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Acumen Fund Measurement In Impact Investing B Online Case Analysis

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Acumen Fund Measurement In Impact Investing B Case Study Solution and Analysis


Intro

Acumen Fund Measurement In Impact Investing B is currently one of the greatest food chains worldwide. It was established by Henri Acumen Fund Measurement In Impact Investing B in 1866, a German Pharmacist who first launched "Farine Lactee"; a combination of flour and milk to reduce and feed infants mortality rate.

Acumen Fund Measurement In Impact Investing B is now a transnational business. Unlike other international business, it has senior executives from different countries and tries to make decisions considering the entire world. Acumen Fund Measurement In Impact Investing B Case Study Solution presently has more than 500 factories around the world and a network spread across 86 countries.

Purpose

The function of Acumen Fund Measurement In Impact Investing B Corporation is to improve the quality of life of individuals by playing its part and supplying healthy food. While making sure that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

Nestlé's vision is to offer its consumers with food that is healthy, high in quality and safe to consume. Acumen Fund Measurement In Impact Investing B pictures to develop a trained labor force which would help the business to grow.

Mission.

Nestlé's objective is that as currently, it is the leading business in the food industry, it thinks in 'Great Food, Great Life". Its mission is to provide its customers with a range of options that are healthy and finest in taste also. It is concentrated on providing the very best food to its clients throughout the day and night.

Products.
Executive Summary
Acumen Fund Measurement In Impact Investing B Case Study Analysis has a vast array of products that it provides to its customers. Its products include food for babies, cereals, dairy products, snacks, chocolates, food for animal and mineral water. It has around four hundred and fifty (450) factories worldwide and around 328,000 employees. In 2011, Acumen Fund Measurement In Impact Investing B was listed as the most rewarding company.

Goals and objectives.

• Bearing in mind the vision and objective of the corporation, the business has actually put down its goals and objectives. These objectives and goals are noted below.
• One objective of the company is to reach absolutely no landfill status. It is pursuing zero waste, where no waste of the factory is landfilled. It encourages its employees to take the most out of the by-products. (Acumen Fund Measurement In Impact Investing B, aboutus, 2017).
• Another objective of Acumen Fund Measurement In Impact Investing B is to squander minimum food during production. Most often, the food produced is lost even prior to it reaches the consumers.
• Another thing that Acumen Fund Measurement In Impact Investing B is dealing with is to improve its packaging in such a way that it would help it to decrease the above-mentioned issues and would likewise ensure the shipment of high quality of its items to its clients.
• Meet worldwide requirements of the environment.
• Develop a relationship based upon trust with its consumers, business partners, employees, and government.

Vital Problems.

Recently, Acumen Fund Measurement In Impact Investing B Company is focusing more towards the technique of NHW and investing more of its profits on the R&D technology. The country is investing more on mergers and acquisitions to support its NHW technique. However, the target of the business is not achieved as the sales were anticipated to grow greater at the rate of 10% each year and the operating margins to increase by 20%, given up Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may lead to the declined revenue rate. (Henderson, 2012).

Situational Analysis.
Porter's 5 Forces Analysis
Analysis of Existing Technique, Vision and Goals.

The current Acumen Fund Measurement In Impact Investing B strategy is based upon the idea of Nutritious, Health and Health (NHW). This technique deals with the idea to bringing change in the customer choices about food and making the food things healthier worrying about the health issues.

The vision of this technique is based on the secret method i.e. 60/40+ which merely suggests that the products will have a rating of 60% on the basis of taste and 40% is based on its dietary worth. The products will be manufactured with extra dietary worth in contrast to all other products in market acquiring it a plus on its dietary content.

This strategy was adopted to bring more tasty plus healthy foods and beverages in market than ever. In competitors with other business, with an intention of retaining its trust over clients as Acumen Fund Measurement In Impact Investing B Company has gained more trusted by clients.

Microenvironment Analysis (PESTEL Analysis).

The analysis utilized to determine the position of company in the market is done by using PESTLE analysis, given up Exhibition A. Acumen Fund Measurement In Impact Investing B works under the regulations and rules directed by government and food authority. The company is more concentrated on its services and products to make sure about the product quality and security. This analysis will assist in comprehending environment of external market in the global food and drink industries. (Parera, 2017).

