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Barclays Bank And Contingent Capital Notes 2012 Case Study Analysis

Business is currently one of the biggest food chains worldwide. It was founded by Henri Barclays Bank And Contingent Capital Notes 2012 in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate.
Business is now a multinational company. Unlike other international companies, it has senior executives from various countries and tries to make decisions thinking about the entire world. Barclays Bank And Contingent Capital Notes 2012 presently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

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 company is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

Barclays Bank And Contingent Capital Notes 2012's vision is to provide its customers with food that is healthy, high in quality and safe to eat. It wants to be innovative and at the same time comprehend the requirements and requirements of its clients. Its vision is to grow fast and supply products that would please the requirements of each age group. Barclays Bank And Contingent Capital Notes 2012 visualizes to establish a trained workforce which would help the business to grow
.

Mission

Barclays Bank And Contingent Capital Notes 2012's objective is that as currently, it is the leading business in the food industry, it thinks in 'Good Food, Good Life". Its mission is to provide its customers with a range of options that are healthy and best in taste. It is focused on providing the best food to its clients throughout the day and night.

Products.

Barclays Bank And Contingent Capital Notes 2012 has a broad range of items that it offers to its clients. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has put down its goals and objectives. These goals and goals are noted below.
• One objective of the business is to reach no garbage dump status. (Business, aboutus, 2017).
• Another objective of Barclays Bank And Contingent Capital Notes 2012 is to waste minimum food during production. Usually, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is working on is to enhance its product packaging in such a way that it would help it to reduce the above-mentioned issues and would also guarantee the shipment of high quality of its products to its customers.
• Meet international standards of the environment.
• Build a relationship based on trust with its consumers, organisation partners, staff members, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the technique 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 method. 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 method is based on the idea of Nutritious, Health and Health (NHW). This method handles the idea to bringing change in the consumer preferences about food and making the food stuff healthier concerning about the health problems.
The vision of this strategy is based upon the secret method 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 on its nutritional value. The products will be produced with extra nutritional value in contrast to all other products in market gaining it a plus on its dietary content.
This strategy was embraced to bring more delicious plus healthy foods and drinks in market than ever. In competition with other companies, with an intention of maintaining its trust over consumers as Business Company has actually gained more relied on by customers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing real quantity of spending reveals that the sales are increasing at a greater rate than its R&D costs, and permit the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indicator also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio pose a risk of default of Business to its financiers and could lead a decreasing share costs. In terms of increasing financial obligation ratio, the firm must not spend much on R&D and needs to pay its current debts to reduce the danger for investors.
The increasing threat of financiers with increasing financial obligation ratio and decreasing share prices can be observed by substantial decline of EPS of Barclays Bank And Contingent Capital Notes 2012 stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow perception building of customers. This sluggish growth likewise hinder business to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Charts given up the Exhibitions D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business should present more innovative products by big quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the business. It could also provide Business a long term competitive benefit over its rivals.
The international expansion of Business need to be focused on market catching of developing countries by expansion, drawing in more consumers through client's commitment. As establishing nations are more populated than developed countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisBarclays Bank And Contingent Capital Notes 2012 needs to do cautious acquisition and merger of companies, as it might impact the consumer's and society's understandings about Business. It must get and combine with those business which have a market reputation of healthy and nutritious business. It would enhance the perceptions of customers about Business.
Business must not just spend its R&D on innovation, rather than it needs to likewise focus on the R&D spending over assessment of cost of different healthy products. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not only establishing but also to industrialized nations. It should widens its geographical expansion. This large geographical growth towards establishing and established nations would minimize the risk of prospective losses in times of instability in numerous nations. It should expand its circle to numerous countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to acquire and combine with those countries having a goodwill of being a healthy business in the market. It would likewise enable the company to utilize its prospective resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon 4 factors; age, gender, earnings and profession. For instance, Business produces numerous items related to infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Barclays Bank And Contingent Capital Notes 2012 products are rather economical by almost all levels, however its significant targeted clients, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is made up of its presence in almost 86 nations. Its geographical division is based upon 2 primary elements i.e. typical income level of the consumer along with the environment of the area. For example, Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

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

Behavioral Segmentation

Barclays Bank And Contingent Capital Notes 2012 behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its highly nutritious items target those customers who have a health mindful mindset towards their consumptions.

