Task – 01

a. Identification of problems and impact on performance

Problem Evidence from Transcripts Impact on Performance

Market (Transcript 1, p. 5) - Lower profit margins as a result of

Saturation "Saturated market with intense increased competition, price wars,
competition" and lost market share.
Operational (Transcript 2, p. 8) - Decreased productivity, higher
Inefficiencies "Challenges in streamlining expenses, and possible delays in the
processes" provision of goods or services.
Lack of (Transcript 3, p. 12) - Decreased competitiveness, inability
Innovation "Minimal focus on R&D" to meet evolving customer needs, and
stagnant growth.
Ineffective (Transcript 4, p. 3) - "Low Poor brand visibility, reduced
Marketing customer engagement metrics" customer acquisition, and diminished
market presence.
Supply Chain (Transcript 5, p. 9) - "Recent Increased costs, delayed deliveries,
Disruptions disruptions in the supply and potential damage to customer
chain" relationships.
Employee Morale (Transcript 6, p. 15) - Decreased productivity, higher
"Increased employee turnover" recruitment costs, and potential
negative impact on customer service.
Regulatory (Transcript 7, p. 6) - "Pending Legal risks, potential fines, and
Compliance Issues compliance audits" damage to the company's reputation.
Inadequate (CEO and CFO Interviews) - Cash flow problems, financial
Financial "Cash flow challenges and instability, and potential challenges in
Management outdated financial systems" securing funding.

Preliminary Solutions

In order to address the many challenges present in the business environment, the firm is actively
looking into a number of potential solutions. First, to counter market saturation, the company

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intends to broaden its range of products and go into uncharted territory. This strategic approach
aims to effectively manage competitive risks and find new revenue streams in addition to
increasing market share. Recognizing the value of operational efficiency, the firm plans to
implement comprehensive employee training programs and process improvement. By increasing
production and cutting operational costs, these initiatives should significantly increase
profitability. Recognizing the importance of innovation, the organization also recommends
increasing financing for research and development (R&D) and establishing a dedicated
innovation team. This proactive strategy, meant to stay competitive and adjust to evolving
customer expectations, will help the company's overall financial success. In response to criticism
of its subpar marketing, the company intends to bolster its online presence and reorganize its
approach. Long-term market presence and acquisition initiatives will be supported by the
anticipated increase in consumer contact and brand awareness. In the event that supply chain
disruptions are predicted, the company plans to create extensive risk management strategies and
diversify its sources. This strategic strategy seeks to mitigate the impact of operational
disruptions in order to increase customer satisfaction while minimizing expenses.

Ultimately, acknowledging the critical impact that staff morale plays, the organization suggests
implementing employee appreciation initiatives and fostering a happy work environment. It is
anticipated that such measures would not only improve morale but also raise total productivity,
lower attrition costs, and improve customer relations. In general, the suggested remedies
showcase an all-encompassing and anticipatory strategy for handling the many obstacles found
in the commercial setting.

The aforementioned first remedies are designed to methodically tackle the issues that have been
discovered, with the ultimate goal of improving the performance and profitability of Lagro
Group. Every solution has been specifically designed to address the issues raised in the
transcripts of the interviews.

b. Questions based on 4C’s framework

Category Questions

Customer 1. What are the key needs and preferences of our target customers?

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 Competition 2. How do we differentiate ourselves from competitors in the market?
Company: Cost 3. What cost reduction strategies have been explored to improve
profitability?
Company: 4. What investments are planned to enhance our organizational
Capabilities capabilities?
Customer 5. How do customer feedback and satisfaction contribute to our
strategic decisions?
Competition 6. What is our strategy for staying ahead of industry trends and
technological advancements?
Company: Cost 7. Can we identify specific areas where cost-cutting measures can be
implemented without compromising quality?
Company: 8. What initiatives are in place to develop and retain key talent within
Capabilities the organization?

c. Draft Problem definition worksheet

I. Background Information

1. Organizational Overview:

 Provide a brief overview of Lagro Group, including its mission, vision, and key
business areas.

