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Camp Lakeview Case Study Solution & Analysis


Introduction

Camp Lakeview is currently one of the most significant food chains worldwide. It was founded by Henri Camp Lakeview in 1866, a German Pharmacist who initially released "Farine Lactee"; a mix of flour and milk to reduce and feed infants mortality rate.

Camp Lakeview is now a transnational company. Unlike other international companies, it has senior executives from different nations and attempts to make decisions considering the whole world. Camp Lakeview Case Study Analysis currently has more than 500 factories around the world and a network spread throughout 86 nations.

Function

The function of Camp Lakeview Corporation is to improve the quality of life of individuals by playing its part and providing healthy food. While making sure that the business 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 eat. It wants to be ingenious and concurrently understand the needs and requirements of its customers. Its vision is to grow quickly and supply products that would satisfy the requirements of each age group. Camp Lakeview imagines to develop a well-trained workforce which would help the business to grow.

Objective.

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

Products.
Executive Summary
Camp Lakeview has a wide range of products that it uses to its customers. In 2011, Camp Lakeview was listed as the most gainful organization.

Objectives and Objectives.

• Bearing in mind the vision and mission of the corporation, the business has actually laid down its goals and goals. These objectives and objectives are listed below.
• One goal of the business is to reach no garbage dump status.
• Another objective of Camp Lakeview is to squander minimum food during production. Usually, the food produced is squandered even prior to it reaches the consumers.
• Another thing that Camp Lakeview is dealing with is to improve its packaging in such a way that it would assist it to minimize those problems and would likewise ensure the delivery of high quality of its products to its customers.
• Meet worldwide requirements of the environment.
• Construct a relationship based on trust with its customers, business partners, employees, and government.

Crucial Issues.

Recently, Camp Lakeview Case Study Solution Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the company is not achieved as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H.

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

The existing Camp Lakeview technique is based upon the idea of Nutritious, Health and Health (NHW). This technique deals with the idea to bringing change in the client choices about food and making the food stuff much healthier concerning about the health issues.

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

This strategy was embraced to bring more yummy plus healthy foods and drinks in market than ever. In competition with other companies, with an objective of maintaining its trust over consumers as Camp Lakeview Business has acquired more relied on by clients.

Microenvironment Analysis (PESTEL Analysis).

The analysis used to measure the position of business in the market is done by utilizing PESTLE analysis, offered in Exhibition A. Camp Lakeview works under the regulations and rules directed by government and food authority. The company is more focused on its items and services to make sure about the product quality and safety.

Political.
Swot Analysis
Camp Lakeview is considerably supported by Government to meet all the requirements of requirements like acts of health and safety. In efforts to manufacture great food, Camp Lakeview Case Study Solution is altering the standards of food and beverage 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 Camp Lakeview Company in U.S. is growing year by year with variable items launch particularly concentrating on the dietary food for babies.

Social.

The social environment keeps on changing with regard to time like the attitude of the customer along with their way of lives. Any product and services of any business can not be successful until the company is not concerned about the living system of the consumer. Camp Lakeview is taking procedures to fulfill its goals as the world remains in search of delicious and healthy food.

Technological.

In the development of service, strategic steps are somewhat mandatory. Camp Lakeview is among the top popular international firm and by time it buys various departments to take its items to new level. Camp Lakeview is investing more on its R&D to make its items much healthier and healthy offering customers with health advantages.

Legal.

There is no such impact of legal elements of Camp Lakeview as it is more worried over its laws and regulations.

Environmental

Camp Lakeview, in terms of ecological effect is devoted to work in environmentally 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 danger.

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

Camp Lakeview Case Study Solution has actually obtained a variety of companies that assisted it in diversity and development of its item's profile. This is the thorough explanation of the Porter's design of 5 forces of Camp Lakeview Business, given in Exhibition B.

Competitiveness.

There is severe competition in the market of food and beverages. Camp Lakeview is among the top company in this competitive industry with a variety of strong rivals like Unilever, Kraft foods and Group DANONE. Camp Lakeview is running well in this race for last 150 years. Each business has a definite share of market. This rivalry is not just limited to the rate of the product however also for variation, quality and innovation. Every market is striving hard for the upkeep of their market share. The competition of other business with Camp Lakeview is rather high.
Vrio Analysis
Danger of New Entrants.

A variety of barriers are there for the brand-new entrants to take place in the consumer food industry. Just a few entrants prosper in this industry as there is a need to understand the consumer requirement which needs time while recent rivals are well aware and has progressed with the customer commitment over their products with time. There is low hazard of new entrants to Camp Lakeview as it has quite big network of distribution globally controling with well-reputed image.

Bargaining Power of Providers.

In the food and beverage industry, Camp Lakeview Case Study Solution owes the largest share of market requiring greater number of supply chains. In reaction, Camp Lakeview has likewise been concerned for its providers as it believes in long-term relations.

Bargaining Power of Purchasers.

Thus, Camp Lakeview makes sure to keep its consumers pleased. This has led Camp Lakeview to be one of the faithful business in eyes of its buyers.

Hazard of Alternatives.

There has been a fantastic risk of substitutes as there are substitutes of some of the Nestlé's products such as boiled water and pasteurized milk. There has likewise been a claim that some of its items are not safe to utilize leading to the decreased sale. Hence, Camp Lakeview began highlighting the health benefits of its items to cope up with the alternatives.

Rival Analysis.

It has actually ended up being the second biggest food and drink market in the West Europe with a market share of about 8.6% with just a distinction of 0.3 points with Camp Lakeview. Camp Lakeview brings in regional customers by its low cost of the product with the regional taste of the items maintaining its first location in the international market. Camp Lakeview Case Study Solution business has about 280,000 workers and functions in more than 197 countries edging its rivals in many regions.

Keep in mind: A short comparison of Camp Lakeview with its close competitors is given up Exhibition C.

SWOT Analysis.

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

Strengths.

• Camp Lakeview has an experience of about 140 years, enabling business to better carry out, in numerous scenarios.
• Nestlé's has presence in about 86 nations, making it a global leader in Food and Beverage Market.
• Camp Lakeview has more than 2000 brands, which increase the circle of its target customers. These brand names include baby foods, pet food, confectionary products, beverages and so on. Famous brands of Camp Lakeview consist of; Maggi, Kit-Kat, Nescafe, etc.
• Camp Lakeview Case Study Solution has large amount of costs on R&D as compare to its competitors, making the business to release more healthy and ingenious products. This innovation provides the company a high competitive position in long term.
• After adopting its NHW Strategy, the company has actually done large amount of mergers and acquisitions which increase the sales growth and improve market position of Camp Lakeview.
• Camp Lakeview is a widely known brand name with high consumer's commitment and brand name recall. This brand loyalty of customers increases the possibilities of easy market adoption of various brand-new brands of Camp Lakeview.
Weaknesses.
• Acquisitions of those business, like; Kraft frozen Pizza business can offer a negative signal to Camp Lakeview customers about their compromise over their core proficiency of much healthier foods.
• The growth I sales as compare to the business's investment in NHW Method are quite different. It will take long to alter the understanding of individuals ab out Camp Lakeview as a business offering healthy and healthy items.

Opportunities.

• Introducing more health related items allows the company to record the market in which customers are quite mindful about health.
• Developing nations like India and China has biggest markets on the planet. Broadening the market towards developing nations can enhance the Camp Lakeview organisation by increasing sales volume.
• Continue acquisitions and joint endeavors increases the market share of the company.
• Increased relationships with schools, hotel chains, restaurants etc. can likewise increase the variety of Camp Lakeview Case Study Help consumers. Instructors can advise their students to buy Camp Lakeview products.

Risks.

• Financial instability in nations, which are the prospective markets for Camp Lakeview, can produce a number of issues for Camp Lakeview.
• Shifting of products from typical to much healthier, leads to extra expenses and can cause decrease business's profit margins.
• As Camp Lakeview has a complex supply chain, therefore failure of any of the level of supply chain can lead the business to face specific issues.

Division Analysis

Market Segmentation

The market segmentation of Camp Lakeview Case Study Help is based on 4 factors; age, occupation, gender and earnings. Camp Lakeview produces several products related to infants i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Camp Lakeview items are quite cost effective by practically all levels, but its significant targeted consumers, in terms of income level are upper and middle middle level consumers.

Geographical Division

Geographical division of Camp Lakeview Case Study Analysis is made up of its presence in nearly 86 countries. Its geographical division is based upon 2 main aspects i.e. average earnings level of the consumer as well as the environment of the area. Singapore Camp Lakeview Company's segmentation is done on the basis of the weather of the area i.e. hot, cold or warm.

Psychographic Segmentation

Psychographic division of Camp Lakeview is based upon the character and lifestyle of the consumer. Camp Lakeview 3 in 1 Coffee target those clients whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Camp Lakeview Case Analysis behavioral division is based upon the attitude knowledge and awareness of the client. For instance its highly healthy items target those consumers who have a health mindful mindset towards their usages.

VRIO Analysis

The VRIO analysis of Camp Lakeview Business is a broad variety analysis offering the organization with an opportunity to acquire a practical competitive benefit versus its rivals in the food and beverage market, summarized in Exhibition I.

Valuable

The resources used by the Camp Lakeview company are valuable for the company or not. Such as the resources like finance, human resources, management of operations and professionals in marketing. This are a few of the essential valuable elements of for the identification of competitive advantage.

Rare

The valuable resources made use of by Camp Lakeview are pricey or even rare. If these resources are frequently found that it would be easier for the rivals and the new competitors in the market to easily move in competitors.

Replica

The imitation process is expensive for the rivals of Camp Lakeview Case Analysis Company. It can be done just in 2 different strategies i.e. product duplication which is produced and manufactured by Camp Lakeview Business and introducing of the alternative of the items with changing expense. This increases the danger of disturbance to the recent structure of the industry.

Company

This component of VRIO analysis deals with the compatibility of the company to position in the market making productive usage of its important resources which are challenging to imitate. Frequently, the development of management is totally depending on the firm's execution technique and team. Hence, this polishes the abilities of the company by time based upon the decisions made by firm for the progression of its tactical capitals.

Quantitative Analysis

R&D Spending as a portion of sales are declining with increasing real amount of spending shows that the sales are increasing at a greater rate than its R&D spending, and permit the business to more spend on R&D.

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

Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing debt ratio posture a hazard of default of Camp Lakeview to its investors and might lead a decreasing share costs. In terms of increasing debt ratio, the firm should not spend much on R&D and must pay its present debts to reduce the risk for financiers.

The increasing risk of investors with increasing financial obligation ratio and decreasing share costs can be observed by big decline of EPS of Camp Lakeview Case Help stocks.

The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow development likewise prevent company to additional invest in its acquisitions and mergers.( Camp Lakeview, Camp Lakeview Financial Reports, 2006-2010).

Note: All the above analysis is done on the basis of estimations and Graphs given in the Displays D and E.

TWOS Analysis.

TWOS analysis can be utilized to obtain different strategies based on the SWOT Analysis provided above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths.

Camp Lakeview Case Solution should present more ingenious products by big amount of R&D Spending and acquisitions and mergers. It could increase the market share of Camp Lakeview and increase the earnings margins for the business. It could also supply Camp Lakeview a long term competitive benefit over its rivals.

The worldwide expansion of Camp Lakeview ought to be focused on market recording of establishing nations by expansion, attracting more clients through client's loyalty. As establishing nations are more populous than industrialized countries, it might increase the customer circle of Camp Lakeview.

Strategies to Overcome Weak Points to Make Use Of Opportunities.

Camp Lakeview Case Solution needs to do mindful acquisition and merger of organizations, as it might impact the client's and society's understandings about Camp Lakeview. It needs to get and combine with those business which have a market credibility of healthy and nutritious companies. It would enhance the understandings of consumers about Camp Lakeview.

