What Strategy Can Do For Technology Case Study Solution

What Strategy Can Do For Technology is currently among the biggest food chains worldwide. It was established by Darden in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate. At the very same time, the Page brothers from Switzerland likewise found The Anglo-Swiss Condensed Milk Business. The 2 became rivals initially however in the future merged in 1905, resulting in the birth of What Strategy Can Do For Technology.
Business is now a global business. Unlike other multinational companies, it has senior executives from different countries and attempts to make choices considering the whole world. What Strategy Can Do For Technology presently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The purpose of Business Corporation is to enhance 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 better and healthy future

Vision

What Strategy Can Do For Technology's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. It wants to be innovative and all at once understand the requirements and requirements of its consumers. Its vision is to grow fast and provide items that would please the requirements of each age group. What Strategy Can Do For Technology imagines to establish a well-trained workforce which would help the company to grow
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Mission

What Strategy Can Do For Technology's objective is that as presently, it is the leading company in the food market, it thinks in 'Great Food, Excellent Life". Its mission is to provide its consumers with a variety of options that are healthy and finest in taste. It is concentrated on offering the best food to its customers throughout the day and night.

Products.

What Strategy Can Do For Technology has a broad range of items that it provides to its clients. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has actually laid down its goals and objectives. These goals and objectives are listed below.
• One goal of the company is to reach no garbage dump status. (Business, aboutus, 2017).
• Another objective of What Strategy Can Do For Technology is to lose minimum food throughout production. Usually, the food produced is wasted even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its product packaging in such a method that it would help it to lower the above-mentioned complications and would likewise guarantee the shipment of high quality of its items to its customers.
• Meet worldwide standards of the environment.
• Develop a relationship based on trust with its customers, company partners, staff members, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy 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 technique. The target of the company is not accomplished as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the concept of Nutritious, Health and Health (NHW). This technique handles the concept to bringing change in the client preferences about food and making the food things much healthier concerning about the health issues.
The vision of this method is based on the key method i.e. 60/40+ which merely means that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary worth. The items will be produced with extra dietary worth in contrast to all other items in market acquiring it a plus on its nutritional material.
This technique was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competitors with other companies, with an intention of keeping its trust over clients as Business Business has gained more trusted by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing actual amount of spending reveals that the sales are increasing at a higher rate than its R&D spending, and allow the business to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion 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 spending on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing financial obligation ratio position a risk of default of Business to its investors and might lead a decreasing share rates. In terms of increasing financial obligation ratio, the company should not spend much on R&D and must pay its current debts to reduce the danger for investors.
The increasing danger of investors with increasing debt ratio and declining share costs can be observed by substantial decline of EPS of What Strategy Can Do For Technology stocks.
The sales growth of business is also 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 Charts given up the Displays D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative products 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 offer Business a long term competitive benefit over its rivals.
The international growth of Business need to be concentrated on market recording of developing nations by growth, attracting more consumers through client's commitment. As developing countries are more populous than developed countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

What Strategy Can Do For Technology needs to do mindful acquisition and merger of companies, as it might impact the consumer's and society's perceptions about Business. It should obtain and merge 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 development, instead of it must likewise concentrate on the R&D spending over assessment of expense of numerous nutritious products. This would increase cost performance of its products, which will lead to increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business should transfer to not only establishing however also to developed countries. It ought to expands its geographical expansion. This broad geographical growth towards establishing and established countries would minimize the risk of potential losses in times of instability in numerous nations. It ought to expand its circle to different nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

What Strategy Can Do For Technology should wisely control its acquisitions to prevent the risk of misconception from the customers about Business. It must obtain and merge with those countries having a goodwill of being a healthy business in the market. This would not just enhance the understanding of customers about Business however would likewise increase the sales, revenue margins and market share of Business. It would also allow the company to utilize its potential resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 factors; age, gender, income and profession. For instance, Business produces a number of products connected to infants i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary items. What Strategy Can Do For Technology items are quite inexpensive by almost all levels, but its significant targeted clients, in terms of earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is composed of its existence in almost 86 nations. Its geographical division is based upon 2 primary aspects i.e. typical income level of the consumer as well as the climate of the region. For instance, Singapore Business Business's segmentation is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the client. For example, Business 3 in 1 Coffee target those customers whose lifestyle is quite hectic and do not have much time.

Behavioral Segmentation

What Strategy Can Do For Technology behavioral segmentation is based upon the mindset understanding and awareness of the consumer. Its extremely healthy items target those clients who have a health mindful mindset towards their consumptions.

What Strategy Can Do For Technology Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand name, there are two options:
Option: 1
The Company needs to spend more on acquisitions than on the R&D.
Pros:
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 obtained systems in the market, if it stops working to execute its technique. Quantity invest on the R&D might not be restored, and it will be considered totally sunk expense, if it do not give potential results.
3. Spending on R&D provide sluggish development in sales, as it takes very long time to present a product. Acquisitions offer quick outcomes, as it provide the company already developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and nutritious products.
2 Big costs on acquisitions than R&D would send out a signal of company's inadequacy of establishing innovative products, and would results in consumer's discontentment 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 business not able to introduce new ingenious products.
Alternative: 2.
The Company needs to invest more on its R&D rather than acquisitions.
Pros:
1. It would make it possible for the company to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by presenting those items which can be used to an entirely brand-new market section.
4. Ingenious products will provide long term advantages and high market share in long term.
Cons:
1. It would reduce the profit margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would affect the company at large. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could provide a negative signal to the investors, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Pros:
1. It would allow the company to introduce brand-new ingenious products with less risk of transforming the spending on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the total assets of the company would increase with its considerable R&D spending.
3. It would not affect the earnings 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 company's total wealth along with in regards to ingenious items.
Cons:
1. Risk of conversion of R&D costs into sunk expense, higher than option 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less number of innovative items than alternative 2 and high number of ingenious items than alternative 1.

What Strategy Can Do For Technology Conclusion

It has actually institutionalized its techniques and culture to align itself with the market modifications and consumer habits, which has actually eventually enabled it to sustain its market share. Business has established significant market share and brand identity in the metropolitan markets, it is recommended that the company ought to focus on the rural areas in terms of establishing brand name loyalty, awareness, and equity, such can be done by producing a specific brand name allotment method through trade marketing strategies, that draw clear difference between What Strategy Can Do For Technology products and other competitor products.

What Strategy Can Do For Technology Exhibits