Barclays Bank And Contingent Capital Notes 2012 Alternatives

In order to sustain the brand in the market and keep the client intact with the brand name, there are two options:
Alternative: 1
The Business needs to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the company, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk cost.
2. The company can resell the gotten units in the market, if it fails to execute its strategy. Quantity invest on the R&D could not be revived, and it will be thought about completely sunk expense, if it do not offer prospective results.
3. Spending on R&D provide slow growth in sales, as it takes long time to introduce a product. Nevertheless, acquisitions supply quick results, as it provide the business already established product, which can be marketed right 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 deal with misunderstanding of customers about Business core worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send a signal of business's inadequacy of developing ingenious items, and would lead to consumer's discontentment too.
3. Big acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making company unable to introduce brand-new ingenious products.
Alternative: 2.
The Company should invest more on its R&D rather than acquisitions.
Pros:
1. It would allow the company to produce more innovative items.
2. It would offer the business a strong competitive position in the market.
3. It would enable the business to increase its targeted customers by introducing those items which can be provided to a totally new market segment.
4. Ingenious items will provide long term advantages and high market share in long term.
Cons:
1. It would decrease the earnings margins of the business.
2. In case of failure, the whole costs 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 offer an unfavorable signal to the investors, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present new innovative items with less threat of converting the costs on R&D into sunk cost.
2. It would provide a favorable signal to the financiers, as the general properties of the business would increase with its significant R&D costs.
3. It would not affect the revenue margins of the company at a large rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the business's general wealth in addition to in terms of innovative products.
Cons:
1. Threat of conversion of R&D costs into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Danger of misunderstanding about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less number of ingenious items than alternative 2 and high number of innovative items than alternative 1.

Barclays Bank And Contingent Capital Notes 2012 Conclusion

RecommendationsIt has institutionalised its techniques and culture to align itself with the market modifications and consumer habits, which has actually ultimately 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 commitment, awareness, and equity, such can be done by developing a particular brand allocation technique through trade marketing strategies, that draw clear distinction in between Barclays Bank And Contingent Capital Notes 2012 items and other rival items.

Barclays Bank And Contingent Capital Notes 2012 Exhibits

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

Altering criteria of global food.
Improved market share. Changing perception towards healthier items Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such effect as it is favourable. Problems over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 4000 Highest after Company with much less growth than Organisation 7th Cheapest
R&D Spending Highest possible since 2002 Highest possible after Service 9th Lowest
Net Profit Margin Greatest given that 2001 with fast growth from 2005 to 2018 Due to sale of Alcon in 2013. Practically equal to Kraft Foods Incorporation Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment and wellness factor Greatest number of brands with lasting methods Largest confectionary and also refined foods brand name worldwide Largest dairy items as well as bottled water brand on the planet
Segmentation Center as well as top middle degree customers worldwide Individual consumers along with house team Every age and also Income Client Teams Center as well as top center degree customers worldwide
Number of Brands 6th 2nd 9th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 54991 562927 787175 594444 881662
Net Profit Margin 2.43% 3.15% 85.31% 5.22% 76.64%
EPS (Earning Per Share) 21.28 8.69 5.67 1.17 34.52
Total Asset 384875 182991 997285 736564 58922
Total Debt 92788 22786 36613 27385 92139
Debt Ratio 11% 53% 65% 64% 48%
R&D Spending 2772 3322 7442 2118 3574
R&D Spending as % of Sales 1.72% 9.78% 1.99% 6.52% 6.18%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations