Menu

Robin Bienenstock At Sanford C Bernstein Online Case Solution

Home >> Accounting >> Robin Bienenstock At Sanford C Bernstein

Robin Bienenstock At Sanford C Bernstein Case Study Solution & Analysis


Introduction

Robin Bienenstock At Sanford C Bernstein Case Study Analysis is presently among the greatest food chains worldwide. It was established by Henri Robin Bienenstock At Sanford C Bernstein in 1866, a German Pharmacist who first introduced "Farine Lactee"; a combination of flour and milk to decrease and feed babies mortality rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Business. The 2 became rivals initially however later combined in 1905, resulting in the birth of Robin Bienenstock At Sanford C Bernstein.

Robin Bienenstock At Sanford C Bernstein is now a multinational company. Unlike other multinational companies, it has senior executives from various countries and attempts to make choices considering the entire world. Robin Bienenstock At Sanford C Bernstein Case Study Help presently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The purpose of Robin Bienenstock At Sanford C Bernstein Corporation is to improve the quality of life of people by playing its part and supplying healthy food. It wants to assist the world in forming a healthy and better future for it. It likewise wishes to motivate individuals to live a healthy life. While making sure that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

Nestlé's vision is to provide its consumers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and at the same time comprehend the requirements and requirements of its customers. Its vision is to grow quickly and provide products that would please the requirements of each age. Robin Bienenstock At Sanford C Bernstein visualizes to develop a well-trained labor force which would help the business to grow.

Objective.

Nestlé's objective is that as presently, it is the leading company in the food industry, it thinks in 'Excellent Food, Good Life". Its mission is to offer its consumers with a variety of options that are healthy and best in taste too. It is concentrated on supplying the very best food to its clients throughout the day and night.

Products.
Executive Summary
Robin Bienenstock At Sanford C Bernstein Case Study Help has a wide range of products that it uses to its clients. Its items include food for babies, cereals, dairy items, treats, chocolates, food for family pet and mineral water. It has around four hundred and fifty (450) factories worldwide and around 328,000 staff members. In 2011, Robin Bienenstock At Sanford C Bernstein was noted as the most rewarding company.

Goals and Objectives.

• Keeping in mind the vision and mission of the corporation, the company has put down its goals and objectives. These objectives and objectives are noted below.
• One goal of the business is to reach no garbage dump status. It is pursuing zero waste, where no waste of the factory is landfilled. It motivates its staff members to take the most out of the by-products. (Robin Bienenstock At Sanford C Bernstein, aboutus, 2017).
• Another objective of Robin Bienenstock At Sanford C Bernstein is to squander minimum food throughout production. Usually, the food produced is lost even prior to it reaches the clients.
• Another thing that Robin Bienenstock At Sanford C Bernstein is working on is to enhance its packaging in such a method that it would help it to minimize those problems and would also ensure the shipment of high quality of its items to its customers.
• Meet international standards of the environment.
• Construct a relationship based on trust with its consumers, organisation partners, workers, and government.

Crucial Concerns.

Recently, Robin Bienenstock At Sanford C Bernstein Case Study Help Business is focusing more towards the method of NHW and investing more of its profits on the R&D technology. The nation is investing more on mergers and acquisitions to support its NHW strategy. The target of the business is not accomplished as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibition H.

Situational Analysis.
Porter's 5 Forces Analysis
Analysis of Present Strategy, Vision and Goals.

The existing Robin Bienenstock At Sanford C Bernstein technique is based upon the principle of Nutritious, Health and Health (NHW). This technique handles the concept to bringing modification in the customer preferences about food and making the food stuff much healthier worrying about the health issues.

The vision of this technique is based on the key technique i.e. 60/40+ which merely implies that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be made with additional nutritional worth in contrast to all other products in market acquiring it a plus on its nutritional content.