2. Context of the Consultation:

 Outline the purpose and scope of the consultation, emphasizing the focus on
identifying and addressing challenges impacting profitability.

II. Problem Identification

3. Key Problems Impacting Profitability:

 Summarize the eight identified problems and their potential impact on Lagro
Group's financial performance.

4. Evidence from Interviews:

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  Reference relevant excerpts from the interview transcripts to support the
identified problems.

III. Preliminary Solutions

5. Proposed Solutions:

 Provide an overview of the preliminary solutions proposed for each identified

problem, along with justifications.

IV. Stakeholder Analysis

6. Key Stakeholders:

 Identify internal and external stakeholders relevant to the profitability challenges.

7. Stakeholder Concerns:

 Summarize concerns or perspectives expressed by key stakeholders during the

interviews.

V. Consultation Parameters

8. Scope of the Consultation:

 Clarify the specific areas and departments within Lagro Group covered by the
consultation.

9. Timeline:

 Establish a tentative timeline for the consultation process, including milestones

and deliverables.

10. Resource Allocation:

 Outline the resources, both human and financial, allocated for addressing the identified
problems.

VI. Success Criteria

11. Performance Metrics:

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  Define key performance indicators (KPIs) that will be used to measure the success
of the implemented solutions.

12. Client Expectations:

 Document the COO's expectations regarding the outcomes of the consultation.

VII. Communication and Reporting

13. Communication Plan:

 Outline the frequency and mode of communication between the consulting team
and Lagro Group throughout the consultation.

14. Reporting Structure:

 Define how progress and key findings will be reported, and specify the format and
frequency of reports.

VIII. Next Steps

15. Next Meeting Agenda:

 Provide a tentative agenda for the next meeting, highlighting key discussion
points and actions.

16. Follow-up Actions:

 Identify any immediate actions or information required from Lagro Group before
the next meeting.

IX. Approval and Sign-off

17. Authorization:

 Specify the individuals responsible for approving the PDW and moving forward
with the consultation process.

This draft PDW ensures a methodical and efficient approach to tackling the highlighted
profitability concerns by providing a foundational document to guide discussions at the next
meeting with the Lagro Group COO.

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Task – 02

a.

The inaugural discussion will provide a thorough strategy to assess the commercial feasibility of
Imagine Meats' possible expansion into the Netherlands. The primary areas of concentration
would encompass:

1. Consumer Demand and Preferences:

 Assess the current demand for plant-based meat alternatives in the Netherlands.

 Analyze consumer preferences, behavior, and awareness regarding plant-based

products.

2. Competitive Landscape:

 Identify and evaluate existing competitors in the Dutch market.

 Conduct a SWOT analysis to understand the strengths, weaknesses, opportunities,

and threats in the market.

3. Regulatory Compliance:

 Examine the regulatory environment for plant-based products in the Netherlands.

 Ensure compliance with food safety, labeling, and other relevant regulations.

4. Cultural and Ethical Considerations:

 Understand the cultural and ethical factors influencing food choices in the
Netherlands.

 Identify any cultural nuances that may impact the acceptance of plant-based
products.

5. Distribution Channels:

 Investigate potential retail partnerships, including supermarkets and health food

stores.

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  Evaluate the feasibility of online distribution channels, considering the e-
commerce landscape in the Netherlands.

6. Supply Chain and Logistics:

 Assess the feasibility and cost-effectiveness of sourcing raw materials locally or

internationally.

 Evaluate the sustainability of the supply chain and logistics processes.

7. Marketing and Branding:

 Develop a strategy for brand positioning that resonates with Dutch consumers.

 Explore potential collaborations with local influencers and organizations to

enhance brand visibility.

8. Financial Analysis:

 Estimate the initial investment required for market entry.

 Project sales and revenue expectations, considering potential costs and challenges.

9. Risks and Mitigations:

 Identify potential risks associated with entering the Dutch market.

 Develop mitigation strategies to address and minimize the impact of identified

risks.

In order to provide Imagine Meats a comprehensive grasp of the Dutch market and the ability to
make an educated choice about whether to go forward with the market debut in the first quarter
of 2024, we want to perform a complete study across these salient locations.

b.

