Menu

Global Expansion At Sanford C Bernstein Online Case Help

Home >> Accounting >> Global Expansion At Sanford C Bernstein

Global Expansion At Sanford C Bernstein Case Study Solution & Analysis


Intro

Global Expansion At Sanford C Bernstein Case Study Solution is currently one of the biggest food chains worldwide. It was founded by Henri Global Expansion At Sanford C Bernstein in 1866, a German Pharmacist who initially introduced "Farine Lactee"; a combination of flour and milk to feed infants and reduce death rate. At the exact same time, the Page bros from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The two ended up being rivals initially however later on merged in 1905, leading to the birth of Global Expansion At Sanford C Bernstein.

Global Expansion At Sanford C Bernstein is now a global business. Unlike other international companies, it has senior executives from different nations and tries to make decisions thinking about the whole world. Global Expansion At Sanford C Bernstein Case Study Help currently has more than 500 factories around the world and a network spread throughout 86 countries.

Function

The function of Global Expansion At Sanford C Bernstein Corporation is to enhance the quality of life of individuals by playing its part and supplying healthy food. While making sure that the company is being successful in the long run, that's how it plays its part for a much better and healthy future

Vision

Nestlé's vision is to provide its customers with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and simultaneously comprehend the needs and requirements of its consumers. Its vision is to grow quick and supply products that would satisfy the requirements of each age. Global Expansion At Sanford C Bernstein imagines to develop a well-trained workforce which would help the business to grow.

Objective.

Nestlé's mission is that as presently, it is the leading business in the food market, it believes in 'Excellent Food, Good Life". Its objective is to supply its customers with a range of choices that are healthy and best in taste. It is concentrated on providing the best food to its customers throughout the day and night.

Products.

Global Expansion At Sanford C Bernstein Case Study Help has a wide range of products that it offers to its clients. Its products include food for babies, cereals, dairy products, treats, chocolates, food for animal and mineral water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 workers. In 2011, Global Expansion At Sanford C Bernstein was noted as the most gainful organization.

Objectives and objectives.

• Keeping in mind the vision and mission of the corporation, the company has actually set its goals and objectives. These goals and objectives are noted below.
• One goal of the business is to reach zero garbage dump status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the by-products. (Global Expansion At Sanford C Bernstein, aboutus, 2017).
• Another objective of Global Expansion At Sanford C Bernstein is to lose minimum food throughout production. Frequently, the food produced is wasted even before it reaches the customers.
• Another thing that Global Expansion At Sanford C Bernstein is dealing with is to improve its packaging in such a way that it would help it to minimize the above-mentioned issues and would likewise ensure the delivery of high quality of its products to its clients.
• Meet international standards of the environment.
• Build a relationship based upon trust with its customers, service partners, staff members, and government.

Important Issues.

Just Recently, Global Expansion At Sanford C Bernstein Company is focusing more towards the technique of NHW and investing more of its profits on the R&D technology. The country is investing more on mergers and acquisitions to support its NHW strategy. The target of the business is not achieved 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 Exhibit H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may result in the decreased income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Present Method, Vision and Goals.

The present Global Expansion At Sanford C Bernstein technique is based upon the idea of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing change in the consumer choices about food and making the food stuff healthier concerning about the health concerns.

The vision of this method is based on the secret approach i.e. 60/40+ which merely indicates that the items 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 extra nutritional worth in contrast to all other products in market acquiring it a plus on its nutritional material.

This method was adopted to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other business, with an objective of retaining its trust over customers as Global Expansion At Sanford C Bernstein Business has gotten more trusted by clients.

Microenvironment Analysis (PESTEL Analysis).

The analysis utilized to measure the position of company in the market is done by using PESTLE analysis, given up Exhibit A. Global Expansion At Sanford C Bernstein works under the policies and rules directed by federal government and food authority. The business is more focused on its services and products to ensure about the product quality and security. This analysis will help in comprehending environment of external market in the global food and drink markets. (Parera, 2017).

Political.

The political effect on the business is considerably influenced by the government laws and guidelines. The business needs to fulfill its requirements provided by government otherwise it needs to pay fine. Global Expansion At Sanford C Bernstein is significantly supported by Government to fulfill all the criteria of requirements like acts of health and wellness. In efforts to produce excellent food, Global Expansion At Sanford C Bernstein is altering the requirements of food and beverage production. This might cause the offense of governmental guidelines and regulations.

Economic.

Initiation of business where the capital income of each private matters for the increased net sale as this differs country-to-country. The economy of the Global Expansion At Sanford C Bernstein Company in U.S. is growing year by year with variable products launch particularly concentrating on the dietary food for infants.

Social.

The social environment keeps changing with regard to time like the mindset of the consumer as well as their lifestyles. Any service or product of any company can not be successful till the company is not concerned about the living system of the consumer. Global Expansion At Sanford C Bernstein is taking steps to satisfy its goals as the world remains in search of healthy and delicious food.

Technological.

In the advancement of company, strategic measures are rather obligatory. Global Expansion At Sanford C Bernstein is among the leading famous international firm and by time it buys various departments to take its items to new level. Global Expansion At Sanford C Bernstein is investing more on its R&D to make its products healthier and nutritious providing consumers with health advantages.

Legal.

There is no such effect of legal aspects of Global Expansion At Sanford C Bernstein as it is more concerned over its laws and guidelines.

Environmental

Global Expansion At Sanford C Bernstein, in terms of environmental effect is dedicated to operate in eco-friendly environment with preservation of the natural deposits and energy. If the resources used are recyclable or not, as due to the manufacturing of larger number of products there might be a risk.

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

Global Expansion At Sanford C Bernstein Case Study Analysis has actually obtained a number of business that assisted it in diversity and growth of its product's profile. This is the extensive description of the Porter's design of five forces of Global Expansion At Sanford C Bernstein Company, given in Exhibit B.

Competitiveness.

Global Expansion At Sanford C Bernstein is one of the top business in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Global Expansion At Sanford C Bernstein is running well in this race for last 150 years. The competitors of other business with Global Expansion At Sanford C Bernstein is rather high.

Risk of New Entrants.

A number of barriers are there for the new entrants to happen in the consumer food market. Just a couple of entrants be successful in this industry as there is a requirement to understand the consumer requirement which needs time while current rivals are well aware and has advanced with the consumer loyalty over their products with time. There is low risk of new entrants to Global Expansion At Sanford C Bernstein as it has rather big network of circulation globally dominating with well-reputed image.

Bargaining Power of Suppliers.

In the food and drink market, Global Expansion At Sanford C Bernstein owes the biggest share of market requiring higher number of supply chains. This causes it to be an idyllic buyer for the suppliers. Thus, any of the supplier has never ever expressed any complain about cost and the bargaining power is also low. In action, Global Expansion At Sanford C Bernstein has likewise been worried for its suppliers as it believes in long-term relations.

Bargaining Power of Buyers.

Thus, Global Expansion At Sanford C Bernstein makes sure to keep its consumers pleased. This has led Global Expansion At Sanford C Bernstein to be one of the devoted company in eyes of its purchasers.

Threat of Alternatives.

There has been a great hazard of replacements as there are alternatives of some of the Nestlé's products such as boiled water and pasteurized milk. There has actually likewise been a claim that some of its items are not safe to utilize leading to the decreased sale. Hence, Global Expansion At Sanford C Bernstein began highlighting the health advantages of its products to cope up with the alternatives.

Competitor Analysis.

Global Expansion At Sanford C Bernstein Case Study Help covers much of the popular customer brand names like Set Kat and Nescafe etc. About 29 brands among all of its brands, each brand name made a revenue of about $1billion in 2010. Its huge part of sale remains in The United States and Canada constituting about 42% of its all sales. In Europe and U.S. the top significant brand names sold by Global Expansion At Sanford C Bernstein in these states have a fantastic reputable share of market. Similarly Global Expansion At Sanford C Bernstein, Unilever and DANONE are two large markets of food and drinks as well as its main rivals. In the year 2010, Global Expansion At Sanford C Bernstein had actually earned its annual revenue by 26% boost because of its increased food and beverages sale specifically in cooking stuff, ice-cream, beverages based on tea, and frozen food. On the other hand, DANONE, due to the increasing prices of shares resulting an increase of 38% in its revenues. Global Expansion At Sanford C Bernstein Case Study Help reduced its sales cost by the adaptation of a new accounting treatment. Unilever has number of employees about 230,000 and functions in more than 160 nations and its London headquarter. It has become 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 Global Expansion At Sanford C Bernstein. Unilever shares a market share of about 7.7 with Global Expansion At Sanford C Bernstein ending up being ranking and first DANONE as third. Global Expansion At Sanford C Bernstein attracts regional customers by its low expense of the product with the local taste of the items preserving its first place in the worldwide market. Global Expansion At Sanford C Bernstein company has about 280,000 employees and functions in more than 197 nations edging its rivals in lots of areas. Global Expansion At Sanford C Bernstein has actually likewise reduced its cost of supply by presenting E-marketing in contrast to its rivals.

Note: A quick contrast of Global Expansion At Sanford C Bernstein with its close rivals is given up Exhibit C.

SWOT Analysis.

The internal analysis and external of the business likewise can be done through SWOT Analysis, summarized in the Exhibit F.

Strengths.

• Global Expansion At Sanford C Bernstein has an experience of about 140 years, enabling company to much better perform, in numerous situations.
• Nestlé's has existence in about 86 countries, making it an international leader in Food and Beverage Industry.
• Global Expansion At Sanford C Bernstein has more than 2000 brands, which increase the circle of its target customers. Famous brands of Global Expansion At Sanford C Bernstein consist of; Maggi, Kit-Kat, Nescafe, etc.
• Global Expansion At Sanford C Bernstein Case Study Analysis has large amount quantity spending costs R&D as compare to its competitorsRivals making the company business launch introduce nutritious ingenious innovative productsItems
• After adopting its NHW Method, the company has actually done large quantity of mergers and acquisitions which increase the sales growth and improve market position of Global Expansion At Sanford C Bernstein.
• Global Expansion At Sanford C Bernstein is a popular brand with high consumer's loyalty and brand recall. This brand loyalty of consumers increases the possibilities of simple market adoption of various brand-new brand names of Global Expansion At Sanford C Bernstein.
Weak points.
• Acquisitions of those business, like; Kraft frozen Pizza organisation can give a negative signal to Global Expansion At Sanford C Bernstein customers about their compromise over their core competency of much healthier foods.
• The development I sales as compare to the company's investment in NHW Method are rather different. It will take long to alter the perception of individuals ab out Global Expansion At Sanford C Bernstein as a business offering healthy and healthy items.

Opportunities.

• Presenting more health associated products makes it possible for the company to catch the marketplace in which consumers are rather conscious about health.
• Developing countries like India and China has biggest markets in the world. Broadening the market towards developing nations can increase the Global Expansion At Sanford C Bernstein company by increasing sales volume.
• Continue acquisitions and joint endeavors increases the market share of the business.
• Increased relationships with schools, hotel chains, restaurants and so on can also increase the number of Global Expansion At Sanford C Bernstein Case Study Help customers. For example, teachers can advise their trainees to acquire Global Expansion At Sanford C Bernstein items.

Hazards.

• Financial instability in countries, which are the potential markets for Global Expansion At Sanford C Bernstein, can develop several problems for Global Expansion At Sanford C Bernstein.
• Shifting of products from typical to healthier, causes extra expenses and can lead to decrease company's profit margins.
• As Global Expansion At Sanford C Bernstein has an intricate supply chain, therefore failure of any of the level of supply chain can lead the company to deal with particular issues.

Division Analysis

Market Segmentation

The market division of Global Expansion At Sanford C Bernstein Case Study Solution is based upon 4 aspects; age, gender, profession and income. For example, Global Expansion At Sanford C Bernstein produces a number of items associated with infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Global Expansion At Sanford C Bernstein products are rather economical by practically all levels, however its major targeted consumers, in terms of income level are upper and middle middle level consumers.

Geographical Segmentation

Geographical division of Global Expansion At Sanford C Bernstein Case Study Solution is composed of its presence in nearly 86 countries. Its geographical division is based upon 2 primary elements i.e. average earnings level of the customer along with the environment of the area. Singapore Global Expansion At Sanford C Bernstein Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Global Expansion At Sanford C Bernstein is based upon the character and life style of the client. Global Expansion At Sanford C Bernstein 3 in 1 Coffee target those customers whose life style is quite hectic and do not have much time.

Behavioral Division

Global Expansion At Sanford C Bernstein Case Help behavioral division is based upon the attitude understanding and awareness of the client. For instance its extremely healthy items target those consumers who have a health conscious attitude towards their consumptions.

VRIO Analysis

The VRIO analysis of Global Expansion At Sanford C Bernstein Business is a broad variety analysis offering the company with a chance to get a viable competitive benefit against its rivals in the food and drink market, summarized in Exhibition I.

Prized Possession

The resources used by the Global Expansion At Sanford C Bernstein company are important for the business or not. Such as the resources like financing, personnels, management of operations and specialists in marketing. This are some of the crucial valuable elements of for the recognition of competitive benefit.

Rare

The important resources utilized by Global Expansion At Sanford C Bernstein are costly or even uncommon. If these resources are typically discovered that it would be easier for the competitors and the new rivals in the industry to easily move in competition.

Imitation

The imitation process is costly for the competitors of Global Expansion At Sanford C Bernstein Case Help Company. Nevertheless, it can be done only in two different techniques i.e. item duplication which is produced and made by Global Expansion At Sanford C Bernstein Company and introducing of the replacement of the products with switching cost. This increases the risk of disturbance to the recent structure of the industry.

Organization

This part of VRIO analysis handle the compatibility of the company to place in the market making productive use of its valuable resources which are difficult to imitate. Regularly, the development of management is completely depending on the company's execution strategy and group. Therefore, this polishes the skills of the firm by time based on the choices made by firm for the development of its tactical capitals.

Quantitative Analysis

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

Net Revenue Margin is increasing while R&D as a portion of sales is declining. This sign likewise shows a green light to the R&D costs, mergers and acquisitions.

Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing debt ratio present a danger of default of Global Expansion At Sanford C Bernstein to its financiers and might lead a decreasing share prices. In terms of increasing financial obligation ratio, the firm needs to not invest much on R&D and needs to pay its current financial obligations to decrease the danger for financiers.

The increasing risk of financiers with increasing debt ratio and declining share prices can be observed by huge decrease of EPS of Global Expansion At Sanford C Bernstein Case Solution stocks.

The sales growth of business is also low as compare to its acquisitions and mergers due to slow perception structure of customers. This slow growth also prevent company to additional spend on its mergers and acquisitions.( Global Expansion At Sanford C Bernstein, Global Expansion At Sanford C Bernstein Financial Reports, 2006-2010).

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

TWOS Analysis.

2 analysis can be used to derive different methods based upon the SWOT Analysis offered above. A brief summary of TWOS Analysis is given up Exhibition H.

Techniques to make use of Opportunities using Strengths.

Global Expansion At Sanford C Bernstein Case Analysis ought to present more innovative items by large amount of R&D Costs and acquisitions and mergers. It could increase the market share of Global Expansion At Sanford C Bernstein and increase the profit margins for the business. It might also supply Global Expansion At Sanford C Bernstein a long term competitive advantage over its competitors.

The worldwide growth of Global Expansion At Sanford C Bernstein need to be concentrated on market capturing of developing countries by expansion, drawing in more customers through consumer's commitment. As developing nations are more populated than industrialized countries, it could increase the customer circle of Global Expansion At Sanford C Bernstein.

Techniques to Conquer Weaknesses to Make Use Of Opportunities.

Global Expansion At Sanford C Bernstein Case Analysis must do cautious acquisition and merger of organizations, as it could impact the customer's and society's understandings about Global Expansion At Sanford C Bernstein. It should obtain and merge with those business which have a market credibility of nutritious and healthy business. It would improve the understandings of customers about Global Expansion At Sanford C Bernstein.

