Lifetime Networks Andrea Wong Case Study Solution & Analysis
Intro
Lifetime Networks Andrea Wong Case Study Analysis is currently among the greatest food chains worldwide. It was founded by Henri Lifetime Networks Andrea Wong in 1866, a German Pharmacist who first released "Farine Lactee"; a mix of flour and milk to feed babies and reduce death rate. At the exact same time, the Page siblings from Switzerland also discovered The Anglo-Swiss Condensed Milk Business. The 2 became rivals at first however in the future combined in 1905, leading to the birth of Lifetime Networks Andrea Wong.
Lifetime Networks Andrea Wong is now a transnational business. Unlike other multinational companies, it has senior executives from different nations and attempts to make decisions considering the entire world. Lifetime Networks Andrea Wong Case Study Analysis currently has more than 500 factories around the world and a network spread across 86 countries.
Purpose
The function of Lifetime Networks Andrea Wong Corporation is to enhance the lifestyle of people by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and much better future for it. It also wants to encourage individuals to live a healthy life. While ensuring that the business is being successful in the long run, that's how it plays its part for a better and healthy future
Vision
Nestlé's vision is to supply its customers with food that is healthy, high in quality and safe to consume. Lifetime Networks Andrea Wong visualizes to develop a trained workforce which would help the company to grow.
Objective.
Nestlé's mission is that as presently, it is the leading company in the food market, it thinks in 'Excellent Food, Good Life". Its mission is to supply its customers with a range of options that are healthy and best in taste also. It is concentrated on offering the best food to its consumers throughout the day and night.
Products.
Lifetime Networks Andrea Wong Case Study Help has a wide range of items that it provides to its clients. Its items include food for infants, cereals, dairy items, snacks, chocolates, food for animal and bottled water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 staff members. In 2011, Lifetime Networks Andrea Wong was listed as the most gainful organization.
Goals and Objectives.
• Keeping in mind the vision and mission of the corporation, the company has set its objectives and objectives. These goals and objectives are noted below.
• One goal of the company is to reach absolutely no land fill status. It is pursuing no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the by-products. (Lifetime Networks Andrea Wong, aboutus, 2017).
• Another objective of Lifetime Networks Andrea Wong is to lose minimum food during production. Frequently, the food produced is lost even prior to it reaches the customers.
• Another thing that Lifetime Networks Andrea Wong is dealing with is to enhance its packaging in such a way that it would assist it to reduce the above-mentioned problems and would also ensure the delivery of high quality of its items to its clients.
• Meet worldwide standards of the environment.
• Build a relationship based on trust with its customers, company partners, staff members, and federal government.
Important Concerns.
Recently, Lifetime Networks Andrea Wong Case Study Help Business is focusing more towards the technique of NHW and investing more of its earnings on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW technique. 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%, provided in Display H.
Situational Analysis.
Analysis of Present Technique, Vision and Goals.
The existing Lifetime Networks Andrea Wong technique is based on the concept of Nutritious, Health and Health (NHW). This method handles the idea to bringing change in the consumer choices about food and making the food stuff healthier worrying about the health issues.
The vision of this strategy is based upon the secret approach i.e. 60/40+ which merely suggests that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be made with additional dietary value in contrast to all other items in market getting it a plus on its nutritional material.
This strategy was adopted to bring more nutritious plus delicious foods and beverages in market than ever. In competition with other companies, with an intent of retaining its trust over clients as Lifetime Networks Andrea Wong Business has gained more relied on by costumers.
Microenvironment Analysis (PESTEL Analysis).
The analysis utilized to measure the position of business in the market is done by using PESTLE analysis, offered in Exhibition A. Lifetime Networks Andrea Wong works under the regulations and rules directed by government and food authority. The company is more focused on its products and services to make sure about the item quality and safety.
Political.
The political impact on the company is greatly affected by the government laws and guidelines. The company needs to satisfy its requirements provided by federal government otherwise it has to pay fine. Lifetime Networks Andrea Wong is significantly supported by Federal government to meet all the criteria of standards like acts of health and wellness. In efforts to make good food, Lifetime Networks Andrea Wong is altering the requirements of food and drink production. This may cause the offense of governmental rules and policies.
