BEL GROUP REPORT Harvard Case Solution & Analysis

BEL GROUP REPORT Case Solution

Introduction

Bell Group started its business in the year 1865. The company started operating from France.  The company expanded to Spain in 1956. With huge success, it was able to serve 400 million customers in the world with its brands. Its core universal brands are the Laughing Cow, Kiri, Leerdammer, Boursin and Mini Babybel. Apart from this, the company has over 25 local brands. With long history and successful operations, the company was able to secure the third rank in the whole world.

Problem Statement

Bel is operating as an eminent player in the cheese industry for more than a century. It has expanded its business to a huge level. ” Bel does not earn very huge profits. It only earns very small amounts. The company only earns 5% net profit and earnings per share of 18.07 Euros.With this concern in mind, Bel is not much of a favorable company from investor’s perspective.

In order to survive in the longer run, they need to change this image of their by earning at their full potential. Potentially, they have huge capacity to earn profits. This problem exists because of fully satisfaction from the current state. If the board of directors are eager to generate more profit, then they can pressurize their subordinates to bring in more from the market by walking an extra mile. Team of Bel, is no doubt a competent one. However, there is a dire need to drive them in right direction.

The second objective of the research is to make use of the opportunities and threats to turn them into something, which can earn us good profits. Overall, it is all about solving the problem at hand, which is low earning level of an industrial giant, which owns four of the top twelve cheese brands in the world. This research will also provide the recommendations, which can be followed to achieve the desired image among the investment market.

Background

Behind every successful man, there is a long history of struggle and hard work, which had made it up to that current position. Roads to success are never smooth which everyone has to pass through to be at the desired position. Bel Group also went through such stages and the history is not very small, it is longer than one and a half century. From their origin, through their journey and the present condition of Bel Groupare discussed below.

Company Profile

Jules Bel was the founder of Bel Group who started his business of cheese the year 1856. He started from Comte cheese ripening and trading business from France. It started from the region of Jura in France. After the departure of Jules Bel from this world, the company was taken over by his son, named Leon Bel. His son founded Formageries Bel or the manufacturing of tasty and processed cheese, which is sold at an affordable price. Leon registered the Laughing Cow Brand in the year 1921. Commercial production of this brand was started in the year 1924 when they established its manufacturing plant. This manufacturing plant was the first plant, which could process cheese. It was installed at Lons-le-Saunier. Later on, it was advanced in 1926, which increased its productivity efficiently....................

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