Camp Lakeview needs to not just spend its R&D on innovation, instead of it needs to likewise focus on the R&D costs over assessment of expense of different healthy products. This would increase cost effectiveness of its products, which will lead to increasing its sales, due to decreasing prices, and margins.

Techniques to utilize strengths to get rid of dangers.

Camp Lakeview must move to not only establishing but also to industrialized nations. It ought to widen its circle to various countries like Unilever which runs in about 170 plus nations.

Techniques to get rid of weaknesses to prevent threats.

Camp Lakeview should sensibly control its acquisitions to avoid the danger of misunderstanding from the consumers about Camp Lakeview. It should combine 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 Camp Lakeview but would also increase the sales, revenue margins and market share of Camp Lakeview. It would also make it possible for the business to use its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Alternatives.

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

Alternative: 1.

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

Pros:.

1. Acquisitions would increase total possessions of the business, 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. Nevertheless, quantity invest in the R&D might not be revived, and it will be thought about completely sunk cost, if it do not provide prospective outcomes.
3. Investing in R&D provide sluggish growth in sales, as it takes long time to present an item. Nevertheless, acquisitions provide fast outcomes, as it supply the company currently established item, which can be marketed right after the acquisition.

Cons:.

1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the business to deal with misconception of customers about Camp Lakeview core worths of nutritious and healthy products.
2. Large spending on acquisitions than R&D would send a signal of business's inadequacy of establishing ingenious products, and would results in consumer's frustration.
3. Large acquisitions than R&D would extend the line of product of the business by the items which are currently present in the market, making company not able to introduce new ingenious products.

Alternative: 2

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

Pros:

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

Cons:

1. It would reduce the earnings margins of the company.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would impact the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could supply an unfavorable signal to the financiers, and might result I declining stock rates.

Alternative 3:

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

Pros:

1. It would enable the business to introduce brand-new ingenious products with less threat of transforming the spending on R&D into sunk cost.
2. It would supply a favorable signal to the investors, as the overall possessions of the business would increase with its significant R&D spending.
3. It would not affect the profit margins of the business at a big rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the company's total wealth along with in terms of ingenious products.

Cons:

1. Risk of conversion of R&D costs into sunk expense, greater than option 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Introduction of less number of innovative items than alternative 2 and high number of ingenious items than alternative 1.

Recommendation

With the deep analysis of the above alternatives, it is recommended that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce innovative and brand-new products in the market it would also lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share rates also, as investors are willing to invest more in companies with substantial R&D spending and increase in the overall worth of the business.

Action and implementation Method

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

Short-term Strategy (0-1 year).

• Under the short term plan Camp Lakeview Case Analysis need to perform various 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 produce the majority of its earnings.
• Analyze the present target audience as well as the marketplace section which is not consist of in the company's circle.
• Analyze the present monetary data to measure the quantity that must be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to know that just how much quantity ought to be invested in R&D.

Mid Term Strategy (1-5 years).

• Acquire those companies in which the business has possible experience to handle. Obtain most favorable organizations with a strong commitment to health, to construct the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Camp Lakeview worths and vision and to avoid prospective risk of sunk cost.

Long Term Strategy (1-10 years).

• Obtain organizations with health in addition to taste factor, as the base for the Camp Lakeview as a business producing healthy products has actually been built under midterm plan and now the business could move towards taste element as well 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.
Recommendations
Camp Lakeview has remained the leading market player for more than a years. It has institutionalized its techniques and culture to align itself with the marketplace modifications and consumer behavior, which has actually eventually permitted it to sustain its market share. Camp Lakeview has actually developed substantial market share and brand name identity in the metropolitan markets, it is suggested that the company ought to focus on the rural locations in terms of developing brand commitment, awareness, and equity, such can be done by producing a specific brand name allowance technique through trade marketing techniques, that draw clear distinction in between Camp Lakeview items and other competitor products. Moreover, Camp Lakeview needs to take advantage of its brand image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will allow the company to develop brand name equity for newly presented and currently produced items on a higher platform, making the effective usage of resources and brand image in the market.