Walnut Venture Associates A Rbs Group Investment Memorandum Case Study Solution

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Walnut Venture Associates A Rbs Group Investment Memorandum Case Study Analysis

Walnut Venture Associates A Rbs Group Investment Memorandum is currently among the greatest food cycle worldwide. It was established by Darden in 1866, a German Pharmacist who initially released "FarineLactee"; a mix of flour and milk to feed infants and decrease mortality rate. At the exact same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Company. The 2 became rivals initially but later combined in 1905, leading to the birth of Walnut Venture Associates A Rbs Group Investment Memorandum.
Business is now a global company. Unlike other international companies, it has senior executives from various countries and tries to make choices thinking about the entire world. Walnut Venture Associates A Rbs Group Investment Memorandum presently has more than 500 factories worldwide and a network spread throughout 86 countries.


The purpose of Business Corporation is to enhance the quality of life of individuals 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


Walnut Venture Associates A Rbs Group Investment Memorandum's vision is to offer its clients with food that is healthy, high in quality and safe to eat. It wishes to be innovative and all at once comprehend the requirements and requirements of its customers. Its vision is to grow fast and supply items that would satisfy the needs of each age. Walnut Venture Associates A Rbs Group Investment Memorandum envisions to establish a well-trained workforce which would help the company to grow


Walnut Venture Associates A Rbs Group Investment Memorandum's mission is that as currently, it is the leading company in the food industry, it believes in 'Excellent Food, Great Life". Its mission is to supply its consumers with a variety of choices that are healthy and finest in taste. It is focused on providing the best food to its clients throughout the day and night.


Walnut Venture Associates A Rbs Group Investment Memorandum has a large variety of items that it provides to its consumers. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the company has set its goals and objectives. These objectives and objectives are listed below.
• One goal of the business is to reach zero land fill status. (Business, aboutus, 2017).
• Another objective of Walnut Venture Associates A Rbs Group Investment Memorandum is to squander minimum food throughout production. Most often, the food produced is lost even before it reaches the clients.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to decrease those issues and would also ensure the shipment of high quality of its items to its clients.
• Meet international requirements of the environment.
• Construct a relationship based upon trust with its consumers, business partners, employees, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the technique 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 strategy. The target of the business 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%, offered in Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it might lead to the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based on the concept of Nutritious, Health and Wellness (NHW). This strategy handles the idea to bringing modification in the client choices about food and making the food things healthier worrying about the health problems.
The vision of this method is based upon the secret approach i.e. 60/40+ which simply implies that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional value. The products will be made with extra nutritional value in contrast to all other products in market gaining it a plus on its nutritional content.
This strategy was adopted to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other business, with an intention of retaining its trust over customers as Business Business has actually gained more trusted by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real quantity of costs reveals that the sales are increasing at a higher rate than its R&D costs, and enable the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This sign also shows a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio pose a threat of default of Business to its investors and might lead a decreasing share costs. In terms of increasing debt ratio, the company needs to not spend much on R&D and must pay its current debts to decrease the danger for investors.
The increasing danger of financiers with increasing financial obligation ratio and decreasing share prices can be observed by substantial decrease of EPS of Walnut Venture Associates A Rbs Group Investment Memorandum stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception building of customers. This slow growth also hinder business to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of computations and Charts given in the Exhibitions D and E.

TWOS Analysis

2 analysis can be utilized to obtain various methods based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious products by large amount of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the company. It could also offer Business a long term competitive advantage over its competitors.
The global expansion of Business should be concentrated on market catching of developing countries by growth, bring in more customers through client's commitment. As establishing nations are more populous than industrialized countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisWalnut Venture Associates A Rbs Group Investment Memorandum needs to do careful acquisition and merger of organizations, as it might affect the client's and society's understandings about Business. It ought to obtain and merge with those business which have a market reputation of healthy and healthy business. It would improve the perceptions of consumers about Business.
Business must not just invest its R&D on development, instead of it needs to also concentrate on the R&D spending over assessment of expense of different nutritious products. This would increase cost effectiveness of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just establishing but likewise to industrialized countries. It ought to widen its circle to different countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Walnut Venture Associates A Rbs Group Investment Memorandum ought to carefully manage its acquisitions to avoid 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 just enhance the understanding of consumers about Business but would also increase the sales, revenue margins and market share of Business. It would also allow the business to utilize its possible resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on 4 factors; age, gender, earnings and profession. For example, Business produces a number of items associated with babies i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Walnut Venture Associates A Rbs Group Investment Memorandum products are rather inexpensive by practically all levels, however its significant targeted clients, in terms of earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in nearly 86 nations. Its geographical division is based upon two main aspects i.e. average income level of the consumer as well as the climate of the area. 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 character and life style of the client. For example, Business 3 in 1 Coffee target those customers whose lifestyle is rather busy and don't have much time.

