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Your Home Is A Good Place Inc Case Study Solution and Analysis


Your Home Is A Good Place Inc is presently one of the greatest food chains worldwide. It was founded by Henri Your Home Is A Good Place Inc in 1866, a German Pharmacist who initially launched "Farine Lactee"; a mix of flour and milk to feed infants and reduce mortality rate.

Your Home Is A Good Place Inc is now a transnational company. Unlike other multinational companies, it has senior executives from different countries and tries to make decisions considering the whole world. Your Home Is A Good Place Inc Case Study Help currently has more than 500 factories worldwide and a network spread across 86 nations.


The purpose of Your Home Is A Good Place Inc Corporation is to enhance 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 much better future for it. It likewise wishes to motivate people 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


Nestlé's vision is to supply its customers with food that is healthy, high in quality and safe to eat. Your Home Is A Good Place Inc envisions to develop a well-trained workforce which would help the company to grow.


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


Your Home Is A Good Place Inc Case Study Analysis has a wide variety of products that it provides to its consumers. Its products consist of food for babies, cereals, dairy items, treats, chocolates, food for pet and bottled water. It has around four hundred and fifty (450) factories around the globe and around 328,000 employees. In 2011, Your Home Is A Good Place Inc was listed as the most gainful organization.

Objectives and goals.

• Bearing in mind the vision and mission of the corporation, the business has actually set its goals and objectives. These goals and goals are noted below.
• One objective of the company is to reach absolutely no garbage dump status.
• Another goal of Your Home Is A Good Place Inc is to waste minimum food during production. Frequently, the food produced is lost even before it reaches the clients.
• Another thing that Your Home Is A Good Place Inc is dealing with is to improve its product packaging in such a way that it would assist it to decrease those issues and would likewise ensure the delivery of high quality of its products to its clients.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its consumers, business partners, employees, and federal government.

Important Concerns.

Just Recently, Your Home Is A Good Place Inc Case Study Help Company is focusing more towards the method of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers 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 Exhibit H.

Situational Analysis.

Analysis of Present Strategy, Vision and Goals.

The present Your Home Is A Good Place Inc technique is based on the concept of Nutritious, Health and Health (NHW). This strategy deals with the concept to bringing change in the customer choices about food and making the food stuff much healthier worrying about the health issues.

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

This technique was adopted to bring more nutritious plus tasty foods and beverages in market than ever. In competition with other companies, with an objective of maintaining its trust over consumers as Your Home Is A Good Place Inc Company has actually acquired more trusted by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis utilized to determine the position of business in the market is done by using PESTLE analysis, given in Exhibit A. Your Home Is A Good Place Inc works under the regulations and guidelines directed by federal government and food authority. The business is more concentrated on its product or services to ensure about the product quality and safety. This analysis will assist in understanding environment of external market in the international food and beverage industries. (Parera, 2017).


Your Home Is A Good Place Inc is greatly supported by Government to fulfill all the requirements of requirements like acts of health and security. In efforts to manufacture great food, Your Home Is A Good Place Inc Case Study Analysis is changing the requirements of food and beverage production.


Initiation of the business where the capital earnings of each private matters for the increased net sale as this varies country-to-country. The economy of the Your Home Is A Good Place Inc Business in U.S. is growing year by year with variable items launch particularly focusing on the dietary food for babies.


The social environment keeps altering with regard to time like the mindset of the customer along with their lifestyles. Any services or product of any company can not succeed until the business is not worried about the living system of the customer. Your Home Is A Good Place Inc is taking steps to meet its goals as the world remains in search of healthy and tasty food.


In the advancement of organisation, strategic procedures are rather necessary. Your Home Is A Good Place Inc is one of the leading popular international firm and by time it purchases various departments to take its items to new level. Your Home Is A Good Place Inc is investing more on its R&D to make its items healthier and healthy offering consumers with health advantages.


There is no such effect of legal aspects of Your Home Is A Good Place Inc as it is more worried over its laws and guidelines.


Your Home Is A Good Place Inc, in regards to environmental effect is committed to work in environmentally friendly environment with conservation of the natural deposits and energy. If the resources utilized are recyclable or not, as due to the manufacturing of bigger number of products there might be a risk.

