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Bank Of America Tower Redesigning Skyscrapers Case Study Analysis

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Bank Of America Tower Redesigning Skyscrapers Case Study Analysis

Business is presently one of the greatest food chains worldwide. It was founded by Henri Bank Of America Tower Redesigning Skyscrapers in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate.
Business is now a transnational company. Unlike other international business, it has senior executives from various countries and attempts to make decisions thinking about the entire world. Bank Of America Tower Redesigning Skyscrapers presently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The purpose of Business Corporation is to improve the quality of life of individuals by playing its part and offering 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

Bank Of America Tower Redesigning Skyscrapers's vision is to offer its customers with food that is healthy, high in quality and safe to consume. Business pictures to establish a trained workforce which would help the business to grow
.

Mission

Bank Of America Tower Redesigning Skyscrapers's objective is that as currently, it is the leading business 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 too. It is focused on offering the very best food to its consumers throughout the day and night.

Products.

Business has a wide range of products that it provides to its consumers. Its items include food for infants, cereals, dairy products, treats, chocolates, food for animal and bottled water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 workers. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and mission of the corporation, the company has actually put down its goals and goals. These objectives and objectives are listed below.
• One goal of the company is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of Bank Of America Tower Redesigning Skyscrapers is to squander minimum food during production. Most often, the food produced is lost even before it reaches the consumers.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to decrease the above-mentioned problems and would also ensure the delivery of high quality of its products to its clients.
• Meet international requirements of the environment.
• Develop a relationship based on trust with its consumers, company partners, staff members, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its profits on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW technique. The target of the business is not accomplished as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based upon the idea of Nutritious, Health and Wellness (NHW). This strategy handles the idea to bringing modification in the customer choices about food and making the food stuff much healthier worrying about the health problems.
The vision of this strategy is based upon the secret technique i.e. 60/40+ which simply indicates that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be manufactured with additional dietary worth in contrast to all other products in market acquiring it a plus on its nutritional material.
This method was embraced to bring more tasty plus nutritious foods and drinks in market than ever. In competitors with other companies, with an intention of keeping its trust over consumers as Business Business has actually gained more relied on by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing real amount of costs shows that the sales are increasing at a higher rate than its R&D costs, and permit the business to more invest in R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is declining. This indication likewise reveals a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio posture a danger of default of Business to its financiers and could lead a decreasing share costs. For that reason, in regards to increasing debt ratio, the firm ought to not invest much on R&D and must pay its current financial obligations to reduce the risk for financiers.
The increasing danger of investors with increasing debt ratio and declining share costs can be observed by substantial decrease of EPS of Bank Of America Tower Redesigning Skyscrapers stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow growth also hinder company to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of calculations and Graphs given in the Exhibits D and E.

TWOS Analysis


2 analysis can be used to derive different strategies based on the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more innovative items by large amount of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the company. It might likewise provide Business a long term competitive benefit over its competitors.
The international expansion of Business need to be concentrated on market capturing of establishing countries by growth, attracting more clients through consumer's commitment. As developing countries are more populous than industrialized nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisBank Of America Tower Redesigning Skyscrapers should do careful acquisition and merger of companies, as it could impact the client's and society's understandings about Business. It ought to acquire and combine with those business which have a market reputation of healthy and nutritious business. It would enhance the perceptions of consumers about Business.
Business needs to not only spend its R&D on innovation, instead of it must likewise focus on the R&D costs over evaluation of expense of numerous healthy items. This would increase expense efficiency of its products, which will lead to increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just establishing but also to developed nations. It ought to expand its circle to different countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It needs to obtain and merge with those nations having a goodwill of being a healthy business in the market. It would likewise make it possible for the company to utilize its potential resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on 4 elements; age, gender, income and occupation. Business produces a number of products related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary items. Bank Of America Tower Redesigning Skyscrapers products are rather cost effective by practically all levels, however its major targeted consumers, in regards to income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in almost 86 countries. Its geographical division is based upon 2 main elements i.e. typical earnings 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 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 instance, Business 3 in 1 Coffee target those consumers whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Bank Of America Tower Redesigning Skyscrapers behavioral segmentation is based upon the attitude knowledge and awareness of the consumer. For instance its extremely healthy items target those clients who have a health conscious mindset towards their usages.

