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Cambridge Nanotech Case Study Solution and Analysis


Introduction

Cambridge Nanotech is currently one of the greatest food chains worldwide. It was established by Henri Cambridge Nanotech in 1866, a German Pharmacist who initially introduced "Farine Lactee"; a combination of flour and milk to reduce and feed infants mortality rate.

Cambridge Nanotech is now a transnational business. Unlike other international companies, it has senior executives from various countries and attempts to make decisions considering the entire world. Cambridge Nanotech Case Study Analysis currently has more than 500 factories around the world and a network spread across 86 countries.

Function

The purpose of Cambridge Nanotech Corporation is to enhance the quality of life of individuals by playing its part and supplying healthy food. It wishes to assist the world in forming a healthy and much better future for it. It also wants to motivate individuals to live a healthy life. While making sure that the company is being successful in the long run, that's how it plays its part for a better and healthy future

Vision

Nestlé's vision is to supply its clients with food that is healthy, high in quality and safe to consume. Cambridge Nanotech pictures to develop a trained labor force which would assist the business to grow.

Objective.

Nestlé's mission is that as currently, it is the leading company in the food industry, it believes in 'Excellent Food, Great Life". Its mission is to provide its customers with a variety of choices that are healthy and best in taste. It is concentrated on supplying the best food to its clients throughout the day and night.

Products.

Cambridge Nanotech Case Study Analysis has a wide range of items that it provides to its customers. Its items include food for babies, cereals, dairy items, snacks, chocolates, food for pet and mineral water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 staff members. In 2011, Cambridge Nanotech was listed as the most rewarding organization.

Goals and Objectives.

• Remembering the vision and mission of the corporation, the company has put down its goals and objectives. These goals and goals are listed below.
• One objective of the business is to reach zero garbage dump status. It is working toward zero waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the spin-offs. (Cambridge Nanotech, aboutus, 2017).
• Another goal of Cambridge Nanotech is to squander minimum food throughout production. Most often, the food produced is lost even before it reaches the consumers.
• Another thing that Cambridge Nanotech is dealing with is to enhance its product packaging in such a way that it would help it to minimize those complications and would likewise guarantee the delivery of high quality of its products to its clients.
• Meet international requirements of the environment.
• Build a relationship based on trust with its customers, company partners, employees, and government.

Important Issues.

Just Recently, Cambridge Nanotech Company 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 mergers and acquisitions to support its NHW strategy. The target of the business is not attained as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibition H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it might result in the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Existing Strategy, Vision and Goals.

The present Cambridge Nanotech method is based upon the idea of Nutritious, Health and Health (NHW). This method deals with the concept to bringing change in the client choices about food and making the food stuff healthier worrying about the health issues.

The vision of this technique is based on the key approach i.e. 60/40+ which merely means that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be manufactured with additional nutritional value in contrast to all other products in market getting it a plus on its nutritional material.

This method was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competitors with other business, with an intention of keeping its trust over customers as Cambridge Nanotech Company has actually gotten more relied on by clients.

Microenvironment Analysis (PESTEL Analysis).

The analysis used to measure the position of company in the market is done by using PESTLE analysis, given up Display A. Cambridge Nanotech works under the guidelines and policies directed by government and food authority. The company is more focused on its services and products to make sure about the product quality and safety. This analysis will help in understanding environment of external market in the global food and beverage markets. (Parera, 2017).

Political.

Cambridge Nanotech is greatly supported by Government to meet all the requirements of standards like acts of health and safety. In efforts to manufacture great food, Cambridge Nanotech Case Study Analysis is altering the requirements of food and drink production.

Economic.

Initiation of the business where the capital income of each specific matters for the increased net sale as this varies country-to-country. The economy of the Cambridge Nanotech Company in U.S. is growing year by year with variable products launch especially concentrating on the nutritional food for babies.

Social.

The social environment keeps on changing with respect to time like the attitude of the consumer along with their lifestyles. Any product or service of any business can not achieve success up until the company is not worried about the living system of the customer. Cambridge Nanotech is taking measures to satisfy its objectives as the world is in search of yummy and healthy food.

Technological.

In the advancement of service, strategic steps are somewhat mandatory. Cambridge Nanotech is one of the leading well-known multinational firm and by time it buys various departments to take its items to brand-new level. Cambridge Nanotech is spending more on its R&D to make its products healthier and healthy supplying consumers with health benefits.

Legal.

There is no such effect of legal elements of Cambridge Nanotech as it is more worried over its laws and regulations.

