Identify and articulate company's corporate diversification strategy, business & finance homework help

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Question Description

This is a team project and I am responsible for company ASSOCIATED BRITISH FOODS PLC. A one page paper and few slides of powerpoint is needed. For powerpoint, I have an example and you can use the same format for that.

You will need to use the excel file(AGRIBUSINESS-2017) for any data and show the analysis in powerpoint (once again, you can use the format.) Please include the analysis in the notes section.

ADRESS THE FOLLOWING QUESTION in powerpoint and paper: "Which of your selected companies is in the best strategic position? which one is in the worst position? Identify and articulate their corporate diversification strategy."

For paper, Write one page 12 pts Times New Roman, double space 1 inch margin. Indicate your name and ID, the name of the industry your Team is analyzing(which is agribusiness) and your particular section(ABF). with include the aspects of the project for what you are accountable. For example, if analyzing an industry, Teams should select a few companies to illustrate revealed strategic maps (See Project #1 instructions.) In such case, your contribution could be analyzing one company. Make sure you indicate what is the strategy of such company, and provide a narrative to support your assertions.

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+ Pharmaceuticals Christine Dombrowski, Amy Kawa, Connor Lloyd, Zack Ludwick, Chris Rider, Chris Young + Pharmaceutical Segments  Pharmaceuticals   For diseases (chronic, one-time); antibiotics; remedies; prescriptions Consumer Health  Common products found in grocery store aisles (i.e. Centrum, Advil, ThermaCare)  Vaccines  Human Health  Devices/Diagnostics   Orthopedics, monitors, contact lenses  more complex in hospitals Animal Health  Actually for animals (i.e. flee and tick removers/meds) + PFIZER “Pfizer Quality” + Pfizer - Company Overview • Founded in 1849 by Charles Pfizer and Charles Erhart • World’s largest research-based pharmaceutical firm Produces Top prescription medicines utilized products include: • Lipitor in the fields of: • Cardiovascular health • Metabolism • Oncology • Immunology • Neurology • • • • • • (cholesterollowering drug) Celebrex/Lyrica (pain meds) Prevnar (pneumonia vaccine) Viagara (ED) Enbrel (arthritis) Zyvox (antibiotic) Norvasc (blood pressure control agent) Top Consumer Brands include: • Advil (mild pain relief) • Centrum (daily multi-vitamin) • Robitussin (cough medicine) + Pfizer - Company Overview  Operational Divisions (3) Global Innovative Pharmaceutical (GIP): Global Vaccines, Oncology and Consumer • Immunology and Healthcare (VOC): • • • • inflammation Cardiovascular and metabolic Neuroscience and pain Rare diseases Women’s and men’s health • Vaccines, oncological and consumer health products Global Established Pharmaceutical (GEP): • Sterile injectable products • Biosimilar development portfolio • Collaborations and existing agreements with foreign firms such as Mylan (Japan), Zhejiang Hisun (China), Laboratorio Teuro Brasilerio (Brazil) + Pfizer – Company Overview • Patent for its most lucrative product, Lipitor, expired in majority of global markets in November, 2011, causing annual sales of Lipitor to dip from peaks of $11 - $12 billion USD to $9.6 billion in 