In order to carry out the comprehensive analysis that is described in the plan that was presented,
we would employ a combination of primary and secondary methods of data collection. The
following is a breakdown of the methods and essential references that are applicable to each
discipline:

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1. Consumer Demand and Preferences:

 Data Collection Methods:

 Survey & questionnaire: Collect information on the preferences,

tendencies, and awareness of consumers.

 Focus group discussion: In order to comprehend complex customer

viewpoints, facilitate talks.

 Key Sources:

 Local market research firms.

 Online survey platforms.

 Industry reports on consumer behavior.

2. Competitive Landscape:

 Data Collection Methods:

 Market Research: Carry out in-depth research on the markets that are
currently being served by existing rivals.

 SWOT Analysis: Analyze competitors' strengths, weaknesses,

opportunities, and threats.

 Key Sources:

 Competitors' websites and promotional materials.

 Industry reports and market research publications.

 Interviews with industry experts.

3. Regulatory Compliance:

 Data Collection Methods:

 Legal Consultation: Seek advice from legal experts familiar with food
regulations in the Netherlands.

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  Regulatory Agencies: Consult relevant regulatory bodies for official
guidelines.

 Key Sources:

 Dutch food safety authorities.

 Legal databases and publications.

4. Cultural and Ethical Considerations:

 Data Collection Methods:

 Cultural Analysis: Conduct research on Dutch cultural preferences related

to food.

 Ethical Surveys: Explore ethical considerations through targeted surveys.

 Key Sources:

 Anthropological studies on Dutch eating habits.

 Ethical consumer behavior reports.

5. Distribution Channels:

 Data Collection Methods:

 Retailer Surveys: Gather insights on potential retail partnerships and

distribution channels.

 E-commerce Analysis: Assess the online retail landscape in the

Netherlands.

 Key Sources:

 Retailer databases and directories.

 E-commerce platforms and marketplaces.

6. Supply Chain and Logistics:

 Data Collection Methods:

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  Supplier interviews: Get details about the qualifications and experience of
possible suppliers.

 Logistical analysis: Examine the distribution and transportation logistics

environment.

 Key Sources:

 Supplier databases and industry directories.

 Logistics and transportation reports.

7. Marketing and Branding:

 Data Collection Methods:

 Consumer Surveys: Acquire an understanding of how customers see

brands and goods that are derived from plants.

 Social Media Analysis: Monitor social media for trends and sentiments.

 Key Sources:

 Social media platforms.

 Marketing research reports.

8. Financial Analysis:

 Data Collection Methods:

 Cost estimates: Please collect information on the prospective expenses

involved with entering the market.

 Revenue projections: As a result of market research, make an estimate of

sales and revenue.

 Key Sources:

 Financial statements of similar companies.

 Industry financial benchmarks.

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 9. Risks and Mitigations:

 Data Collection Methods:

 Risk workshops: Identify and evaluate risks via the use of workshops with
the various stakeholders.

 Case studies: Conduct research on previous market entrance experiences

that are comparable in order to identify possible obstacles.

 Key Sources:

 Industry reports on common market entry risks.

 Case studies from comparable companies.

10. Return on Investment (ROI):

 Data Collection Methods:

 Financial projections: When projecting return on investment, use financial

models.

 Benchmarking: Analyze the probable return on investment in comparison

to the industry norms.

 Key Sources:

 Industry benchmarks for similar products.

 Financial analysis reports.

Using these methods of data collection and contacts with important sources, the research will be
thorough, providing Imagine Meats with valuable information to aid in product launch decisions
in the Netherlands.

c.

Porter's Five Forces Analysis for the Plant-Based Meat Alternatives Market in the
Netherlands:

1. Threat of New Entrants:

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  Assessment:- There is a slight risk that new rivals may enter the market. A
substantial financial outlay in advertising, logistics, and R&D is required to get
into the growing plant-based meat industry.

 Implications: As a well-established company, Imagine Meats may be able to

exploit its brand recognition and distribution networks to hinder the ascent of new
rivals to market share.

