Cambridge Nanotech Case Study Solution & Analysis
Cambridge Nanotech is presently one of the biggest food chains worldwide. It was founded by Henri Cambridge Nanotech in 1866, a German Pharmacist who initially launched "Farine Lactee"; a combination of flour and milk to feed infants and decrease death rate.
Cambridge Nanotech is now a multinational business. Unlike other multinational business, it has senior executives from various nations and tries to make choices considering the whole world. Cambridge Nanotech Case Study Solution presently has more than 500 factories worldwide and a network spread throughout 86 nations.
The purpose of Cambridge Nanotech Corporation is to improve the quality of life of individuals by playing its part and offering healthy food. While making sure that the business is succeeding in the long run, that's how it plays its part for a better and healthy future
Nestlé's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. Cambridge Nanotech pictures to develop a well-trained labor force which would help the company to grow.
Nestlé's objective is that as currently, it is the leading business in the food market, it thinks in 'Good Food, Excellent Life". Its mission is to offer its customers with a range of choices that are healthy and best in taste also. It is concentrated on offering the very best food to its customers throughout the day and night.
Cambridge Nanotech Case Study Solution has a wide range of products that it offers to its consumers. Its products include food for infants, cereals, dairy products, snacks, chocolates, food for animal and bottled water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 employees. In 2011, Cambridge Nanotech was noted as the most rewarding company.
Goals and Objectives.
• Bearing in mind the vision and objective of the corporation, the company has laid down its goals and goals. These goals and goals are listed below.
• One goal of the company is to reach absolutely no land fill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the spin-offs. (Cambridge Nanotech, aboutus, 2017).
• Another goal of Cambridge Nanotech is to lose minimum food during production. Usually, the food produced is squandered even before it reaches the consumers.
• Another thing that Cambridge Nanotech is dealing with is to improve its product packaging in such a way that it would assist it to decrease those issues and would likewise guarantee the shipment of high quality of its products to its clients.
• Meet global standards of the environment.
• Build a relationship based on trust with its customers, business partners, staff members, and government.
Just Recently, Cambridge Nanotech Case Study Analysis Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. The target of the company is not attained as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H.
Analysis of Present Method, Vision and Goals.
The existing Cambridge Nanotech strategy is based on the concept of Nutritious, Health and Health (NHW). This method handles the idea to bringing change in the customer preferences about food and making the food stuff much healthier worrying about the health concerns.
The vision of this technique is based on the secret technique i.e. 60/40+ which simply indicates that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary worth. The items will be made with additional nutritional worth in contrast to all other products in market gaining it a plus on its dietary content.
This method was adopted to bring more delicious plus healthy foods and beverages in market than ever. In competition with other business, with an intention of keeping its trust over consumers as Cambridge Nanotech Company has gotten more trusted by customers.
Microenvironment Analysis (PESTEL Analysis).
The analysis utilized to determine the position of company in the market is done by utilizing PESTLE analysis, given in Exhibition A. Cambridge Nanotech works under the rules and policies directed by federal government and food authority. The company is more focused on its items and services to make sure about the item quality and security.
Cambridge Nanotech is significantly supported by Government to fulfill all the criteria of requirements like acts of health and safety. In efforts to manufacture excellent food, Cambridge Nanotech Case Study Help is altering the standards of food and drink manufacturing.
Initiation of business where the capital income of each individual matters for the increased net sale as this varies country-to-country. The economy of the Cambridge Nanotech Business in U.S. is growing year by year with variable products launch especially concentrating on the dietary food for babies.
The social environment continues altering with regard to time like the attitude of the customer as well as their lifestyles. Any service or product of any business can not succeed till the business is not worried about the living system of the consumer. Cambridge Nanotech is taking procedures to satisfy its goals as the world remains in search of healthy and delicious food.
In the advancement of business, strategic procedures are rather mandatory. Cambridge Nanotech is one of the top famous multinational firm and by time it invests in various departments to take its products to new level. Cambridge Nanotech is investing more on its R&D to make its items much healthier and healthy providing consumers with health advantages.
There is no such effect of legal aspects of Cambridge Nanotech as it is more worried over its regulations and laws.
