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Citigroups Exchange Offer B Case Study Solution and Analysis


Intro

Citigroups Exchange Offer B Case Study Help is currently one of the most significant food cycle worldwide. It was founded by Henri Citigroups Exchange Offer B in 1866, a German Pharmacist who first launched "Farine Lactee"; a combination of flour and milk to reduce and feed babies mortality rate. At the same time, the Page bros from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The 2 ended up being competitors at first however in the future merged in 1905, resulting in the birth of Citigroups Exchange Offer B.

Citigroups Exchange Offer B is now a multinational business. Unlike other international business, it has senior executives from different nations and attempts to make decisions considering the whole world. Citigroups Exchange Offer B Case Study Help presently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The function of Citigroups Exchange Offer B Corporation is to enhance the lifestyle of individuals by playing its part and supplying healthy food. It wants to assist the world in forming a healthy and much better future for it. It likewise wishes to motivate people to live a healthy life. While ensuring that the business is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Nestlé's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. It wishes to be innovative and all at once understand the requirements and requirements of its clients. Its vision is to grow quickly and offer products that would please the requirements of each age group. Citigroups Exchange Offer B visualizes to establish a well-trained labor force which would assist the company to grow.

Mission.

Nestlé's mission is that as presently, it is the leading company in the food market, it thinks in 'Good Food, Great Life". Its mission is to supply its consumers with a variety of options that are healthy and finest in taste as well. It is concentrated on supplying the very best food to its customers throughout the day and night.

Products.

Citigroups Exchange Offer B Case Study Help has a vast array of items that it uses to its consumers. Its products consist of food for infants, cereals, dairy items, treats, chocolates, food for animal and bottled water. It has around four hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Citigroups Exchange Offer B was noted as the most rewarding organization.

Goals and Objectives.

• Bearing in mind the vision and objective of the corporation, the company has put down its objectives and goals. These goals and objectives are listed below.
• One objective of the company is to reach absolutely no land fill status.
• Another objective of Citigroups Exchange Offer B is to lose minimum food during production. Most often, the food produced is wasted even prior to it reaches the consumers.
• Another thing that Citigroups Exchange Offer B is dealing with is to enhance its product packaging in such a way that it would assist it to lower those complications and would also ensure the shipment of high quality of its products to its clients.
• Meet worldwide standards of the environment.
• Construct a relationship based on trust with its consumers, organisation partners, employees, and federal government.

Crucial Concerns.

Just Recently, Citigroups Exchange Offer B Case Study Analysis Company is focusing more towards the technique 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 method. The target of the business is not attained 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 Exhibition H.

Situational Analysis.

Analysis of Existing Technique, Vision and Goals.

The existing Citigroups Exchange Offer B method is based on the principle of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing modification in the customer 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 simply suggests that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The items will be made with extra dietary value in contrast to all other items in market gaining it a plus on its dietary material.

This technique was embraced to bring more tasty plus healthy foods and drinks in market than ever. In competitors with other business, with an objective of maintaining its trust over clients as Citigroups Exchange Offer B Business has actually gained more relied on by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis utilized to measure the position of business in the market is done by utilizing PESTLE analysis, given up Display A. Citigroups Exchange Offer B works under the rules and guidelines directed by federal government and food authority. The company is more concentrated on its product or services to make certain about the product quality and security. This analysis will help in understanding environment of external market in the worldwide food and beverage industries. (Parera, 2017).

Political.

The political effect on the business is significantly affected by the government laws and policies. The business needs to meet its requirements provided by government otherwise it needs to pay fine. Citigroups Exchange Offer B is greatly supported by Federal government to meet all the requirements of standards like acts of health and safety. In efforts to make good food, Citigroups Exchange Offer B is altering the requirements of food and beverage production. This may cause the violation of governmental guidelines and policies.

Economic.

