Advantage Food Beverage Vending Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was established by Henri Advantage Food Beverage Vending in 1866, a German Pharmacist who initially launched "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate.
Business is now a multinational business. Unlike other multinational business, it has senior executives from different nations and tries to make choices thinking about the whole world. Advantage Food Beverage Vending currently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The purpose of Business Corporation is to boost the quality of life of individuals by playing its part and supplying healthy food. While making sure that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

Advantage Food Beverage Vending's vision is to supply its consumers with food that is healthy, high in quality and safe to consume. Business imagines to develop a trained workforce which would help the business to grow
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Mission

Advantage Food Beverage Vending's mission is that as currently, it is the leading company in the food industry, it believes in 'Good Food, Great Life". Its objective is to supply its customers with a range of choices that are healthy and finest in taste also. It is concentrated on supplying the very best food to its customers throughout the day and night.

Products.

Advantage Food Beverage Vending has a broad variety of products that it offers to its clients. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has put down its objectives and goals. These objectives and objectives are noted below.
• One goal of the company is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another objective of Advantage Food Beverage Vending is to lose minimum food during production. Usually, the food produced is squandered even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its packaging in such a way that it would help it to minimize those complications and would also ensure the shipment of high quality of its items to its consumers.
• Meet global standards of the environment.
• Develop a relationship based upon trust with its consumers, company partners, employees, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique 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 method. The target of the company is not achieved 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.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based upon the idea of Nutritious, Health and Wellness (NHW). This method handles the idea to bringing change in the client choices about food and making the food things healthier concerning about the health issues.
The vision of this technique is based on the secret approach i.e. 60/40+ which merely suggests that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be produced with additional nutritional worth in contrast to all other items in market gaining it a plus on its nutritional material.
This strategy was embraced to bring more delicious plus nutritious foods and drinks in market than ever. In competitors with other companies, with an intention of keeping its trust over consumers as Business Business has acquired more relied on by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing actual amount of costs reveals that the sales are increasing at a greater rate than its R&D costs, and enable the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This sign also reveals a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing financial obligation ratio pose a threat of default of Business to its financiers and might lead a decreasing share costs. Therefore, in regards to increasing financial obligation ratio, the firm needs to not invest much on R&D and should pay its current debts to decrease the threat for investors.
The increasing threat of financiers with increasing financial obligation ratio and decreasing share rates can be observed by big decrease of EPS of Advantage Food Beverage Vending stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This sluggish growth also impede company to additional invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of estimations and Graphs given in the Displays D and E.

TWOS Analysis

2 analysis can be utilized to derive different strategies based upon the SWOT Analysis offered above. A brief summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should introduce more innovative products by large quantity of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the company. It could also supply Business a long term competitive advantage over its competitors.
The worldwide growth of Business need to be focused on market recording of establishing countries by growth, attracting more customers through client's loyalty. As developing countries are more populous than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Advantage Food Beverage Vending should do careful acquisition and merger of organizations, as it could affect the consumer's and society's understandings about Business. It needs to obtain and merge with those companies which have a market credibility of healthy and healthy companies. It would improve the perceptions of customers about Business.
Business needs to not just invest its R&D on development, instead of it must also concentrate on the R&D spending over assessment of expense of numerous nutritious products. This would increase cost efficiency of its items, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business must move to not only establishing but also to industrialized countries. It needs to broaden its circle to different countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to acquire and combine with those nations having a goodwill of being a healthy company in the market. It would likewise allow the business to use its potential resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on four factors; age, gender, earnings and profession. For instance, Business produces numerous products connected to children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. Advantage Food Beverage Vending items are quite affordable by practically all levels, however its major targeted consumers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in almost 86 countries. Its geographical segmentation is based upon two main factors i.e. average income level of the customer as well as the climate of the region. Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the consumer. Business 3 in 1 Coffee target those clients whose life style is rather hectic and don't have much time.

Behavioral Segmentation

Advantage Food Beverage Vending behavioral segmentation is based upon the attitude understanding and awareness of the consumer. For instance its extremely healthy products target those customers who have a health conscious attitude towards their usages.

Advantage Food Beverage Vending Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand name, there are 2 choices:
Option: 1
The Business ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the business, increasing the wealth of the company. However, spending 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 strategy. Amount spend on the R&D could not be revived, and it will be considered totally sunk cost, if it do not give possible results.
3. Spending on R&D supply slow development in sales, as it takes very long time to present a product. However, acquisitions supply quick outcomes, as it provide the business already established product, which can be marketed right 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 deal with mistaken belief of consumers about Business core worths of healthy and healthy items.
2 Large spending on acquisitions than R&D would send a signal of business's inadequacy of establishing ingenious products, and would lead to customer's dissatisfaction also.
3. Big 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 unable to present new innovative items.
Option: 2.
The Business should spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the company to produce more innovative items.
2. It would offer the business a strong competitive position in the market.
3. It would enable the business to increase its targeted customers by presenting those products which can be used to a completely new market sector.
4. Innovative items will supply long term advantages and high market share in long term.
Cons:
1. It would reduce the earnings margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would impact the business at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which could provide a negative signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Pros:
1. It would enable the business to present new innovative products with less danger of transforming the costs on R&D into sunk expense.
2. It would offer a favorable signal to the financiers, as the total assets of the company would increase with its substantial R&D costs.
3. It would not impact the profit margins of the company at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the business's general wealth in addition to in terms of ingenious products.
Cons:
1. Danger of conversion of R&D costs into sunk cost, higher than option 1 lesser than alternative 2.
2. Threat of misunderstanding about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Introduction of less number of innovative items than alternative 2 and high variety of innovative products than alternative 1.

Advantage Food Beverage Vending Conclusion

It has institutionalized its techniques and culture to align itself with the market modifications and consumer behavior, which has actually eventually permitted it to sustain its market share. Business has actually established substantial market share and brand identity in the city markets, it is suggested that the company needs to focus on the rural locations in terms of developing brand loyalty, awareness, and equity, such can be done by creating a particular brand name allocation strategy through trade marketing methods, that draw clear difference between Advantage Food Beverage Vending items and other competitor products.

Advantage Food Beverage Vending Exhibits