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

Your Home Is A Good Place Inc Case Study Help has acquired a variety of business that assisted it in diversity and development of its item's profile. This is the thorough description of the Porter's model of 5 forces of Your Home Is A Good Place Inc Company, given up Display B.


Your Home Is A Good Place Inc is one of the top business in this competitive industry with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Your Home Is A Good Place Inc is running well in this race for last 150 years. The competitors of other business with Your Home Is A Good Place Inc is rather high.

Danger of New Entrants.

A number of barriers are there for the new entrants to occur in the consumer food market. Only a few entrants be successful in this market as there is a need to understand the customer requirement which requires time while recent rivals are well aware and has actually progressed with the customer loyalty over their items with time. There is low threat of brand-new entrants to Your Home Is A Good Place Inc as it has quite big network of distribution globally dominating with well-reputed image.

Bargaining Power of Suppliers.

In the food and drink industry, Your Home Is A Good Place Inc owes the largest share of market requiring higher number of supply chains. This triggers it to be a picturesque buyer for the providers. Thus, any of the supplier has never ever expressed any grumble about cost and the bargaining power is likewise low. In reaction, Your Home Is A Good Place Inc has likewise been concerned for its suppliers as it thinks in long-term relations.

Bargaining Power of Buyers.

There is high bargaining power of the buyers due to terrific competition. Changing cost is quite low for the consumers as lots of business sale a number of similar products. This appears to be a fantastic hazard for any business. Therefore, Your Home Is A Good Place Inc Case Study Solution ensures to keep its consumers satisfied. This has led Your Home Is A Good Place Inc to be among the devoted company in eyes of its buyers.

Danger of Alternatives.

There has been a fantastic hazard of substitutes as there are alternatives of some of the Nestlé's items such as boiled water and pasteurized milk. There has actually likewise been a claim that some of its items are not safe to use leading to the reduced sale. Hence, Your Home Is A Good Place Inc began highlighting the health benefits of its items to cope up with the alternatives.

Rival Analysis.

It has ended up being the second largest food and beverage market in the West Europe with a market share of about 8.6% with only a distinction of 0.3 points with Your Home Is A Good Place Inc. Your Home Is A Good Place Inc brings in regional clients by its low cost of the product with the regional taste of the products preserving its first location in the worldwide market. Your Home Is A Good Place Inc Case Study Help business has about 280,000 workers and functions in more than 197 countries edging its rivals in many areas.

Note: A quick comparison of Your Home Is A Good Place Inc with its close rivals is given up Display C.

SWOT Analysis.

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


• Your Home Is A Good Place Inc has an experience of about 140 years, making it possible for company to much better perform, in various scenarios.
• Nestlé's has presence in about 86 countries, making it a global leader in Food and Beverage Market.
• Your Home Is A Good Place Inc has more than 2000 brands, which increase the circle of its target customers. These brands include child foods, family pet food, confectionary products, drinks etc. Famous brand names of Your Home Is A Good Place Inc consist of; Maggi, Kit-Kat, Nescafe, and so on
• Your Home Is A Good Place Inc Case Study Analysis has big amount of spending on R&D as compare to its competitors, making the company to introduce more healthy and ingenious products. This development offers the business a high competitive position in long term.
• After adopting its NHW Strategy, the company has done big quantity of mergers and acquisitions which increase the sales development and enhance market position of Your Home Is A Good Place Inc.
• Your Home Is A Good Place Inc is a well-known brand name with high consumer's commitment and brand recall. This brand loyalty of customers increases the chances of simple market adoption of numerous new brands of Your Home Is A Good Place Inc.
• Acquisitions of those service, like; Kraft frozen Pizza company can give an unfavorable signal to Your Home Is A Good Place Inc 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 Method are quite various. It will take long to alter the understanding of people ab out Your Home Is A Good Place Inc as a company offering healthy and nutritious products.


• Presenting more health associated items makes it possible for the business to capture the market in which customers are quite conscious about health.
• Developing countries like India and China has largest markets on the planet. Thus expanding the marketplace towards developing countries can enhance the Your Home Is A Good Place Inc company by increasing sales volume.
• Continue acquisitions and joint ventures increases the marketplace share of the company.
• Increased relationships with schools, hotel chains, dining establishments etc. can likewise increase the number of Your Home Is A Good Place Inc Case Study Solution customers. For instance, teachers can advise their students to buy Your Home Is A Good Place Inc items.