Initiation of business where the capital earnings of each private matters for the increased net sale as this differs country-to-country. The economy of the Citigroups Exchange Offer B Business in U.S. is growing year by year with variable items launch especially concentrating on the dietary food for babies.

Social.

The social environment continues altering with respect to time like the attitude of the customer as well as their lifestyles. Any product or service of any business can not be successful until the company is not concerned about the living system of the customer. Citigroups Exchange Offer B is taking measures to fulfill its goals as the world is in search of healthy and yummy food.

Technological.

In the advancement of organisation, strategic procedures are somewhat compulsory. Citigroups Exchange Offer B is one of the top well-known international company and by time it invests in various departments to take its items to new level. Citigroups Exchange Offer B is investing more on its R&D to make its products healthier and healthy supplying customers with health benefits.

Legal.

There is no such impact of legal elements of Citigroups Exchange Offer B as it is more concerned over its regulations and laws.

Environmental

Citigroups Exchange Offer B, in terms of environmental effect is committed to operate in environment-friendly environment with preservation of the natural deposits and energy. If the resources utilized are recyclable or not, as due to the production of bigger number of items there might be a risk.

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

Citigroups Exchange Offer B Case Study Solution has gotten a number of business that assisted it in diversification and growth of its product's profile. This is the extensive explanation of the Porter's design of five forces of Citigroups Exchange Offer B Business, given in Exhibition B.

Competitiveness.

There is severe competition in the market of food and drinks. Citigroups Exchange Offer B is among the leading business in this competitive industry with a variety of strong competitors like Unilever, Kraft foods and Group DANONE. Citigroups Exchange Offer B is running well in this race for last 150 years. Each business has a certain share of market. This competition is not just restricted to the price of the item however also for quality, variation and innovation. Every market is aiming hard for the maintenance of their market share. However, the competition of other business with Citigroups Exchange Offer B Case Study Help is rather high.

Risk 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 succeed in this industry as there is a requirement to comprehend the customer need which needs time while recent competitors are aware and has progressed with the customer loyalty over their items with time. There is low hazard of brand-new entrants to Citigroups Exchange Offer B as it has rather big network of distribution internationally controling with well-reputed image.

Bargaining Power of Providers.

In the food and drink market, Citigroups Exchange Offer B Case Study Help owes the largest share of market needing greater number of supply chains. In action, Citigroups Exchange Offer B has likewise been concerned for its suppliers as it believes in long-term relations.

Bargaining Power of Purchasers.

There is high bargaining power of the purchasers due to great competitors. Changing expense is rather low for the customers as many business sale a number of similar items. This appears to be an excellent hazard for any business. Hence, Citigroups Exchange Offer B Case Study Help makes certain to keep its customers satisfied. This has actually led Citigroups Exchange Offer B to be one of the devoted business in eyes of its purchasers.

Risk of Replacements.

There has actually been an excellent risk of substitutes as there are alternatives of a few of the Nestlé's products such as boiled water and pasteurized milk. There has also been a claim that some of its items are not safe to use leading to the reduced sale. Therefore, Citigroups Exchange Offer B started highlighting the health advantages of its products to cope up with the replacements.

Rival Analysis.