Political.
Swot Analysis
Acumen Fund Measurement In Impact Investing B is considerably supported by Government to meet all the criteria of standards like acts of health and safety. In efforts to manufacture excellent food, Acumen Fund Measurement In Impact Investing B Case Study Help is changing the standards of food and drink manufacturing.

Economic.

Initiation of the business where the capital earnings of each specific matters for the increased net sale as this varies country-to-country. The economy of the Acumen Fund Measurement In Impact Investing B Business in U.S. is growing year by year with variable products launch specifically focusing on the nutritional food for babies.

Social.

The social environment keeps on changing with respect to time like the attitude of the customer in addition to their way of lives. Any product and services of any company can not succeed until the company is not worried about the living system of the customer. Acumen Fund Measurement In Impact Investing B is taking procedures to meet its objectives as the world remains in search of healthy and yummy food.

Technological.

In the development of company, tactical steps are somewhat necessary. Acumen Fund Measurement In Impact Investing B is among the top well-known multinational company and by time it buys various departments to take its items to new level. Acumen Fund Measurement In Impact Investing B is investing more on its R&D to make its items much healthier and nutritious providing customers with health benefits.

Legal.

There is no such impact of legal aspects of Acumen Fund Measurement In Impact Investing B as it is more concerned over its laws and policies.

Environmental

Acumen Fund Measurement In Impact Investing B, in regards to ecological impact is dedicated to operate in environment-friendly environment with preservation of the natural deposits and energy. If the resources utilized are recyclable or not, as due to the production of larger number of products there might be a hazard.

Competitive Forces Analysis (Porter's 5 Forces Model).

Acumen Fund Measurement In Impact Investing B Case Study Analysis has actually acquired a variety of companies that helped it in diversification and growth of its item's profile. This is the comprehensive description of the Porter's design of five forces of Acumen Fund Measurement In Impact Investing B Business, given in Exhibition B.

Competitiveness.

Acumen Fund Measurement In Impact Investing B is one of the leading business in this competitive market with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Acumen Fund Measurement In Impact Investing B is running well in this race for last 150 years. The competitors of other business with Acumen Fund Measurement In Impact Investing B is rather high.
Vrio Analysis
Threat of New Entrants.

A variety of barriers are there for the brand-new entrants to take place in the customer food market. Just a couple of entrants be successful in this industry as there is a requirement to understand the customer need which needs time while current rivals are well aware and has advanced with the consumer commitment over their items with time. There is low threat of new entrants to Acumen Fund Measurement In Impact Investing B as it has quite large network of circulation worldwide dominating with well-reputed image.

Bargaining Power of Providers.

In the food and beverage industry, Acumen Fund Measurement In Impact Investing B owes the largest share of market needing greater number of supply chains. This triggers it to be an idyllic buyer for the providers. Any of the supplier has never expressed any grumble about cost and the bargaining power is also low. In response, Acumen Fund Measurement In Impact Investing B has actually also been worried for its suppliers as it thinks in long-term relations.

Bargaining Power of Purchasers.

There is high bargaining power of the buyers due to excellent competition. Changing cost is quite low for the consumers as many business sale a number of comparable items. This seems to be a fantastic hazard for any company. Thus, Acumen Fund Measurement In Impact Investing B Case Study Help ensures to keep its clients pleased. This has actually led Acumen Fund Measurement In Impact Investing B to be one of the devoted company in eyes of its purchasers.

Threat of Alternatives.

There has actually been a great risk of alternatives as there are substitutes of a few of the Nestlé's items such as boiled water and pasteurized milk. There has actually likewise been a claim that a few of its products are not safe to utilize resulting in the decreased sale. Hence, Acumen Fund Measurement In Impact Investing B started highlighting the health advantages of its items to cope up with the substitutes.

Competitor Analysis.

It has actually become the second biggest food and beverage market in the West Europe with a market share of about 8.6% with just a difference of 0.3 points with Acumen Fund Measurement In Impact Investing B. Acumen Fund Measurement In Impact Investing B draws in local customers by its low expense of the item with the regional taste of the items preserving its very first location in the global market. Acumen Fund Measurement In Impact Investing B Case Study Help company has about 280,000 staff members and functions in more than 197 nations edging its competitors in numerous regions.