• Financial instability in countries, which are the potential markets for Your Home Is A Good Place Inc, can develop numerous issues for Your Home Is A Good Place Inc.
• Shifting of products from regular to healthier, leads to additional costs and can result in decrease business's revenue margins.
• As Your Home Is A Good Place Inc has an intricate supply chain, therefore failure of any of the level of supply chain can lead the business to face specific issues.

Division Analysis

Demographic Segmentation

The market segmentation of Your Home Is A Good Place Inc Case Study Analysis is based upon 4 elements; age, gender, income and profession. For instance, Your Home Is A Good Place Inc produces a number of products related to infants i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary items. Your Home Is A Good Place Inc items are rather inexpensive by nearly all levels, but its significant targeted consumers, in terms of earnings level are upper and middle middle level customers.

Geographical Division

Geographical division of Your Home Is A Good Place Inc Case Study Solution is composed of its existence in almost 86 nations. Its geographical division is based upon two primary elements i.e. typical earnings level of the customer as well as the climate of the area. Singapore Your Home Is A Good Place Inc Business's division is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Your Home Is A Good Place Inc is based upon the personality and life style of the customer. For example, Your Home Is A Good Place Inc 3 in 1 Coffee target those customers whose lifestyle is quite hectic and do not have much time.

Behavioral Segmentation

Your Home Is A Good Place Inc Case Analysis behavioral segmentation is based upon the attitude understanding and awareness of the customer. Its extremely healthy products target those customers who have a health mindful attitude towards their consumptions.

VRIO Analysis

The VRIO analysis of Your Home Is A Good Place Inc Business is a broad range analysis offering the organization with a possibility to obtain a viable competitive advantage against its rivals in the food and drink industry, summarized in Display I.

Prized Possession

The resources utilized by the Your Home Is A Good Place Inc company are valuable for the company or not. Such as the resources like financing, personnels, management of operations and specialists in marketing. This are a few of the crucial important elements of for the identification of competitive advantage.


The valuable resources made use of by Your Home Is A Good Place Inc are even uncommon or costly. 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 competition.


The replica procedure is costly for the competitors of Your Home Is A Good Place Inc Case Analysis Business. It can be done just in 2 various methods i.e. item duplication which is produced and made by Your Home Is A Good Place Inc Business and introducing of the alternative of the products with changing expense. This increases the risk of disruption to the recent structure of the industry.


This element of VRIO analysis handle the compatibility of the business to position in the market making efficient use of its valuable resources which are tough to imitate. Frequently, the development of management is absolutely based on the company's execution technique and team. Thus, this polishes the skills of the firm by time based upon the choices made by firm for the progression of its strategic capitals.

Quantitative Analysis

R&D Spending as a portion of sales are declining with increasing actual amount of spending reveals that the sales are increasing at a higher rate than its R&D spending, and permit the company to more spend on R&D.

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

Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing debt ratio present a risk of default of Your Home Is A Good Place Inc to its investors and might lead a decreasing share rates. Therefore, in regards to increasing debt ratio, the company should not spend much on R&D and must pay its existing debts to reduce the danger for financiers.

The increasing threat of investors with increasing debt ratio and declining share rates can be observed by substantial decline of EPS of Your Home Is A Good Place Inc Case Analysis stocks.

The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow growth also prevent company to additional spend on its mergers and acquisitions.( Your Home Is A Good Place Inc, Your Home Is A Good Place Inc Financial Reports, 2006-2010).

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

TWOS Analysis.

TWOS analysis can be utilized to derive numerous methods based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths.

Your Home Is A Good Place Inc Case Analysis needs to introduce more ingenious items by big quantity of R&D Costs and acquisitions and mergers. It could increase the market share of Your Home Is A Good Place Inc and increase the earnings margins for the company. It might likewise offer Your Home Is A Good Place Inc a long term competitive advantage over its rivals.

The global growth of Your Home Is A Good Place Inc must be focused on market recording of establishing nations by expansion, attracting more customers through client's commitment. As developing countries are more populated than developed countries, it could increase the client circle of Your Home Is A Good Place Inc.

Methods to Conquer Weaknesses to Make Use Of Opportunities.