Behavioral Segmentation

Walnut Venture Associates A Rbs Group Investment Memorandum behavioral division is based upon the mindset knowledge and awareness of the customer. For example its highly nutritious products target those consumers who have a health mindful mindset towards their usages.

Walnut Venture Associates A Rbs Group Investment Memorandum Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand, there are 2 options:
Alternative: 1
The Company needs to invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. However, spending on R&D would be sunk cost.
2. The business can resell the gotten units in the market, if it stops working to implement its technique. Amount spend on the R&D might not be revived, and it will be thought about totally sunk cost, if it do not offer possible results.
3. Investing in R&D provide slow growth in sales, as it takes very long time to present an item. Acquisitions offer fast results, as it provide the company currently developed item, which can be marketed quickly 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 mistaken belief of consumers about Business core worths of healthy and healthy items.
2 Big costs on acquisitions than R&D would send out a signal of business's ineffectiveness of developing innovative products, and would lead to consumer's frustration also.
3. Large acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making company unable to introduce brand-new ingenious items.
Alternative: 2.
The Company ought to spend more on its R&D rather than acquisitions.
1. It would allow the company to produce more ingenious products.
2. It would offer the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those items which can be offered to a totally brand-new market segment.
4. Innovative items will supply long term advantages and high market share in long run.
1. It would decrease the earnings margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk cost, and would impact the business at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could supply an unfavorable signal to the investors, and could result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to present brand-new ingenious items with less danger of converting the spending on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the total properties of the business would increase with its substantial R&D costs.
3. It would not impact the profit margins of the company at a big rate as compare to alternative 2.
4. It would offer the company a strong long term market position in terms of the business's general wealth in addition to in regards to ingenious items.
1. Threat of conversion of R&D costs into sunk cost, greater than option 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Introduction of less variety of ingenious items than alternative 2 and high number of ingenious items than alternative 1.

Walnut Venture Associates A Rbs Group Investment Memorandum Conclusion

RecommendationsBusiness has actually remained the leading market player for more than a years. It has institutionalized its strategies and culture to align itself with the marketplace changes and customer behavior, which has actually eventually permitted it to sustain its market share. Though, Business has actually developed substantial market share and brand identity in the metropolitan markets, it is suggested that the business needs to focus on the rural areas in terms of developing brand commitment, awareness, and equity, such can be done by producing a particular brand name allowance technique through trade marketing tactics, that draw clear difference between Walnut Venture Associates A Rbs Group Investment Memorandum items and other rival products. Walnut Venture Associates A Rbs Group Investment Memorandum must leverage its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will allow the business to establish brand equity for recently presented and currently produced items on a greater platform, making the reliable use of resources and brand image in the market.

Walnut Venture Associates A Rbs Group Investment Memorandum Exhibits

PESTEL Analysis
Governmental support

Transforming standards of worldwide food.
Improved market share. Transforming understanding towards healthier items Improvements in R&D as well as QA divisions.

Introduction of E-marketing.
No such influence as it is good. Worries over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible since 2000 Highest possible after Organisation with less growth than Business 1st Cheapest
R&D Spending Highest given that 2002 Greatest after Company 4th Least expensive
Net Profit Margin Highest possible considering that 2001 with fast development from 2006 to 2019 As a result of sale of Alcon in 2012. Nearly equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health variable Highest possible variety of brand names with lasting methods Largest confectionary and refined foods brand in the world Biggest dairy products as well as bottled water brand on the planet
Segmentation Middle and top center degree consumers worldwide Private clients in addition to house group Every age and Earnings Customer Groups Middle and upper center degree customers worldwide
Number of Brands 5th 2nd 4th 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 14785 911261 888136 866986 934272
Net Profit Margin 2.19% 4.99% 78.44% 9.49% 84.78%
EPS (Earning Per Share) 82.64 8.16 4.74 7.61 56.66
Total Asset 278818 665572 169352 692167 31377
Total Debt 99554 49968 17565 66733 74214
Debt Ratio 95% 29% 95% 61% 61%
R&D Spending 9821 4944 7497 6142 8653
R&D Spending as % of Sales 1.11% 2.73% 2.18% 8.31% 4.44%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations