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Renault And Nissan A Marriage Of Reason Case Study Analysis

Business is currently one of the most significant food chains worldwide. It was established by Henri Renault And Nissan A Marriage Of Reason in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate.
Business is now a multinational company. Unlike other international business, it has senior executives from different countries and attempts to make choices thinking about the entire world. Renault And Nissan A Marriage Of Reason currently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

The function of Renault And Nissan A Marriage Of Reason Corporation is to enhance the quality of life of individuals by playing its part and offering healthy food. It wants to help the world in forming a healthy and much better future for it. It also wants to encourage people to live a healthy life. 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

Renault And Nissan A Marriage Of Reason's vision is to supply its clients with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and simultaneously understand the requirements and requirements of its customers. Its vision is to grow fast and supply items that would satisfy the needs of each age group. Renault And Nissan A Marriage Of Reason pictures to develop a trained labor force which would help the company to grow
.

Mission

Renault And Nissan A Marriage Of Reason's objective is that as currently, it is the leading business in the food market, it thinks in 'Good Food, Excellent Life". Its objective is to provide its consumers with a range of choices that are healthy and best in taste. It is concentrated on supplying the best food to its customers throughout the day and night.

Products.

Renault And Nissan A Marriage Of Reason has a large variety of products that it provides to its customers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has put down its objectives and objectives. These goals and objectives are noted below.
• One goal of the company is to reach zero garbage dump status. It is pursuing zero waste, where no waste of the factory is landfilled. It encourages its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Renault And Nissan A Marriage Of Reason is to squander minimum food throughout production. Frequently, the food produced is wasted even before it reaches the clients.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to lower those problems and would likewise guarantee the delivery of high quality of its products to its consumers.
• Meet global standards of the environment.
• Construct a relationship based on trust with its consumers, company partners, workers, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its revenues on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW method. The target of the business is not accomplished as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based upon the concept of Nutritious, Health and Health (NHW). This technique deals with the idea to bringing modification in the consumer preferences about food and making the food stuff much healthier concerning about the health problems.
The vision of this method is based upon the key method 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 upon its nutritional worth. The products will be made with additional nutritional worth in contrast to all other items in market acquiring it a plus on its nutritional content.
This technique was embraced to bring more tasty plus healthy foods and beverages in market than ever. In competitors with other companies, with an objective of retaining its trust over customers as Business Company has gained more relied on by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and allow the business to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This sign also reveals a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing financial obligation ratio present a hazard of default of Business to its investors and might lead a declining share costs. For that reason, in terms of increasing debt ratio, the company must not invest much on R&D and must pay its present debts to reduce the risk for investors.
The increasing threat of investors with increasing financial obligation ratio and decreasing share costs can be observed by huge decline of EPS of Renault And Nissan A Marriage Of Reason stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish growth likewise hinder company to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Graphs given up the Displays D and E.

TWOS Analysis


2 analysis can be used to obtain different strategies based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business needs to present more ingenious items by big quantity of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the business. It might also offer Business a long term competitive advantage over its competitors.
The international expansion of Business need to be concentrated on market recording of developing countries by expansion, bring in more consumers through client's commitment. As developing nations are more populated than developed nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisRenault And Nissan A Marriage Of Reason should do cautious acquisition and merger of organizations, as it might affect the customer's and society's understandings about Business. It should get and merge with those business which have a market track record of healthy and nutritious business. It would improve the understandings of customers about Business.
Business must not just spend its R&D on development, rather than it ought to also focus on the R&D spending over evaluation of expense of numerous healthy products. This would increase cost effectiveness of its items, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not only establishing but likewise to developed countries. It needs to widen its circle to different nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Renault And Nissan A Marriage Of Reason should sensibly control its acquisitions to prevent the threat of misconception from the consumers about Business. It should get and combine with those nations having a goodwill of being a healthy business in the market. This would not just improve the perception of customers about Business however would also increase the sales, earnings margins and market share of Business. It would also enable the company to utilize its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on four aspects; age, gender, earnings and profession. Business produces several items related to babies i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Renault And Nissan A Marriage Of Reason products are quite cost effective by practically all levels, but its major targeted customers, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in practically 86 countries. Its geographical division is based upon 2 primary factors i.e. average income level of the consumer along with the climate of the area. Singapore Business Business's division is done on the basis of the weather of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and life style of the consumer. Business 3 in 1 Coffee target those customers whose life style is rather busy and don't have much time.

