During the declining phase, Pearson Health Drinks Limited contracted KCPL to initially produce 50 tons per month of biscuits with a promise of order extension to 100-125 tons. Pearson reimbursed a conversion charge of ₹3 per kilo which helped KCPL to minimize its loss. Market perception of Pearson’s health biscuits was not good. It was considered costly compared to A-One which was perceived as both affordable and healthy. Due to this, the market share of Pearson was declining and also indicated a reduced chance of order extension from Pearson to KCPL.
Consumer markets in the United States and the United Kingdom began falling out of love with orange juice a long time ago. 95% of the orange produced in Brazil are shipped abroad, due to which the orange production market is hurt very badly when the consumer tastes and preferences changes. The production of boxes of orange in Brazil dropped from 400 million boxes to 242 million boxes in 2017 (Purdy, C. 2017). Fast paced life has a new impact, making people skip breakfast as well as lean towards healthy eating. Orange juice is losing its battle to several detox and vegetable juices.
The world’s biggest producers of cereals Kellogg Co. announced that the profits of the company fell to 16 percent as the sales of the cereal started to slack (Jennifer Bowman, 2014). Kellogg is an organization which provides cereals containing variety of nutrition for a quick breakfast for consumers. They have produced many types of cereals such as Special K, Corn Flakes and Rise Krispies to target different markets. The reason for the drop of sales was predicted to be the influence in environmental initiatives. Kellogg started losing the top position of sales by their competitors which produced healthier option for breakfast.
Kellogg’s US Morning Foods segment is the producer of top selling cereals like Frosted Flake, Fruit Loops and Apple Jack. Kellogg’s is also the producer of Special K, a not so famous brand geared towards health-conscious adults. As the second top provider in the US cereal production industry, US Morning Foods has experienced a decrease in revenues from several external factors that have influenced the industry. This is despite the constant increase of consumer discretionary income. External factors like change of customer taste, retailers acting like competitors instead of buyers, and increased expectations of social responsibility have been the main responsible for a negative growth in the industry.
Sourcing and securing loyal suppliers of organically grown fruits and dairy produce is key towards JT’s creamery survival geared towards attaining twenty percent market share in the industry to which it’s operating in. JT’s creamery is faced with both internal and external supply chain risk which can be detrimental if not thoroughly managed. In the first year of operation, JT’s creamery a small partnership company was faced with internal supply chain risks such as planning and control risk, caused by inadequate assessment and budgeting, which amount to ineffective management. JT’S creamery was also struggling with staff members that did retail sales from carts with bad cash management and failed at bring in accurate proceeds from cart sales. This led the partners to initiate more capital to sustain daily operations of the business.
Weaknesses High priced products: Starbucks is being differentiated with the high quality of products but during the economic recession, consumers might have to switch costs to competitor products that the prices of their products are low. The premium prices can create weaknesses to the company that is trying to succeed in less developed countries. High dependence in the U.S. market: Starbucks operates 7.049 stores in the U.S. while 8.078 stores are being operated in total America and 2.116 stores internationally. The percentage of stores operated in U.S. is 69% which diminishes long term growth of Starbucks. file:///C:/Documents%20and%20Settings/marketing/%CE%A4%CE%B1%20%CE%AD%CE%B3%CE%B3%CF%81%CE%B1%CF%86%CE%AC%20%CE%BC%CE%BF%CF%85/Downloads/Starbucks%20Fiscal%202013%20Annual%20Report%20-%20FINAL.PDF
Today, the price increase in fruits and vegetables is 190% compared to the 70% increase in fats and oils (Saunders). This price gap is what causes people to make unhealthy choices. For every 14 percent increase in the ratio of healthy-to-unhealthy food prices, researchers found the odds of a healthy diet dropped by 24 percent (Bennett). As the price gap between healthy and unhealthy foods widens, the odds of someone having a healthier diet
EVALUATION OF STARBUCKS PRODUCT Starbucks has a product range of more than 30 blends and single origin coffees, handcrafted beverages, bottles and etc. Contrary to the apparently broad product range, beverages represent 77% of retail sales whereas food items and other products account for 15% and 8%, respectively, which means that the company strongly depends on beverages and also that the variety of products developed has not worked as it should have, which may be risky if market and competition conditions change. There are several cases of distinctive product range failures; For instance in 1999, the introduction of an internet venture to sell kitchen products resulting in a stock fall of 28%, just one day after the announcement. Starbucks
This offer was made by APL in the meeting of Confectioneries Manufacturers Association of India (CMAI) stating that the company was interested in augmenting its supplying capacity by promoting Contract Manufacturing Units (CMU). With the aspirations of becoming a market leader in all the regions, CMU was a gateway for APL to reduce its costs. In a contract of 3 years, APL has offered initial order of 70 tonnes per month. It would supply the pre-printed packing material with APL name. It would provide technical guidance, would inspect the production processes of KCPL and recommend changes in processes and equipment, which would be done by KCPL at its own cost.
If the tabarru’ amount is less than the sum of claims then the Risk Fund will be deficit, otherwise the tabarru’ amount exceed the claim then the Risk Fund will have a surplus. The wakala model is the default standard for takaful. Operators charge and carry out takaful operations. For takaful operators, he makes a profit if wakala fee exceed expenses. The surplus is actually the excess premium paid by the participants, so the surplus refund can be explained as a experience refund.