Cambridge Nanotech, in terms of ecological effect is dedicated to operate in eco-friendly environment with conservation of the natural resources and energy. If the resources utilized are recyclable or not, as due to the production of bigger number of items there might be a risk.
Competitive Forces Analysis (Porter's 5 Forces Model).
Cambridge Nanotech Case Study Analysis has actually obtained a number of business that helped it in diversification and growth of its product's profile. This is the thorough description of the Porter's design of five forces of Cambridge Nanotech Company, given up Exhibition B.
Cambridge Nanotech is one of the leading business in this competitive industry with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Cambridge Nanotech is running well in this race for last 150 years. The competitors of other companies with Cambridge Nanotech is rather high.
Threat of New Entrants.
A variety of barriers are there for the brand-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 customer requirement which requires time while recent competitors are well aware and has actually advanced with the consumer commitment over their products with time. There is low hazard of brand-new entrants to Cambridge Nanotech as it has rather big network of distribution globally controling with well-reputed image.
Bargaining Power of Suppliers.
In the food and drink industry, Cambridge Nanotech Case Study Solution owes the largest share of market requiring higher number of supply chains. In reaction, Cambridge Nanotech has also been worried for its providers as it thinks in long-term relations.
Bargaining Power of Buyers.
There is high bargaining power of the buyers due to terrific competition. Changing expense is rather low for the consumers as many companies sale a variety of comparable items. This seems to be a terrific risk for any business. Thus, Cambridge Nanotech Case Study Solution makes sure to keep its consumers pleased. This has actually led Cambridge Nanotech to be one of the faithful company in eyes of its purchasers.
Hazard of Alternatives.
There has actually been a terrific danger of substitutes as there are alternatives of a few of the Nestlé's products such as boiled water and pasteurized milk. There has likewise been a claim that a few of its items are not safe to use leading to the decreased sale. Hence, Cambridge Nanotech began highlighting the health advantages of its items to cope up with the alternatives.
It has actually ended up being the second largest 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 Cambridge Nanotech. Cambridge Nanotech draws in regional costumers by its low cost of the product with the regional taste of the products keeping its first location in the global market. Cambridge Nanotech Case Study Help company has about 280,000 workers and functions in more than 197 nations edging its rivals in numerous areas.
Note: A brief comparison of Cambridge Nanotech with its close competitors is given up Exhibit C.
The internal analysis and external of the business also can be done through SWOT Analysis, summed up in the Exhibit F.
• Cambridge Nanotech has an experience of about 140 years, making it possible for business to better carry out, in various scenarios.
• Nestlé's has existence in about 86 countries, making it an international leader in Food and Beverage Industry.
• Cambridge Nanotech has more than 2000 brand names, which increase the circle of its target consumers. Famous brands of Cambridge Nanotech consist of; Maggi, Kit-Kat, Nescafe, and so on
• Cambridge Nanotech Case Study Help has large amount of spending on R&D as compare to its competitors, making the company business launch introduce nutritious and innovative productsItems
• After embracing its NHW Technique, the company has done large amount of mergers and acquisitions which increase the sales growth and enhance market position of Cambridge Nanotech.
• Cambridge Nanotech is a well-known brand name with high consumer's loyalty and brand name recall. This brand name loyalty of customers increases the possibilities of simple market adoption of various new brands of Cambridge Nanotech.
• Acquisitions of those business, like; Kraft frozen Pizza organisation can offer a negative signal to Cambridge Nanotech clients about their compromise over their core proficiency of much healthier foods.
• The development I sales as compare to the company's financial investment in NHW Technique are quite various. It will take long to alter the understanding of people ab out Cambridge Nanotech as a company selling nutritious and healthy products.
• Introducing more health associated products allows the company to capture the market in which customers are quite conscious about health.
• Developing nations like India and China has biggest markets on the planet. Broadening the market towards establishing nations can improve the Cambridge Nanotech 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 etc. can likewise increase the variety of Cambridge Nanotech Case Study Solution consumers. Instructors can recommend their trainees to purchase Cambridge Nanotech items.
