Palm Computing Inc 1995 Financing Challenges Case Study Help

Palm Computing Inc 1995 Financing Challenges is currently one of the greatest food chains worldwide. It was established by Darden in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and decrease mortality rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Business. The 2 became rivals initially but later merged in 1905, leading to the birth of Palm Computing Inc 1995 Financing Challenges.
Business is now a multinational business. Unlike other international companies, it has senior executives from various countries and tries to make choices considering the entire world. Palm Computing Inc 1995 Financing Challenges currently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The function of Palm Computing Inc 1995 Financing Challenges Corporation is to boost the quality of life of individuals by playing its part and providing healthy food. It wants to help the world in forming a healthy and better future for it. It also wishes to encourage individuals to live a healthy life. While making certain that the business is succeeding in the long run, that's how it plays its part for a better and healthy future

Vision

Palm Computing Inc 1995 Financing Challenges's vision is to supply its customers with food that is healthy, high in quality and safe to eat. It wishes to be innovative and all at once comprehend the needs and requirements of its clients. Its vision is to grow quickly and supply products that would satisfy the needs of each age group. Palm Computing Inc 1995 Financing Challenges pictures to develop a trained workforce which would help the company to grow
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Mission

Palm Computing Inc 1995 Financing Challenges's objective is that as currently, it is the leading business in the food market, it thinks in 'Great Food, Good Life". Its mission is to supply its consumers with a range of choices that are healthy and best in taste. It is concentrated on providing the best food to its customers throughout the day and night.

Products.

Business has a wide range of items that it uses to its clients. Its products include food for infants, cereals, dairy items, 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, Business was listed as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has laid down its goals and objectives. These goals and objectives are listed below.
• One goal of the business is to reach no landfill status. It is pursuing no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Palm Computing Inc 1995 Financing Challenges is to lose minimum food throughout production. Frequently, the food produced is lost even prior to it reaches the customers.
• 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 shipment of high quality of its products to its customers.
• Meet global standards of the environment.
• Develop a relationship based on trust with its consumers, organisation partners, staff members, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its earnings on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW method. The target of the company is not achieved 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 Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based upon the idea of Nutritious, Health and Health (NHW). This strategy handles the concept to bringing modification in the consumer preferences about food and making the food things much healthier worrying about the health concerns.
The vision of this technique is based upon the key technique i.e. 60/40+ which just suggests that the products 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 dietary worth in contrast to all other products in market getting it a plus on its nutritional content.
This strategy was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competitors with other business, with an intent of retaining its trust over customers as Business Business has gotten more relied on by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D spending, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indication also shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio pose a danger of default of Business to its investors and might lead a decreasing share prices. For that reason, in regards to increasing financial obligation ratio, the firm needs to not invest much on R&D and ought to pay its existing financial obligations to decrease the threat for financiers.
The increasing danger of financiers with increasing debt ratio and declining share costs can be observed by big decline of EPS of Palm Computing Inc 1995 Financing Challenges stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish growth likewise impede company to more invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Graphs given up the Displays D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business must introduce more ingenious products by big amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the company. It could also provide Business a long term competitive advantage over its rivals.
The international expansion of Business must be focused on market recording of developing countries by growth, attracting more customers through customer's commitment. As developing nations are more populous than industrialized nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Palm Computing Inc 1995 Financing Challenges must do mindful acquisition and merger of organizations, as it could affect the client's and society's perceptions about Business. It needs to acquire and combine with those companies which have a market credibility of healthy and nutritious companies. It would enhance the perceptions of consumers about Business.
Business must not just spend its R&D on innovation, rather than it needs to also focus on the R&D spending over assessment of expense of various nutritious items. This would increase expense performance of its items, which will result in increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business should relocate to not just establishing but also to developed nations. It must broadens its geographical expansion. This broad geographical growth towards establishing and established countries would reduce the danger of possible losses in times of instability in various nations. It must broaden its circle to different nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Palm Computing Inc 1995 Financing Challenges must carefully control its acquisitions to prevent the threat of misunderstanding from the customers about Business. It should obtain and merge with those nations having a goodwill of being a healthy business in the market. This would not only improve the perception of customers about Business but would likewise increase the sales, earnings margins and market share of Business. It would also make it possible for the company to utilize its potential resources effectively on its other operations instead of acquisitions of those companies slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on four elements; age, gender, income and occupation. For example, Business produces a number of products connected to infants i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Palm Computing Inc 1995 Financing Challenges products are rather budget-friendly by almost all levels, however its major targeted customers, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its presence in practically 86 countries. Its geographical segmentation is based upon 2 main elements i.e. average income level of the customer in addition to the climate of the region. For instance, Singapore Business 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 Business is based upon the character and lifestyle of the customer. Business 3 in 1 Coffee target those clients whose life style is rather hectic and don't have much time.

Behavioral Segmentation

Palm Computing Inc 1995 Financing Challenges behavioral segmentation is based upon the attitude understanding and awareness of the consumer. For example its highly nutritious products target those customers who have a health mindful attitude towards their consumptions.

Palm Computing Inc 1995 Financing Challenges Alternatives

In order to sustain the brand name in the market and keep the customer intact with the brand, there are two options:
Alternative: 1
The Company must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. Costs on R&D would be sunk expense.
2. The business can resell the acquired systems in the market, if it stops working to execute its strategy. Amount invest on the R&D might not be restored, and it will be thought about totally sunk expense, if it do not provide prospective outcomes.
3. Spending on R&D offer sluggish development in sales, as it takes very long time to introduce an item. Nevertheless, acquisitions provide quick outcomes, as it offer the company currently developed product, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the business to deal with mistaken belief of consumers about Business core values of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send a signal of company's inadequacy of developing innovative items, and would results in consumer's frustration.
3. Big acquisitions than R&D would extend the line of product of the company by the products which are currently present in the market, making company not able to introduce brand-new innovative items.
Option: 2.
The Company needs 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 offered to an entirely brand-new market segment.
4. Ingenious items will offer long term advantages and high market share in long run.
Cons:
1. It would decrease the earnings margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would impact the business at big. 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 investors, and might result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Pros:
1. It would allow the company to present brand-new ingenious 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 possessions of the business 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 supply the company a strong long term market position in regards to the business's overall wealth as well as in regards to ingenious items.
Cons:
1. Threat of conversion of R&D spending into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Intro of less number of ingenious products than alternative 2 and high number of ingenious items than alternative 1.

Palm Computing Inc 1995 Financing Challenges Conclusion

It has actually institutionalized its strategies and culture to align itself with the market changes and consumer habits, which has ultimately enabled it to sustain its market share. Business has actually developed considerable market share and brand name identity in the metropolitan markets, it is advised that the business needs to focus on the rural areas in terms of developing brand loyalty, awareness, and equity, such can be done by developing a specific brand allotment method through trade marketing tactics, that draw clear distinction between Palm Computing Inc 1995 Financing Challenges items and other competitor items.

Palm Computing Inc 1995 Financing Challenges Exhibits