Research Proposal On Herbalife

870 Words4 Pages
HERBALIFE
CORPORATION

Research Proposal
ECO 595
Applied Business Research

Suhas Raj Gedda - 50202133
Texas A&M University - Commerce

CHAPTER 1
Background:
Herbalife International (NYSE: HLF) is a multi-level marketing corporation that develops, and sells sports nutrition, weight management and personal care products. Herbalife’s product line includes several protein shakes; snacks; nutrition energy and personal care products like fitness supplements. Currently the most popular way of doing business is through Nutrition Clubs (Shops in densely populated areas).
As of May 2016, Herbalife reported net sales of US$4.488 Billion and a net income of $260.0 million. Federal Trade Commission (FTC) raided the company claiming that several
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HLF’s three-year net profit margin average is about 6.54%. The company took a hit of $1 billion short in HLF stock. Companies vision to change people’s lives by providing opportunity to improve their health and financial well-being and expand and market the company to each and every health conscious person all over the globe drives the interest to conduct the business research.

Problem Statement:
Due to several critics, the company took a hit of nearly $1 billion loss in their sales. After the FTC raids the company brand image diminished even further. As result Herbalife reported a net sale of $4.5 billion which is nearly 20% less compared to previous years. The product line up has also been reduced where-as the competition plans to launch more line ups this fall.
The Purpose of Study:
The purpose of this study is aimed
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The brands overcame the problem promoting safety practices with mobile phones. (The impact of smartphones and mobile devices on human health and life).
Michael O. Johnson, chairman and CEO of Herbalife, stated in their website that “As Adjusted earnings for 2016 was $4.85 per diluted share compared to $4.952 per diluted share for 2015. Due to the negative impact of currency, full year 2016 reported and adjusted net income were each negatively impacted by $82.2 million, and reported diluted EPS and adjusted1 diluted EPS were each negatively impacted by $0.95.” Cause there are so many allegations that some of the Herbalife products did not meet the health standards in certain way, negative publicity was done and the impact was on

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