Keep in mind: A quick comparison of Acumen Fund Measurement In Impact Investing B with its close competitors is given up Exhibit C.

SWOT Analysis.

The internal analysis and external of the business likewise can be done through SWOT Analysis, summed up in the Exhibition F.

Strengths.

• Acumen Fund Measurement In Impact Investing B has an experience of about 140 years, enabling company to much better perform, in different scenarios.
• Nestlé's has existence in about 86 countries, making it a worldwide leader in Food and Drink Market.
• Acumen Fund Measurement In Impact Investing B has more than 2000 brand names, which increase the circle of its target consumers. These brand names consist of infant foods, animal food, confectionary products, drinks and so on. Famous brand names of Acumen Fund Measurement In Impact Investing B include; Maggi, Kit-Kat, Nescafe, etc.
• Acumen Fund Measurement In Impact Investing B Case Study Solution has big amount of spending on R&D as compare to its competitors, making the business to introduce more healthy and innovative items. This development provides the business a high competitive position in long term.
• After adopting its NHW Technique, the company has actually done large amount of mergers and acquisitions which increase the sales development and improve market position of Acumen Fund Measurement In Impact Investing B.
• Acumen Fund Measurement In Impact Investing B is a well-known brand name with high consumer's loyalty and brand recall. This brand loyalty of customers increases the opportunities of simple market adoption of different new brands of Acumen Fund Measurement In Impact Investing B.
Weaknesses.
• Acquisitions of those business, like; Kraft frozen Pizza organisation can provide a negative signal to Acumen Fund Measurement In Impact Investing B clients about their compromise over their core competency of healthier foods.
• The growth I sales as compare to the company's financial investment in NHW Method are rather different. It will take long to change the understanding of individuals ab out Acumen Fund Measurement In Impact Investing B as a business selling healthy and nutritious items.

Opportunities.

• Introducing more health related items makes it possible for the business to catch the market in which customers are rather mindful about health.
• Developing countries like India and China has largest markets worldwide. Broadening the market towards establishing nations can increase the Acumen Fund Measurement In Impact Investing B organisation by increasing sales volume.
• Continue acquisitions and joint endeavors increases the marketplace share of the company.
• Increased relationships with schools, hotel chains, dining establishments etc. can also increase the variety of Acumen Fund Measurement In Impact Investing B Case Study Analysis consumers. For instance, instructors can suggest their students to buy Acumen Fund Measurement In Impact Investing B items.

Threats.

• Economic instability in countries, which are the possible markets for Acumen Fund Measurement In Impact Investing B, can produce several issues for Acumen Fund Measurement In Impact Investing B.
• Shifting of items from normal to much healthier, leads to additional expenses and can result in decline business's revenue margins.
• As Acumen Fund Measurement In Impact Investing B has an intricate supply chain, for that reason failure of any of the level of supply chain can lead the company to deal with certain issues.

Segmentation Analysis

Demographic Segmentation

The group division of Acumen Fund Measurement In Impact Investing B Case Study Help is based on four factors; age, profession, gender and income. Acumen Fund Measurement In Impact Investing B produces numerous products related to children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. Acumen Fund Measurement In Impact Investing B items are rather inexpensive by practically all levels, however its major targeted clients, in regards to earnings level are upper and middle middle level clients.

Geographical Segmentation

Geographical segmentation of Acumen Fund Measurement In Impact Investing B Case Study Analysis is composed of its presence in almost 86 nations. Its geographical division is based upon two main aspects i.e. typical income level of the customer as well as the climate of the area. For example, Singapore Acumen Fund Measurement In Impact Investing B Business's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Division

Psychographic segmentation of Acumen Fund Measurement In Impact Investing B is based upon the character and life style of the customer. For instance, Acumen Fund Measurement In Impact Investing B 3 in 1 Coffee target those consumers whose life style is quite hectic and do not have much time.

Behavioral Division

Acumen Fund Measurement In Impact Investing B Case Help behavioral segmentation is based upon the attitude knowledge and awareness of the customer. For instance its extremely healthy products target those consumers who have a health mindful attitude towards their intakes.

VRIO Analysis

The VRIO analysis of Acumen Fund Measurement In Impact Investing B Business is a broad range analysis supplying the company with a chance to obtain a feasible competitive advantage versus its competitors in the food and drink market, summed up in Exhibition I.

