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Twilight Acre Farms Limited Online Case Analysis

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Twilight Acre Farms Limited Case Study Solution & Analysis


Introduction

Twilight Acre Farms Limited Case Study Analysis is currently among the biggest food chains worldwide. It was founded by Henri Twilight Acre Farms Limited in 1866, a German Pharmacist who initially launched "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 likewise discovered The Anglo-Swiss Condensed Milk Company. The 2 became rivals at first however later merged in 1905, leading to the birth of Twilight Acre Farms Limited.

Twilight Acre Farms Limited is now a multinational business. Unlike other international companies, it has senior executives from different nations and tries to make choices considering the entire world. Twilight Acre Farms Limited Case Study Analysis presently has more than 500 factories around the world and a network spread throughout 86 countries.

Function

The purpose of Twilight Acre Farms Limited Corporation is to boost the quality of life of individuals by playing its part and offering healthy food. While making sure that the company 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 offer its customers with food that is healthy, high in quality and safe to eat. It wishes to be innovative and concurrently comprehend the requirements and requirements of its consumers. Its vision is to grow quick and supply items that would please the requirements of each age group. Twilight Acre Farms Limited pictures to develop a well-trained workforce which would help the business to grow.

Objective.

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

Products.
Executive Summary
Twilight Acre Farms Limited Case Study Help has a wide range of products that it uses to its consumers. Its products consist of food for infants, cereals, dairy products, treats, chocolates, food for pet and bottled water. It has around four hundred and fifty (450) factories around the globe and around 328,000 workers. In 2011, Twilight Acre Farms Limited was noted as the most rewarding company.

Goals and Objectives.

• Remembering the vision and objective of the corporation, the company has set its objectives and goals. These objectives and objectives are noted below.
• One objective of the business is to reach zero land fill status. It is working toward no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the by-products. (Twilight Acre Farms Limited, aboutus, 2017).
• Another goal of Twilight Acre Farms Limited is to waste minimum food during production. Most often, the food produced is lost even prior to it reaches the customers.
• Another thing that Twilight Acre Farms Limited is working on is to enhance its packaging in such a method that it would assist it to minimize the above-mentioned complications and would also ensure the shipment of high quality of its products to its clients.
• Meet worldwide standards of the environment.
• Build a relationship based upon trust with its customers, organisation partners, employees, and government.

Important Problems.

Just Recently, Twilight Acre Farms Limited Case Study Help Company is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on mergers and acquisitions to support its NHW method. The target of the business is not achieved as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibition H.

Situational Analysis.
Porter's 5 Forces Analysis
Analysis of Existing Technique, Vision and Goals.

The current Twilight Acre Farms Limited method is based upon the concept of Nutritious, Health and Health (NHW). This method handles the concept to bringing modification in the consumer choices about food and making the food stuff much healthier concerning about the health issues.

The vision of this method is based upon the secret approach i.e. 60/40+ which simply implies that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be produced with additional dietary worth in contrast to all other products in market getting it a plus on its dietary material.

This strategy was adopted to bring more healthy plus tasty foods and drinks in market than ever. In competitors with other companies, with an intention of retaining its trust over clients as Twilight Acre Farms Limited Company has actually gotten more trusted by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis used to determine the position of business in the market is done by using PESTLE analysis, given in Exhibition A. Twilight Acre Farms Limited works under the guidelines and regulations 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
The political impact on the company is considerably affected by the government laws and policies. The business needs to fulfill its requirements offered by federal government otherwise it has to pay fine. Twilight Acre Farms Limited is significantly supported by Government to fulfill all the criteria of requirements like acts of health and safety. In efforts to produce excellent food, Twilight Acre Farms Limited is altering the standards of food and drink manufacturing. This might cause the offense of governmental guidelines and regulations.

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 Twilight Acre Farms Limited Business in U.S. is growing year by year with variable products launch especially concentrating on the dietary food for babies.

Social.

The social environment keeps changing with regard to time like the attitude of the customer in addition to their lifestyles. Any product and services of any business can not achieve success until the business is not concerned about the living system of the consumer. Twilight Acre Farms Limited is taking measures to satisfy its goals as the world is in search of healthy and delicious food.

Technological.

In the advancement of organisation, strategic measures are rather compulsory. Twilight Acre Farms Limited is one of the top popular multinational company and by time it buys various departments to take its products to brand-new level. Twilight Acre Farms Limited is investing more on its R&D to make its items much healthier and healthy supplying customers with health advantages.

Legal.

There is no such effect of legal factors of Twilight Acre Farms Limited as it is more concerned over its laws and guidelines.

Environmental

Twilight Acre Farms Limited, in terms of environmental impact is committed to operate in environment-friendly environment with conservation of the natural resources and energy. As due to the manufacturing of bigger number of items there might be a hazard if the resources utilized are recyclable or not.

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

Twilight Acre Farms Limited Case Study Help has actually obtained a variety of business that assisted it in diversification and development of its item's profile. This is the thorough description of the Porter's model of 5 forces of Twilight Acre Farms Limited Business, given up Display B.

Competitiveness.

There is extreme competition in the industry of food and beverages. Twilight Acre Farms Limited is one of the top business in this competitive industry with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Twilight Acre Farms Limited is running well in this race for last 150 years. Each company has a guaranteed share of market. This rivalry is not simply limited to the price of the product but also for variation, development and quality. Every market is striving hard for the upkeep of their market share. However, the competition of other companies with Twilight Acre Farms Limited Case Study Help is rather high.
Vrio Analysis
Hazard of New Entrants.

A variety of barriers are there for the new entrants to take place in the consumer food market. Just a few entrants prosper in this market as there is a need to understand the customer need which needs time while recent rivals are well aware and has actually progressed with the consumer commitment over their products with time. There is low danger of new entrants to Twilight Acre Farms Limited as it has rather big network of circulation globally dominating with well-reputed image.

Bargaining Power of Suppliers.

In the food and drink market, Twilight Acre Farms Limited Case Study Solution owes the largest share of market requiring higher number of supply chains. In action, Twilight Acre Farms Limited has actually also been concerned for its suppliers as it believes in long-term relations.

Bargaining Power of Buyers.

Therefore, Twilight Acre Farms Limited makes sure to keep its clients satisfied. This has led Twilight Acre Farms Limited to be one of the devoted business in eyes of its purchasers.

Risk of Substitutes.

There has been an excellent danger of alternatives as there are replacements of a few of the Nestlé's items such as boiled water and pasteurized milk. There has actually also been a claim that a few of its products are not safe to use leading to the reduced sale. Thus, Twilight Acre Farms Limited started highlighting the health benefits of its items to cope up with the substitutes.

Rival Analysis.

Twilight Acre Farms Limited Case Study Analysis covers much of the popular customer brand names like Package Kat and Nescafe and so on. About 29 brand names amongst all of its brand names, each brand earned a profits of about $1billion in 2010. Its major part of sale remains in North America constituting about 42% of its all sales. In Europe and U.S. the leading significant brands offered by Twilight Acre Farms Limited in these states have a terrific credible share of market. Also Twilight Acre Farms Limited, Unilever and DANONE are 2 large industries of food and drinks as well as its primary rivals. In the year 2010, Twilight Acre Farms Limited had made its annual revenue by 26% boost since of its increased food and beverages sale particularly in cooking things, ice-cream, beverages based on tea, and frozen food. On the other hand, DANONE, due to the increasing rates of shares resulting an increase of 38% in its profits. Twilight Acre Farms Limited Case Study Help lowered its sales cost by the adjustment of a new accounting treatment. Unilever has number of staff members about 230,000 and functions in more than 160 nations and its London headquarter too. It has actually become the second biggest 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 Twilight Acre Farms Limited. Unilever shares a market share of about 7.7 with Twilight Acre Farms Limited ending up being first and ranking DANONE as 3rd. Twilight Acre Farms Limited draws in local customers by its low cost of the item with the regional taste of the items keeping its first place in the worldwide market. Twilight Acre Farms Limited company has about 280,000 staff members and functions in more than 197 nations edging its rivals in lots of areas. Twilight Acre Farms Limited has likewise lowered its cost of supply by presenting E-marketing in contrast to its rivals.

Keep in mind: A short comparison of Twilight Acre Farms Limited with its close competitors is given in Exhibit C.

SWOT Analysis.

The internal analysis and external of the company also can be done through SWOT Analysis, summarized in the Exhibition F.

Strengths.

• Twilight Acre Farms Limited has an experience of about 140 years, allowing company to much better perform, in different scenarios.
• Nestlé's has existence in about 86 nations, making it a global leader in Food and Drink Industry.
• Twilight Acre Farms Limited has more than 2000 brands, which increase the circle of its target consumers. Famous brands of Twilight Acre Farms Limited consist of; Maggi, Kit-Kat, Nescafe, and so on
• Twilight Acre Farms Limited Case Study Solution has large amount of spending on R&D as compare to its competitors, making the company to launch release nutritious ingenious innovative productsItems
• After adopting its NHW Technique, the business has actually done big quantity of mergers and acquisitions which increase the sales development and improve market position of Twilight Acre Farms Limited.
• Twilight Acre Farms Limited is a popular brand with high customer's commitment and brand recall. This brand name commitment of customers increases the possibilities of simple market adoption of different new brands of Twilight Acre Farms Limited.
Weaknesses.
• Acquisitions of those business, like; Kraft frozen Pizza organisation can offer an unfavorable signal to Twilight Acre Farms Limited customers about their compromise over their core proficiency of much healthier foods.
• The development I sales as compare to the company's financial investment in NHW Strategy are quite various. It will take long to change the understanding of people ab out Twilight Acre Farms Limited as a company selling healthy and healthy products.

Opportunities.

• Presenting more health associated products allows the company to catch the marketplace in which consumers are quite conscious about health.
• Developing countries like India and China has biggest markets worldwide. Broadening the market towards developing nations can increase the Twilight Acre Farms Limited business by increasing sales volume.
• Continue acquisitions and joint ventures increases the market share of the business.
• Increased relationships with schools, hotel chains, restaurants and so on can also increase the variety of Twilight Acre Farms Limited Case Study Analysis consumers. For instance, instructors can recommend their trainees to buy Twilight Acre Farms Limited items.

Hazards.

• Economic instability in countries, which are the prospective markets for Twilight Acre Farms Limited, can develop several problems for Twilight Acre Farms Limited.
• Shifting of products from regular to much healthier, leads to extra costs and can result in decline company's revenue margins.
• As Twilight Acre Farms Limited has a complex supply chain, for that reason failure of any of the level of supply chain can lead the company to face particular issues.

Division Analysis

Market Division

The group segmentation of Twilight Acre Farms Limited Case Study Help is based upon four elements; age, income, profession and gender. For instance, Twilight Acre Farms Limited produces several products associated with children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary products. Twilight Acre Farms Limited items are quite budget-friendly by nearly all levels, however its significant targeted consumers, in terms of income level are upper and middle middle level customers.

Geographical Division

Geographical segmentation of Twilight Acre Farms Limited Case Study Solution is made up of its existence in almost 86 nations. Its geographical segmentation is based upon two main elements i.e. average earnings level of the consumer in addition to the climate of the region. Singapore Twilight Acre Farms Limited Business's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Twilight Acre Farms Limited is based upon the personality and life style of the customer. For example, Twilight Acre Farms Limited 3 in 1 Coffee target those clients whose lifestyle is rather busy and do not have much time.

Behavioral Division

Twilight Acre Farms Limited Case Analysis behavioral division is based upon the mindset understanding and awareness of the customer. For instance its highly healthy products target those consumers who have a health mindful attitude towards their usages.

VRIO Analysis

The VRIO analysis of Twilight Acre Farms Limited Company is a broad variety analysis supplying the organization with a chance to obtain a viable competitive benefit versus its competitors in the food and beverage market, summed up in Display I.

Prized Possession

The resources used by the Twilight Acre Farms Limited business are important for the business or not. Such as the resources like finance, human resources, management of operations and professionals in marketing. This are some of the key important elements of for the identification of competitive advantage.

Rare

The valuable resources utilized by Twilight Acre Farms Limited are costly or even uncommon. If these resources are commonly found that it would be easier for the rivals and the new competitors in the industry to easily move in competitors.

Imitation

The replica process is expensive for the rivals of Twilight Acre Farms Limited Case Solution Business. It can be done just in 2 different strategies i.e. item duplication which is produced and produced by Twilight Acre Farms Limited Business and introducing of the alternative of the products with switching expense. This increases the threat of disturbance to the current structure of the industry.

Company

This component of VRIO analysis handle the compatibility of the business to position in the market making productive usage of its important resources which are difficult to imitate. Frequently, the development of management is totally depending on the firm's execution method and team. Hence, this polishes the abilities of the company by time based upon the choices made by company for the progression of its tactical capitals.

Quantitative Analysis

R&D Spending as a percentage of sales are declining with increasing actual quantity of costs reveals that the sales are increasing at a higher rate than its R&D spending, and allow the business to more invest in R&D.

Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This sign also shows a thumbs-up to the R&D spending, acquisitions and mergers.

Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of debts. This increasing financial obligation ratio position a danger of default of Twilight Acre Farms Limited to its investors and could lead a decreasing share prices. Therefore, in terms of increasing financial obligation ratio, the firm needs to not spend much on R&D and needs to pay its present financial obligations to decrease the threat for investors.

The increasing danger of investors with increasing debt ratio and decreasing share costs can be observed by substantial decline of EPS of Twilight Acre Farms Limited Case Analysis stocks.

The sales development of business is also low as compare to its acquisitions and mergers due to slow perception building of consumers. This sluggish growth likewise hinder company to more spend on its acquisitions and mergers.( Twilight Acre Farms Limited, Twilight Acre Farms Limited Financial Reports, 2006-2010).

Keep in mind: All the above analysis is done on the basis of estimations and Charts given up the Exhibitions D and E.

TWOS Analysis.

2 analysis can be used to obtain various methods based on the SWOT Analysis offered above. A quick summary of TWOS Analysis is given up Exhibit H.

Techniques to exploit Opportunities utilizing Strengths.

Twilight Acre Farms Limited Case Help ought to introduce more innovative products by large amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Twilight Acre Farms Limited and increase the profit margins for the company. It could also offer Twilight Acre Farms Limited a long term competitive benefit over its rivals.

The international expansion of Twilight Acre Farms Limited should be focused on market catching of developing countries by growth, attracting more consumers through consumer's commitment. As developing countries are more populated than industrialized nations, it could increase the customer circle of Twilight Acre Farms Limited.

Strategies to Overcome Weaknesses to Exploit Opportunities.

Twilight Acre Farms Limited Case Analysis ought to do cautious acquisition and merger of companies, as it could impact the client's and society's understandings about Twilight Acre Farms Limited. It ought to get and combine with those business which have a market track record of healthy and nutritious business. It would improve the understandings of customers about Twilight Acre Farms Limited.

Twilight Acre Farms Limited must not only invest its R&D on development, rather than it must also focus on the R&D costs over evaluation of expense of various healthy products. This would increase expense efficiency of its products, which will lead to increasing its sales, due to declining costs, and margins.

Techniques to use strengths to conquer dangers.

Twilight Acre Farms Limited needs to move to not just establishing however also to industrialized countries. It needs to broaden its circle to various countries like Unilever which operates in about 170 plus nations.

Strategies to get rid of weak points to avoid risks.

Twilight Acre Farms Limited must sensibly manage its acquisitions to prevent the risk of misconception from the consumers about Twilight Acre Farms Limited. It should merge and get with those nations having a goodwill of being a healthy company in the market. This would not only enhance the perception of customers about Twilight Acre Farms Limited however would likewise increase the sales, profit margins and market share of Twilight Acre Farms Limited. It would likewise allow the business to utilize its possible resources effectively on its other operations instead of acquisitions of those companies slowing the NHW method growth.

Alternatives.

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

Alternative: 1.

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

Pros:.

1. Acquisitions would increase total properties of the company, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The business can resell the obtained units in the market, if it fails to execute its strategy. Amount invest on the R&D might not be restored, and it will be considered totally sunk expense, if it do not offer potential results.
3. Investing in R&D supply slow growth in sales, as it takes long time to present an item. However, acquisitions supply fast outcomes, as it supply the company already established product, which can be marketed not long 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 mistaken belief of customers about Twilight Acre Farms Limited core values of nutritious and healthy products.
2. Big costs on acquisitions than R&D would send out a signal of company's inefficiency of establishing innovative products, and would lead to consumer's frustration too.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are already present in the market, making business not able to introduce new innovative items.

Option: 2

The Business ought to spend more on its R&D instead of acquisitions.

Pros:

1. It would make it possible for the business to produce more ingenious products.
2. It would offer the business a strong competitive position in the market.
3. It would allow the business to increase its targeted consumers by presenting those products which can be provided to a completely brand-new market segment.
4. Ingenious products will offer long term advantages and high market share in long run.

Cons:

1. It would reduce the profit margins of the business.
2. In case of failure, the entire costs on R&D would be thought about as sunk expense, and would affect the company at big. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could provide a negative signal to the investors, and might result I declining stock costs.

Alternative 3:

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

Pros:

1. It would permit the business to introduce new ingenious items with less risk of transforming the costs on R&D into sunk cost.
2. It would provide a positive signal to the investors, as the total possessions of the company would increase with its significant R&D spending.
3. It would not affect the earnings margins of the business at a large rate as compare to alternative 2.
4. It would supply the company a strong long term market position in regards to the business's overall wealth in addition to in regards to innovative products.

Cons:

1. Threat of conversion of R&D costs into sunk expense, higher than alternative 1 lower than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less variety of innovative items than alternative 2 and high variety of innovative items than alternative 1.

Recommendation

With the deep analysis of the above options, it is suggested that the business must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not only introduce new and innovative products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share costs also, as financiers want to invest more in business with considerable R&D costs and boost in the overall worth of the company.

Action and application Strategy

Method can be implemented effectively by establishing specific short term in addition to long term plans. These strategies might be as follows;

Short Term Strategy (0-1 year).

• Under the short-term strategy Twilight Acre Farms Limited Case Help ought to perform various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which create the majority of its profits.
• Examine the current target audience along with the marketplace segment which is not consist of in the business's circle.
• Analyze the present monetary data to determine the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that how much quantity should be invested in R&D.

Mid Term Plan (1-5 years).

• Get those organizations in which the business has potential experience to handle. Acquire most beneficial companies with a strong dedication to health, to build the customer's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Twilight Acre Farms Limited worths and vision and to avoid possible threat of sunk expense.

Long Term Strategy (1-10 years).

• Acquire organizations with health along with taste factor, as the base for the Twilight Acre Farms Limited as a business producing healthy products has actually been constructed under midterm strategy and now the business could move towards taste element too to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new items.

Conclusion.
Recommendations
Twilight Acre Farms Limited has remained the top market player for more than a decade. It has institutionalised its strategies and culture to align itself with the market changes and consumer behavior, which has eventually allowed it to sustain its market share. Though, Twilight Acre Farms Limited has actually developed substantial market share and brand name identity in the urban markets, it is recommended that the business needs to focus on the backwoods in terms of developing brand equity, awareness, and commitment, such can be done by creating a particular brand allocation method through trade marketing techniques, that draw clear distinction between Twilight Acre Farms Limited Case Analysis products and other competitor products. Furthermore, Twilight Acre Farms Limited must take advantage of its brand name image of healthy and safe food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will allow the company to develop brand name equity for newly introduced and already produced items on a greater platform, making the effective usage of resources and brand image in the market.