Chapter 2: The Firm

and Its Goals

Abdurrazaq Baharadhiynal (Aldo)
Amanda Krisnaldi
Giorgio Rivano
Miftahul Ahyar
Muhammad Fiqri R
Muhammad Yusuf Musa
Raymond Angga
The Situation

Bob Burns, Director of Global Foods, looked over the last

few numbers provided to him in the consultants report on
the bottled water industry, he thought that the company
decision to get into the soft drink industry was a good one,
but the company need to get into new products and
market segments in order to support company growth
strategy
The product growth in bottled water has slowed because
competition continue to be tough.
Bob think there is another chance to support company
growth with entering the energy drink in a key market
segment: 18 to 34 years-old.
The Situation

It is not easy to compete in energy drink market, because

there is a product such like Red Bull that have been around
for a long time and dominate the market space.
Red Bull is particulary popular in Asia, which was a rapidly
growing region for soft drink product.
Bob doesnt want to give up, because he believe that Global
foods have good distribution channels, bottling know-how,
and marketing savvy.
Energy drink business is close to the company core
competency with the growing market.
The Situation

Bob expect double digit growth of the company top line as

well as the company bottom line.
Bob surely optimist about energy drink help to grow entire
beverage division of the company, because the company
have been succeed with soft drink and bottled water.
After that Bob will do the presentation to the company
stockholder.
The Solution

Bob said the company have remained committed to a long-run

increase in the price of the stock.
To accomplish the goal, the company need to return to the double-
digit annual increase in revenue as well as profit.
As part of growth strategy, the company decided to enter the
growing market for energy drink in 18 to 34 years old market
segment. The energy drink have also good potential in other
developing country like Brazil.
To maintain and increase profits, the company have been focusing
mainly on cutting costs through productivity increases and
operational excellence.
In the long run, the company must find new products and growing
markets to increase companys top and bottom lines.
 Alternative Solution

Global Foods should expand their business to soft drinks industry.

Because what we learn is that soft drinks market it self are still
"growing".
Define and calculate the market demand
Maximize the older project by maximizing the profit this project
generate by productivity increase and operation excellence.
Develop another project by Entering the new market segment
that established competitor didnt cover.
Try to enter sport energy drink and healthy drink
Keep in packaged water industry with a new innovation