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United Way Case Study Solution & Analysis


Introduction

United Way is currently one of the biggest food chains worldwide. It was founded by Henri United Way in 1866, a German Pharmacist who initially released "Farine Lactee"; a mix of flour and milk to feed infants and decrease mortality rate.

United Way is now a global company. Unlike other multinational business, it has senior executives from different nations and tries to make decisions considering the whole world. United Way Case Study Help presently has more than 500 factories worldwide and a network spread across 86 nations.

Function

The function of United Way Corporation is to improve the lifestyle of individuals by playing its part and offering healthy food. It wants to assist the world in forming a healthy and much better future for it. It likewise wishes to motivate people to live a healthy life. While making certain 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 supply its clients with food that is healthy, high in quality and safe to eat. United Way pictures to establish a trained workforce which would help the company to grow.

Objective.

Nestlé's objective is that as presently, it is the leading company in the food industry, it thinks in 'Good Food, Good Life". Its objective is to supply its consumers with a range of choices that are healthy and best in taste. It is focused on providing the best food to its consumers throughout the day and night.

Products.
Executive Summary
United Way Case Study Analysis has a large range of items that it provides to its clients. Its products include food for infants, cereals, dairy products, treats, chocolates, food for pet and mineral water. It has around four hundred and fifty (450) factories worldwide and around 328,000 workers. In 2011, United Way was noted as the most rewarding organization.

Goals and objectives.

• Keeping in mind the vision and mission of the corporation, the company has set its goals and goals. These objectives and objectives are listed below.
• One goal of the business is to reach zero land fill status.
• Another objective of United Way is to lose minimum food during production. Usually, the food produced is squandered even prior to it reaches the customers.
• Another thing that United Way is working on is to improve its product packaging in such a way that it would assist it to reduce the above-mentioned problems and would also ensure the shipment of high quality of its products to its customers.
• Meet international requirements of the environment.
• Construct a relationship based upon trust with its customers, company partners, workers, and government.

Critical Problems.

Recently, United Way Case Study Analysis Business is focusing more towards the strategy of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on mergers and acquisitions to support its NHW strategy. The target of the business is not attained 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 Display H.

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

The present United Way strategy is based on the principle of Nutritious, Health and Wellness (NHW). This strategy handles the idea to bringing change in the client preferences 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 just suggests that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The items will be made with extra nutritional value in contrast to all other products in market acquiring it a plus on its dietary material.

This technique was embraced to bring more healthy plus tasty foods and drinks in market than ever. In competitors with other companies, with an intent of keeping its trust over customers as United Way Company has gained more trusted by customers.

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. United Way works under the guidelines and rules directed by government and food authority. The business is more focused on its services and items to make sure about the product quality and safety.

Political.
Swot Analysis
The political influence on the business is significantly affected by the government laws and guidelines. The business needs to satisfy its requirements offered by government otherwise it has to pay fine. United Way is greatly supported by Government to meet all the requirements of requirements like acts of health and wellness. In efforts to make great food, United Way is altering the standards of food and drink manufacturing. This may cause the violation of governmental guidelines and guidelines.

Economic.

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

Social.

The social environment keeps on changing with regard to time like the mindset of the consumer as well as their lifestyles. Any product or service of any company can not achieve success till the business is not concerned about the living system of the consumer. United Way is taking measures to satisfy its objectives as the world remains in search of healthy and tasty food.

Technological.

In the development of service, tactical procedures are rather compulsory. United Way is one of the leading popular multinational firm and by time it buys various departments to take its products to brand-new level. United Way is spending more on its R&D to make its products much healthier and nutritious offering customers with health benefits.

Legal.

There is no such effect of legal aspects of United Way as it is more worried over its laws and guidelines.

Environmental

United Way, in regards to environmental impact is committed to work in environment-friendly environment with preservation of the natural resources and energy. As due to the manufacturing of bigger number of items there may be a threat if the resources used are recyclable or not.

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

United Way Case Study Help has actually acquired a variety of business that assisted it in diversification and growth of its item's profile. This is the detailed explanation of the Porter's design of five forces of United Way Business, given in Exhibit B.

Competitiveness.

United Way is one of the top business in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. United Way is running well in this race for last 150 years. The competitors of other business with United Way is quite high.
Vrio Analysis
Risk of New Entrants.

A number of barriers are there for the brand-new entrants to happen in the consumer food industry. Only a few entrants prosper in this industry as there is a requirement to understand the consumer need which requires time while recent competitors are well aware and has actually advanced with the customer commitment over their items with time. There is low hazard of new entrants to United Way as it has quite large network of distribution globally dominating with well-reputed image.

Bargaining Power of Providers.

In the food and beverage industry, United Way Case Study Solution owes the largest share of market requiring greater number of supply chains. In action, United Way has actually likewise been worried for its suppliers as it thinks in long-term relations.

Bargaining Power of Purchasers.

There is high bargaining power of the buyers due to fantastic competitors. Switching cost is rather low for the consumers as many companies sale a number of comparable products. This appears to be an excellent threat for any company. Therefore, United Way Case Study Analysis makes certain to keep its consumers pleased. This has actually led United Way to be one of the loyal business in eyes of its buyers.

Hazard of Replacements.

There has actually been an excellent threat of alternatives as there are replacements of some of the Nestlé's items such as boiled water and pasteurized milk. There has likewise been a claim that a few of its products are not safe to utilize leading to the reduced sale. Thus, United Way started highlighting the health benefits of its items to cope up with the replacements.

Competitor Analysis.

It has become the second biggest food and drink market in the West Europe with a market share of about 8.6% with just a difference of 0.3 points with United Way. United Way draws in local clients by its low cost of the product with the local taste of the items keeping its very first location in the international market. United Way Case Study Solution company has about 280,000 workers and functions in more than 197 countries edging its competitors in lots of regions.

Note: A brief comparison of United Way with its close rivals is given up Display C.

SWOT Analysis.

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

Strengths.

• United Way has an experience of about 140 years, enabling business to much better carry out, in various situations.
• Nestlé's has existence in about 86 countries, making it a worldwide leader in Food and Drink Market.
• United Way has more than 2000 brand names, which increase the circle of its target customers. Famous brand names of United Way consist of; Maggi, Kit-Kat, Nescafe, and so on
• United Way Case Study Analysis has large big of spending on R&D as compare to its competitorsRivals making the company business launch introduce nutritious ingenious innovative productsItems
• After embracing its NHW Technique, the business has done large amount of mergers and acquisitions which increase the sales development and improve market position of United Way.
• United Way is a popular brand name with high consumer's commitment and brand recall. This brand name commitment of consumers increases the possibilities of easy market adoption of various new brand names of United Way.
Weak points.
• Acquisitions of those business, like; Kraft frozen Pizza business can give an unfavorable signal to United Way clients about their compromise over their core competency of much healthier foods.
• The growth I sales as compare to the business's investment in NHW Method are quite various. It will take long to alter the perception of people ab out United Way as a company offering healthy and healthy items.

Opportunities.

• Introducing more health related items allows the business to record the marketplace in which consumers are quite mindful about health.
• Developing countries like India and China has largest markets on the planet. Expanding the market towards developing nations can enhance the United Way business by increasing sales volume.
• Continue acquisitions and joint ventures increases the marketplace share of the business.
• Increased relationships with schools, hotel chains, restaurants and so on can also increase the number of United Way Case Study Solution consumers. For instance, instructors can advise their trainees to acquire United Way products.

Risks.

• Financial instability in countries, which are the prospective markets for United Way, can create a number of concerns for United Way.
• Shifting of items from regular to much healthier, leads to additional expenses and can lead to decline company's revenue margins.
• As United Way has a complicated supply chain, for that reason failure of any of the level of supply chain can lead the business to deal with specific problems.

Division Analysis

Group Segmentation

The group division of United Way Case Study Help is based upon 4 elements; age, earnings, occupation and gender. For instance, United Way produces several products related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. United Way items are quite budget-friendly by almost all levels, however its significant targeted customers, in terms of earnings level are upper and middle middle level consumers.

Geographical Segmentation

Geographical segmentation of United Way Case Study Solution is composed of its presence in practically 86 countries. Its geographical segmentation is based upon 2 primary aspects i.e. average income level of the customer along with the climate of the area. For example, Singapore United Way Company's division is done on the basis of the weather of the area i.e. hot, cold or warm.

Psychographic Segmentation

Psychographic division of United Way is based upon the personality and life style of the client. For example, United Way 3 in 1 Coffee target those clients whose life style is quite busy and don't have much time.

Behavioral Segmentation

United Way Case Analysis behavioral segmentation is based upon the attitude understanding and awareness of the client. Its extremely healthy items target those clients who have a health mindful attitude towards their usages.

VRIO Analysis

The VRIO analysis of United Way Company is a broad range analysis offering the organization with a chance to acquire a viable competitive benefit against its competitors in the food and drink industry, summarized in Exhibition I.

Prized Possession

The resources used by the United Way company are important for the business or not. Such as the resources like finance, personnels, management of operations and specialists in marketing. This are some of the crucial important factors of for the identification of competitive advantage.

Rare

The valuable resources made use of by United Way are even uncommon or costly. , if these resources are frequently found that it would be simpler for the competitors and the brand-new rivals in the market to effortlessly move in competition.

Replica

The imitation process is expensive for the rivals of United Way Case Help Company. However, it can be done only in two various methods i.e. product duplication which is produced and manufactured by United Way Company and launching of the replacement of the products with switching expense. This increases the threat of disruption to the recent structure of the market.

Organization

This component of VRIO analysis deals with the compatibility of the company to position in the market making efficient use of its important resources which are hard to imitate. Often, the advancement of management is totally based on the company's execution method and group. Thus, this polishes the abilities of the company by time based on the choices made by firm for the progression of its tactical capitals.

Quantitative Analysis

R&D Spending as a portion of sales are decreasing with increasing actual amount of costs shows that the sales are increasing at a greater rate than its R&D costs, and enable the business to more invest in R&D.

Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This sign also reveals a thumbs-up 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 development instead of payment of debts. This increasing debt ratio position a risk of default of United Way to its investors and might lead a decreasing share prices. Therefore, in regards to increasing financial obligation ratio, the company ought to not spend much on R&D and ought to pay its current debts to decrease the risk for financiers.

The increasing risk of investors with increasing financial obligation ratio and declining share prices can be observed by substantial decrease of EPS of United Way Case Help stocks.

The sales development of business is also low as compare to its acquisitions and mergers due to slow understanding structure of customers. This slow growth also prevent business to more spend on its acquisitions and mergers.( United Way, United Way Financial Reports, 2006-2010).

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

TWOS Analysis.

2 analysis can be used to derive various techniques based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given up Exhibit H.

Methods to make use of Opportunities using Strengths.

United Way Case Analysis ought to introduce more innovative products by large amount of R&D Spending and mergers and acquisitions. It might increase the market share of United Way and increase the profit margins for the business. It might also provide United Way a long term competitive benefit over its rivals.

The international expansion of United Way ought to be focused on market recording of establishing nations by expansion, attracting more customers through customer's loyalty. As establishing countries are more populous than developed countries, it might increase the consumer circle of United Way.

Methods to Overcome Weak Points to Make Use Of Opportunities.

United Way Case Analysis needs to do careful acquisition and merger of organizations, as it could affect the client's and society's perceptions about United Way. It must combine and acquire with those companies which have a market reputation of healthy and healthy business. It would improve the perceptions of consumers about United Way.

United Way needs to not just invest its R&D on innovation, instead of it should likewise focus on the R&D spending over examination of expense of various healthy items. This would increase cost performance of its products, which will result in increasing its sales, due to decreasing rates, and margins.

