Report 2

The Delicious Food Group, which commenced operations 50 years ago, changed its name to Delicious and Healthy Foods (D&H), recently. D&H is a holding company with five subsidiaries operating within the food and beverage industry. Following is a summary of each business unit. Munchy Biscuits The founders of D&H started with Munchy Biscuits 50 years ago. Since then, they have become the largest biscuit manufacturer and marketer in the country. The company manufactures and markets more than 30 types of biscuits with 40 brands. The biscuit market is a mature market with limited growth and fierce competition. Health concerns, the emergence of newer product formats, and niche regional players have contributed to the slowing and fragmentation of the industry. Pure Juice Pure Juice is a fully integrated fruit juice manufacturer with a sizable export market. 90% of the Orange and Apple juice produced by the company comes from their own ochards. Close to 50% of Pure Juice products are certified Organic and therefore, command a higher price in the market. Given the premium image of Pure Juice, the managers are extremely cautious about expanding volumes and getting into other types of fruit juices mainly, due to the fear of diluting the brand image. The company commands a smaller market share in the fresh juice catogary though brand loyalty is very high among the current customers. The shareholders of D&H wants the management to capitalise on Pure Juice brand strength and expand the operations further. A shareholder was heard saying “what is the point in having a good brand if you can expand or use that to increase profitability?” The brand promise of pure juice is “Pure juice from Pure Juice orchards.” Funville Chocolates D&H separated the chocolate business from Munchy Biscuits almost 30 years ago. Since then, the company has introduced a number of innovative products. However, over the last ten years, the company has lost market share to the multinational chocolate companies. The company is known for its chocolate coated biscuits, and some are of the view that this range should be given to Munchy and Funville should only focus on chocolates. However, 50% of

P a g e 2 | 3

Funville’s revenue comes from the chocolate coated bicuit range. Burgers R Us D&H acquired Burger House five years ago and rebranded the company as Burgers R Us. Currently, the company has more than 60 outlets spread across the country and adopts a franchising model. Although Burgers R Us comes under the fast food catogary and competes with companies like McDonald’s, Burger King, and KFC, the company has established a relatively premium image compared to other fast food companies. This year, D&H acquired an up and coming plant-based meat manufacturing start-up which uses plant-based vegetarian alternatives that taste like meat. D&H is following a similar strategy adopted by some of the other food companies by entering the plant-based meat segment. The new company was merged with Burger R Us in February. Since then, the company has released a plant-based meat burger range that seems to be doing well. The D&H management wants to move away from the highly competitive fast food business to a premium healthy food segment. Home Fresh D&H entered the meal kit business early, and by the time international companies like Hello Fresh, entered the country, the company had already established a strong foothold in the market. Although the market is small, every indicator points to significant growth over the next ten years. Several large food companies have offered to purchase Home Fresh from D&H. Some of the shareholders are in favour of selling when the company is doing well. According to one shareholder, “this business is very different from what we have done in the past. I am not sure whether we have the skill-set to take this to the next level. However, we have to acknowledge that the current management of Home Fresh has done remarkably well. Perhaps with more support, they can do it.”

The findings of a recent report into the five business and their respective markets are presented in the following tables:

Business Findings Revenue Competitive

Strength Incoming Benefits

Outgoing Benefits

Munchy Biscuits $ 780 Million High High High Pure Juice $ 35 Million Medium Low Low Funville $ 30 Million Low High Low Burgers R Us $ 400 Million Medium High Low Home Fresh $ 260 Million High Low Low

P a g e 3 | 3

Market Findings

Size Growth Attractiveness

Biscuits $ 1.5 Billion Low Medium Fruit Juice $ 900 Million High Medium Chocolate $ 1.0 Billion Low Low Fast Food $ 8.0 Billion High Medium Meal Kit $ 500 Million High High Note: This is a hypothetical case study with hypothetical market situations. You are not expected to research the different industries mentioned in the case study. The focus should be on researching, analysing, and applying portfolio management related theories, concepts, and scholarly views.

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.