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 Lifetime Networks Andrea Wong Company in U.S. is growing year by year with variable products launch specifically focusing on the dietary food for babies.
Social.
The social environment keeps changing with respect to time like the mindset of the customer as well as their lifestyles. Any services or product of any company can not be successful till the company is not concerned about the living system of the customer. Lifetime Networks Andrea Wong is taking measures to satisfy its goals as the world remains in search of tasty and healthy food.
Technological.
In the development of organisation, strategic steps are somewhat necessary. Lifetime Networks Andrea Wong is one of the top well-known multinational firm and by time it invests in various departments to take its items to brand-new level. Lifetime Networks Andrea Wong is investing more on its R&D to make its items healthier and nutritious supplying customers with health benefits.
Legal.
There is no such effect of legal aspects of Lifetime Networks Andrea Wong as it is more worried over its guidelines and laws.
Environmental
Lifetime Networks Andrea Wong, in terms of environmental impact is devoted to work in eco-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 may be a threat.
Competitive Forces Analysis (Porter's Five Forces Model).
Lifetime Networks Andrea Wong Case Study Help has actually gotten a variety of business that assisted it in diversification and development of its item's profile. This is the detailed description of the Porter's design of 5 forces of Lifetime Networks Andrea Wong Business, given up Exhibit B.
Competitiveness.
Lifetime Networks Andrea Wong is one of the leading business in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Lifetime Networks Andrea Wong is running well in this race for last 150 years. The competitors of other companies with Lifetime Networks Andrea Wong is quite high.
Threat of New Entrants.
A number of barriers are there for the brand-new entrants to take place in the customer food market. Just a few entrants be successful in this industry as there is a need to understand the consumer need which requires time while recent rivals are aware and has actually advanced with the consumer commitment over their products with time. There is low hazard of brand-new entrants to Lifetime Networks Andrea Wong as it has rather big network of distribution internationally dominating with well-reputed image.
Bargaining Power of Providers.
In the food and beverage industry, Lifetime Networks Andrea Wong Case Study Analysis owes the largest share of market requiring greater number of supply chains. In action, Lifetime Networks Andrea Wong has likewise been worried for its suppliers as it thinks in long-lasting relations.
Bargaining Power of Buyers.
Hence, Lifetime Networks Andrea Wong makes sure to keep its customers satisfied. This has led Lifetime Networks Andrea Wong to be one of the devoted business in eyes of its purchasers.
Hazard of Substitutes.
There has been a terrific risk of alternatives as there are replacements of some of the Nestlé's items such as boiled water and pasteurized milk. There has actually likewise been a claim that a few of its items are not safe to utilize leading to the decreased sale. Therefore, Lifetime Networks Andrea Wong started highlighting the health benefits of its items to cope up with the substitutes.
Competitor Analysis.
Lifetime Networks Andrea Wong Case Study Solution covers many of the popular consumer brand names like Kit Kat and Nescafe etc. About 29 brands amongst all of its brands, each brand name earned an income of about $1billion in 2010. Its major part of sale is in North America making up about 42% of its all sales. In Europe and U.S. the leading significant brands sold by Lifetime Networks Andrea Wong in these states have a fantastic credible share of market. Lifetime Networks Andrea Wong, Unilever and DANONE are 2 large markets of food and beverages as well as its primary rivals. In the year 2010, Lifetime Networks Andrea Wong had earned its yearly profit by 26% increase because of its increased food and beverages sale specifically in cooking things, ice-cream, drinks based upon tea, and frozen food. On the other hand, DANONE, due to the increasing prices of shares resulting an increase of 38% in its earnings. Lifetime Networks Andrea Wong Case Study Help lowered its sales expense by the adjustment of a brand-new accounting treatment. Unilever has number of workers 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 Lifetime Networks Andrea Wong. Unilever shares a market share of about 7.7 with Lifetime Networks Andrea Wong becoming very first and ranking DANONE as third. Lifetime Networks Andrea Wong brings in regional customers by its low expense of the item with the local taste of the products preserving its top place in the worldwide market. Lifetime Networks Andrea Wong business has about 280,000 workers and functions in more than 197 nations edging its rivals in many regions. Lifetime Networks Andrea Wong has also decreased its cost of supply by introducing E-marketing in contrast to its rivals.
Keep in mind: A brief comparison of Lifetime Networks Andrea Wong with its close competitors is given up Display C.
SWOT Analysis.
The internal analysis and external of the company also can be done through SWOT Analysis, summed up in the Exhibit F.
Strengths.
• Lifetime Networks Andrea Wong has an experience of about 140 years, enabling business to better carry out, in various scenarios.
• Nestlé's has presence in about 86 countries, making it an international leader in Food and Beverage Industry.
• Lifetime Networks Andrea Wong has more than 2000 brand names, which increase the circle of its target customers. Famous brand names of Lifetime Networks Andrea Wong consist of; Maggi, Kit-Kat, Nescafe, etc.
• Lifetime Networks Andrea Wong Case Study Solution has large amount of spending on R&D as compare to its competitors, making the company to launch release innovative ingenious nutritious products.
• After adopting its NHW Technique, the company has actually done large quantity of mergers and acquisitions which increase the sales growth and enhance market position of Lifetime Networks Andrea Wong.
• Lifetime Networks Andrea Wong is a well-known brand with high customer's loyalty and brand recall. This brand name loyalty of consumers increases the possibilities of easy market adoption of numerous new brands of Lifetime Networks Andrea Wong.
Weaknesses.
• Acquisitions of those company, like; Kraft frozen Pizza company can offer an unfavorable signal to Lifetime Networks Andrea Wong customers about their compromise over their core proficiency of healthier foods.
• The growth I sales as compare to the company's investment in NHW Technique are quite different. It will take long to change the perception of people ab out Lifetime Networks Andrea Wong as a business selling healthy and healthy products.
Opportunities.
• Presenting more health associated items makes it possible for the company to capture the marketplace in which customers are rather conscious about health.
• Developing nations like India and China has biggest markets on the planet. For this reason broadening the market towards developing nations can improve the Lifetime Networks Andrea Wong company by increasing sales volume.
• Continue acquisitions and joint endeavors increases the market share of the business.
• Increased relationships with schools, hotel chains, dining establishments etc. can likewise increase the variety of Lifetime Networks Andrea Wong Case Study Help customers. Instructors can recommend their students to buy Lifetime Networks Andrea Wong items.
Threats.
• Financial instability in countries, which are the prospective markets for Lifetime Networks Andrea Wong, can produce several concerns for Lifetime Networks Andrea Wong.
• Shifting of products from regular to much healthier, leads to extra expenses and can cause decline company's profit margins.
• As Lifetime Networks Andrea Wong has a complicated supply chain, therefore failure of any of the level of supply chain can lead the business to face certain issues.
Segmentation Analysis
Group Segmentation
The group division of Lifetime Networks Andrea Wong Case Study Analysis is based upon four aspects; age, gender, income and occupation. Lifetime Networks Andrea Wong produces several products related to infants i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary items. Lifetime Networks Andrea Wong products are quite cost effective by nearly all levels, however its major targeted customers, in regards to earnings level are middle and upper middle level customers.
Geographical Division
Geographical division of Lifetime Networks Andrea Wong Case Study Solution is composed of its presence in practically 86 countries. Its geographical division is based upon two main aspects i.e. average earnings level of the customer as well as the environment of the region. Singapore Lifetime Networks Andrea Wong Business's division is done on the basis of the weather of the region i.e. hot, warm or cold.
Psychographic Segmentation
Psychographic segmentation of Lifetime Networks Andrea Wong is based upon the personality and life style of the consumer. Lifetime Networks Andrea Wong 3 in 1 Coffee target those consumers whose life style is rather busy and do not have much time.