Environmental

Cambridge Nanotech, in regards to ecological impact is dedicated to work in environment-friendly environment with conservation of the natural deposits and energy. If the resources used are recyclable or not, as due to the manufacturing of larger number of items there may be a hazard.

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

Cambridge Nanotech Case Study Analysis has actually acquired a number of business that helped it in diversification and development of its product's profile. This is the detailed explanation of the Porter's model of five forces of Cambridge Nanotech Business, given in Exhibition B.

Competitiveness.

Cambridge Nanotech is one of the leading company in this competitive market 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 competition of other companies with Cambridge Nanotech is rather high.

Danger of New Entrants.

A number of barriers are there for the new entrants to occur in the consumer food industry. Just a few entrants prosper in this industry as there is a requirement to comprehend the consumer need which needs time while current competitors are aware and has actually advanced with the customer loyalty over their items with time. There is low danger of brand-new entrants to Cambridge Nanotech as it has rather big network of distribution globally controling with well-reputed image.

Bargaining Power of Providers.

In the food and beverage industry, Cambridge Nanotech Case Study Analysis owes the biggest share of market needing higher number of supply chains. In reaction, Cambridge Nanotech has actually also been concerned for its suppliers as it believes in long-term relations.

Bargaining Power of Purchasers.

Hence, Cambridge Nanotech makes sure to keep its consumers pleased. This has actually led Cambridge Nanotech to be one of the loyal company in eyes of its buyers.

Hazard of Alternatives.

There has actually been a great risk of substitutes as there are substitutes of some of the Nestlé's items such as boiled water and pasteurized milk. There has also been a claim that a few of its items are not safe to utilize leading to the reduced sale. Hence, Cambridge Nanotech began highlighting the health advantages of its products to cope up with the substitutes.

Competitor Analysis.

Cambridge Nanotech Case Study Analysis covers much of the popular customer brands like Kit Kat and Nescafe and so on. About 29 brand names among all of its brand names, each brand name earned an income of about $1billion in 2010. Its huge part of sale is in North America making up about 42% of its all sales. In Europe and U.S. the top major brands offered by Cambridge Nanotech in these states have a fantastic reputable share of market. Cambridge Nanotech, Unilever and DANONE are 2 large markets of food and drinks as well as its main rivals. In the year 2010, Cambridge Nanotech had actually made its annual earnings by 26% increase since of its increased food and drinks sale specifically in cooking things, ice-cream, beverages 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 earnings. Cambridge Nanotech Case Study Analysis lowered its sales expense by the adaptation of a brand-new accounting procedure. Unilever has variety of staff members about 230,000 and functions in more than 160 nations and its London headquarter too. It has actually ended up being the second largest food and drink market in the West Europe with a market share of about 8.6% with only a distinction of 0.3 points with Cambridge Nanotech. Unilever shares a market share of about 7.7 with Cambridge Nanotech becoming first and ranking DANONE as third. Cambridge Nanotech attracts regional customers by its low cost of the product with the local taste of the items maintaining its top place in the international market. Cambridge Nanotech business has about 280,000 staff members and functions in more than 197 nations edging its rivals in many regions. Cambridge Nanotech has likewise minimized its expense of supply by introducing E-marketing in contrast to its competitors.

Note: A short comparison of Cambridge Nanotech with its close competitors is given up Display C.

SWOT Analysis.

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

Strengths.

• Cambridge Nanotech has an experience of about 140 years, making it possible for business to much better perform, in various circumstances.
• Nestlé's has presence in about 86 countries, making it a global leader in Food and Drink Market.
• Cambridge Nanotech has more than 2000 brand names, which increase the circle of its target consumers. These brands include baby foods, family pet food, confectionary items, beverages and so on. 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 rivals, making the company to launch more healthy and ingenious items. This innovation supplies the company a high competitive position in long run.
• After adopting its NHW Method, the business has actually done big quantity of mergers and acquisitions which increase the sales development and enhance market position of Cambridge Nanotech.
• Cambridge Nanotech is a widely known brand name with high consumer's commitment and brand recall. This brand name commitment of consumers increases the chances of simple market adoption of various brand-new brand names of Cambridge Nanotech.
Weak points.
• Acquisitions of those business, like; Kraft frozen Pizza business can offer an unfavorable signal to Cambridge Nanotech consumers about their compromise over their core proficiency of much healthier foods.
• The development I sales as compare to the business's financial investment in NHW Method are quite different. It will take long to change the understanding of individuals ab out Cambridge Nanotech as a company offering healthy and nutritious items.

Opportunities.