• Economic instability in nations, which are the possible markets for Cambridge Nanotech, can develop several problems for Cambridge Nanotech.
• Shifting of items from typical to healthier, causes additional expenses and can result in decrease company's revenue margins.
• As Cambridge Nanotech has a complicated supply chain, for that reason failure of any of the level of supply chain can lead the business to face particular issues.
The market segmentation of Cambridge Nanotech Case Study Help is based upon 4 aspects; age, occupation, income and gender. For example, Cambridge Nanotech produces a number of items connected to children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Cambridge Nanotech items are rather economical by practically all levels, however its major targeted customers, in regards to income level are upper and middle middle level clients.
Geographical division of Cambridge Nanotech Case Study Analysis is composed of its presence in almost 86 nations. Its geographical division is based upon two main elements i.e. average income level of the customer along with the climate of the region. For instance, Singapore Cambridge Nanotech Company's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.
Psychographic segmentation of Cambridge Nanotech is based upon the character and lifestyle of the consumer. Cambridge Nanotech 3 in 1 Coffee target those consumers whose life style is rather busy and do not have much time.
Cambridge Nanotech Case Solution behavioral division is based upon the attitude knowledge and awareness of the consumer. For example its highly healthy products target those consumers who have a health mindful mindset towards their consumptions.
The VRIO analysis of Cambridge Nanotech Company is a broad variety analysis providing the company with a possibility to get a feasible competitive advantage against its competitors in the food and drink industry, summed up in Display I.
The resources utilized by the Cambridge Nanotech business are important for the company or not. Such as the resources like financing, human resources, management of operations and experts in marketing. This are some of the key important elements of for the identification of competitive advantage.
The important resources used by Cambridge Nanotech are expensive or even unusual. , if these resources are commonly found that it would be simpler for the rivals and the brand-new rivals in the industry to easily move in competitors.
The imitation procedure is costly for the rivals of Cambridge Nanotech Case Solution Business. Nevertheless, it can be done just in two different techniques i.e. product duplication which is produced and produced by Cambridge Nanotech Business and launching of the alternative of the products with changing cost. This increases the danger of disturbance to the recent structure of the industry.
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 difficult to mimic. Often, the development of management is absolutely depending on the company's execution technique and group. Therefore, this polishes the skills of the company by time based on the choices made by firm for the development of its strategic capitals.
R&D Spending as a percentage of sales are decreasing with increasing real amount of spending shows that the sales are increasing at a higher rate than its R&D costs, and permit the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This indicator likewise shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing debt ratio pose a danger of default of Cambridge Nanotech to its investors and might lead a decreasing share costs. In terms of increasing financial obligation ratio, the firm should not spend much on R&D and must pay its present financial obligations to reduce the danger for investors.
The increasing threat of investors with increasing financial obligation ratio and declining share costs can be observed by huge decrease of EPS of Cambridge Nanotech Case Solution stocks.
The sales development of company is likewise low as compare to its acquisitions and mergers due to slow perception building of customers. This sluggish growth likewise hinder company to further invest in its mergers and acquisitions.( Cambridge Nanotech, Cambridge Nanotech Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Graphs given in the Exhibits D and E.
TWOS analysis can be utilized to derive various strategies based on the SWOT Analysis given above. A short summary of TWOS Analysis is given up Display H.
Techniques to make use of Opportunities using Strengths.
Cambridge Nanotech Case Help should present more innovative products by large amount of R&D Costs and acquisitions and mergers. It might increase the marketplace share of Cambridge Nanotech and increase the revenue margins for the business. It might likewise supply Cambridge Nanotech a long term competitive benefit over its competitors.
The global growth of Cambridge Nanotech must be focused on market capturing of establishing nations by growth, bring in more consumers through client's loyalty. As establishing countries are more populated than developed nations, it might increase the customer circle of Cambridge Nanotech.
Strategies to Overcome Weak Points to Exploit Opportunities.
Cambridge Nanotech Case Solution should do careful acquisition and merger of organizations, as it could affect the client's and society's perceptions about Cambridge Nanotech. It needs to combine and acquire with those business which have a market track record of nutritious and healthy companies. It would enhance the understandings of consumers about Cambridge Nanotech.