2011 and $3.9 billion in 2012 with entrance of generic competitors such as Ranbaxy and Actavis • In 2013 Pfizer had the following “blockbuster drugs” • • • 3 drugs with revenues greater than $3 billion : • Lyrica, Prevnar, and Enbrel 2 drugs with revenues greater than $2 billion: • Celebrex and Lipitor 5 drugs with revenues greater than $1 billion: • Viagara • Norvasc • Zyvox • Stutent (Cancer) • Premarin (Menopause) + Pfizer – Company overview • • • Continues to explore additions to the “blockbuster” category Pursuing a cost-cutting initiative • Sale of non core assets after purchasing rival, Wyeth, in 2009. • R&D expenses cut to $6.5-$7 billion USD by 2013 M&A deals to confront Lipitor patent’s expiration + Pfizer - Product Diversification Sales 29.0% 26.0% 38.0% 7.0% Established products and emerging markets Consumer Health Care & Other Primary Care Specialty Care and Oncology Source: Hoovers Related Constrained Diversification + Pfizer - Geographic Diversification Sales US 16.0% 39.0% 22.0% Developed Europe Emerging Markets 23.0% Other Developed Regions Source: Hoovers Three Regions  Transnational International Strategy Pfizer – Key 5YR financial Performance Lipitor patent expires $70.0 $60.0 Billion USD + $50.0 $40.0 Revenue Net Income $30.0 $20.0 $10.0 $0.0 2010 2011 2012 2013 2014 + BCG Matrix Pfizer STAR CASH COW ??? DOGS + + Merck and Co. Company Overview  Merck & Co., Inc. NYSE: MRK Headquarters: Kenilworth, NJ Founded: 1928 Sector: Health Care Industry: Biotech & Pharma Sub-Industry: Large Pharma + Merck & Co. Business Operations Pharmaceutical  Consists of therapeutic and preventative agents, generally sold by prescription, for the treatment of human disorders.  Cardiovascular, Diabetes, Hepatitis, HIV, Acute Care, Immunology, and Vaccines Animal Care  Discovers, develops, manufactures, and markets animal health products, including vaccines, antibiotics, treatments Consumer Care (Divested in October 2014)  Developed, manufactured, and marketed OTC, foot care and sun care products Related Constrained Diversification +Merck & Co. Financials Overview Segment Performance Animal Health & Alliances 15% Other 10% Diabetes & Obesity 14% Cardiovascular 11% Respiratory 7% Vaccines 14% Source: Hoovers Diversified Brands Oncology Immunology 7% 3% 6% Women's Health & Endocrine 5% Infectious diseases 9% + Geographic Diversification % Sales Other Regions Latin America 4% 7% Asia Pacific 9% United States 41% Japan 9% Source: Hoovers EMEA 30% Bi-Regional  Transnational International Strategy + Financial Analysis + BCG Matrix Merck and Co. STAR CASH COW ??? DOGS + Johnson & Johnson + Johnson and Johnson Company Overview  Founded in 1885 in New Brunswick, NJ by brothers James and Edward Mead Johnson, Robert joined in 1886  Started out with gauze, surgical supplies (developed by Robert), baby creams and Band-Aids  Today they have 270 operating companies in 60 countries  Offer everything from surgical equipment to allergy medications to BandAid brand products  Within the company they use decentralization + Johnson and Johnson - Company Overview Medical Devices and Diagnostics Pharmaceuticals • AcuVue contact lenses (Vistakon) • Advanced sterilization products • Animas insulin pump (LifeScan) • Cordis diagnostic catheters • Cypher (drug-coated stent, Cordis) • DePuy Mitek sports medicine products • DePuy Orthopaedics hip and knee replacement products • DePuy Spine repair products • Electrophysiology products (Biosense Webster) • Ethicon women's health and urology • Harmonic scalpel (plastic surgery) • OneTouch blood glucose monitor (LifeScan) • Vitros diagnostic instrumentation systems (Ortho-Clinical) • Aciphex/Pariet (acid reflux) • Concerta (ADHD)Duragesic/Fentanyl transdermal (pain management Durogesic outside the US) • Edurant (HIV) • Intelence (HIV) • Invega (schizophrenia) • Invega Sustenna (injectable Invega) • Levaquin/Floxin (antiinfective) • Nucynta (pain) • Ortho Evra (patch contraceptive) • Ortho Tri-cyclen (oral contraceptive) • Prezista (HIV) • Procrit/Eprex (anemia, Eprex outside the US) • Remicade (rheumatoid arthritis, psoriasis, and Crohn's disease) • Risperdal (schizophrenia and bipolar) • Risperdal Consta (injectable Risperdal) • Simponi (rheumatoid Consumer Goods • • • • • • • • • • • • • • • • • • • • • Aveeno skin care products Band-Aid bandages Benecol food products Clean & Clear skin care products Imodium A-D antidiarrheal Johnson's adult skin care products Johnson's baby care products Lactaid nutritional products Listerine mouthwash Motrin IB analgesic Mylanta gastrointestinal aid Neutrogena skin and hair care products Pepcid AC gastrointestinal aid (marketed with Merck) Reach toothbrushes Rembrandt toothpaste RoC skin care products Splenda non-caloric sugar substitute Sudafed cold, flu, and allergy medications Tylenol acetaminophen pain medicines Viactiv calcium supplements Zyrtec allergy products + Johnson and Johnson Business Operations  Pharmaceuticals • Diabetes, HIV/AIDS, ADHD, acid reflux, etc.  Devices • and Diagnostics Stints, catheters, pumps, contact lens  Consumer • Toothbrushes, toothpaste, lotions, etc. + Johnson and Johnson Sales By Product Segment Sales by Product Category Consumer 21% Medical Devices & Diagnostics 40% Pharmaceuticals 39% Medical Devices & Diagnostics Pharmaceuticals Consumer Related Constrained Diversification + Johnson and Johnson – Geographic Segmentation Western Hemisphere (excluding USA) 10% Asia, Pacific & Africa 19% Sales by Region USA 45% Europe 26% USA Europe Asia, Pacific & Africa Western Hemisphere (excluding USA) Bi-Regional  Transnational International Strategy + BCG Matrix JNJ STAR CASH COW ??? DOGS + Novartis + Novartis - Company Overview • Pharmaceutical Manufacturing company founded in 1885 • Headquartered in Basel, Switzerland, but has a large geographic reach Produces medicines utilized Top prescription in the fields of: products include: • Cardiovascular health • Cancer treatment & Oncology • Immunology • Ophthalmology (eye health) • Diovan (high blood pressure treatment) • Gleevac (Leukemia treatment) • Exelon (Alzheimer’s disease) • Lucentis (bone tumors) • Zometra (bone tumors) Top Consumer Brands include: • Excedrin (headache relief) • Benefiber (supplement) • Prevacid (Heartburn relief) • Theraflu (flu treatment) • Traminic (cough/cold medicine) + Novartis - Company Overview  Business Segments • Pharmaceuticals  Patent-protected medicines • Vaccines/Diagnostics  Develop and manufactures vaccines for various diseases, such as the Flu (flu shots), meningitis, hepatitis, pediatric vaccines • Consumer Health  Over the counter medicines (Excedrin, Theraflu, etc.) • Sandoz  Generic medicines • Alcon  Ophthalmology medicines, over the counter eye care, contacts + Novartis – Company Overview • Novartis acquired Alcon, a company focused on the development and manufacturing of ophthalmologic drugs, surgical products, and eye care (products such as contact lenses, contact lens solution, etc.), in 2011. • Annual revenue increases: attributed to this acquisition, although net income dropped slightly due to restructuring costs • Top seller “Diovan” lost patent protection in 2012 • Other “blockbuster drugs” are facing intense competition from generic versions of the drug; this is standard across the pharmaceutical market • Currently expecting new drug for multiple sclerosis, Gilenya to be its next blockbuster in the coming years; first oral treatment for MS • Strategy to acquire Sandoz, generic drug manufacturer, global leader + Novartis - Product Diversification Sales 8.0% 3.0% Pharmaceuticals Alcon 16.0% 17.0% 56.0% Sandoz Consumer Health Source: Hoovers Vaccines/Diagnostic s Related Constrained Diversification + Novartis - Geographic Diversification Sales 33.0% 45.0% 9.0% Source: Hoovers US Japan France Switzerland Other 1.0% 5.0% Bi-Regional  Transnational International Strategy Novartis – 5YR Financial Performance $60.0 $50.0 Billion USD + $40.0 Revenue Net Income $30.0 $20.0 $10.0 $0.0 2010 2011 2012 2013 2014 + BCG Matrix Novartis STAR CASH COW ??? DOGS + + GlaxoSmithKlein Plc. NYSE: GSK Headquarters: Brentford, UK Founded: 2001 Sector: Health Care Industry: DRUG MANUFACTURERS - MAJOR + GlaxoSmithKline Business Operations Pharmaceutical and Vaccines  Discovery, Development, Manufacturing, and Marketing of Pharmaceutical products.  Asthma, Virus Control, Infections, Mental Health, Diabetes, Cancer, Digestive Conditions, and HIV Medicines. Consumer Healthcare  Offers Consumer Health Products  Total Wellness, Oral Care, Nutritional, and Skin Health Areas + GlaxoSmithKline Product Diversification 13% Pharmaceuticals 19% Consumer Health Vaccines 68% Related Constrained Diversification +GlaxoSmithKline Geographic Diversification Segm ent Pharmaceuticals and Vaccines - USA Pharmaceuticals and Vaccines - Europe Pharmaceuticals and Vaccines - Emerging Markets Pharmaceuticals and Vaccines - Japan Pharmaceuticals and Vaccines - ViiV Healthcare Pharmaceuticals and Vaccines - Established Products Other Trading and Unallocated Pharmaceuticals and Vaccines Consumer Healthcare Total GBP in m m 4,980.0 4,035.0 3,203.0 21.6% 17.5% 13.9% 937.0 1,498.0 4.1% 6.5% 3,011.0 13.1% 1,006.0 4.4% 4,336.0 23,006.0 18.8% 100.0% + GlaxoSmithKline Geographic Diversification Segment United Kingdom (UK) USA Rest of World Total* GBP in mm 3,518.0 10,768.0 17,227.0 31,513.0 Bi-Regional  Transnational International Strategy 11.2% 34.2% 54.7% 100.0% + GlaxoSmithKline Financial Overview  Diverse revenue split between segments  None of their products make up more than 5% of Revenue + GSK BCG Matrix STAR CASH COW ??? DOGS + Overview Industry Segment Revenues + Overview Relative Mkt. Share and Growth Rates + + + Aggregated Comparison STAR CASH COW ??? DOGS + Works Cited  Hoovers for Pfizer, Merck and Co., Johnson & Johnson, Novarits, GlaxoSmithKline EQY_FUND_CRNCY REL_INDEX USD Ticker Name ABF LN Equity ASSOCIATED BRITISH FOODS PLC x ABF LN Equity CIE_DES_BULK Associated British Foods PLC is a diversified international food, ingredients, and retail group. The Group conducts business in China, South America, Africa Europe, Australia, New Zealand, Asia, and the United States. Associated British Foods PLC (ABF LN) - By Segment In Millions of USD except Per Share 12 Months Ending Retail - Primark/Penneys Revenue Assets Depreciation and Amortization Capital Expenditures Liabilities Number of Employees Same Store Sales % Number of Locations Retail - Number of Locations Opened Adjusted Operating Income Retail Square Feet/Meter Retail - Number of Locations Closed Sugar Revenue Assets Depreciation and Amortization Capital Expenditures Liabilities Adjusted Operating Income Agriculture Revenue Assets Depreciation and Amortization Capital Expenditures Liabilities Adjusted Operating Income Ingredients Revenue Assets Depreciation and Amortization Capital Expenditures Liabilities Adjusted Operating Income Inter Company Sales Revenue Assets Depreciation and Amortization Capital Expenditures Liabilities Adjusted Operating Income FY 2007 09/16/2007 FY 2008 09/16/2008 FY 2009 09/16/2009 FY 2010 09/18/2010 3.147,2 2.882,5 110,0 -273,1 435,6 — 1,00 170,00 32,00 392,9 4.800,0 5,00 3.824,3 2.908,3 126,6 -277,0 475,2 — 4,00 181,00 12,00 461,0 5.400,0 1,00 3.605,3 2.933,1 132,4 -275,8 558,6 — 7,00 191,00 12,00 392,6 5.900,0 2,00 4.259,6 2.957,8 159,2 -276,2 534,6 — 6,00 204,00 13,00 532,1 6.500,0 — 2.261,2 3.249,8 174,8 -222,0 857,1 391,0 2.506,6 3.756,8 156,3 -383,8 721,7 302,7 2.453,9 4.304,1 160,5 -286,7 917,8 294,5 3.058,2 3.898,9 184,1 -332,3 628,4 380,7 1.349,7 407,5 13,8 -11,8 112,4 35,4 1.798,4 452,0 13,8 -19,8 159,0 65,3 1.564,3 463,0 12,5 -17,1 148,3 53,0 1.540,0 450,2 10,9 -17,2 142,3 51,5 1.469,5 1.880,8 102,2 -86,4 238,9 139,5 1.725,2 2.074,0 108,8 -106,8 266,2 148,4 1.553,4 2.091,1 95,0 -120,0 247,2 137,1 1.664,8 2.166,7 85,8 -124,8 287,6 162,3 — 42,2 — — 70,3 -51,1 — 26,8 — -11,9 255,5 -55,4 — 89,0 — -7,8 487,7 -53,0 — 190,7 — -7,8 232,9 -65,5 Grocery Revenue Assets Depreciation and Amortization Capital Expenditures Liabilities Adjusted Operating Income Other Assets Assets Liabilities Adjusted Operating Income Cash and Cash Equivalents Assets Liabilities Employee Benefits Assets Assets Liabilities Income Tax Assets Amortisation Depreciation and Amortization Income tax Liabilities Associated British Foods Revenue Growth % Number of Employees Source: Bloomberg 5.131,5 3.962,4 174,8 -167,0 784,9 300,6 6.437,7 4.335,6 207,7 -178,1 937,9 383,8 5.242,8 4.030,5 183,8 -149,6 828,8 297,6 5.340,9 4.034,9 202,8 -179,4 884,8 357,3 1.585,8 2.551,3 — 1.007,5 3.092,3 — 973,8 3.331,9 — 820,7 2.829,6 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 13,00 84.636,00 21,00 95.816,00 12,00 96.251,00 10,00 96.915,00 Associated British Foods PLC (ABF LN) - By Measure In Millions of USD except Per Share 12 Months Ending Revenue Retail - Primark/Penneys Grocery Sugar Ingredients Agriculture Inter Company Sales Revenue Growth % Associated British Foods FY 2007 09/16/2007 13.359,1 100,0% 3.147,2 23,6% 5.131,5 38,4% 2.261,2 16,9% 1.469,5 11,0% 1.349,7 10,1% — — 13,00 FY 2008 09/16/2008 16.292,1 100,0% 3.824,3 23,5% 6.437,7 39,5% 2.506,6 15,4% 1.725,2 10,6% 1.798,4 11,0% — — 21,00 FY 2009 09/16/2009 Retail - Primark/Penneys Ingredients Grocery Sugar Agriculture Adjusted Operating Income Retail - Primark/Penneys Grocery Ingredients Agriculture Sugar Central Adjustment Assets Retail - Primark/Penneys Grocery Sugar Ingredients Cash and Cash Equivalents Agriculture Other Assets Central Income Tax Employee Benefits Assets Liabilities Retail - Primark/Penneys Loans and overdrafts Grocery Sugar Employee Benefits Liabilities Ingredients Other Liabilities Central Income tax Agriculture Depreciation and Amortization Retail - Primark/Penneys Depreciation Grocery Depreciation Amortization Sugar Depreciation Amortization Ingredients Depreciation Amortization 22,00 12,00 13,00 71,00 2,00 1.208,2 392,9 300,6 139,5 35,4 391,0 -51,1 — 14.011,0 2.882,5 3.962,4 3.249,8 1.880,8 — 407,5 1.585,8 42,2 — — 5.050,4 435,6 — 784,9 857,1 — 238,9 2.551,3 70,3 — 112,4 575,6 110,0 110,0 174,8 147,3 27,5 174,8 102,2 72,7 102,2 47,1 55,0 100,0% 31,2% 23,9% 11,1% 2,8% 31,0% 100,0% 23,3% 32,0% 26,2% 15,2% 3,3% 100,0% 17,9% 32,3% 35,3% 9,8% 4,6% 100,0% 19,1% 19,1% 30,4% 25,6% 4,8% 30,4% 17,7% 12,6% 17,7% 8,2% 9,6% 21,00 21,00 25,00 10,00 34,00 1.305,7 461,0 383,8 148,4 65,3 302,7 -55,4 — 14.560,9 2.908,3 4.335,6 3.756,8 2.074,0 — 452,0 1.007,5 26,8 — — 5.907,6 475,2 — 937,9 721,7 — 266,2 3.092,3 255,5 — 159,0 613,3 126,6 — 207,7 160,3 47,5 156,3 108,8 47,5 108,8 53,4 55,4 100,0% 33,9% 28,2% 10,9% 4,8% 22,2% 100,0% 21,5% 32,1% 27,8% 15,3% 3,3% 100,0% 18,6% 36,6% 28,2% 10,4% 6,2% 100,0% 20,6% 33,9% 26,1% 7,7% 25,5% 17,7% 7,7% 17,7% 8,7% 9,0% Agriculture Depreciation Amortisation Central Depreciation Amortisation Capital Expenditures Central Agriculture Ingredients Grocery Sugar Retail - Primark/Penneys Same Store Sales % Retail - Primark/Penneys Number of Locations Retail - Primark/Penneys Retail - Number of Locations Opened Retail - Primark/Penneys Retail - Number of Locations Closed Retail - Primark/Penneys Retail Square Feet/Meter Retail - Primark/Penneys Number of Employees Retail - Primark/Penneys Associated British Foods Source: Bloomberg 13,8 13,8 — — — — -760,3 — -11,8 -86,4 -167,0 -222,0 -273,1 — 1,00 170,00 170,00 32,00 32,00 5,00 5,00 4.800,0 4.800,0 84.636,00 — 84.636,00 2,4% 2,4% 1,6% 11,4% 22,0% 29,2% 35,9% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,0% 100,0% 100,00% 100,00% 13,8 — — — — — -977,3 -11,9 -19,8 -106,8 -178,1 -383,8 -277,0 — 4,00 181,00 181,00 12,00 12,00 1,00 1,00 5.400,0 5.400,0 95.816,00 — 95.816,00 2,3% 2,0% 11,1% 18,4% 39,8% 28,7% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,0% 100,0% 100,00% 100,00% FY 2011 09/17/2011 FY 2012 09/15/2012 FY 2013 09/14/2013 FY 2014 09/13/2014 FY 2015 09/12/2015 FY 2016 09/17/2016 4.888,0 3.648,0 160,6 -518,8 628,5 — 3,00 223,00 19,00 496,4 7.300,0 — 5.514,0 3.935,0 207,8 -517,9 854,2 106.243,00 3,00 242,00 19,00 560,4 8.200,0 — 6.674,5 4.247,3 235,9 -343,6 982,1 112.652,00 5,00 257,00 16,00 801,3 9.000,0 — 8.195,2 4.796,1 283,1 -652,3 1.275,5 118.209,00 4,00 278,00 28,00 1.096,0 10.200,0 7,00 8.285,1 4.823,4 268,1 -543,9 1.595,5 124.036,00 1,00 293,00 20,00 1.042,8 11.155,0 5,00 8.522,1 5.154,2 289,4 -667,6 1.524,5 129.916,00 -2,00 315,00 22,00 987,0 12.342,0 — 3.427,9 4.031,7 175,1 -310,0 645,9 506,0 4.196,5 4.152,6 187,3 -251,9 670,7 802,8 4.181,5 3.912,6 192,1 -246,8 631,5 677,9 3.448,6 3.806,9 165,6 -170,5 626,4 312,9 2.817,0 3.136,9 189,0 -201,4 603,3 51,1 2.575,7 2.824,2 117,5 -202,0 651,1 48,7 1.810,3 557,5 16,1 -17,7 151,6 64,3 1.991,2 587,9 15,7 -22,0 168,9 63,0 2.202,4 663,2 15,6 -15,6 192,0 73,4 2.172,1 691,4 21,5 -46,4 203,4 82,8 1.876,4 683,5 17,0 -26,3 177,4 93,0 1.552,9 604,1 15,8 -38,7 138,6 83,1 1.803,9 2.327,7 110,8 -149,4 304,8 90,0 1.718,9 2.288,2 171,6 -151,1 331,3 50,4 2.166,5 2.168,9 170,3 -120,3 396,7 17,2 2.087,7 2.137,7 79,5 -107,6 408 ...

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