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Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Solution & Analysis


Intro

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is presently one of the greatest food chains worldwide. It was founded by Henri Dragonfly Therapeutic Retreats Creating An Affordable Indulgence in 1866, a German Pharmacist who first released "Farine Lactee"; a combination of flour and milk to decrease and feed infants death rate.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is now a transnational business. Unlike other international companies, it has senior executives from various nations and tries to make decisions considering the entire world. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Analysis currently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

The function of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Corporation is to boost the quality of life of people by playing its part and providing healthy food. It wishes to help the world in forming a healthy and much better future for it. It likewise wants to motivate individuals 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 customers with food that is healthy, high in quality and safe to eat. It wants to be innovative and at the same time comprehend the requirements and requirements of its customers. Its vision is to grow fast and provide items that would satisfy the needs of each age group. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence envisions to establish a well-trained workforce which would assist the business to grow.

Mission.

Nestlé's mission is that as presently, it is the leading business in the food market, it thinks in 'Great Food, Great Life". Its mission is to provide its consumers with a range of choices that are healthy and finest in taste. It is concentrated on offering the very best food to its customers throughout the day and night.

Products.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence has a large range of items that it provides to its clients. In 2011, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence was noted as the most rewarding organization.

Goals and goals.

• Remembering the vision and mission of the corporation, the business has put down its goals and goals. These objectives and goals are listed below.
• One objective of the business is to reach zero garbage dump status.
• Another objective of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is to waste minimum food throughout production. Frequently, the food produced is lost even prior to it reaches the consumers.
• Another thing that Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is dealing with is to enhance its product packaging in such a way that it would help it to reduce the above-mentioned complications and would likewise ensure the delivery of high quality of its products to its customers.
• Meet international requirements of the environment.
• Develop a relationship based upon trust with its customers, business partners, employees, and government.

Critical Problems.

Recently, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Solution Company is focusing more towards the technique of NHW and investing more of its revenues on the R&D technology. The country is investing more on mergers and acquisitions to support its NHW strategy. The target of the company 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 Display H.

Situational Analysis.

Analysis of Present Method, Vision and Goals.

The present Dragonfly Therapeutic Retreats Creating An Affordable Indulgence strategy is based upon the concept of Nutritious, Health and Wellness (NHW). This technique deals with the concept to bringing change in the client choices about food and making the food stuff healthier worrying about the health concerns.

The vision of this technique is based on the secret technique 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 on its nutritional value. The items will be produced with extra nutritional value in contrast to all other products in market acquiring it a plus on its dietary material.

This technique was adopted to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other companies, with an intention of retaining its trust over customers as Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Business has actually gained 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, given up Exhibition A. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence works under the guidelines and regulations directed by federal government and food authority. The company is more focused on its services and products to ensure about the product quality and security. This analysis will help in understanding environment of external market in the global food and beverage industries. (Parera, 2017).

Political.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is greatly supported by Government to meet all the criteria of requirements like acts of health and security. In efforts to make good food, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Analysis is changing the requirements of food and beverage manufacturing.

Economic.

Initiation of the business where the capital income of each private matters for the increased net sale as this differs country-to-country. The economy of the Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Company in U.S. is growing year by year with variable items launch particularly focusing on the nutritional food for babies.

Social.

The social environment continues altering with regard to time like the attitude of the consumer along with their lifestyles. Any services or product of any business can not be successful till the company is not concerned about the living system of the consumer. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is taking steps to satisfy its objectives as the world is in search of healthy and delicious food.

Technological.

In the development of organisation, strategic measures are somewhat compulsory. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is among the leading well-known international firm and by time it invests in different departments to take its products to new level. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is investing more on its R&D to make its items healthier and healthy offering customers with health advantages.

Legal.

There is no such impact of legal aspects of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence as it is more worried over its policies and laws.

Environmental

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence, in regards to environmental effect is committed to operate in environment-friendly environment with preservation of the natural resources and energy. If the resources utilized are recyclable or not, as due to the manufacturing of bigger number of products there may be a hazard.

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

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Analysis has gotten a variety of companies that assisted it in diversity and development of its product's profile. This is the extensive description of the Porter's design of five forces of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Company, given in Exhibition B.

Competitiveness.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is one of the top business in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is running well in this race for last 150 years. The competitors of other business with Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is rather high.

Threat of New Entrants.

A variety of barriers are there for the new entrants to occur in the customer food market. Just a few entrants succeed in this market as there is a requirement to understand the customer requirement which requires time while recent competitors are aware and has advanced with the consumer loyalty over their items with time. There is low threat of new entrants to Dragonfly Therapeutic Retreats Creating An Affordable Indulgence as it has rather big network of distribution internationally dominating with well-reputed image.

Bargaining Power of Providers.

In the food and drink industry, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence owes the largest share of market requiring higher number of supply chains. This triggers it to be an idyllic purchaser for the suppliers. Hence, any of the provider has never expressed any grumble about rate and the bargaining power is likewise low. In action, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence has actually also been concerned for its suppliers as it thinks in long-term relations.

Bargaining Power of Buyers.

Therefore, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence makes sure to keep its consumers satisfied. This has led Dragonfly Therapeutic Retreats Creating An Affordable Indulgence to be one of the loyal company in eyes of its buyers.

Danger of Substitutes.

There has been a terrific hazard of alternatives as there are replacements of a few of the Nestlé's items such as boiled water and pasteurized milk. There has actually likewise been a claim that a few of its products are not safe to use resulting in the decreased sale. Thus, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence began highlighting the health benefits of its products to cope up with the substitutes.

Rival Analysis.

It has actually become the second largest 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 Dragonfly Therapeutic Retreats Creating An Affordable Indulgence. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence attracts local costumers by its low cost of the product with the local taste of the items keeping its first place in the worldwide market. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Analysis business has about 280,000 employees and functions in more than 197 countries edging its competitors in lots of regions.

Note: A short contrast of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence with its close rivals is given in Exhibition C.

SWOT Analysis.

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

Strengths.

• Dragonfly Therapeutic Retreats Creating An Affordable Indulgence has an experience of about 140 years, allowing 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 Market.
• Dragonfly Therapeutic Retreats Creating An Affordable Indulgence has more than 2000 brands, which increase the circle of its target customers. Famous brand names of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence consist of; Maggi, Kit-Kat, Nescafe, and so on
• Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Solution has large big quantity spending costs R&D as compare to its competitors, making the company business launch release nutritious and innovative healthy.
• After adopting its NHW Strategy, the business has done big quantity of mergers and acquisitions which increase the sales growth and improve market position of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence.
• Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is a well-known brand name with high consumer's commitment and brand recall. This brand loyalty of consumers increases the opportunities of easy market adoption of numerous new brand names of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence.
Weak points.
• Acquisitions of those organisation, like; Kraft frozen Pizza company can offer a negative signal to Dragonfly Therapeutic Retreats Creating An Affordable Indulgence consumers about their compromise over their core competency of much healthier foods.
• The development I sales as compare to the company's investment in NHW Strategy are quite various. It will take long to change the understanding of individuals ab out Dragonfly Therapeutic Retreats Creating An Affordable Indulgence as a company selling nutritious and healthy items.

Opportunities.

• Presenting more health related products enables the company to catch the market in which consumers are quite mindful about health.
• Developing countries like India and China has biggest markets on the planet. Hence broadening the market towards developing nations can increase the Dragonfly Therapeutic Retreats Creating An Affordable Indulgence business by increasing sales volume.
• Continue acquisitions and joint ventures increases the market share of the company.
• Increased relationships with schools, hotel chains, dining establishments and so on can also increase the number of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Analysis customers. Instructors can recommend their trainees to acquire Dragonfly Therapeutic Retreats Creating An Affordable Indulgence items.

Threats.

• Financial instability in nations, which are the possible markets for Dragonfly Therapeutic Retreats Creating An Affordable Indulgence, can produce several concerns for Dragonfly Therapeutic Retreats Creating An Affordable Indulgence.
• Shifting of items from normal to healthier, results in extra costs and can result in decrease business's earnings margins.
• As Dragonfly Therapeutic Retreats Creating An Affordable Indulgence has an intricate 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 demographic segmentation of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Solution is based on four elements; age, occupation, earnings and gender. For instance, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence produces a number of items associated with babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Dragonfly Therapeutic Retreats Creating An Affordable Indulgence products are quite inexpensive by almost all levels, but its significant targeted consumers, in regards to income level are middle and upper middle level consumers.

Geographical Division

Geographical division of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Study Help is made up of its existence in almost 86 countries. Its geographical segmentation is based upon 2 main elements i.e. average earnings level of the customer as well as the climate of the region. For example, Singapore Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Company's division is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence is based upon the character and life style of the customer. For example, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence 3 in 1 Coffee target those consumers whose lifestyle is quite busy and do not have much time.

Behavioral Division

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Solution behavioral segmentation is based upon the mindset understanding and awareness of the consumer. For instance its highly nutritious items target those clients who have a health mindful mindset towards their intakes.

VRIO Analysis

The VRIO analysis of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Business is a broad range analysis offering the organization with a possibility to get a feasible competitive advantage versus its rivals in the food and beverage industry, summarized in Exhibit I.

Valuable

The resources utilized by the Dragonfly Therapeutic Retreats Creating An Affordable Indulgence business are valuable for the business or not. Such as the resources like finance, human resources, management of operations and experts in marketing. This are some of the crucial important elements of for the recognition of competitive benefit.

Rare

The valuable resources used by Dragonfly Therapeutic Retreats Creating An Affordable Indulgence are even uncommon or costly. , if these resources are frequently discovered that it would be much easier for the competitors and the brand-new rivals in the industry to effortlessly move in competition.

Imitation

The replica procedure is pricey for the competitors of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Analysis Business. It can be done only in 2 different methods i.e. product duplication which is produced and made by Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Business and introducing of the alternative of the products with changing expense. This increases the risk 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 use of its important resources which are difficult to mimic. Regularly, the advancement of management is totally depending on the company's execution technique and team. Hence, this polishes the skills of the firm by time based on the decisions made by company for the progression of its strategic capitals.

Quantitative Analysis

R&D Costs as a portion of sales are decreasing with increasing actual quantity of costs reveals that the sales are increasing at a higher rate than its R&D spending, and permit the company to more invest in R&D.

Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indicator also reveals a thumbs-up to the R&D costs, mergers and acquisitions.

Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio posture a hazard of default of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence to its financiers and could lead a declining share costs. For that reason, in regards to increasing financial obligation ratio, the firm ought to not invest much on R&D and should pay its current debts to decrease the danger for financiers.

The increasing threat of investors with increasing financial obligation ratio and declining share rates can be observed by substantial decline of EPS of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Help stocks.

The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish development likewise impede company to more invest in its mergers and acquisitions.( Dragonfly Therapeutic Retreats Creating An Affordable Indulgence, Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Financial Reports, 2006-2010).

Keep in mind: All the above analysis is done on the basis of estimations and Graphs given in the Exhibits D and E.

TWOS Analysis.

TWOS analysis can be used to obtain numerous methods based on the SWOT Analysis provided above. A brief summary of TWOS Analysis is given up Display H.

Techniques to exploit Opportunities utilizing Strengths.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Solution must present more ingenious items by large amount of R&D Costs and acquisitions and mergers. It could increase the marketplace share of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence and increase the earnings margins for the company. It could also offer Dragonfly Therapeutic Retreats Creating An Affordable Indulgence a long term competitive advantage over its competitors.

The international expansion of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence must be concentrated on market catching of establishing countries by expansion, drawing in more clients through customer's loyalty. As establishing countries are more populous than industrialized nations, it might increase the client circle of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence.

