Menu

Businesses For Sale By Briggs Capital 2010 Online Case Analysis

Home >> Accounting >> Businesses For Sale By Briggs Capital 2010

Businesses For Sale By Briggs Capital 2010 Case Study Solution and Analysis


Introduction

Businesses For Sale By Briggs Capital 2010 is currently one of the greatest food chains worldwide. It was established by Henri Businesses For Sale By Briggs Capital 2010 in 1866, a German Pharmacist who first released "Farine Lactee"; a mix of flour and milk to feed infants and reduce death rate.

Businesses For Sale By Briggs Capital 2010 is now a multinational company. Unlike other international business, it has senior executives from various nations and attempts to make decisions thinking about the entire world. Businesses For Sale By Briggs Capital 2010 Case Study Help presently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The purpose of Businesses For Sale By Briggs Capital 2010 Corporation is to boost the quality of life of people by playing its part and providing healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Nestlé's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. Businesses For Sale By Briggs Capital 2010 pictures to develop a trained labor force which would help the business to grow.

Objective.

Nestlé's objective is that as presently, it is the leading business in the food market, it thinks in 'Excellent Food, Good Life". Its objective is to provide its consumers with a variety of options that are healthy and finest in taste as well. It is focused on supplying the best food to its clients throughout the day and night.

Products.

Businesses For Sale By Briggs Capital 2010 has a large range of items that it provides to its customers. In 2011, Businesses For Sale By Briggs Capital 2010 was listed as the most rewarding company.

Goals and objectives.

• Remembering the vision and mission of the corporation, the company has laid down its objectives and goals. These goals and objectives are noted below.
• One goal of the business is to reach no land fill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the spin-offs. (Businesses For Sale By Briggs Capital 2010, aboutus, 2017).
• Another objective of Businesses For Sale By Briggs Capital 2010 is to waste minimum food during production. Frequently, the food produced is squandered even prior to it reaches the customers.
• Another thing that Businesses For Sale By Briggs Capital 2010 is dealing with is to improve its packaging in such a method that it would help it to reduce those problems and would likewise guarantee the delivery of high quality of its products to its clients.
• Meet global requirements of the environment.
• Develop a relationship based upon trust with its customers, business partners, staff members, and federal government.

Crucial Problems.

Recently, Businesses For Sale By Briggs Capital 2010 Case Study Solution Business is focusing more towards the strategy 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 method. The target of the company is not achieved as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H.

Situational Analysis.

Analysis of Present Strategy, Vision and Goals.

The current Businesses For Sale By Briggs Capital 2010 method is based upon the idea of Nutritious, Health and Health (NHW). This method handles the idea to bringing modification in the client preferences about food and making the food stuff healthier worrying about the health problems.

The vision of this method is based upon the key approach i.e. 60/40+ which just indicates that the items will have a rating of 60% on the basis of taste and 40% is based on its dietary worth. The items will be manufactured with extra dietary value in contrast to all other items in market gaining it a plus on its nutritional material.

This technique was adopted to bring more delicious plus nutritious foods and beverages in market than ever. In competitors with other business, with an objective of keeping its trust over customers as Businesses For Sale By Briggs Capital 2010 Company has actually gained more relied on by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis used to measure the position of business in the market is done by using PESTLE analysis, given in Exhibit A. Businesses For Sale By Briggs Capital 2010 works under the policies and guidelines directed by federal government and food authority. The business is more focused on its product or services to ensure about the item quality and security. This analysis will assist in understanding environment of external market in the worldwide food and drink industries. (Parera, 2017).

Political.

Businesses For Sale By Briggs Capital 2010 is greatly supported by Government to meet all the requirements of requirements like acts of health and safety. In efforts to produce good food, Businesses For Sale By Briggs Capital 2010 Case Study Solution is altering the standards of food and drink production.

Economic.

Initiation of the business where the capital income of each individual matters for the increased net sale as this varies country-to-country. The economy of the Businesses For Sale By Briggs Capital 2010 Business in U.S. is growing year by year with variable products launch specifically concentrating on the dietary food for infants.

Social.

