Aquarius Ales How Much Should The Brew Cost Case Study Analysis

Aquarius Ales How Much Should The Brew Cost is currently one of the biggest food cycle worldwide. It was founded by Harvard in 1866, a German Pharmacist who initially released "FarineLactee"; a mix of flour and milk to feed babies and reduce mortality rate. At the very same time, the Page brothers from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The 2 ended up being competitors in the beginning but later on merged in 1905, leading to the birth of Aquarius Ales How Much Should The Brew Cost.
Business is now a transnational company. Unlike other multinational companies, it has senior executives from different countries and attempts to make decisions considering the whole world. Aquarius Ales How Much Should The Brew Cost currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The purpose of Aquarius Ales How Much Should The Brew Cost Corporation is to improve the lifestyle of people by playing its part and providing healthy food. It wishes 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 ensuring that the business is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Aquarius Ales How Much Should The Brew Cost's vision is to provide its consumers with food that is healthy, high in quality and safe to eat. Business pictures to establish a well-trained labor force which would help the company to grow
.

Mission

Aquarius Ales How Much Should The Brew Cost's mission is that as currently, it is the leading company in the food market, it thinks in 'Good Food, Good Life". Its objective is to supply its customers with a range of options that are healthy and best in taste. It is focused on offering the best food to its clients throughout the day and night.

Products.

Aquarius Ales How Much Should The Brew Cost has a broad range of items that it provides to its customers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the company has laid down its objectives and goals. These goals and goals are noted below.
• One goal of the company is to reach absolutely no landfill status. It is working toward no waste, where no waste of the factory is landfilled. It motivates its staff members to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Aquarius Ales How Much Should The Brew Cost is to squander minimum food during production. Usually, the food produced is squandered even prior to it reaches the clients.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to minimize the above-mentioned complications and would also guarantee the shipment of high quality of its items to its clients.
• Meet international standards of the environment.
• Develop a relationship based on trust with its customers, company partners, staff members, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its profits on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the company is not attained as the sales were anticipated to grow higher at the rate of 10% each year and the operating margins to increase by 20%, given in Display H. There is a need to focus more on the sales then the development technology. Otherwise, it might result in the decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based upon the idea of Nutritious, Health and Wellness (NHW). This method handles the concept to bringing modification in the consumer preferences about food and making the food things healthier concerning about the health problems.
The vision of this method is based upon the key method i.e. 60/40+ which simply implies that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be manufactured with extra dietary worth in contrast to all other products in market getting it a plus on its dietary material.
This method was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competition with other companies, with an intent of keeping its trust over consumers as Business Business has actually gained more relied on by costumers.

Quantitative Analysis.

R&D Costs as a percentage 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 allow the business to more invest in 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.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing debt ratio posture a hazard of default of Business to its financiers and might lead a decreasing share prices. In terms of increasing financial obligation ratio, the firm should not invest much on R&D and needs to pay its present financial obligations to reduce the danger for financiers.
The increasing threat of financiers with increasing debt ratio and declining share prices can be observed by substantial decrease of EPS of Aquarius Ales How Much Should The Brew Cost stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish development likewise hinder business to additional spend on 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 in the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be used to obtain different strategies based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more ingenious items by big amount of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the business. It could also provide Business a long term competitive benefit over its rivals.
The international growth of Business must be focused on market capturing of developing nations by expansion, bring in more customers through consumer's loyalty. As developing countries are more populous than industrialized countries, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Aquarius Ales How Much Should The Brew Cost needs to do careful acquisition and merger of organizations, as it might affect the consumer's and society's perceptions about Business. It should get and merge with those companies which have a market credibility of healthy and healthy business. It would improve the understandings of consumers about Business.
Business ought to not just spend its R&D on development, instead of it must also focus on the R&D costs over assessment of cost of numerous nutritious items. This would increase cost efficiency of its items, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

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

Strategies to overcome weaknesses to avoid threats

Aquarius Ales How Much Should The Brew Cost needs to carefully manage its acquisitions to prevent the threat of mistaken belief from the customers about Business. It should obtain and combine with those countries having a goodwill of being a healthy business in the market. This would not only enhance the understanding of customers about Business but would likewise increase the sales, earnings margins and market share of Business. It would also allow the business to utilize its potential resources effectively on its other operations rather than acquisitions of those companies slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon four elements; age, gender, earnings and profession. Business produces a number of products related to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. Aquarius Ales How Much Should The Brew Cost products are quite economical by almost all levels, but its major targeted customers, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in nearly 86 countries. Its geographical division is based upon two primary elements i.e. average earnings level of the consumer along with the environment of the area. For instance, Singapore Business Business's division is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the consumer. For instance, Business 3 in 1 Coffee target those consumers whose life style is quite busy and do not have much time.

Behavioral Segmentation

Aquarius Ales How Much Should The Brew Cost behavioral division is based upon the attitude understanding and awareness of the consumer. Its extremely nutritious items target those consumers who have a health mindful attitude towards their consumptions.

Aquarius Ales How Much Should The Brew Cost Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand name, there are 2 options:
Option: 1
The Company needs to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the company, increasing the wealth of the business. Spending on R&D would be sunk expense.
2. The company can resell the obtained systems in the market, if it stops working to implement its technique. Nevertheless, amount invest in the R&D might not be revived, and it will be considered entirely sunk expense, if it do not offer potential results.
3. Spending on R&D offer slow development in sales, as it takes long time to present a product. Acquisitions provide fast outcomes, as it provide the business already developed 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 mistaken belief of customers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send a signal of company's ineffectiveness of developing ingenious items, and would results in consumer's frustration as well.
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 business unable to present new innovative products.
Alternative: 2.
The Business must spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the company to produce more ingenious items.
2. It would provide the business a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those products which can be provided to an entirely new market segment.
4. Innovative items will offer long term benefits and high market share in long run.
Cons:
1. It would reduce the profit margins of the business.
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 danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might provide a negative signal to the financiers, and might result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Pros:
1. It would permit the company to present new ingenious products with less threat of converting the spending on R&D into sunk cost.
2. It would offer a positive signal to the investors, as the overall assets of the business would increase with its considerable R&D spending.
3. It would not impact the profit margins of the business at a large rate as compare to alternative 2.
4. It would offer the company a strong long term market position in terms of the company's general wealth along with in terms of innovative products.
Cons:
1. Danger of conversion of R&D costs into sunk cost, higher than option 1 lower than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less number of innovative products than alternative 2 and high number of innovative items than alternative 1.

Aquarius Ales How Much Should The Brew Cost Conclusion

It has institutionalized its methods and culture to align itself with the market changes and client behavior, which has ultimately enabled it to sustain its market share. Business has developed considerable market share and brand name identity in the city markets, it is advised that the company should focus on the rural locations in terms of developing brand name commitment, awareness, and equity, such can be done by developing a particular brand name allowance strategy through trade marketing techniques, that draw clear distinction in between Aquarius Ales How Much Should The Brew Cost items and other rival products.

Aquarius Ales How Much Should The Brew Cost Exhibits