Bank Of America Tower Redesigning Skyscrapers Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand name, there are two choices:
Option: 1
The Business needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the business, increasing the wealth of the business. Spending on R&D would be sunk cost.
2. The business can resell the gotten systems 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 considered entirely sunk expense, if it do not give potential outcomes.
3. Investing in R&D supply slow growth in sales, as it takes very long time to introduce a product. However, acquisitions provide fast outcomes, as it offer the company already developed product, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the business to deal with misconception of consumers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of business's inadequacy of establishing innovative products, and would lead to consumer's discontentment too.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making business not able to present brand-new innovative items.
Alternative: 2.
The Company needs to spend more on its R&D rather than acquisitions.
Pros:
1. It would enable the business to produce more ingenious products.
2. It would offer the company a strong competitive position in the market.
3. It would enable the company to increase its targeted customers by presenting those items which can be offered to a completely brand-new market segment.
4. Ingenious products will offer long term benefits and high market share in long run.
Cons:
1. It would reduce the earnings margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk expense, and would affect the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to introduce brand-new innovative products with less threat of transforming the spending on R&D into sunk cost.
2. It would offer a favorable signal to the investors, as the overall properties of the business would increase with its considerable 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 provide the business a strong long term market position in regards to the company's general wealth along with in regards to ingenious products.
Cons:
1. Threat of conversion of R&D spending into sunk expense, greater than option 1 lower than alternative 2.
2. Threat of misunderstanding about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less number of innovative products than alternative 2 and high number of innovative items than alternative 1.

Bank Of America Tower Redesigning Skyscrapers Conclusion

RecommendationsBusiness has stayed the leading market gamer for more than a years. It has actually institutionalised its methods and culture to align itself with the market changes and client habits, which has actually eventually permitted it to sustain its market share. Business has developed substantial market share and brand identity in the city markets, it is suggested that the business must focus on the rural locations in terms of establishing brand name commitment, awareness, and equity, such can be done by creating a specific brand name allotment strategy through trade marketing tactics, that draw clear difference in between Bank Of America Tower Redesigning Skyscrapers products and other competitor products. Additionally, Business ought to utilize its brand name image of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will allow the company to establish brand name equity for freshly introduced and currently produced products on a greater platform, making the reliable usage of resources and brand name image in the market.

Bank Of America Tower Redesigning Skyscrapers Exhibits

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

Transforming criteria of global food.
Boosted market share.
Changing understanding in the direction of much healthier products
Improvements in R&D and also QA departments.

Introduction of E-marketing.
No such impact as it is favourable.
Concerns over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible considering that 1000
Greatest after Company with much less development than Service 4th Most affordable
R&D Spending Highest possible because 2008 Greatest after Organisation 1st Cheapest
Net Profit Margin Highest given that 2003 with fast development from 2006 to 2011 Because of sale of Alcon in 2014. Nearly equal to Kraft Foods Consolidation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and health and wellness aspect Highest possible number of brand names with lasting methods Biggest confectionary and processed foods brand name in the world Biggest milk items as well as mineral water brand on the planet
Segmentation Center and top center level customers worldwide Private consumers along with household team All age and Revenue Consumer Groups Center as well as upper middle level consumers worldwide
Number of Brands 5th 1st 4th 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 22913 712525 971148 245438 632916
Net Profit Margin 2.81% 1.82% 46.21% 6.47% 19.84%
EPS (Earning Per Share) 16.85 6.58 3.13 8.92 29.54
Total Asset 491435 719827 658928 576529 14623
Total Debt 19682 84634 46656 49321 97125
Debt Ratio 16% 43% 22% 15% 25%
R&D Spending 5547 8911 9787 8267 9868
R&D Spending as % of Sales 5.16% 1.91% 7.11% 2.12% 8.84%

Bank Of America Tower Redesigning Skyscrapers Executive Summary Bank Of America Tower Redesigning Skyscrapers Swot Analysis Bank Of America Tower Redesigning Skyscrapers Vrio Analysis Bank Of America Tower Redesigning Skyscrapers Pestel Analysis
Bank Of America Tower Redesigning Skyscrapers Porters Analysis Bank Of America Tower Redesigning Skyscrapers Recommendations