The social environment keeps changing with respect to time like the mindset of the customer in addition to their way of lives. Any product or service of any company can not achieve success up until the business is not worried about the living system of the consumer. Businesses For Sale By Briggs Capital 2010 is taking measures to fulfill its objectives as the world is in search of delicious and healthy food.

Technological.

In the advancement of company, strategic steps are rather necessary. Businesses For Sale By Briggs Capital 2010 is one of the top famous international firm and by time it purchases various departments to take its items to new level. Businesses For Sale By Briggs Capital 2010 is spending more on its R&D to make its products much healthier and nutritious offering customers with health advantages.

Legal.

There is no such effect of legal elements of Businesses For Sale By Briggs Capital 2010 as it is more worried over its guidelines and laws.

Environmental

Businesses For Sale By Briggs Capital 2010, in terms of ecological effect is devoted to work in environmentally friendly environment with preservation of the natural deposits and energy. If the resources utilized are recyclable or not, as due to the production of bigger number of products there might be a danger.

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

Businesses For Sale By Briggs Capital 2010 Case Study Help has obtained a number of companies that helped it in diversity and growth of its product's profile. This is the detailed explanation of the Porter's model of 5 forces of Businesses For Sale By Briggs Capital 2010 Business, given in Exhibit B.

Competitiveness.

Businesses For Sale By Briggs Capital 2010 is one of the leading company in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Businesses For Sale By Briggs Capital 2010 is running well in this race for last 150 years. The competitors of other companies with Businesses For Sale By Briggs Capital 2010 is quite high.

Threat of New Entrants.

A variety of barriers are there for the new entrants to take place in the consumer food market. Just a few entrants be successful in this industry as there is a need to comprehend the consumer need which needs time while current rivals are well aware and has progressed with the consumer loyalty over their items with time. There is low danger of brand-new entrants to Businesses For Sale By Briggs Capital 2010 as it has quite large network of distribution globally controling with well-reputed image.

Bargaining Power of Providers.

In the food and drink market, Businesses For Sale By Briggs Capital 2010 Case Study Analysis owes the largest share of market needing greater number of supply chains. In action, Businesses For Sale By Briggs Capital 2010 has also been worried for its suppliers as it thinks in long-lasting relations.

Bargaining Power of Buyers.

Thus, Businesses For Sale By Briggs Capital 2010 makes sure to keep its customers pleased. This has led Businesses For Sale By Briggs Capital 2010 to be one of the devoted company in eyes of its purchasers.

Risk of Substitutes.

There has actually been a great danger of alternatives as there are substitutes of some of the Nestlé's products such as boiled water and pasteurized milk. There has actually likewise been a claim that a few of its products are not safe to use resulting in the decreased sale. Therefore, Businesses For Sale By Briggs Capital 2010 began highlighting the health benefits of its products to cope up with the replacements.

Rival Analysis.

Businesses For Sale By Briggs Capital 2010 Case Study Solution covers a lot of the popular customer brands like Package Kat and Nescafe etc. About 29 brand names amongst all of its brands, each brand name made a revenue of about $1billion in 2010. Its huge part of sale is in The United States and Canada making up about 42% of its all sales. In Europe and U.S. the leading major brand names offered by Businesses For Sale By Briggs Capital 2010 in these states have a fantastic credible share of market. Similarly Businesses For Sale By Briggs Capital 2010, Unilever and DANONE are 2 large markets of food and drinks along with its primary competitors. In the year 2010, Businesses For Sale By Briggs Capital 2010 had actually made its annual profit by 26% increase since of its increased food and drinks sale specifically in cooking things, ice-cream, drinks based upon tea, and frozen food. On the other hand, DANONE, due to the increasing costs of shares resulting an increase of 38% in its revenues. Businesses For Sale By Briggs Capital 2010 Case Study Help lowered its sales expense by the adaptation of a brand-new accounting treatment. Unilever has number of workers about 230,000 and functions in more than 160 nations and its London headquarter. It has ended up being the second biggest food and beverage market in the West Europe with a market share of about 8.6% with just a distinction of 0.3 points with Businesses For Sale By Briggs Capital 2010. Unilever shares a market share of about 7.7 with Businesses For Sale By Briggs Capital 2010 ending up being very first and ranking DANONE as third. Businesses For Sale By Briggs Capital 2010 attracts local clients by its low cost of the item with the regional taste of the products keeping its first place in the international market. Businesses For Sale By Briggs Capital 2010 company has about 280,000 staff members and functions in more than 197 nations edging its rivals in many areas. Businesses For Sale By Briggs Capital 2010 has also minimized its expense of supply by introducing E-marketing in contrast to its rivals.