Belongings

The resources utilized by the Acumen Fund Measurement In Impact Investing B company are important for the company or not. Such as the resources like financing, personnels, management of operations and experts in marketing. This are some of the essential valuable factors of for the recognition of competitive benefit.

Unusual

The valuable resources used by Acumen Fund Measurement In Impact Investing B are pricey or even unusual. If these resources are frequently discovered that it would be much easier for the rivals and the brand-new competitors in the industry to effortlessly move in competitors.

Imitation

The replica process is pricey for the competitors of Acumen Fund Measurement In Impact Investing B Case Solution Business. Nevertheless, it can be done only in 2 various methods i.e. item duplication which is produced and made by Acumen Fund Measurement In Impact Investing B Company and introducing of the alternative of the products with switching expense. This increases the danger of interruption to the recent structure of the industry.

Company

This part of VRIO analysis deals with the compatibility of the company to position in the market making efficient use of its valuable resources which are tough to imitate. Frequently, the development of management is completely based on the firm's execution strategy and team. Therefore, this polishes the abilities of the company by time based on the decisions made by company for the development of its tactical capitals.

Quantitative Analysis

R&D Costs as a portion of sales are decreasing with increasing actual amount of costs reveals that the sales are increasing at a higher rate than its R&D costs, and enable the company to more invest in R&D.

Net Profit Margin is increasing while R&D as a percentage of sales is declining. This sign likewise shows a green light to the R&D spending, acquisitions and mergers.

Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing financial obligation ratio pose a threat of default of Acumen Fund Measurement In Impact Investing B to its financiers and could lead a declining share rates. In terms of increasing financial obligation ratio, the firm should not spend much on R&D and needs to pay its existing financial obligations to decrease the threat for investors.

The increasing risk of investors with increasing financial obligation ratio and decreasing share prices can be observed by substantial decline of EPS of Acumen Fund Measurement In Impact Investing B Case Help stocks.

The sales growth of company is also low as compare to its acquisitions and mergers due to slow understanding structure of consumers. This slow development also impede business to further invest in its acquisitions and mergers.( Acumen Fund Measurement In Impact Investing B, Acumen Fund Measurement In Impact Investing B Financial Reports, 2006-2010).

Keep in mind: All the above analysis is done on the basis of calculations and Charts given in the Displays D and E.

TWOS Analysis.

2 analysis can be utilized to obtain various strategies based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Exhibit H.

Methods to exploit Opportunities using Strengths.

Acumen Fund Measurement In Impact Investing B Case Analysis ought to present more innovative items by large amount of R&D Spending and acquisitions and mergers. It might increase the market share of Acumen Fund Measurement In Impact Investing B and increase the earnings margins for the business. It might likewise offer Acumen Fund Measurement In Impact Investing B a long term competitive advantage over its competitors.

The worldwide expansion of Acumen Fund Measurement In Impact Investing B should be concentrated on market capturing of establishing countries by growth, bring in more customers through consumer's loyalty. As establishing countries are more populous than developed countries, it might increase the client circle of Acumen Fund Measurement In Impact Investing B.

Strategies to Overcome Weaknesses to Exploit Opportunities.

Acumen Fund Measurement In Impact Investing B Case Solution should do careful acquisition and merger of companies, as it might impact the consumer's and society's perceptions about Acumen Fund Measurement In Impact Investing B. It needs to combine and obtain with those business which have a market credibility of healthy and nutritious companies. It would improve the understandings of customers about Acumen Fund Measurement In Impact Investing B.

Acumen Fund Measurement In Impact Investing B ought to not only spend its R&D on development, rather than it ought to also focus on the R&D costs over examination of cost of numerous healthy products. This would increase expense performance of its products, which will result in increasing its sales, due to declining rates, and margins.

Strategies to utilize strengths to overcome hazards.

Acumen Fund Measurement In Impact Investing B needs to move to not just developing but likewise to developed countries. It should widen its circle to numerous countries like Unilever which runs in about 170 plus countries.

Methods to overcome weaknesses to prevent hazards.