Behavioral Segmentation

Renault And Nissan A Marriage Of Reason behavioral segmentation is based upon the attitude knowledge and awareness of the consumer. Its extremely healthy items target those clients who have a health mindful mindset towards their consumptions.

Renault And Nissan A Marriage Of Reason Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are two choices:
Option: 1
The Company must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The company can resell the gotten units in the market, if it stops working to implement its technique. Amount invest on the R&D could not be restored, and it will be considered completely sunk cost, if it do not offer potential results.
3. Spending on R&D provide sluggish development in sales, as it takes long period of time to introduce a product. Acquisitions supply fast results, as it provide the company already developed product, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to face mistaken belief of customers about Business core worths of healthy and healthy products.
2 Big spending on acquisitions than R&D would send a signal of business's inefficiency of establishing ingenious products, and would results in customer's dissatisfaction.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making business not able to introduce brand-new ingenious products.
Option: 2.
The Company must invest more on its R&D rather than 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 company to increase its targeted customers by presenting those products which can be used to an entirely brand-new market segment.
4. Innovative products will supply long term advantages 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 costs on R&D would be considered as sunk expense, and would affect the business at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present brand-new innovative products with less danger of transforming the spending on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the overall assets of the business would increase with its considerable R&D spending.
3. It would not impact the earnings margins of the company 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 general wealth along with in terms of ingenious items.
Cons:
1. Risk of conversion of R&D costs into sunk expense, higher than option 1 lesser than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less number of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

Renault And Nissan A Marriage Of Reason Conclusion

RecommendationsIt has actually institutionalised its techniques and culture to align itself with the market modifications and client habits, which has ultimately permitted it to sustain its market share. Business has established significant market share and brand identity in the urban markets, it is suggested that the business must focus on the rural areas in terms of establishing brand name commitment, awareness, and equity, such can be done by developing a particular brand name allowance technique through trade marketing methods, that draw clear distinction in between Renault And Nissan A Marriage Of Reason products and other competitor products.

Renault And Nissan A Marriage Of Reason Exhibits

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental assistance

Changing requirements of worldwide food.
Boosted market share.
Altering assumption towards much healthier products
Improvements in R&D and QA departments.

Introduction of E-marketing.
No such effect as it is favourable.
Concerns over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible because 4000
Highest after Organisation with much less growth than Company 1st Cheapest
R&D Spending Highest possible considering that 2007 Highest possible after Company 2nd Lowest
Net Profit Margin Greatest given that 2005 with fast growth from 2001 to 2016 As a result of sale of Alcon in 2012. Nearly equal to Kraft Foods Incorporation Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness element Highest variety of brands with lasting methods Largest confectionary as well as refined foods brand on the planet Biggest dairy products and mineral water brand worldwide
Segmentation Center as well as top middle level consumers worldwide Specific clients along with family group Every age and Earnings Client Groups Middle and also upper center degree customers worldwide
Number of Brands 6th 9th 7th 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 56382 735335 383813 452718 275279
Net Profit Margin 7.55% 6.64% 41.39% 9.28% 69.45%
EPS (Earning Per Share) 54.14 3.42 9.51 2.34 43.38
Total Asset 546888 443147 952393 463944 56143
Total Debt 25821 64718 63188 87114 91461
Debt Ratio 23% 95% 45% 14% 85%
R&D Spending 7893 2775 3421 8618 7667
R&D Spending as % of Sales 8.18% 3.83% 9.53% 9.37% 7.43%

Renault And Nissan A Marriage Of Reason Executive Summary Renault And Nissan A Marriage Of Reason Swot Analysis Renault And Nissan A Marriage Of Reason Vrio Analysis Renault And Nissan A Marriage Of Reason Pestel Analysis
Renault And Nissan A Marriage Of Reason Porters Analysis Renault And Nissan A Marriage Of Reason Recommendations