This method was adopted to bring more healthy plus delicious foods and beverages in market than ever. In competitors with other business, with an objective of maintaining its trust over consumers as Robin Bienenstock At Sanford C Bernstein Company has actually gained more relied on by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis utilized to determine the position of business in the market is done by utilizing PESTLE analysis, given in Exhibition A. Robin Bienenstock At Sanford C Bernstein works under the guidelines and guidelines directed by federal government and food authority. The company is more focused on its services and items to make sure about the product quality and safety.

Political.
Swot Analysis
Robin Bienenstock At Sanford C Bernstein is considerably supported by Federal government to meet all the criteria of requirements like acts of health and safety. In efforts to produce good food, Robin Bienenstock At Sanford C Bernstein Case Study Analysis is altering the requirements of food and beverage manufacturing.

Economic.

Initiation of the business where the capital earnings of each individual matters for the increased net sale as this varies country-to-country. The economy of the Robin Bienenstock At Sanford C Bernstein Business in U.S. is growing year by year with variable items launch especially focusing on the nutritional food for babies.

Social.

The social environment keeps on altering with regard to time like the attitude of the consumer in addition to their lifestyles. Any service or product of any business can not succeed up until the company is not concerned about the living system of the customer. Robin Bienenstock At Sanford C Bernstein is taking measures to meet its goals as the world is in search of healthy and delicious food.

Technological.

In the advancement of company, strategic measures are rather compulsory. Robin Bienenstock At Sanford C Bernstein is one of the top popular multinational company and by time it buys various departments to take its products to brand-new level. Robin Bienenstock At Sanford C Bernstein is investing more on its R&D to make its products much healthier and healthy offering consumers with health benefits.

Legal.

There is no such effect of legal elements of Robin Bienenstock At Sanford C Bernstein as it is more worried over its guidelines and laws.

Environmental

Robin Bienenstock At Sanford C Bernstein, in regards to environmental effect is dedicated to work in environmentally friendly environment with conservation of the natural deposits and energy. As due to the production of larger number of products there might be a risk if the resources used are recyclable or not.

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

Robin Bienenstock At Sanford C Bernstein Case Study Solution has gotten a variety of companies that helped it in diversity and development of its item's profile. This is the detailed description of the Porter's design of 5 forces of Robin Bienenstock At Sanford C Bernstein Business, given in Display B.

Competitiveness.

Robin Bienenstock At Sanford C Bernstein is one of the leading company in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Robin Bienenstock At Sanford C Bernstein is running well in this race for last 150 years. The competition of other business with Robin Bienenstock At Sanford C Bernstein is rather high.
Vrio Analysis
Threat of New Entrants.

A number of barriers are there for the brand-new entrants to take place in the consumer food market. Only a few entrants prosper in this market as there is a requirement to comprehend the customer requirement which needs time while current competitors are aware and has actually progressed with the consumer loyalty over their products with time. There is low danger of new entrants to Robin Bienenstock At Sanford C Bernstein as it has quite big network of circulation internationally dominating with well-reputed image.

Bargaining Power of Providers.

In the food and drink industry, Robin Bienenstock At Sanford C Bernstein owes the largest share of market requiring greater number of supply chains. This causes it to be an idyllic purchaser for the providers. Hence, any of the provider has never expressed any complain about cost and the bargaining power is likewise low. In response, Robin Bienenstock At Sanford C Bernstein has likewise been concerned for its suppliers as it believes in long-lasting relations.

Bargaining Power of Purchasers.

There is high bargaining power of the buyers due to fantastic competition. Switching cost is quite low for the consumers as many companies sale a number of comparable products. This appears to be an excellent risk for any company. Thus, Robin Bienenstock At Sanford C Bernstein Case Study Solution makes sure to keep its consumers satisfied. This has actually led Robin Bienenstock At Sanford C Bernstein to be one of the loyal company in eyes of its purchasers.

Risk of Replacements.

There has actually 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 also been a claim that some of its products are not safe to use leading to the reduced sale. Therefore, Robin Bienenstock At Sanford C Bernstein began highlighting the health advantages of its products to cope up with the replacements.