Global Expansion At Sanford C Bernstein should not just invest its R&D on innovation, instead of it ought to also concentrate on the R&D costs over assessment of cost of numerous healthy products. This would increase cost effectiveness of its items, which will result in increasing its sales, due to decreasing costs, and margins.

Methods to use strengths to get rid of risks.

Global Expansion At Sanford C Bernstein Case Help ought to move to not only establishing but also to developed countries. It ought to widens its geographical growth. This large geographical growth towards establishing and developed countries would minimize the danger of prospective losses in times of instability in various countries. It should expand its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to conquer weaknesses to avoid risks.

Global Expansion At Sanford C Bernstein Case Solution must carefully manage its acquisitions to avoid the threat of misunderstanding from the consumers about Global Expansion At Sanford C Bernstein. This would not only improve the perception of consumers about Global Expansion At Sanford C Bernstein but would likewise increase the sales, earnings margins and market share of Global Expansion At Sanford C Bernstein.

Alternatives.

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

Alternative: 1.

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

Pros:.

1. Acquisitions would increase overall assets of the business, increasing the wealth of the company. Nevertheless, spending on R&D would be sunk cost.
2. The company can resell the gotten systems in the market, if it stops working to execute its strategy. Quantity spend on the R&D could not be revived, and it will be thought about totally sunk expense, if it do not provide possible outcomes.
3. Spending on R&D supply sluggish development in sales, as it takes very long time to introduce a product. Acquisitions supply fast results, as it supply the business currently established product, which can be marketed quickly after the acquisition.

Cons:.

1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face misconception of customers about Global Expansion At Sanford C Bernstein core values of healthy and nutritious items.
2. Big costs on acquisitions than R&D would send a signal of business's inefficiency of establishing innovative products, and would results in consumer's discontentment too.
3. Big acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making company not able to introduce new ingenious items.

Alternative: 2

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

Pros:

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

Cons:

1. It would decrease the profit margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk expense, and would affect the business at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which could offer a negative signal to the investors, and could result I decreasing stock rates.

Alternative 3:

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

Pros:

1. It would permit the company to introduce new innovative items with less danger of transforming the costs on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the general assets of the company would increase with its considerable R&D spending.
3. It would not affect the revenue margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in terms of the business's general wealth along with in terms of innovative items.

Cons:

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

Suggestion

With the deep analysis of the above options, it is advised that the business needs to 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 brand-new and ingenious items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs too, as investors want to invest more in companies with substantial R&D costs and boost in the overall worth of the company.

Action and implementation Method

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

Short Term Plan (0-1 year).

• Under the short term strategy Global Expansion At Sanford C Bernstein Case Solution ought to carry out numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce the majority of its income.
• Analyze the current target audience as well as the market sector which is not include in the company's circle.
• Examine the current financial information to determine the quantity that must be spent on the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the business to understand that just how much amount needs to be invested in R&D.

Mid Term Strategy (1-5 years).

• Obtain those companies in which the company has prospective experience to handle. Get most favorable organizations with a strong commitment to health, to construct the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Global Expansion At Sanford C Bernstein worths and vision and to avoid possible threat of sunk cost.

Long Term Plan (1-10 years).

• Acquire companies with health in addition to taste element, as the base for the Global Expansion At Sanford C Bernstein as a company producing healthy items has actually been built under midterm strategy and now the business could move towards taste factor also to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop brand-new products.

Conclusion.

Global Expansion At Sanford C Bernstein has actually remained the leading market player for more than a years. It has actually institutionalized its techniques and culture to align itself with the market changes and customer habits, which has eventually permitted it to sustain its market share. Global Expansion At Sanford C Bernstein has developed significant market share and brand name identity in the urban markets, it is advised that the business needs to focus on the rural locations in terms of establishing brand name awareness, loyalty, and equity, such can be done by producing a particular brand allowance strategy through trade marketing strategies, that draw clear distinction in between Global Expansion At Sanford C Bernstein items and other rival items. Moreover, Global Expansion At Sanford C Bernstein ought to leverage its brand name 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 permit the company to develop brand name equity for freshly introduced and already produced items on a greater platform, making the reliable usage of resources and brand image in the market.