Your Home Is A Good Place Inc Case Solution should do mindful acquisition and merger of companies, as it might impact the client's and society's understandings about Your Home Is A Good Place Inc. It needs to acquire and merge with those business which have a market credibility of healthy and nutritious business. It would improve the understandings of consumers about Your Home Is A Good Place Inc.

Your Home Is A Good Place Inc should not just spend its R&D on innovation, instead of it needs to also concentrate on the R&D costs over evaluation of expense of various nutritious items. This would increase cost performance of its items, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to utilize strengths to overcome risks.

Your Home Is A Good Place Inc should move to not just establishing but likewise to developed nations. It should broaden its circle to different countries like Unilever which runs in about 170 plus countries.

Methods to overcome weak points to avoid threats.

Your Home Is A Good Place Inc Case Solution should carefully control its acquisitions to prevent the danger of misconception from the customers about Your Home Is A Good Place Inc. This would not just enhance the perception of customers about Your Home Is A Good Place Inc but would likewise increase the sales, earnings margins and market share of Your Home Is A Good Place Inc.


In order to sustain the brand name in the market and keep the consumer intact with the brand name, there are two options:.

Option: 1.

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


1. Acquisitions would increase total assets of the business, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it stops working to execute its technique. Nevertheless, quantity spend on the R&D might not be restored, and it will be considered entirely sunk cost, if it do not provide possible results.
3. Spending on R&D supply sluggish development in sales, as it takes very long time to introduce an item. However, acquisitions offer fast outcomes, as it offer the business already developed product, which can be marketed not long after the acquisition.


1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to deal with misconception of consumers about Your Home Is A Good Place Inc core values of healthy and healthy products.
2. Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing innovative items, and would results in consumer's dissatisfaction as well.
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 not able to introduce new ingenious products.

Alternative: 2

The Company needs to invest more on its R&D instead of acquisitions.


1. It would make it possible for the company to produce more innovative products.
2. It would offer the business a strong competitive position in the market.
3. It would allow the company to increase its targeted customers by introducing those products which can be provided to a completely new market segment.
4. Ingenious products will supply long term benefits and high market share in long run.


1. It would decrease the earnings margins of the company.
2. In case of failure, the whole costs 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 might provide an unfavorable signal to the investors, and could result I declining stock prices.

Alternative 3:

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


1. It would permit the business to present brand-new innovative products with less threat of transforming the costs on R&D into sunk cost.
2. It would offer a positive signal to the investors, as the overall assets of the company would increase with its substantial R&D spending.
3. It would not impact the revenue margins of the business at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the company's total wealth along with in regards to ingenious items.


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


With the deep analysis of the above options, it is suggested that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not just present ingenious and new products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs too, as investors are willing to invest more in companies with considerable R&D costs and boost in the total worth of the company.

Action and application Method

Technique can be implemented efficiently by developing particular short-term in addition to long term plans. These strategies might be as follows;

Short-term Plan (0-1 year).

• Under the short term plan Your Home Is A Good Place Inc Case Solution should perform 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 generate the majority of its profits.
• Analyze the current target market in addition to the marketplace section which is not consist of in the company's circle.
• Analyze the current financial data to determine the quantity that should be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that how much quantity needs to be spent on R&D.

Mid Term Plan (1-5 years).

• Get those companies in which the business has prospective experience to handle. Obtain most beneficial organizations with a strong dedication to health, to build the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Your Home Is A Good Place Inc values and vision and to avoid potential threat of sunk expense.

Long Term Plan (1-10 years).

• Obtain companies with health as well as taste aspect, as the base for the Your Home Is A Good Place Inc as a company producing healthy products has been developed under midterm strategy and now the company might move towards taste factor as well 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 substantial time to develop brand-new products.


Your Home Is A Good Place Inc has remained the leading market player for more than a decade. It has actually institutionalised its strategies and culture to align itself with the marketplace changes and customer habits, which has ultimately allowed it to sustain its market share. Your Home Is A Good Place Inc has developed significant market share and brand identity in the urban markets, it is recommended that the company must focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by producing a particular brand allotment method through trade marketing methods, that draw clear distinction in between Your Home Is A Good Place Inc products and other competitor products. Furthermore, Your Home Is A Good Place Inc ought to take advantage of 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 establish brand equity for newly introduced and already produced products on a higher platform, making the efficient use of resources and brand image in the market.