to mimic. Often, the advancement of management is totally based on the company's execution technique and group. Thus, this polishes the abilities of the firm by time based on the choices made by company for the progression of its tactical capitals.

Quantitative Analysis

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

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

Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio present a risk of default of United Way to its financiers and could lead a decreasing share costs. In terms of increasing financial obligation ratio, the company must not spend much on R&D and ought to pay its present financial obligations to decrease the danger for financiers.

The increasing risk of financiers with increasing debt ratio and decreasing share rates can be observed by huge decrease of EPS of United Way Case Help stocks.

The sales growth of company is likewise low as compare to its acquisitions and mergers due to slow understanding structure of consumers. This slow growth also prevent company to further spend on its mergers and acquisitions.( United Way, United Way Financial Reports, 2006-2010).

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

TWOS Analysis.

TWOS analysis can be utilized to obtain various strategies based on the SWOT Analysis given above. A quick summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths.

United Way Case Solution ought to introduce more ingenious items by large amount of R&D Costs and acquisitions and mergers. It might increase the marketplace share of United Way and increase the earnings margins for the company. It might also offer United Way a long term competitive advantage over its competitors.

The worldwide growth of United Way ought to be concentrated on market capturing of establishing countries by expansion, bring in more consumers through customer's commitment. As developing countries are more populous than developed countries, it might increase the customer circle of United Way.

Techniques to Conquer Weaknesses to Exploit Opportunities.

United Way Case Help needs to do cautious acquisition and merger of companies, as it might affect the customer's and society's understandings about United Way. It ought to merge and acquire with those business which have a market credibility of healthy and nutritious companies. It would improve the perceptions of customers about United Way.

United Way should not only invest its R&D on innovation, instead of it must also concentrate on the R&D costs over examination of expense of various nutritious products. This would increase cost efficiency of its items, which will lead to increasing its sales, due to decreasing costs, and margins.

Techniques to utilize strengths to get rid of hazards.

United Way needs to move to not only establishing however also to developed countries. It should widen its circle to different nations like Unilever which runs in about 170 plus nations.

Methods to conquer weak points to prevent threats.

United Way must carefully control its acquisitions to avoid the threat of misunderstanding from the consumers about United Way. It should get and merge with those nations having a goodwill of being a healthy business in the market. This would not only improve the understanding of consumers about United Way however would also increase the sales, earnings margins and market share of United Way. It would also enable the business to use its prospective resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW method growth.


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

Option: 1.

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


1. Acquisitions would increase total properties of the business, increasing the wealth of the business. Spending on R&D would be sunk cost.
2. The business can resell the acquired systems in the market, if it stops working to execute its method. Quantity invest on the R&D might not be revived, and it will be considered completely sunk expense, if it do not give prospective outcomes.
3. Investing in R&D supply slow growth in sales, as it takes long time to introduce a product. However, acquisitions supply quick results, as it provide the business currently developed item, which can be marketed right after the acquisition.


1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the business to deal with mistaken belief of consumers about United Way core worths of healthy and healthy items.
2. Big spending on acquisitions than R&D would send a signal of business's ineffectiveness of establishing ingenious products, and would outcomes in customer's frustration.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making business not able to present new innovative items.

Alternative: 2

The Company should invest more on its R&D instead of acquisitions.


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 introducing those items which can be used to a totally new market section.
4. Innovative items will provide long term advantages and high market share in long run.


1. It would reduce the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, and would impact the company at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which could offer an unfavorable signal to the investors, and might result I decreasing stock prices.

Alternative 3:

Continue its acquisitions and mergers with significant costs on in R&D Program.


1. It would enable the company to introduce brand-new innovative products with less danger of transforming the costs on R&D into sunk cost.
2. It would provide a positive signal to the financiers, as the overall properties of the business would increase with its substantial R&D costs.
3. It would not impact the earnings margins of the company at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the business's general wealth as well as in regards to ingenious products.


1. Danger of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Threat of misunderstanding about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less number of innovative products than alternative 2 and high number of ingenious products than alternative 1.


With the deep analysis of the above options, it is suggested that the business must pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present new and innovative items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share costs as well, as financiers want to invest more in companies with substantial R&D spending and increase in the total worth of the business.

Action and application Strategy

Method can be executed effectively by establishing particular short-term as well as long term strategies. These plans might be as follows;

Short Term Strategy (0-1 year).

• Under the short-term plan United Way Case Analysis must perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate most of its revenue.
• Examine the present target market in addition to the market segment which is not include in the company's circle.
• Evaluate the present financial data to determine the amount that must 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 profits (dividend). It would let the company to understand that just how much amount must be spent on R&D.

Mid Term Strategy (1-5 years).

• Obtain those organizations in which the company has possible experience to deal with. Get most favorable organizations with a strong dedication to health, to build the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about United Way values and vision and to prevent prospective risk of sunk expense.

Long Term Strategy (1-10 years).

• Obtain organizations with health along with taste element, as the base for the United Way as a company producing healthy items has actually been built under midterm strategy and now the company could move towards taste element as well to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new products.


United Way Case Help has developed substantial market share and brand name identity in the city markets, it is suggested that the company needs to focus on the rural locations in terms of developing brand equity, awareness, and commitment, such can be done by developing a particular brand name allocation technique through trade marketing methods, that draw clear distinction between United Way products and other rival items. This will permit the company to develop brand equity for freshly presented and already produced products on a higher platform, making the efficient use of resources and brand name image in the market.