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 difference of 0.3 points with Robin Bienenstock At Sanford C Bernstein. Robin Bienenstock At Sanford C Bernstein brings in local clients by its low cost of the item with the regional taste of the items maintaining its very first place in the international market. Robin Bienenstock At Sanford C Bernstein Case Study Help business has about 280,000 employees and functions in more than 197 nations edging its competitors in lots of regions.

Note: A short comparison of Robin Bienenstock At Sanford C Bernstein with its close rivals is given in Exhibition C.

SWOT Analysis.

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

Strengths.

• Robin Bienenstock At Sanford C Bernstein has an experience of about 140 years, making it possible for company to much better carry out, in various scenarios.
• Nestlé's has presence in about 86 nations, making it a worldwide leader in Food and Drink Industry.
• Robin Bienenstock At Sanford C Bernstein has more than 2000 brand names, which increase the circle of its target consumers. Famous brands of Robin Bienenstock At Sanford C Bernstein consist of; Maggi, Kit-Kat, Nescafe, etc.
• Robin Bienenstock At Sanford C Bernstein Case Study Help has large amount of spending on R&D as compare to its competitorsRivals making the company to launch introduce innovative ingenious nutritious healthy.
• After adopting its NHW Method, the company has actually done large amount of mergers and acquisitions which increase the sales development and improve market position of Robin Bienenstock At Sanford C Bernstein.
• Robin Bienenstock At Sanford C Bernstein is a popular brand name with high customer's loyalty and brand name recall. This brand loyalty of customers increases the opportunities of simple market adoption of different new brand names of Robin Bienenstock At Sanford C Bernstein.
Weaknesses.
• Acquisitions of those company, like; Kraft frozen Pizza company can offer a negative signal to Robin Bienenstock At Sanford C Bernstein customers about their compromise over their core competency of healthier foods.
• The development I sales as compare to the business's financial investment in NHW Technique are rather various. It will take long to change the understanding of individuals ab out Robin Bienenstock At Sanford C Bernstein as a company offering nutritious and healthy products.

Opportunities.

• Presenting more health related products makes it possible for the business to capture the market in which consumers are rather mindful about health.
• Developing countries like India and China has biggest markets on the planet. Broadening the market towards establishing countries can improve the Robin Bienenstock At Sanford C Bernstein organisation by increasing sales volume.
• Continue acquisitions and joint endeavors increases the marketplace share of the business.
• Increased relationships with schools, hotel chains, dining establishments etc. can likewise increase the variety of Robin Bienenstock At Sanford C Bernstein Case Study Help consumers. Instructors can recommend their students to purchase Robin Bienenstock At Sanford C Bernstein products.

Hazards.

• Economic instability in nations, which are the potential markets for Robin Bienenstock At Sanford C Bernstein, can develop numerous problems for Robin Bienenstock At Sanford C Bernstein.
• Shifting of products from typical to healthier, leads to additional expenses and can cause decrease company's earnings margins.
• As Robin Bienenstock At Sanford C Bernstein has an intricate supply chain, therefore failure of any of the level of supply chain can lead the business to face particular problems.

Division Analysis

Demographic Segmentation

The group segmentation of Robin Bienenstock At Sanford C Bernstein Case Study Solution is based on four aspects; age, income, profession and gender. Robin Bienenstock At Sanford C Bernstein produces several products related to babies i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Robin Bienenstock At Sanford C Bernstein items are quite budget-friendly by nearly all levels, however its significant targeted customers, in terms of income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Robin Bienenstock At Sanford C Bernstein Case Study Solution is made up of its presence in nearly 86 nations. Its geographical division is based upon two main elements i.e. typical earnings level of the consumer as well as the environment of the region. For instance, Singapore Robin Bienenstock At Sanford C Bernstein Company's division is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Robin Bienenstock At Sanford C Bernstein is based upon the personality and lifestyle of the client. For example, Robin Bienenstock At Sanford C Bernstein 3 in 1 Coffee target those consumers whose lifestyle is quite busy and don't have much time.