2. Bargaining Power of Buyers:

 Assessment:- When it comes to making a transaction, both the customer and the
company have some negotiation leverage. Thanks to the proliferation of
alternatives made from plants, consumers now have choices.

 Implications:- Establishing strong relationships with significant retailers and

offering special product features or package options may help Imagine Meats
boost client loyalty and decrease buyers' bargaining power.

3. Bargaining Power of Suppliers:

 Assessment:- The suppliers of key materials for plant-based commodities may

have significant bargaining power, depending on the availability of these
materials.

 Implications:- For the purpose of mitigating the risks associated with the
negotiating power of suppliers, Imagine Meats need to study the possibility of
obtaining their products from local sources and establish strategic relationships
with reputable suppliers.

4. Threat of Substitutes:

 Assessment:- The amount of competition from substitutes is moderate. Further

diminished by the increasing prevalence of plant-based diets and ethical concerns.

 Implications:- Imagine Meats should promote their products by highlighting the

ethical and health benefits of plant-based alternatives to traditional meats if they
want to show that their products are better.

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 5. Competitive Rivalry:

 Assessment:- The market is quite competitive because to the abundance of plant-

based alternatives offered by both local and international companies. Uniqueness
and devotion to one's brand, however, are essential.

 Implications:- Innovative ideas, effective advertising, and unique products

should be Imagine Meats' top priorities. To raise a brand's profile and set it apart
from competitors, it could be wise to form alliances with local businesses and
influencers.

Overall Analysis and Recommendations:

 Market entry recommendations:- There is minimal bargaining power between

suppliers and consumers, and the risks associated with alternatives and new entrants are
low, thus it seems like it would be possible to break into the market.

 Competitive strategy:- Differentiating Imagine Meats from rivals requires attention to

detail in terms of flavor, texture, and nutritional profile. With local chefs or celebrities to
create culturally suitable products.

 Distribution strategy:- Establishing partnerships with prominent online marketplaces is

crucial. Customer visibility and accessibility may be enhanced by ensuring a wide
distribution network.

 Marketing focus:- The benefits to health, ethics, and sustainability should be front and
center in any marketing campaigns. The key to success will be concentrating on
environmentally and health-conscious consumers.

Imagine Meats may position itself for success in the competitive Netherlands market for plant-
based meat substitutes by carefully addressing the drivers that have been identified and putting
these suggestions into practice.

d.

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In order to determine Imagine Meats' necessary market share in the Netherlands for plant-based
meat alternatives and make a minimum net profit of €800,000 by 2027, researchers might do the
following steps:

Step 1: Calculate Predicted Revenue in 2027

Given the average annual growth rate of 18.1 percent, can use the compound annual growth rate
(CAGR) formula:

Predicted Revenue∈2027=Predicted Revenue∈2024 ×(1+Growth Rate)(2027−2024 )

Predicted Revenue∈2027=€ 421.7 million ×(1+0.181) 3

Step 2: Calculate Gross Profit in 2027

Using the net profit margin of 35 percent:

Net Profit=Predicted Revenue∈2027 × Net Profit Margin

Net Profit=Predicted Revenue∈2027 × 0.35

Step 3: Determine the Market Share Needed

Net Profit Target

Market Share= ÷Predicted Revenue in 2027
Net profit margin

€ 800,000
Market Share= ÷Predicted Revenue in 2027
0.35

Now, let's perform the calculations:

Predicted Revenue∈2027=€ 421.7 million ×(1+0.181)3

Predicted Revenue∈2027 ≈ € 791.9 million

Net Profit=€ 791.9 million ×0.35

Net Profit ≈ € 277.16 million

€ 800,000
Market Share = ÷ €277.16million
0.35

Market Share≈ 1.02 %

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Based on the above projections and assumptions, Imagine Meats would thus need to account for
around 1.02% of the Dutch market for plant-based meat alternatives in 2027 in order to make a
profit of €800,000.

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Task – 03

a.

The frequency and percentage of replies from 186 respondents to the question, "Would you
consider buying vegan cosmetics?" are shown in Table 3.1. An overview of the results is as
follows:

 The majority of respondents (65.1%) said "Yes" in response to the question, suggesting
that a significant portion of the questioned customers are interested in vegan cosmetics.

 Merely 34.9% of the participants responded negatively to the inquiry, indicating that
there may not be much opposition or disinterest in vegan makeup among the customers
who participated in the study.

 According to the survey's findings, there may be a market for vegan cosmetics among the
sampled population, and Hermosa Ltd. stands to gain by billing its goods as cruelty-free
and vegan.

b.

The hypothesis that more than 50% of customers are considering purchasing vegan cosmetics
was tested using a binomial test. The hypotheses consisted of the null hypothesis and the
alternative hypothesis.

 H0: The proportion of consumers who consider buying vegan cosmetics is equal to 50%.

 H1: The proportion of consumers who consider buying vegan cosmetics is greater than
50%.

All of the findings of the tests are shown in Table 3.2. The empirical percentage of affirmative
replies was 0.65, which was substantially more than the expected proportion of 0.5, as shown by
the precise significance value of less than 0.001. By rejecting the null hypothesis and supporting
the alternative, this indicates that the hypothesis was rejected. There is enough data to draw the
conclusion that more than 50% of customers are considering purchasing vegan cosmetics.

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The difference between the test and observed proportions, or 0.65 - 0.5 = 0.15, may be used to
calculate the test's effect size. As a result, the change is neither insignificant or inconsequential,
indicating a substantial influence. The Phi coefficient, which is 0.187, is an alternative way to
calculate the impact size. This symmetric measure of correlation between two binary variables,
with values between 0 and 1, is presented. A result of 0.187 indicates that there is just a
somewhat favorable correlation between thinking about vegan cosmetics and selecting "Yes"
when asked.

According to the binomial test, every observation is considered independent of every other
observation and the sample is drawn at random from the population. The assumption is that there
are only two potential outcomes for the variable of interest, namely "Yes" or "No." Before
starting the test, these presumptions need to be verified.

A short comment for the client is;

 According to the study's findings, the majority of respondents 65.1% said they would
think about purchasing vegan cosmetics. Compared to the 50% that would be predicted
by chance, this is far greater. As a result, people find vegan cosmetics to be very
appealing. Hermosa Ltd. may increase its client base by emphasizing its cruelty-free and
vegan qualities.

c.

To investigate the hypothesis that there is a difference in the percentage of customers who are
considering purchasing vegan cosmetics between those who are vegan and those who are not, a
chi-square test was performed. The alternative and null hypotheses were as follows:

 H0: The proportion of consumers who consider buying vegan cosmetics is not different
between those who are following a vegan lifestyle and those who are not.

 H1: The proportion of consumers who consider buying vegan cosmetics is different
between those who are following a vegan lifestyle and those who are not.

All of the findings of the tests are shown in Table 3.3. The chi-square value was 6.505 with 1
degree of freedom, and a two-sided asymptotic significance of 0.011. By rejecting the null
hypothesis and supporting the alternative, this indicates that the hypothesis was rejected. The

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available data is convincing enough to draw the conclusion that there exists a difference in the
percentage of customers who are considering purchasing vegan cosmetics between those who are
vegan and those who are not.

The Cramer's V coefficient, which is 0.187, may be used to calculate the test's effect magnitude.
This is a symmetric measure of correlation, with a range of 0 to 1, between two nominal
variables. A result of 0.187 indicates a somewhat favorable correlation between adopting a vegan
lifestyle and thinking about purchasing vegan cosmetics.

According to the chi-square test, every observation is considered independent of every other
observation and the sample is drawn at random from the population. Furthermore, it is assumed
that every column in the contingency table has an anticipated frequency of at least five. Before
starting the test, these presumptions need to be verified.

A short comment for the client is;

 Based on the study's findings, customers who practice veganism are more inclined than
non-vegans to think about purchasing vegan cosmetics. Because of the statistical
significance of this, it cannot be the result of chance. Thus, Hermosa Ltd. may market its
goods to this customer category and determine which vegan lifestyle impacts the demand
for vegan cosmetics.

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