Strategies to utilize strengths to get rid of dangers.

United Way Case Solution must relocate to not only developing however also to industrialized nations. It needs to widens its geographical expansion. This broad geographical expansion towards developing and developed countries would reduce the danger of prospective losses in times of instability in numerous countries. It must widen its circle to different countries like Unilever which operates in about 170 plus nations.

Strategies to conquer weak points to prevent dangers.

United Way must sensibly manage its acquisitions to avoid the danger of misunderstanding from the consumers about United Way. It ought to combine and acquire with those countries having a goodwill of being a healthy company in the market. This would not just improve the perception of customers about United Way but would likewise increase the sales, revenue margins and market share of United Way. It would also enable the company to use its potential resources effectively on its other operations instead of acquisitions of those companies slowing the NHW strategy development.

Alternatives.

In order to sustain the brand in the market and keep the customer undamaged with the brand name, there are 2 alternatives:.

Option: 1.

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

Pros:.

1. Acquisitions would increase overall properties of the business, increasing the wealth of the business. Nevertheless, spending on R&D would be sunk expense.
2. The company can resell the obtained systems in the market, if it stops working to execute its method. However, amount invest in the R&D might not be revived, and it will be considered totally sunk expense, if it do not give prospective outcomes.
3. Investing in R&D provide sluggish development in sales, as it takes long period of time to introduce an item. However, acquisitions provide fast results, as it offer the business already established product, 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 face misunderstanding of customers about United Way core worths of nutritious and healthy items.
2. Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing ingenious items, and would results in consumer's frustration too.
3. Large acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making company not able to introduce new ingenious products.

Alternative: 2

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

Pros:

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

Cons:

1. It would reduce the revenue margins of the business.
2. In case of failure, the entire costs on R&D would be thought about as sunk expense, and would impact the company at large. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable 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 present brand-new ingenious items with less risk of transforming the spending on R&D into sunk expense.
2. It would offer a favorable signal to the financiers, as the general assets of the company would increase with its substantial 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 business a strong long term market position in regards to the company's total wealth in addition to in regards to innovative products.

Cons:

1. Threat of conversion of R&D costs into sunk expense, higher than option 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less number of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Suggestion

With the deep analysis of the above alternatives, it is advised that the business must select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only introduce innovative and new items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share prices too, as investors are willing to invest more in companies with substantial R&D costs and increase in the total worth of the company.

Action and implementation Technique

Method can be carried out successfully by developing certain short term as well as long term strategies. These plans could be as follows;

Short-term Plan (0-1 year).

• Under the short term plan United Way Case Solution ought to carry out different activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which create the majority of its profits.
• Examine the existing target audience as well as the marketplace sector which is not include in the business's circle.
• Evaluate the current financial data to determine the quantity that ought to be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that how much amount ought to be spent on R&D.

Mid Term Plan (1-5 years).

• Obtain those companies in which the business has possible experience to handle. Obtain most favorable organizations with a strong commitment to health, to develop the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about United Way values and vision and to prevent possible danger of sunk expense.

Long Term Plan (1-10 years).

• Acquire organizations with health in addition to taste element, as the base for the United Way as a company producing healthy items has actually been constructed under midterm strategy and now the company might move towards taste aspect as well to comprehend 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 build new products.

Conclusion.
Recommendations
United Way has actually stayed the top market player for more than a decade. It has actually institutionalized its strategies and culture to align itself with the market changes and consumer behavior, which has eventually enabled it to sustain its market share. United Way has developed considerable market share and brand identity in the city markets, it is suggested that the company should focus on the rural areas in terms of developing brand name awareness, loyalty, and equity, such can be done by creating a specific brand name allowance technique through trade marketing techniques, that draw clear distinction between United Way products and other rival items. Moreover, United Way should utilize its brand picture 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 develop brand name equity for recently introduced and currently produced products on a higher platform, making the effective use of resources and brand image in the market.