Hi. This presentation is our report in our Operations Management class wherein we have to choose a global company and define its SWOT analysis, and etc.

2. Company Profile
Corporate Name
YAKULT HONSHA CO., LTD.
Founder
DR. MINORU SHIROTA
Founded in
1935 IN FUKUOKA CITY, KYUSHU
Date incorporated
APRIL 9, 1955
Head office
1-19 HIGASHI SHIMBASHI 1-
CHOME, MINATO- KU, TOKYO,
JAPAN

3. Yakult began its journey in Japan, and has since grown
across 33 countries across the world, with more than
111,000 people now working with the organisation.

4. Minoru Shirota began his medical studies at Kyoto
Imperial University (now Kyoto University) in 1921.
Dr. Shirota aspired to advance preventive medicine,
which aims to help people avoid sickness, and started
down the path of microorganism research.
Discovered Lactobacillus casei strain Shirota.
Dr. Shirota then developed an inexpensive, good-
tasting beverage
Yakult created through the pursuit for
a disease-resistant body
Minoru Shirota, M.D.,
Ph.D.
This was the beginning of the history of Yakult, which is now popular around the world.

5. The word ‘Yakult’ from the universal language Esperanto “YOGHURT”.
Lactobacillus (genus): Made up of two Latin words: lacto meaning milk,
and bacillus meaning small rod. Lactobacilli are small rod-shaped bacteria,
often found in dairy products.
casei (species): Latin for 'cheese', reflecting the association of this species
with fermented dairy products.
Shirota (strain): Named after Yakult's founder scientist Dr Shirota.
6.5 billion cells that scientifically proven to reach the gut alive.

7. The global corporate philosophy of the Yakult Group is:
"We contribute to the health and happiness of people
around the world through the pursuit of excellence in
life sciences in general and our research and
experience in microorganisms in particular."
Mission and Goal

8. Yakult's greatest goal is to bring
smiles to faces everywhere.
Vision: Yakult pushes forward with
the quest for new possibilities for
probiotics in the academic and
medical fields.
Objective: to increase customer
awareness about healthy drink.
Strengthening the digestive
system.

9. • The philosophy shone through in the way that he
set up the company, from the revolutionary Yakult
Ladies system to a wide programme of corporate,
cultural, academic and
scientific sponsorships.
Strategy – how it manages to achieve
its mission and goals

10. • Yakult gives affordable selling
price to most of the people in the
community so people can get
better health with an affordable
cost
A healthy life for as
many people as
possible.
• Yakult provides some visits for
the students or organizations to
visit their manufacturing. It can
introduce their benefits for
drinking Yakult.

11. • Yakult will have some TV
advertisement to remind
that there is a product
called Yakult.
• Yakult organizes conferences
and funding research, all to
increase understanding of the
role of beneficial bacteria in
health

12. Yakult is actively working to
convey the value of probiotics
to people around the world and
advance the globalization of its
operations.

13. Competitive Advantage
• Lactobacillus casei has its unique function which
benefit to the intestinal system of human body. No
other companies are able to use the same
bacterium to perform the same function

14. • Function of the bacteria, Yakult discovered, brings a
unique effect in human body which is different from
the result bought by other healthy drinks.
• Unique Packaging
• The history of the company
is also a promise of product quality.

15. SWOT Analysis
Internal Analysis: Strengths and Seaknesses
External Analysis: Opportunity and Threats

16. Customer-based assets
• Brand reputation
• Originality
(in consumers’ mind)
• Superior taste
(ref. survey)
• Direct relationship with
customers
Supply chain
assets
• Distribution
uniqueness
Internal support assets
• Setting up dept. for
specific operations
• Patents of
Lactobasillus
• Economy of scale –
market leader
• Production expertise
(but with limited
capacity)

17. Political
Economic
Social
Technological
Environmental
Legal
Low$government$interven-on$
Growing(number(of(convenience(stores(
• $$Increase(in(health(awareness((
• $$Growing$number$of$elders$
New$use$of$Lactobacillus$with$beans$
Degradable$Packaging$
• $$Consumer$Protec-on$Act.$
• $$Employment$Act.$
S
O
O
W
O
S

18. Strengths Vs. Weaknesses
High Brand Awareness
Limited flavor
Strong brand reputation with
health benefits
Storage Difficulty (Temperature)
Limited Distribution Channel

19. Opportunities Vs. Threats
Trend in health concerns
Competitors provide many flavors,
packaging, and promotions
Increase in number of
convenience stores and
hypermarkets
Expiration of lactobacillus patent
gives rise to new competitors

20. Name! Packaging! Characteristics!
Price
(Php)!
Activia! 160 ml, 0% fat! 15!
Dutch
Mill
(Delight)!
120 ml, 0% fat! 8!
Meiji! 80 ml, 0% fat! 8!
Betagen! 115 ml, 0% fat! 8!

21. Name Packaging Characteristics Price(PhP)
Nestle Chamyto 80g, ? Fat
Phase Out in Ph
10
Bear Brand 78 mL, 0% fat 8

22. Global Operations Strategy
Health and happiness for
people around the world
Yakult, first created in Japan, is now
popular in countries and regions
throughout the world.
Yakult aims to continue delivering good health to as
many people as possible, with the basic philosophy of
local production and local sales.

23. • Yakult began its overseas expansion in 1964, guided
by founder Minoru Shirota’s vision of “protecting the
health of people around the world.”
• This 2015, Yakult conducts sales in 33 countries and
regions including Japan, and operates 27 overseas
business locations.
*As of December 2014. Number of Yakult dairy products consumed per day: Average for 2014
• Over 43,400 Yakult Ladies ,
505,600 stores handle our
products,approximately
25.2 million Yakult dairy
products are consumed per
day.

24. Going forward, Yakult will continue to work to
convey the value of Yakult probiotic drinks to people
around the world. Yakult steadily widening the ring
of Yakult consumers, continually pursuing the
achievement of its mission to contribute to the
health and happiness of people around the world

25. Yakult, a Global
Brand That is Loved
Worldwide
Yakult is actively working to convey the value of probiotics to
people around the world and advance the globalization of its
operations.

26. Issues in Operations Strategy
• Yakult does not try to expand its product line with
more flavor or different drinks in other countries.

27. • Quality problems and made a
Deteriorated taste
• “Yakult Ladies Strategy” is not effective
in other countries since people referred
to buy from local store or supermarket.

28. Conclusions and Recommendations/
Suggested Solutions to Issues
• Follow up to ensure the execution is taking place as planned. Seek
input from staff at all levels and throughout various divisions of the
company. Without frequent communication with -- and feedback from
-- staff, the business can't adjust course when necessary. Continuous
assessment and follow-up is essential to maintain a competitive
advantage. Frequently adjust the operational strategy in response to
significant internal and external opportunities and threats.
• To prevent deteriorated taste, Yakult can preserve for a month after
the production, the expired Yakult will be collected from the store and
dispose afterwards.
• Other ways it could use to improve itself, is by getting more
innovative in launching new product of the same type, which may
include the packaging design, or information details.

29. Presented by:
Ray Anthony Bulan
May Ann Ballera
Rholin Grace Bulan