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Straight Talk From The New Ceo Case Study Help

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Business is presently one of the biggest food chains worldwide. It was founded by Henri Straight Talk From The New Ceo in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate.
Business is now a global business. Unlike other international business, it has senior executives from different nations and attempts to make decisions thinking about the whole world. Straight Talk From The New Ceo currently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

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

Vision

Straight Talk From The New Ceo's vision is to supply its consumers with food that is healthy, high in quality and safe to consume. It wants to be ingenious and simultaneously comprehend the requirements and requirements of its clients. Its vision is to grow fast and supply products that would satisfy the needs of each age group. Straight Talk From The New Ceo pictures to develop a trained labor force which would help the company to grow
.

Mission

Straight Talk From The New Ceo's mission is that as currently, it is the leading company in the food market, it thinks in 'Great Food, Great Life". Its mission is to offer its customers with a range of choices that are healthy and best in taste. It is focused on supplying the best food to its clients throughout the day and night.

Products.

Business has a large range of products that it uses to its consumers. Its products consist of food for infants, cereals, dairy items, snacks, chocolates, food for family pet and bottled water. It has around four hundred and fifty (450) factories around the world and around 328,000 staff members. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has laid down its goals and objectives. These objectives and objectives are noted below.
• One objective of the business is to reach absolutely no garbage dump status. (Business, aboutus, 2017).
• Another goal of Straight Talk From The New Ceo is to squander minimum food during production. Most often, the food produced is lost even before it reaches the clients.
• Another thing that Business is working on is to enhance its product packaging in such a method that it would help it to decrease those issues and would likewise ensure the delivery of high quality of its items to its clients.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its customers, organisation partners, employees, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the technique of NHW and investing more of its profits on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the business is not accomplished as the sales were expected to grow greater at the rate of 10% each year and the operating margins to increase by 20%, given in Exhibit H. There is a need to focus more on the sales then the development technology. Otherwise, it might result in the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the concept of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing change in the consumer choices about food and making the food stuff much healthier concerning about the health problems.
The vision of this method is based on the secret technique i.e. 60/40+ which simply means that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be manufactured with extra dietary value in contrast to all other items in market acquiring it a plus on its dietary content.
This technique was adopted to bring more tasty plus healthy foods and drinks in market than ever. In competitors with other companies, with an intention of retaining its trust over consumers as Business Company has gotten more trusted by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual amount of costs reveals that the sales are increasing at a greater rate than its R&D costs, and permit the company to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indicator likewise 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 pose a risk of default of Business to its financiers and might lead a declining share costs. For that reason, in terms of increasing debt ratio, the company ought to not spend much on R&D and should pay its existing financial obligations to reduce the threat for investors.
The increasing risk of investors with increasing debt ratio and decreasing share rates can be observed by big decline of EPS of Straight Talk From The New Ceo stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This slow development likewise prevent business to additional 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 Exhibitions D and E.

TWOS Analysis


2 analysis can be used to derive various methods based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should introduce more ingenious items by big amount of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the business. It could likewise provide Business a long term competitive advantage over its rivals.
The international growth of Business must be concentrated on market capturing of developing countries by expansion, drawing in more consumers through consumer's loyalty. As developing nations are more populous than developed nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisStraight Talk From The New Ceo must do careful acquisition and merger of organizations, as it might impact the customer's and society's understandings about Business. It needs to obtain and merge with those companies which have a market credibility of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business should not only spend its R&D on innovation, rather than it must also focus on the R&D spending over assessment of cost of various nutritious 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 developing but also to developed nations. It should widen its circle to numerous countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Straight Talk From The New Ceo ought to carefully control its acquisitions to prevent the risk of mistaken belief from the customers about Business. It should obtain and merge with those countries having a goodwill of being a healthy business in the market. This would not just enhance the perception of customers about Business however would also increase the sales, earnings margins and market share of Business. It would also make it possible for the company to utilize its possible resources efficiently on its other operations instead of acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon four aspects; age, gender, earnings and occupation. Business produces numerous items related to babies i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary products. Straight Talk From The New Ceo products are rather economical by practically all levels, but its significant targeted consumers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in practically 86 countries. Its geographical division is based upon two primary aspects i.e. typical income level of the consumer as well as the environment of the region. Singapore Business Company's segmentation is done on the basis of the weather of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and lifestyle of the customer. For example, Business 3 in 1 Coffee target those customers whose lifestyle is rather busy and do not have much time.

Behavioral Segmentation

Straight Talk From The New Ceo behavioral division is based upon the mindset understanding and awareness of the consumer. For instance its extremely healthy items target those customers who have a health mindful mindset towards their consumptions.

Straight Talk From The New Ceo Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand, there are 2 choices:
Option: 1
The Company needs to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the business, increasing the wealth of the company. Spending on R&D would be sunk cost.
2. The business can resell the acquired systems in the market, if it stops working to implement its strategy. Amount spend on the R&D could not be restored, and it will be considered totally sunk cost, if it do not give prospective outcomes.
3. Spending on R&D offer sluggish growth in sales, as it takes long time to present a product. However, acquisitions provide quick results, as it provide the business currently established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face misconception of customers about Business core worths of healthy and nutritious products.
2 Large costs on acquisitions than R&D would send a signal of company's inefficiency of developing ingenious products, and would results in consumer's dissatisfaction.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making company not able to present new innovative products.
Option: 2.
The Business ought to invest more on its R&D rather than acquisitions.
Pros:
1. It would allow the company to produce more innovative products.
2. It would offer the business a strong competitive position in the market.
3. It would enable the business to increase its targeted clients by introducing those products which can be provided to a completely new market sector.
4. Ingenious items will supply long term advantages and high market share in long run.
Cons:
1. It would decrease the revenue margins of the company.
2. In case of failure, the whole costs on R&D would be considered as sunk cost, and would affect the company at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which might offer a negative signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to present new ingenious items with less risk of converting the spending on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the total properties of the business would increase with its significant R&D costs.
3. It would not affect the earnings margins of the business at a big rate as compare to alternative 2.
4. It would supply the company a strong long term market position in terms of the business's total wealth along with in terms of ingenious products.
Cons:
1. Threat of conversion of R&D spending into sunk cost, greater than option 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Intro of less variety of ingenious products than alternative 2 and high number of ingenious products than alternative 1.

Straight Talk From The New Ceo Conclusion

RecommendationsBusiness has remained the leading market gamer 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 permitted it to sustain its market share. Business has actually established considerable market share and brand identity in the urban markets, it is advised that the company must focus on the rural locations in terms of establishing brand loyalty, awareness, and equity, such can be done by developing a specific brand allocation strategy through trade marketing tactics, that draw clear distinction in between Straight Talk From The New Ceo items and other competitor products. Furthermore, Business needs to utilize its brand name 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 name equity for newly presented and already produced items on a greater platform, making the efficient usage of resources and brand name image in the market.

Straight Talk From The New Ceo Exhibits

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

Altering criteria of international food.
Boosted market share.
Changing assumption in the direction of healthier products
Improvements in R&D and also QA departments.

Intro of E-marketing.
No such effect as it is favourable.
Worries over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest given that 5000
Greatest after Organisation with less growth than Service 9th Least expensive
R&D Spending Highest given that 2007 Highest possible after Company 4th Most affordable
Net Profit Margin Highest given that 2007 with fast growth from 2006 to 2016 Due to sale of Alcon in 2016. Nearly equal to Kraft Foods Consolidation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and health element Highest possible number of brands with sustainable techniques Biggest confectionary and refined foods brand name worldwide Largest dairy products and mineral water brand worldwide
Segmentation Center and also upper middle degree customers worldwide Private clients together with house group Any age and Income Customer Teams Middle and also top middle level customers worldwide
Number of Brands 3rd 9th 2nd 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 73744 663526 486242 512168 435151
Net Profit Margin 1.65% 5.97% 15.53% 6.51% 39.62%
EPS (Earning Per Share) 37.49 8.45 8.18 4.48 28.29
Total Asset 824462 428854 618287 539149 35858
Total Debt 68846 88157 68957 67581 52631
Debt Ratio 71% 34% 84% 84% 59%
R&D Spending 2462 1917 6423 5325 8825
R&D Spending as % of Sales 6.34% 2.82% 3.38% 1.98% 9.18%

Straight Talk From The New Ceo Executive Summary Straight Talk From The New Ceo Swot Analysis Straight Talk From The New Ceo Vrio Analysis Straight Talk From The New Ceo Pestel Analysis
Straight Talk From The New Ceo Porters Analysis Straight Talk From The New Ceo Recommendations