Keep in mind: A brief contrast of Businesses For Sale By Briggs Capital 2010 with its close rivals is given in Exhibition C.

SWOT Analysis.

The internal analysis and external of the business also can be done through SWOT Analysis, summarized in the Display F.

Strengths.

• Businesses For Sale By Briggs Capital 2010 has an experience of about 140 years, allowing business to better carry out, in different circumstances.
• Nestlé's has existence in about 86 countries, making it a worldwide leader in Food and Drink Market.
• Businesses For Sale By Briggs Capital 2010 has more than 2000 brands, which increase the circle of its target consumers. Famous brands of Businesses For Sale By Briggs Capital 2010 include; Maggi, Kit-Kat, Nescafe, and so on
• Businesses For Sale By Briggs Capital 2010 Case Study Help has large big quantity spending costs R&D as compare to its competitorsRivals making the company business launch introduce nutritious and innovative healthy.
• After embracing its NHW Method, the company has actually done big amount of mergers and acquisitions which increase the sales development and improve market position of Businesses For Sale By Briggs Capital 2010.
• Businesses For Sale By Briggs Capital 2010 is a widely known brand name with high customer's loyalty and brand name recall. This brand loyalty of customers increases the possibilities of simple market adoption of numerous brand-new brands of Businesses For Sale By Briggs Capital 2010.
Weak points.
• Acquisitions of those service, like; Kraft frozen Pizza company can give an unfavorable signal to Businesses For Sale By Briggs Capital 2010 consumers about their compromise over their core proficiency of much healthier foods.
• The growth I sales as compare to the company's financial investment in NHW Method are quite different. It will take long to change the understanding of individuals ab out Businesses For Sale By Briggs Capital 2010 as a business selling healthy and nutritious products.

Opportunities.

• Introducing more health related items enables the company to catch the market in which consumers are quite mindful about health.
• Developing countries like India and China has largest markets worldwide. Expanding the market towards establishing countries can improve the Businesses For Sale By Briggs Capital 2010 service by increasing sales volume.
• Continue acquisitions and joint ventures increases the market share of the business.
• Increased relationships with schools, hotel chains, dining establishments and so on can also increase the number of Businesses For Sale By Briggs Capital 2010 Case Study Analysis customers. For example, teachers can recommend their students to buy Businesses For Sale By Briggs Capital 2010 items.

Hazards.

• Financial instability in nations, which are the possible markets for Businesses For Sale By Briggs Capital 2010, can create numerous issues for Businesses For Sale By Briggs Capital 2010.
• Shifting of items from regular to much healthier, causes additional expenses and can result in decline business's earnings margins.
• As Businesses For Sale By Briggs Capital 2010 has a complicated supply chain, therefore failure of any of the level of supply chain can lead the business to deal with certain issues.

Segmentation Analysis

Group Segmentation

The market segmentation of Businesses For Sale By Briggs Capital 2010 Case Study Help is based upon four elements; age, gender, occupation and income. For example, Businesses For Sale By Briggs Capital 2010 produces a number of items associated with children i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. Businesses For Sale By Briggs Capital 2010 products are rather budget-friendly by almost all levels, but its significant targeted consumers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Businesses For Sale By Briggs Capital 2010 Case Study Solution is made up of its existence in nearly 86 countries. Its geographical segmentation is based upon two main factors i.e. average earnings level of the consumer as well as the environment of the area. For example, Singapore Businesses For Sale By Briggs Capital 2010 Company's division is done on the basis of the weather condition of the region i.e. hot, cold or warm.

Psychographic Segmentation

Psychographic division of Businesses For Sale By Briggs Capital 2010 is based upon the character and life style of the client. Businesses For Sale By Briggs Capital 2010 3 in 1 Coffee target those clients whose life style is quite hectic and don't have much time.