Techniques to Get Rid Of Weak Points to Make Use Of Opportunities.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Solution should do mindful acquisition and merger of organizations, as it might affect the consumer's and society's understandings about Dragonfly Therapeutic Retreats Creating An Affordable Indulgence. It should merge and acquire with those companies which have a market credibility of nutritious and healthy companies. It would enhance the perceptions of customers about Dragonfly Therapeutic Retreats Creating An Affordable Indulgence.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence should not only spend its R&D on development, instead of it ought to also focus on the R&D costs over evaluation of cost of different 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 get rid of threats.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Analysis ought to move to not only developing but also to developed countries. It ought to widens its geographical growth. This large geographical expansion towards establishing and established nations would lower the risk of prospective losses in times of instability in various countries. It must expand its circle to different countries like Unilever which operates in about 170 plus nations.

Techniques to get rid of weaknesses to prevent dangers.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Analysis must carefully control its acquisitions to prevent the danger of misconception from the consumers about Dragonfly Therapeutic Retreats Creating An Affordable Indulgence. This would not only improve the understanding of consumers about Dragonfly Therapeutic Retreats Creating An Affordable Indulgence however would also increase the sales, earnings margins and market share of Dragonfly Therapeutic Retreats Creating An Affordable Indulgence.

Alternatives.

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

Alternative: 1.

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

Pros:.

1. Acquisitions would increase overall properties of the business, increasing the wealth of the company. Costs on R&D would be sunk cost.
2. The company can resell the obtained systems in the market, if it fails to implement its method. Nevertheless, quantity invest in the R&D might not be revived, and it will be thought about totally sunk expense, if it do not offer potential outcomes.
3. Spending on R&D supply sluggish development in sales, as it takes long time to introduce a product. Acquisitions provide quick results, as it provide the company currently established product, which can be marketed quickly after the acquisition.

Cons:.

1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the business to deal with misunderstanding of customers about Dragonfly Therapeutic Retreats Creating An Affordable Indulgence core worths of healthy and healthy products.
2. Big costs on acquisitions than R&D would send a signal of company's inadequacy of developing ingenious products, and would outcomes in consumer's frustration.
3. Big acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making company unable to present brand-new ingenious products.

Option: 2

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

Pros:

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

Cons:

1. It would decrease the revenue margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk cost, and would affect the business at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the financiers, and might result I declining stock prices.

Alternative 3:

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

Pros:

1. It would permit the company to introduce brand-new innovative products with less risk of converting the spending on R&D into sunk cost.
2. It would provide a favorable signal to the financiers, as the total possessions of the company would increase with its significant R&D costs.
3. It would not impact the earnings 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 terms of the company's general wealth as well as in regards to innovative products.

Cons:

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

Recommendation

With the deep analysis of the above options, it is advised that the business should pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just present brand-new and innovative products in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices as well, as financiers are willing to invest more in companies with substantial R&D costs and boost in the total worth of the company.

Action and execution Technique

Method can be implemented efficiently by developing particular short term along with long term plans. These strategies might be as follows;

Short-term Plan (0-1 year).

• Under the short term plan Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Help must perform various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which generate the majority of its income.
• Analyze the current target audience as well as the market sector which is not consist of in the company's circle.
• Examine the present monetary data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that just how much quantity should be spent on R&D.

Mid Term Strategy (1-5 years).

• Obtain those organizations in which the business has possible experience to handle. Acquire most favorable companies with a strong commitment to health, to develop the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Dragonfly Therapeutic Retreats Creating An Affordable Indulgence worths and vision and to prevent potential danger of sunk expense.

Long Term Plan (1-10 years).

• Get companies with health along with taste factor, as the base for the Dragonfly Therapeutic Retreats Creating An Affordable Indulgence as a company producing healthy products has actually been constructed under midterm strategy and now the business could move towards taste factor also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct brand-new products.

Conclusion.

Dragonfly Therapeutic Retreats Creating An Affordable Indulgence Case Solution has actually established significant market share and brand name identity in the metropolitan markets, it is suggested that the business should focus on the rural areas in terms of establishing brand awareness, equity, and loyalty, such can be done by developing a specific brand allowance strategy through trade marketing tactics, that draw clear distinction in between Dragonfly Therapeutic Retreats Creating An Affordable Indulgence products and other competitor items. This will enable the business to establish brand equity for newly presented and already produced items on a greater platform, making the reliable usage of resources and brand name image in the market.