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In: Business and Management

Submitted By sanjiv26
Words 1501
Pages 7
• Identify risk and reward management policies regarding strategic planning, decisions and new product development and acquisitions.
• Analysing market, realistic costing and implications of competing ideas.
• Understand quantitative analysis of multiple options and inform resource allocation decisions.

Here the conflicting demands and short term and long term sales is understood and the tension between successful consumer companies and major retail partners over shelf space is to be evaluated.

1. Invest in the growing sectors
- Srikant Tipha director of the Simple Meal Units, proposes to emphasize the company’s efforts in the Simple Meals, Hearty Healthy Soups and Dry Soups by increasing an 18% the investment in advertising.
Pros Cons
The strategy focuses on products and brand that target growing segments of the market. The consumers are beginning to shift into healthy lifestyles and easy to prepare meals due to time constrains in their working schedules, and it works perfect with Srikant’s division. The strategy focuses on “star products” but leaves the “cash cow” (ready to eat soup) behind. This is a mistake often made because “star products” want to be promoted but if the “cash cow”, which finances the “star products”, loses profit, the subsidy cannot continue. In addition, previous experience with Annabelle’s acquisition process was slowly picking up but did not meet the expected growth forecast.

2. Acquire product lines to complement the core growing sectors.
- Claire Mackey, Director Finance and Planning. Healthier and convenient segments that have new flavours.
Pros Cons
-Null investment in R&D.
-If the brands are kept, there is reduction in cannibalization. -investment
-not stable synergies may cause miscues in the lines of production.
-Annabelle’s acquisition did not meet the expectations.

3. Invest in…...

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