Behavioral Segmentation
Lifetime Networks Andrea Wong Case Help behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its extremely nutritious products target those customers who have a health mindful mindset towards their intakes.
VRIO Analysis
The VRIO analysis of Lifetime Networks Andrea Wong Business is a broad variety analysis supplying the organization with a possibility to acquire a viable competitive advantage against its competitors in the food and drink industry, summarized in Exhibit I.
Prized Possession
The resources used by the Lifetime Networks Andrea Wong business are important for the business or not. Such as the resources like financing, human resources, management of operations and professionals in marketing. This are a few of the key important aspects of for the identification of competitive advantage.
Rare
The important resources used by Lifetime Networks Andrea Wong are costly or even rare. , if these resources are commonly discovered that it would be easier for the rivals and the new competitors in the industry to easily move in competition.
Imitation
The imitation procedure is costly for the competitors of Lifetime Networks Andrea Wong Case Solution Company. It can be done just in 2 various techniques i.e. product duplication which is produced and produced by Lifetime Networks Andrea Wong Business and launching of the alternative of the products with changing expense. This increases the risk of interruption to the recent structure of the market.
Organization
This component of VRIO analysis handle the compatibility of the business to position in the market making efficient usage of its important resources which are hard to imitate. Frequently, the development of management is totally dependent on the company's execution method and group. Thus, this polishes the abilities of the company by time based upon the choices made by company for the progression of its strategic capitals.
Quantitative Analysis
R&D Spending as a percentage of sales are decreasing with increasing actual amount of spending shows that the sales are increasing at a greater rate than its R&D spending, and permit the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is decreasing. This indicator likewise reveals a thumbs-up to the R&D spending, acquisitions and mergers.
Debt 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 position a danger of default of Lifetime Networks Andrea Wong to its investors and could lead a decreasing share prices. In terms of increasing debt ratio, the firm should not invest much on R&D and needs to pay its existing debts to decrease the threat for investors.
The increasing threat of investors with increasing debt ratio and decreasing share rates can be observed by substantial decline of EPS of Lifetime Networks Andrea Wong Case Help stocks.
The sales growth of business is also low as compare to its acquisitions and mergers due to slow understanding building of customers. This sluggish development also impede business to additional invest in its acquisitions and mergers.( Lifetime Networks Andrea Wong, Lifetime Networks Andrea Wong Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of estimations and Charts given in the Displays D and E.
TWOS Analysis.
2 analysis can be utilized to obtain numerous methods based upon the SWOT Analysis given above. A short summary of TWOS Analysis is given in Display H.
Methods to make use of Opportunities using Strengths.
Lifetime Networks Andrea Wong Case Help needs to introduce more ingenious items by large quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Lifetime Networks Andrea Wong and increase the profit margins for the company. It might likewise supply Lifetime Networks Andrea Wong a long term competitive benefit over its competitors.
The international growth of Lifetime Networks Andrea Wong ought to be concentrated on market recording of developing countries by expansion, attracting more clients through consumer's loyalty. As developing countries are more populated than industrialized nations, it might increase the customer circle of Lifetime Networks Andrea Wong.
Techniques to Overcome Weak Points to Make Use Of Opportunities.
Lifetime Networks Andrea Wong Case Analysis must do careful acquisition and merger of companies, as it might impact the consumer's and society's understandings about Lifetime Networks Andrea Wong. It ought to combine and get with those companies which have a market reputation of nutritious and healthy companies. It would enhance the perceptions of consumers about Lifetime Networks Andrea Wong.
Lifetime Networks Andrea Wong needs to not only invest its R&D on innovation, rather than it should also concentrate on the R&D spending over evaluation of cost of various nutritious products. This would increase expense performance of its items, which will lead to increasing its sales, due to declining costs, and margins.
Techniques to use strengths to get rid of dangers.
Lifetime Networks Andrea Wong should move to not just developing but likewise to developed nations. It should expand its circle to different nations like Unilever which runs in about 170 plus nations.
Methods to overcome weaknesses to avoid dangers.