Citigroups Exchange Offer B Case Study Analysis covers much of the popular customer brands like Kit Kat and Nescafe etc. About 29 brand names among all of its brand names, each brand name made a revenue of about $1billion in 2010. Its huge part of sale remains in The United States and Canada making up about 42% of its all sales. In Europe and U.S. the top major brand names sold by Citigroups Exchange Offer B in these states have a great respectable share of market. Citigroups Exchange Offer B, Unilever and DANONE are 2 large industries of food and beverages as well as its primary competitors. In the year 2010, Citigroups Exchange Offer B had actually earned its yearly earnings by 26% boost since of its increased food and beverages sale particularly in cooking stuff, ice-cream, beverages based on tea, and frozen food. On the other hand, DANONE, due to the increasing costs of shares resulting an increase of 38% in its profits. Citigroups Exchange Offer B Case Study Solution decreased its sales cost by the adjustment of a new accounting treatment. Unilever has number of employees about 230,000 and functions in more than 160 countries and its London headquarter. It has actually ended up being the second biggest food and beverage market in the West Europe with a market share of about 8.6% with only a distinction of 0.3 points with Citigroups Exchange Offer B. Unilever shares a market share of about 7.7 with Citigroups Exchange Offer B becoming ranking and first DANONE as 3rd. Citigroups Exchange Offer B attracts local customers by its low cost of the item with the regional taste of the products keeping its top place in the international market. Citigroups Exchange Offer B business has about 280,000 workers and functions in more than 197 nations edging its rivals in lots of regions. Citigroups Exchange Offer B has actually also minimized its expense of supply by introducing E-marketing in contrast to its rivals.

Note: A quick contrast of Citigroups Exchange Offer B with its close competitors is given in Exhibit C.

SWOT Analysis.

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

Strengths.

• Citigroups Exchange Offer B has an experience of about 140 years, enabling business to much better perform, in different situations.
• Nestlé's has existence in about 86 countries, making it an international leader in Food and Drink Industry.
• Citigroups Exchange Offer B has more than 2000 brands, which increase the circle of its target consumers. Famous brands of Citigroups Exchange Offer B include; Maggi, Kit-Kat, Nescafe, and so on
• Citigroups Exchange Offer B Case Study Help has large big quantity spending on R&D as compare to its competitorsRivals making the company business launch release innovative and nutritious healthyItems
• After embracing its NHW Strategy, the business has actually done big quantity of mergers and acquisitions which increase the sales development and enhance market position of Citigroups Exchange Offer B.
• Citigroups Exchange Offer B is a popular brand name with high customer's loyalty and brand recall. This brand name loyalty of consumers increases the possibilities of simple market adoption of various new brand names of Citigroups Exchange Offer B.
Weak points.
• Acquisitions of those company, like; Kraft frozen Pizza company can give a negative signal to Citigroups Exchange Offer B clients about their compromise over their core competency of healthier foods.
• The growth I sales as compare to the business's financial investment in NHW Method are rather various. It will take long to change the understanding of people ab out Citigroups Exchange Offer B as a business offering healthy and healthy items.

Opportunities.

• Introducing more health related products enables the company to catch the marketplace in which consumers are rather mindful about health.
• Developing countries like India and China has biggest markets worldwide. Thus broadening the marketplace towards establishing countries can improve the Citigroups Exchange Offer B business by increasing sales volume.
• Continue acquisitions and joint endeavors increases the market share of the company.
• Increased relationships with schools, hotel chains, dining establishments and so on can likewise increase the variety of Citigroups Exchange Offer B Case Study Analysis customers. Instructors can recommend their students to acquire Citigroups Exchange Offer B products.

Hazards.

• Financial instability in nations, which are the potential markets for Citigroups Exchange Offer B, can produce several problems for Citigroups Exchange Offer B.
• Shifting of items from normal to much healthier, causes additional costs and can cause decrease company's earnings margins.
• As Citigroups Exchange Offer B has an intricate supply chain, therefore failure of any of the level of supply chain can lead the business to face specific problems.

Segmentation Analysis

Market Division

The market segmentation of Citigroups Exchange Offer B Case Study Help is based on four factors; age, earnings, profession and gender. For instance, Citigroups Exchange Offer B produces a number of products related to babies i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Citigroups Exchange Offer B products are rather cost effective by practically all levels, however its major targeted clients, in terms of earnings level are middle and upper middle level customers.

Geographical Division

Geographical division of Citigroups Exchange Offer B Case Study Help is composed of its presence in almost 86 countries. Its geographical division is based upon 2 main factors i.e. typical income level of the customer in addition to the environment of the area. Singapore Citigroups Exchange Offer B Company's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Citigroups Exchange Offer B is based upon the personality and lifestyle of the client. Citigroups Exchange Offer B 3 in 1 Coffee target those customers whose life design is quite busy and do not have much time.

Behavioral Segmentation

Citigroups Exchange Offer B Case Solution behavioral segmentation is based upon the attitude understanding and awareness of the consumer. Its highly healthy items target those clients who have a health mindful attitude towards their usages.

VRIO Analysis

The VRIO analysis of Citigroups Exchange Offer B Company is a broad range analysis supplying the company with a chance to obtain a viable competitive advantage against its competitors in the food and beverage industry, summarized in Exhibit I.

Belongings

The resources utilized by the Citigroups Exchange Offer B business are important for the company or not. Such as the resources like finance, human resources, management of operations and specialists in marketing. This are some of the crucial valuable elements of for the identification of competitive benefit.

Unusual

The valuable resources used by Citigroups Exchange Offer B are even unusual or pricey. , if these resources are frequently found that it would be simpler for the competitors and the brand-new competitors in the industry to effortlessly move in competition.

Imitation

The replica procedure is expensive for the rivals of Citigroups Exchange Offer B Case Help Business. It can be done only in two various techniques i.e. product duplication which is produced and manufactured by Citigroups Exchange Offer B Business and introducing of the replacement of the products with changing cost. This increases the danger of disturbance to the recent structure of the industry.

Organization

This element of VRIO analysis deals with the compatibility of the business to place in the market making efficient usage of its valuable resources which are hard to imitate. Regularly, the development of management is completely depending on the company's execution technique and group. Hence, this polishes the abilities of the firm by time based on the choices made by company for the progression of its tactical capitals.

Quantitative Analysis

R&D Spending as a portion of sales are declining with increasing actual amount of costs reveals 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 Earnings Margin is increasing while R&D as a portion of sales is declining. This sign also reveals a thumbs-up to the R&D spending, mergers and acquisitions.

Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio position a danger of default of Citigroups Exchange Offer B to its financiers and could lead a decreasing share costs. In terms of increasing financial obligation ratio, the company ought to not invest much on R&D and needs to pay its existing debts to decrease the danger for financiers.

The increasing threat of investors with increasing debt ratio and declining share prices can be observed by substantial decline of EPS of Citigroups Exchange Offer B Case Help stocks.

The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding building of consumers. This sluggish development also prevent company to additional spend on its acquisitions and mergers.( Citigroups Exchange Offer B, Citigroups Exchange Offer B Financial Reports, 2006-2010).

Note: All the above analysis is done on the basis of charts and calculations given in the Exhibitions D and E.

TWOS Analysis.

2 analysis can be utilized to obtain numerous methods based upon the SWOT Analysis offered above. A brief summary of TWOS Analysis is given in Display H.

Strategies to make use of Opportunities using Strengths.

Citigroups Exchange Offer B Case Solution must introduce more innovative items by large quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Citigroups Exchange Offer B and increase the revenue margins for the business. It could likewise offer Citigroups Exchange Offer B a long term competitive benefit over its competitors.

The global expansion of Citigroups Exchange Offer B must be concentrated on market catching of establishing nations by expansion, attracting more consumers through customer's loyalty. As establishing nations are more populous than industrialized nations, it might increase the client circle of Citigroups Exchange Offer B.

Methods to Conquer Weaknesses to Exploit Opportunities.

Citigroups Exchange Offer B Case Solution must do cautious acquisition and merger of companies, as it could affect the customer's and society's perceptions about Citigroups Exchange Offer B. It needs to combine and acquire with those companies which have a market credibility of nutritious and healthy companies. It would improve the perceptions of consumers about Citigroups Exchange Offer B.

Citigroups Exchange Offer B should not just spend its R&D on innovation, instead of it ought to also focus on the R&D costs over assessment of expense of various nutritious items. This would increase expense effectiveness of its items, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats.