Cambridge Nanotech ought to not just spend its R&D on innovation, instead of it should also concentrate on the R&D spending over examination of expense of different nutritious products. This would increase cost performance of its items, which will result in increasing its sales, due to decreasing prices, and margins.
Strategies to utilize strengths to conquer hazards.
Cambridge Nanotech should move to not just establishing however likewise to developed nations. It needs to broaden its circle to different countries like Unilever which runs in about 170 plus nations.
Strategies to overcome weaknesses to prevent dangers.
Cambridge Nanotech Case Solution needs to sensibly control its acquisitions to prevent the risk of misconception from the consumers about Cambridge Nanotech. This would not only improve the understanding of consumers about Cambridge Nanotech however would likewise increase the sales, profit margins and market share of Cambridge Nanotech.
In order to sustain the brand name in the market and keep the customer intact with the brand, there are two alternatives:.
The Company ought to invest more on acquisitions than on the R&D.
1. Acquisitions would increase total possessions of the company, increasing the wealth of the business. However, spending on R&D would be sunk cost.
2. The company can resell the obtained units in the market, if it fails to execute its technique. Quantity invest on the R&D might not be revived, and it will be considered totally sunk cost, if it do not provide possible results.
3. Investing in R&D supply slow development in sales, as it takes long time to introduce an item. However, acquisitions offer quick outcomes, as it offer the business already established product, which can be marketed soon after the acquisition.
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 Cambridge Nanotech core values of healthy and nutritious items.
2. Big spending on acquisitions than R&D would send out a signal of company's ineffectiveness of establishing ingenious items, and would lead to consumer's dissatisfaction as well.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are currently present in the market, making business not able to introduce new ingenious products.
The Business needs to invest more on its R&D instead of acquisitions.
1. It would make it possible for the business to produce more innovative items.
2. It would supply the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those products which can be provided to an entirely new market section.
4. Innovative products will offer long term benefits and high market share in long term.
1. It would decrease the revenue margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk expense, and would affect the company at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which could offer a negative signal to the investors, and might result I declining stock prices.
Continue its acquisitions and mergers with considerable spending on in R&D Program.
1. It would enable the company to introduce brand-new innovative items with less danger of transforming the costs on R&D into sunk cost.
2. It would provide a favorable signal to the financiers, as the general assets of the company would increase with its significant R&D costs.
3. It would not affect the profit margins of the company at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the company's overall wealth along with in terms of innovative products.
1. Danger of conversion of R&D spending into sunk expense, greater than option 1 lesser than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less variety of ingenious items than alternative 2 and high variety of innovative items than alternative 1.
With the deep analysis of the above options, it is recommended that the business ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only present ingenious and brand-new items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates as well, as investors want to invest more in companies with significant R&D costs and increase in the overall worth of the company.
Action and execution Technique
Method can be executed efficiently by establishing particular short term along with long term strategies. These strategies could be as follows;
Short-term Strategy (0-1 year).
• Under the short-term strategy Cambridge Nanotech Case Help must perform different activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which produce the majority of its revenue.
• Analyze the existing target market in addition to the market segment which is not consist of in the business's circle.
• Evaluate the present financial information to measure the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that how much amount must be invested in R&D.
Mid Term Strategy (1-5 years).
• Get those companies in which the business has possible experience to deal with. Acquire most favorable companies with a strong commitment to health, to develop the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Cambridge Nanotech worths and vision and to avoid possible danger of sunk cost.
Long Term Strategy (1-10 years).
• Acquire organizations with health as well as taste element, as the base for the Cambridge Nanotech as a company producing healthy products has been developed under midterm plan and now the company might move towards taste factor also to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new products.
Cambridge Nanotech Case Analysis has developed significant market share and brand name identity in the urban markets, it is recommended that the company should focus on the rural locations in terms of developing brand equity, awareness, and commitment, such can be done by creating a particular brand allocation strategy through trade marketing techniques, that draw clear distinction in between Cambridge Nanotech items and other competitor products. This will enable the business to develop brand name equity for freshly introduced and already produced items on a higher platform, making the efficient usage of resources and brand image in the market.