Lifetime Networks Andrea Wong Case Analysis needs to sensibly control its acquisitions to prevent the danger of misunderstanding from the customers about Lifetime Networks Andrea Wong. This would not just enhance the perception of consumers about Lifetime Networks Andrea Wong but would also increase the sales, revenue margins and market share of Lifetime Networks Andrea Wong.
Alternatives.
In order to sustain the brand in the market and keep the consumer intact with the brand name, there are 2 alternatives:.
Option: 1.
The Company must spend more on acquisitions than on the R&D.
Pros:.
1. Acquisitions would increase overall assets of the company, increasing the wealth of the company. However, spending on R&D would be sunk cost.
2. The company can resell the obtained systems in the market, if it stops working to execute its method. Amount spend on the R&D might not be revived, and it will be considered completely sunk expense, if it do not give potential outcomes.
3. Investing in R&D provide sluggish growth in sales, as it takes very long time to introduce a product. Acquisitions supply quick outcomes, as it offer the business currently established item, which can be marketed soon after the acquisition.
Cons:.
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to deal with mistaken belief of customers about Lifetime Networks Andrea Wong 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 ingenious items, and would lead to customer's frustration as well.
3. Big acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making company unable to introduce brand-new ingenious products.
Option: 2
The Company should invest more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the company to produce more innovative products.
2. It would provide the business a strong competitive position in the market.
3. It would enable the business to increase its targeted clients by presenting those items which can be offered to an entirely new market sector.
4. Innovative products will offer long term advantages and high market share in long term.
Cons:
1. It would decrease the revenue margins of the company.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, and would impact the business at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could supply a negative signal to the investors, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Pros:
1. It would enable the business to introduce brand-new innovative items with less risk of converting the spending on R&D into sunk expense.
2. It would offer a favorable signal to the financiers, as the overall assets of the company would increase with its significant R&D costs.
3. It would not affect the profit margins of the business at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the business's overall wealth in addition to in regards to ingenious products.
Cons:
1. Danger of conversion of R&D costs into sunk cost, higher than alternative 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less variety of ingenious items than alternative 2 and high number of innovative products than alternative 1.
Recommendation
With the deep analysis of the above alternatives, it is recommended that the company needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present new and innovative items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share costs also, as financiers are willing to invest more in companies with substantial R&D spending and boost in the overall worth of the business.
Action and application Method
Technique can be executed effectively by establishing certain short-term as well as long term plans. These strategies might be as follows;
Short-term Strategy (0-1 year).
• Under the short term plan Lifetime Networks Andrea Wong Case Help must carry out different activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create the majority of its profits.
• Analyze the present target market as well as the marketplace section which is not include in the company's circle.
• Examine the present monetary data to measure the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much amount ought to be invested in R&D.
Mid Term Strategy (1-5 years).
• Get those organizations in which the company has potential experience to deal with. Get most beneficial companies with a strong dedication to health, to construct the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Lifetime Networks Andrea Wong values and vision and to avoid prospective danger of sunk cost.
Long Term Strategy (1-10 years).
• Get companies with health as well as taste factor, as the base for the Lifetime Networks Andrea Wong as a business producing healthy items has actually been constructed under midterm strategy and now the business could move towards taste element too to grasp 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 new items.
Conclusion.
Lifetime Networks Andrea Wong has actually stayed the leading market gamer for more than a years. It has institutionalised its methods and culture to align itself with the market modifications and consumer habits, which has actually eventually allowed it to sustain its market share. Though, Lifetime Networks Andrea Wong has developed considerable market share and brand identity in the urban markets, it is advised that the company ought to focus on the rural areas in regards to establishing brand loyalty, equity, and awareness, such can be done by developing a particular brand allocation technique through trade marketing methods, that draw clear distinction between Lifetime Networks Andrea Wong Case Analysis products and other competitor items. Lifetime Networks Andrea Wong 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 permit the business to establish brand equity for freshly introduced and already produced products on a higher platform, making the effective usage of resources and brand name image in the market.