• Presenting more health associated products allows the business to record the market in which consumers are rather conscious about health.
• Developing countries like India and China has largest markets in the world. Expanding the market towards establishing nations can enhance the Cambridge Nanotech 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 and so on can likewise increase the number of Cambridge Nanotech Case Study Help customers. For example, instructors can suggest their students to buy Cambridge Nanotech products.

Hazards.

• Financial instability in countries, which are the prospective markets for Cambridge Nanotech, can create numerous issues for Cambridge Nanotech.
• Shifting of items from typical to much healthier, results in extra expenses and can result in decline company's earnings margins.
• As Cambridge Nanotech has a complex supply chain, therefore failure of any of the level of supply chain can lead the company to deal with particular problems.

Segmentation Analysis

Demographic Segmentation

The market division of Cambridge Nanotech Case Study Help is based on four aspects; age, income, gender and occupation. Cambridge Nanotech produces a number of products related to infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary items. Cambridge Nanotech items are quite inexpensive by nearly all levels, but its significant targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Division

Geographical segmentation of Cambridge Nanotech Case Study Help is made up of its existence in nearly 86 nations. Its geographical segmentation is based upon 2 main aspects i.e. average income level of the customer in addition to the environment of the area. Singapore Cambridge Nanotech Business's segmentation is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Division

Psychographic division of Cambridge Nanotech is based upon the personality and lifestyle of the consumer. For example, Cambridge Nanotech 3 in 1 Coffee target those customers whose life style is rather hectic and do not have much time.

Behavioral Division

Cambridge Nanotech Case Analysis behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its extremely nutritious items target those clients who have a health mindful attitude towards their usages.

VRIO Analysis

The VRIO analysis of Cambridge Nanotech Company is a broad variety analysis supplying the organization with a possibility to acquire a feasible competitive advantage against its rivals in the food and beverage market, summed up in Exhibition I.

Belongings

The resources utilized by the Cambridge Nanotech business are valuable for the company or not. Such as the resources like financing, personnels, management of operations and specialists in marketing. This are a few of the crucial important elements of for the identification of competitive benefit.

Rare

The valuable resources used by Cambridge Nanotech are expensive or even rare. If these resources are commonly discovered that it would be simpler for the rivals and the brand-new rivals in the market to effortlessly move in competition.

Replica

The imitation procedure is costly for the rivals of Cambridge Nanotech Case Solution Company. It can be done only in two different techniques i.e. product duplication which is produced and manufactured by Cambridge Nanotech Business and launching of the alternative of the items with switching expense. This increases the threat of disruption to the recent structure of the industry.

Organization

This component of VRIO analysis deals with the compatibility of the business to position in the market making productive usage of its valuable resources which are challenging to imitate. Often, the development of management is totally dependent on the firm's execution method and team. Therefore, this polishes the skills of the company by time based on the decisions made by company for the progression of its strategic capitals.

Quantitative Analysis

R&D Costs as a percentage of sales are decreasing with increasing actual amount of spending reveals that the sales are increasing at a greater rate than its R&D spending, and enable the business to more spend on R&D.

Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise reveals a thumbs-up to the R&D spending, mergers and acquisitions.

Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio pose a hazard of default of Cambridge Nanotech to its investors and could lead a declining share costs. In terms of increasing financial obligation ratio, the company should not spend much on R&D and must pay its current debts to decrease the threat for investors.

The increasing risk of investors with increasing debt ratio and decreasing share costs can be observed by huge decrease of EPS of Cambridge Nanotech Case Solution stocks.

The sales development of business is likewise low as compare to its mergers and acquisitions due to slow perception building of customers. This slow growth also impede business to further spend on its acquisitions and mergers.( Cambridge Nanotech, Cambridge Nanotech Financial Reports, 2006-2010).

Note: All the above analysis is done on the basis of graphs and computations given up the Exhibitions D and E.

TWOS Analysis.

2 analysis can be utilized to obtain numerous techniques based on the SWOT Analysis given above. A short summary of TWOS Analysis is given in Display H.

Techniques to exploit Opportunities utilizing Strengths.

Cambridge Nanotech Case Analysis must introduce more innovative products by big amount of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Cambridge Nanotech and increase the earnings margins for the company. It could also offer Cambridge Nanotech a long term competitive advantage over its rivals.

The worldwide expansion of Cambridge Nanotech ought to be concentrated on market capturing of establishing nations by expansion, bring in more customers through client's commitment. As developing nations are more populous than industrialized nations, it might increase the customer circle of Cambridge Nanotech.

Strategies to Get Rid Of Weaknesses to Exploit Opportunities.