Citigroups Exchange Offer B should move to not only establishing but likewise to developed countries. It needs to broaden its circle to different nations like Unilever which operates in about 170 plus countries.

Techniques to conquer weak points to avoid dangers.

Citigroups Exchange Offer B ought to wisely manage its acquisitions to prevent the risk of misconception from the customers about Citigroups Exchange Offer B. It must combine and get with those nations having a goodwill of being a healthy company in the market. This would not only improve the perception of consumers about Citigroups Exchange Offer B but would also increase the sales, profit margins and market share of Citigroups Exchange Offer B. It would also make it possible for the business to utilize its prospective resources effectively on its other operations instead of acquisitions of those organizations slowing the NHW strategy development.

Alternatives.

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

Option: 1.

The Business needs to invest more on acquisitions than on the R&D.

Pros:.

1. Acquisitions would increase total possessions of the business, increasing the wealth of the company. However, costs on R&D would be sunk expense.
2. The business can resell the acquired systems in the market, if it fails to execute its method. Quantity spend on the R&D might not be restored, and it will be considered entirely sunk cost, if it do not provide possible results.
3. Investing in R&D supply sluggish development in sales, as it takes very long time to present an item. However, acquisitions supply fast results, as it offer the business already established product, which can be marketed soon after the acquisition.

Cons:.

1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the company to deal with misunderstanding of consumers about Citigroups Exchange Offer B core values of healthy and healthy products.
2. Big spending on acquisitions than R&D would send a signal of company's ineffectiveness of establishing innovative products, and would lead to consumer's discontentment also.
3. Big acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making business unable to introduce new ingenious products.

Option: 2

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

Pros:

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

Cons:

1. It would reduce the profit margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk cost, and would impact the business at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might provide a negative signal to the investors, and could result I decreasing stock costs.

Alternative 3:

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

Pros:

1. It would permit the business to present brand-new ingenious products with less risk of converting the costs on R&D into sunk expense.
2. It would provide a favorable signal to the investors, as the overall assets of the company 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 general wealth in addition to in terms of innovative products.

Cons:

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

Suggestion

With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not only introduce innovative and brand-new products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share rates also, as investors want to invest more in companies with significant R&D costs and boost in the total worth of the company.

Action and execution Technique

Strategy can be implemented successfully by establishing certain short-term along with long term plans. These plans might be as follows;

Short Term Plan (0-1 year).

• Under the short term strategy Citigroups Exchange Offer B Case Solution ought to perform various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate most of its revenue.
• Analyze the current target market along with the market sector which is not consist of in the company's circle.
• Analyze the present financial information to determine the quantity that needs to be spent on the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the want 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).

• Acquire those organizations in which the company has potential experience to handle. Obtain most beneficial companies with a strong commitment to health, to construct the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Citigroups Exchange Offer B values and vision and to avoid possible threat of sunk cost.

Long Term Strategy (1-10 years).

• Obtain companies with health in addition to taste element, as the base for the Citigroups Exchange Offer B as a business producing healthy items has actually been constructed under midterm plan and now the company might move towards taste aspect too 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 construct new items.

Conclusion.

Citigroups Exchange Offer B has remained the leading market gamer for more than a decade. It has institutionalized its techniques and culture to align itself with the market modifications and consumer habits, which has actually eventually permitted it to sustain its market share. Citigroups Exchange Offer B has established substantial market share and brand identity in the city markets, it is advised that the business should focus on the rural locations in terms of establishing brand equity, awareness, and loyalty, such can be done by producing a specific brand name allotment strategy through trade marketing tactics, that draw clear difference between Citigroups Exchange Offer B items and other rival items. Additionally, Citigroups Exchange Offer B ought to leverage its brand name image of healthy and safe food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will permit the company to develop brand name equity for recently introduced and already produced products on a higher platform, making the effective usage of resources and brand image in the market.