Behavioral Segmentation

Businesses For Sale By Briggs Capital 2010 Case Help behavioral segmentation is based upon the mindset knowledge and awareness of the client. Its extremely healthy items target those customers who have a health conscious mindset towards their intakes.

VRIO Analysis

The VRIO analysis of Businesses For Sale By Briggs Capital 2010 Business is a broad variety analysis providing the organization with a possibility to acquire a practical competitive advantage versus its rivals in the food and beverage market, summed up in Exhibit I.

Belongings

The resources used by the Businesses For Sale By Briggs Capital 2010 company are valuable for the company or not. Such as the resources like financing, personnels, management of operations and professionals in marketing. This are a few of the key important elements of for the identification of competitive advantage.

Uncommon

The valuable resources used by Businesses For Sale By Briggs Capital 2010 are even unusual or pricey. , if these resources are commonly discovered that it would be easier for the competitors and the brand-new rivals in the market to easily move in competitors.

Imitation

The replica process is costly for the competitors of Businesses For Sale By Briggs Capital 2010 Case Analysis Business. Nevertheless, it can be done just in two different methods i.e. item duplication which is produced and manufactured by Businesses For Sale By Briggs Capital 2010 Business and introducing of the substitute of the items with switching cost. This increases the danger of disruption to the recent structure of the market.

Organization

This part of VRIO analysis handle the compatibility of the business to position in the market making efficient use of its valuable resources which are hard to imitate. Regularly, the development of management is totally based on the firm's execution technique and group. Thus, this polishes the skills of the firm by time based upon the choices made by firm for the progression of its strategic capitals.

Quantitative Analysis

R&D Spending as a portion of sales are declining with increasing actual amount of spending shows that the sales are increasing at a greater rate than its R&D costs, and permit the company to more invest in R&D.

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

Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing debt ratio posture a risk of default of Businesses For Sale By Briggs Capital 2010 to its financiers and could lead a declining share costs. In terms of increasing debt ratio, the company needs to not spend much on R&D and needs to pay its present financial obligations to decrease the danger for investors.

The increasing danger of investors with increasing debt ratio and decreasing share rates can be observed by huge decrease of EPS of Businesses For Sale By Briggs Capital 2010 Case Solution stocks.

The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish growth also hinder business to further invest in its acquisitions and mergers.( Businesses For Sale By Briggs Capital 2010, Businesses For Sale By Briggs Capital 2010 Financial Reports, 2006-2010).

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

TWOS Analysis.

2 analysis can be used to derive different strategies based on the SWOT Analysis provided above. A brief summary of TWOS Analysis is given in Exhibit H.

Techniques to make use of Opportunities utilizing Strengths.

Businesses For Sale By Briggs Capital 2010 Case Help needs to introduce more innovative items by big quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Businesses For Sale By Briggs Capital 2010 and increase the earnings margins for the business. It might also provide Businesses For Sale By Briggs Capital 2010 a long term competitive advantage over its rivals.

The global expansion of Businesses For Sale By Briggs Capital 2010 should be concentrated on market recording of developing nations by growth, drawing in more consumers through client's loyalty. As developing countries are more populated than developed nations, it could increase the client circle of Businesses For Sale By Briggs Capital 2010.

Methods to Conquer Weak Points to Exploit Opportunities.

Businesses For Sale By Briggs Capital 2010 Case Analysis needs to do mindful acquisition and merger of organizations, as it might affect the consumer's and society's understandings about Businesses For Sale By Briggs Capital 2010. It should obtain and merge with those companies which have a market reputation of healthy and healthy companies. It would improve the understandings of consumers about Businesses For Sale By Briggs Capital 2010.

Businesses For Sale By Briggs Capital 2010 ought to not just invest its R&D on innovation, instead of it needs to likewise focus on the R&D spending over evaluation of cost of numerous nutritious products. This would increase cost effectiveness of its products, which will lead to increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome hazards.