Cambridge Nanotech Case Solution should do careful acquisition and merger of organizations, as it might impact the consumer's and society's perceptions about Cambridge Nanotech. It must acquire and merge with those companies which have a market credibility of healthy and healthy business. It would improve the perceptions of customers about Cambridge Nanotech.

Cambridge Nanotech ought to not just invest its R&D on development, rather than it must likewise concentrate on the R&D spending over examination of cost of various healthy items. This would increase expense efficiency of its products, which will result in increasing its sales, due to decreasing prices, and margins.

Methods to use strengths to conquer hazards.

Cambridge Nanotech Case Solution needs to transfer to not only developing but likewise to developed nations. It needs to widens its geographical expansion. This wide geographical growth towards establishing and developed countries would decrease the threat of possible losses in times of instability in numerous nations. It needs to expand its circle to numerous nations like Unilever which operates in about 170 plus nations.

Methods to get rid of weaknesses to prevent dangers.

Cambridge Nanotech should sensibly manage its acquisitions to avoid the danger of mistaken belief from the customers about Cambridge Nanotech. It ought to merge and get with those countries having a goodwill of being a healthy business in the market. This would not only improve the perception of consumers about Cambridge Nanotech but would also increase the sales, profit margins and market share of Cambridge Nanotech. It would likewise allow the business to utilize its possible resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Alternatives.

In order to sustain the brand name in the market and keep the customer intact with the brand name, there are 2 options:.

Option: 1.

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

Pros:.

1. Acquisitions would increase total assets of the company, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The company can resell the obtained systems in the market, if it stops working to implement its method. Nevertheless, amount spend on the R&D could not be restored, and it will be considered totally sunk expense, if it do not offer possible results.
3. Spending on R&D offer slow growth in sales, as it takes very long time to introduce an item. Nevertheless, acquisitions provide fast outcomes, as it provide the company already established product, which can be marketed right after the acquisition.

Cons:.

1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the company to face misunderstanding of customers about Cambridge Nanotech core worths of nutritious and healthy products.
2. Large spending on acquisitions than R&D would send out a signal of business's inefficiency of developing ingenious products, and would results in consumer's dissatisfaction also.
3. Large 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 introduce new ingenious products.

Alternative: 2

The Company should invest more on its R&D instead of acquisitions.

Pros:

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

Cons:

1. It would reduce the profit margins of the company.
2. In case of failure, the whole spending on R&D would be considered as sunk expense, and would affect the business at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which could provide an unfavorable signal to the investors, and might result I decreasing stock rates.

Alternative 3:

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

Pros:

1. It would allow the business to present brand-new ingenious products with less threat of transforming the spending on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the overall assets of the company would increase with its considerable R&D spending.
3. It would not affect the earnings 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 terms of the business's overall wealth along with in regards to ingenious items.

Cons:

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

Suggestion

With the deep analysis of the above options, it is suggested that the company should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just present ingenious and new products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share prices as well, as financiers want to invest more in business with significant R&D spending and boost in the overall worth of the company.

Action and application Method

Method can be executed efficiently by establishing specific short-term as well as long term plans. These strategies could be as follows;

Short Term Plan (0-1 year).

• Under the short term plan Cambridge Nanotech Case Help must perform different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which create most of its revenue.
• Examine the existing target market along with the market segment which is not consist of in the business's circle.
• Examine the present monetary information to determine the quantity that ought to be spent on the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount ought to be invested in R&D.

Mid Term Plan (1-5 years).

• Obtain those organizations in which the company has potential experience to deal with. Acquire most favorable companies with a strong dedication to health, to develop the consumer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Cambridge Nanotech worths and vision and to avoid potential risk of sunk cost.

Long Term Strategy (1-10 years).

• Obtain companies with health in addition to taste aspect, as the base for the Cambridge Nanotech as a company producing healthy products has been built under midterm strategy and now the company might move towards taste factor as well to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new items.

Conclusion.

Cambridge Nanotech has actually stayed the top market gamer for more than a years. It has institutionalized its techniques and culture to align itself with the marketplace changes and client behavior, which has actually ultimately permitted it to sustain its market share. Though, Cambridge Nanotech has established significant market share and brand name identity in the urban markets, it is recommended that the company ought to concentrate on the backwoods in terms of establishing brand name awareness, loyalty, and equity, such can be done by producing a particular brand allocation technique through trade marketing methods, that draw clear distinction in between Cambridge Nanotech Case Solution products and other rival products. Additionally, Cambridge Nanotech must leverage its brand name image of healthy and safe food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will allow the business to establish brand equity for freshly introduced and already produced products on a higher platform, making the effective use of resources and brand image in the market.