Behavioral Segmentation

Robin Bienenstock At Sanford C Bernstein Case Solution behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its highly nutritious items target those customers who have a health mindful attitude towards their consumptions.

VRIO Analysis

The VRIO analysis of Robin Bienenstock At Sanford C Bernstein Company is a broad variety analysis providing the organization with a chance to get a practical competitive advantage against its rivals in the food and beverage industry, summed up in Exhibition I.

Prized Possession

The resources used by the Robin Bienenstock At Sanford C Bernstein business are valuable for the business or not. Such as the resources like financing, human resources, management of operations and experts in marketing. This are some of the essential important elements of for the identification of competitive benefit.

Rare

The valuable resources used by Robin Bienenstock At Sanford C Bernstein are pricey or even rare. , if these resources are frequently discovered that it would be much easier for the competitors and the brand-new competitors in the industry to easily move in competitors.

Imitation

The replica process is pricey for the rivals of Robin Bienenstock At Sanford C Bernstein Case Help Business. Nevertheless, it can be done just in 2 different techniques i.e. product duplication which is produced and manufactured by Robin Bienenstock At Sanford C Bernstein Business and introducing of the alternative of the items with changing expense. This increases the threat of disruption to the recent structure of the market.

Organization

This part of VRIO analysis deals with the compatibility of the company to position in the market making efficient use of its important resources which are tough to imitate. Regularly, the advancement of management is totally based on the company's execution method and group. Hence, this polishes the skills of the firm by time based upon the choices made by company for the development of its strategic 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 spending, and enable the business to more spend on R&D.

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

Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing financial obligation ratio posture a threat of default of Robin Bienenstock At Sanford C Bernstein to its financiers and might lead a declining share prices. In terms of increasing debt ratio, the firm must not spend much on R&D and must pay its current debts to decrease the danger for financiers.

The increasing danger of financiers with increasing financial obligation ratio and decreasing share prices can be observed by big decrease of EPS of Robin Bienenstock At Sanford C Bernstein Case Solution stocks.

The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow growth also impede company to additional invest in its acquisitions and mergers.( Robin Bienenstock At Sanford C Bernstein, Robin Bienenstock At Sanford C Bernstein Financial Reports, 2006-2010).

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

TWOS Analysis.

TWOS analysis can be utilized to obtain various strategies based on the SWOT Analysis given above. A short summary of TWOS Analysis is given up Exhibit H.

Techniques to make use of Opportunities utilizing Strengths.

Robin Bienenstock At Sanford C Bernstein Case Analysis should present more innovative items by big amount of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Robin Bienenstock At Sanford C Bernstein and increase the earnings margins for the business. It might likewise provide Robin Bienenstock At Sanford C Bernstein a long term competitive advantage over its competitors.

The worldwide expansion of Robin Bienenstock At Sanford C Bernstein ought to be focused on market recording of establishing countries by growth, attracting more clients through customer's loyalty. As developing countries are more populated than industrialized nations, it could increase the customer circle of Robin Bienenstock At Sanford C Bernstein.

Techniques to Overcome Weak Points to Make Use Of Opportunities.

Robin Bienenstock At Sanford C Bernstein Case Analysis must do cautious acquisition and merger of organizations, as it might affect the customer's and society's understandings about Robin Bienenstock At Sanford C Bernstein. It needs to combine and get with those business which have a market track record of healthy and nutritious companies. It would improve the perceptions of customers about Robin Bienenstock At Sanford C Bernstein.

Robin Bienenstock At Sanford C Bernstein should not just spend its R&D on development, rather than it ought to likewise focus on the R&D costs over evaluation of expense of various nutritious products. This would increase cost effectiveness of its items, which will lead to increasing its sales, due to declining prices, and margins.

Techniques to use strengths to overcome hazards.

Robin Bienenstock At Sanford C Bernstein Case Help needs to transfer to not just developing however also to industrialized nations. It needs to broadens its geographical expansion. This large geographical growth towards establishing and developed countries would decrease the threat of prospective losses in times of instability in different countries. It needs to widen its circle to numerous nations like Unilever which runs in about 170 plus countries.

Techniques to get rid of weaknesses to avoid risks.

Robin Bienenstock At Sanford C Bernstein Case Solution must carefully manage its acquisitions to prevent the threat of mistaken belief from the consumers about Robin Bienenstock At Sanford C Bernstein. This would not only improve the perception of customers about Robin Bienenstock At Sanford C Bernstein but would also increase the sales, profit margins and market share of Robin Bienenstock At Sanford C Bernstein.

Alternatives.

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

Alternative: 1.

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

Pros:.

1. Acquisitions would increase total possessions of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk expense.
2. The company can resell the gotten units in the market, if it fails to implement its method. Quantity invest on the R&D might not be restored, and it will be thought about entirely sunk cost, if it do not provide potential outcomes.
3. Investing in R&D provide sluggish development in sales, as it takes long time to introduce a product. However, acquisitions provide fast results, as it offer the business currently developed product, which can be marketed not long after the acquisition.

Cons:.

1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to deal with misconception of customers about Robin Bienenstock At Sanford C Bernstein core worths of healthy and healthy products.
2. Big costs on acquisitions than R&D would send out a signal of business's ineffectiveness of developing innovative items, and would outcomes in customer's frustration.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are already present in the market, making company unable to present new innovative products.

Alternative: 2

The Company should spend more on its R&D instead of acquisitions.

Pros:

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

Cons:

1. It would reduce the earnings margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk expense, and would impact the business at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which could offer an unfavorable signal to the investors, and could result I declining stock rates.

Alternative 3:

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

Pros:

1. It would allow the business to introduce brand-new innovative products with less risk of transforming the costs on R&D into sunk cost.
2. It would offer a positive signal to the financiers, as the overall possessions of the company would increase with its significant R&D costs.
3. It would not affect the revenue margins of the business at a large rate as compare to alternative 2.
4. It would offer the company a strong long term market position in regards to the business's general wealth as well as in regards to ingenious products.

Cons:

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

Suggestion

With the deep analysis of the above alternatives, it is suggested that the company 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 introduce new and innovative products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share prices as well, as investors are willing to invest more in companies with significant R&D costs and increase in the total worth of the company.

Action and implementation Method

Strategy can be implemented effectively by developing certain short term in addition to long term plans. These plans might be as follows;

Short-term Plan (0-1 year).

• Under the short term plan Robin Bienenstock At Sanford C Bernstein Case Analysis ought to carry out different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate most of its revenue.
• Examine the present target market in addition to the market segment which is not include in the business's circle.
• Evaluate the existing financial information to measure the quantity that must be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that just how much amount should be invested in R&D.

Mid Term Plan (1-5 years).

• Get those companies in which the business has possible experience to deal with. Obtain most favorable companies with a strong commitment to health, to construct the client's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Robin Bienenstock At Sanford C Bernstein worths and vision and to prevent prospective threat of sunk expense.

Long Term Plan (1-10 years).

• Obtain companies with health in addition to taste factor, as the base for the Robin Bienenstock At Sanford C Bernstein as a business producing healthy items has actually been constructed under midterm plan and now the business could move towards taste aspect as well to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new products.

Conclusion.
Recommendations
Robin Bienenstock At Sanford C Bernstein has remained the top market gamer for more than a decade. It has institutionalized its strategies and culture to align itself with the market modifications and client behavior, which has actually eventually permitted it to sustain its market share. Though, Robin Bienenstock At Sanford C Bernstein has actually established substantial market share and brand name identity in the city markets, it is suggested that the company ought to focus on the backwoods in terms of developing brand loyalty, equity, and awareness, such can be done by producing a specific brand name allowance method through trade marketing strategies, that draw clear distinction in between Robin Bienenstock At Sanford C Bernstein Case Analysis products and other competitor items. Moreover, Robin Bienenstock At Sanford C Bernstein needs to utilize its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will allow the company to develop brand name equity for recently presented and currently produced products on a greater platform, making the efficient use of resources and brand image in the market.