Acumen Fund Measurement In Impact Investing B must wisely control its acquisitions to prevent the threat of mistaken belief from the consumers about Acumen Fund Measurement In Impact Investing B. It ought to obtain and combine with those countries having a goodwill of being a healthy company in the market. This would not only enhance the perception of customers about Acumen Fund Measurement In Impact Investing B but would also increase the sales, profit margins and market share of Acumen Fund Measurement In Impact Investing B. It would likewise enable the company to use its potential resources effectively on its other operations instead of acquisitions of those companies slowing the NHW strategy growth.

Alternatives.

In order to sustain the brand in the market and keep the consumer undamaged with the brand name, there are two options:.

Option: 1.

The Company must invest more on acquisitions than on the R&D.

Pros:.

1. Acquisitions would increase total possessions of the company, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The business can resell the obtained systems in the market, if it stops working to execute its technique. Quantity invest on the R&D could not be restored, and it will be considered entirely sunk expense, if it do not provide potential outcomes.
3. Spending on R&D provide sluggish growth in sales, as it takes long period of time to present an item. However, acquisitions supply fast results, as it offer the business currently developed product, which can be marketed not long after the acquisition.

Cons:.

1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the business to face misunderstanding of consumers about Acumen Fund Measurement In Impact Investing B core values of healthy and healthy products.
2. Large spending on acquisitions than R&D would send out a signal of company's ineffectiveness of establishing ingenious items, and would results in consumer's discontentment.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are already present in the market, making business not able to present brand-new ingenious products.

Option: 2

The Business needs to invest more on its R&D instead of acquisitions.

Pros:

1. It would enable the company to produce more ingenious products.
2. It would supply the company a strong competitive position in the market.
3. It would enable the company to increase its targeted consumers by presenting those items which can be provided to a completely new market section.
4. Innovative items will offer long term benefits and high market share in long run.

Cons:

1. It would decrease the earnings margins of the company.
2. In case of failure, the whole spending on R&D would be considered as sunk expense, and would impact the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which could provide an unfavorable signal to the financiers, and could result I declining stock costs.

Alternative 3:

Continue its acquisitions and mergers with substantial costs on in R&D Program.

Pros:

1. It would permit the business to present brand-new innovative products with less danger of transforming the costs on R&D into sunk expense.
2. It would supply a positive signal to the investors, as the general properties of the business would increase with its significant R&D spending.
3. It would not impact the revenue margins of the business at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in regards to the company's general wealth in addition to in terms of ingenious products.

Cons:

1. Threat of conversion of R&D spending into sunk cost, greater than alternative 1 lower than alternative 2.
2. Danger of misunderstanding about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less variety of ingenious products than alternative 2 and high number of innovative items than alternative 1.

Suggestion

With the deep analysis of the above options, it is recommended that the business must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just present brand-new and ingenious items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share prices also, as investors are willing to invest more in companies with substantial R&D costs and boost in the total worth of the company.

Action and application Method

Method can be carried out successfully by developing certain short-term as well as long term plans. These strategies might be as follows;

Short Term Plan (0-1 year).

• Under the short term plan Acumen Fund Measurement In Impact Investing B Case Help must perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which generate most of its earnings.
• Evaluate the present target market as well as the marketplace segment which is not include in the business's circle.
• Examine the existing monetary information to measure the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that just how much amount must be spent on R&D.

Mid Term Plan (1-5 years).

• Obtain those organizations in which the company has potential experience to deal with. Obtain most favorable companies with a strong commitment to health, to build the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Acumen Fund Measurement In Impact Investing B worths and vision and to avoid potential risk of sunk cost.

Long Term Plan (1-10 years).

• Get organizations with health as well as taste element, as the base for the Acumen Fund Measurement In Impact Investing B as a business producing healthy products has been developed under midterm strategy and now the company might move towards taste element too to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build new products.

Conclusion.
Recommendations
Acumen Fund Measurement In Impact Investing B Case Solution has developed considerable market share and brand name identity in the metropolitan markets, it is recommended that the company needs to focus on the rural locations in terms of developing brand name awareness, commitment, and equity, such can be done by producing a specific brand allowance strategy through trade marketing methods, that draw clear distinction in between Acumen Fund Measurement In Impact Investing B products and other rival products. This will enable the company to develop brand name equity for freshly presented and already produced items on a greater platform, making the efficient use of resources and brand image in the market.