Businesses For Sale By Briggs Capital 2010 Case Help ought to move to not only developing but likewise to industrialized nations. It should expands its geographical expansion. This wide geographical expansion towards establishing and developed countries would decrease the threat of potential losses in times of instability in various nations. It needs to widen its circle to numerous countries like Unilever which operates in about 170 plus nations.

Methods to conquer weaknesses to avoid dangers.

Businesses For Sale By Briggs Capital 2010 Case Analysis ought to wisely control its acquisitions to avoid the risk of misunderstanding from the consumers about Businesses For Sale By Briggs Capital 2010. This would not just enhance the perception of customers about Businesses For Sale By Briggs Capital 2010 however would likewise increase the sales, profit margins and market share of Businesses For Sale By Briggs Capital 2010.

Alternatives.

In order to sustain the brand in the market and keep the consumer undamaged with the brand, there are 2 choices:.

Alternative: 1.

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

Pros:.

1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Costs on R&D would be sunk expense.
2. The company can resell the obtained units in the market, if it fails to implement its method. Amount invest on the R&D could not be restored, and it will be thought about totally sunk cost, if it do not give prospective results.
3. Investing in R&D offer sluggish development in sales, as it takes long period of time to introduce an item. Nevertheless, acquisitions provide fast results, as it offer the company currently established item, which can be marketed not long after the acquisition.

Cons:.

1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the business to face misconception of consumers about Businesses For Sale By Briggs Capital 2010 core worths of healthy and healthy items.
2. Big spending on acquisitions than R&D would send a signal of company's inefficiency of developing innovative items, and would outcomes in customer's dissatisfaction.
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 company unable to present brand-new ingenious products.

Alternative: 2

The Company must spend more on its R&D rather than acquisitions.

Pros:

1. It would make it possible for the company to produce more innovative items.
2. It would supply the business a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by introducing those items which can be used to a completely new market sector.
4. Ingenious products will supply long term advantages and high market share in long run.

Cons:

1. It would decrease the profit margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk cost, and would affect the business at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could offer an unfavorable signal to the investors, and could result I decreasing stock prices.

Alternative 3:

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

Pros:

1. It would permit the business to introduce brand-new innovative items with less danger of converting the spending on R&D into sunk cost.
2. It would provide a positive signal to the investors, as the general assets of the company would increase with its significant R&D spending.
3. It would not affect the revenue margins of the company at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in terms of the company's total wealth along with in terms of innovative items.

Cons:

1. Risk of conversion of R&D spending into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative products than alternative 2 and high variety of ingenious products than alternative 1.

Recommendation

With the deep analysis of the above options, it is advised that the business ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just present innovative and new products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share costs also, as financiers are willing to invest more in business with significant R&D spending and increase in the overall worth of the business.

Action and application Technique

Method can be executed effectively by establishing certain short term as well as long term plans. These plans could be as follows;

Short-term Strategy (0-1 year).

• Under the short-term plan Businesses For Sale By Briggs Capital 2010 Case Analysis ought to perform numerous activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce the majority of its revenue.
• Examine the existing target market in addition to the marketplace section which is not consist of in the business's circle.
• Analyze the present monetary data to determine the quantity that must be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to understand that how much quantity needs to be invested in R&D.

Mid Term Strategy (1-5 years).

• Acquire those companies in which the business has possible experience to deal with. Obtain most beneficial companies with a strong dedication to health, to develop the consumer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Businesses For Sale By Briggs Capital 2010 worths and vision and to prevent possible threat of sunk cost.

Long Term Strategy (1-10 years).

• Acquire organizations with health as well as taste factor, as the base for the Businesses For Sale By Briggs Capital 2010 as a company producing healthy items has actually been built under midterm strategy and now the company might move towards taste element also to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.

Conclusion.

Businesses For Sale By Briggs Capital 2010 Case Help has actually established substantial market share and brand name identity in the city markets, it is advised that the business must focus on the rural locations in terms of establishing brand awareness, equity, and commitment, such can be done by developing a specific brand name allowance technique through trade marketing tactics, that draw clear distinction between Businesses For Sale By Briggs Capital 2010 products and other competitor products. This will enable the business to establish brand name equity for freshly presented and already produced products on a higher platform, making the reliable use of resources and brand image in the market.