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Cambridge Technology Partners 1991 Start Up Case Study Help

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Cambridge Technology Partners 1991 Start Up Case Study Help

Business is presently one of the most significant food chains worldwide. It was founded by Henri Cambridge Technology Partners 1991 Start Up in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and decrease death rate.
Business is now a transnational company. Unlike other international companies, it has senior executives from different nations and attempts to make choices thinking about the whole world. Cambridge Technology Partners 1991 Start Up presently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The function 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 being successful in the long run, that's how it plays its part for a much better and healthy future

Vision

Cambridge Technology Partners 1991 Start Up's vision is to supply its customers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and all at once comprehend the needs and requirements of its customers. Its vision is to grow fast and offer items that would please the needs of each age. Cambridge Technology Partners 1991 Start Up envisions to develop a well-trained workforce which would help the company to grow
.

Mission

Cambridge Technology Partners 1991 Start Up's mission is that as currently, it is the leading company in the food industry, it thinks in 'Great Food, Excellent Life". Its objective is to offer its consumers with a variety of options that are healthy and best in taste. It is concentrated on offering the very best food to its consumers throughout the day and night.

Products.

Cambridge Technology Partners 1991 Start Up has a broad variety of products that it uses to its customers. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has set its objectives and objectives. These objectives and objectives are listed below.
• One objective of the business is to reach absolutely no garbage dump status. It is working toward no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Cambridge Technology Partners 1991 Start Up is to squander minimum food throughout production. Frequently, the food produced is squandered even prior to 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 lower the above-mentioned complications and would likewise ensure the shipment of high quality of its products to its customers.
• Meet international requirements of the environment.
• Build a relationship based on trust with its consumers, service partners, employees, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the technique of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the company 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%, given in Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may result in the decreased revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based upon the concept of Nutritious, Health and Health (NHW). This technique handles the idea to bringing modification in the consumer preferences about food and making the food stuff much healthier concerning about the health problems.
The vision of this technique is based upon the secret approach i.e. 60/40+ which simply suggests that the items will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The products will be made with additional dietary worth in contrast to all other products in market getting it a plus on its nutritional material.
This technique was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competition with other business, with an objective of keeping its trust over consumers as Business Company has actually gained more trusted by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing actual quantity of costs reveals that the sales are increasing at a greater rate than its R&D spending, and enable the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is declining. This indicator likewise reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio posture a hazard of default of Business to its financiers and might lead a decreasing share rates. For that reason, in terms of increasing debt ratio, the company should not spend much on R&D and must pay its current financial obligations to reduce the danger for financiers.
The increasing risk of financiers with increasing debt ratio and declining share prices can be observed by big decline of EPS of Cambridge Technology Partners 1991 Start Up stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish growth likewise impede business 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 estimations and Charts given in the Displays D and E.

TWOS Analysis


TWOS analysis can be utilized to derive numerous methods based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to present more ingenious items 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 likewise offer Business a long term competitive advantage over its competitors.
The international expansion of Business need to be focused on market catching of establishing countries by growth, drawing in more consumers through customer's commitment. As establishing nations are more populous than developed nations, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisCambridge Technology Partners 1991 Start Up should do careful acquisition and merger of companies, as it could impact the customer's and society's understandings about Business. It must obtain and combine with those companies which have a market credibility of healthy and healthy companies. It would enhance the perceptions of customers about Business.
Business ought to not just spend its R&D on development, rather than it must also concentrate on the R&D costs over examination of cost of various healthy items. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just developing however also to developed countries. It needs to expand its circle to numerous countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

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

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based upon four aspects; age, gender, income and profession. For example, Business produces numerous items associated with children i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary items. Cambridge Technology Partners 1991 Start Up products are rather cost effective by almost all levels, but its major targeted clients, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in practically 86 nations. Its geographical segmentation is based upon two primary aspects i.e. typical earnings level of the customer as well as the climate of the region. For example, 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 character and lifestyle of the client. Business 3 in 1 Coffee target those customers whose life style is quite busy and don't have much time.

Behavioral Segmentation

Cambridge Technology Partners 1991 Start Up behavioral segmentation is based upon the attitude understanding and awareness of the customer. For example its extremely nutritious items target those customers who have a health mindful mindset towards their usages.

Cambridge Technology Partners 1991 Start Up Alternatives

In order to sustain the brand in the market and keep the client intact with the brand name, there are 2 options:
Alternative: 1
The Business should 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. 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. Amount spend on the R&D might not be restored, and it will be thought about entirely sunk cost, if it do not provide prospective outcomes.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to introduce a product. Acquisitions supply quick outcomes, as it supply 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 company's worths like Kraftz foods can lead the company to deal with misunderstanding of consumers about Business core worths of healthy and healthy products.
2 Big spending on acquisitions than R&D would send out a signal of company's ineffectiveness of developing ingenious items, and would outcomes in customer's discontentment.
3. Big acquisitions than R&D would extend the product line of the business by the items which are already present in the market, making business not able to introduce new ingenious products.
Alternative: 2.
The Business ought to invest more on its R&D instead of 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 make it possible for the business to increase its targeted consumers by presenting those products which can be provided to a completely new market section.
4. Innovative products will provide long term benefits and high market share in long term.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would impact the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might provide a negative signal to the investors, and could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the company to introduce new ingenious products with less danger of converting the spending on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the general properties of the company would increase with its considerable R&D costs.
3. It would not affect the revenue margins of the business at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the company's overall wealth as well as in regards to innovative products.
Cons:
1. Danger of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less number of ingenious products than alternative 2 and high number of ingenious products than alternative 1.

Cambridge Technology Partners 1991 Start Up Conclusion

RecommendationsBusiness has remained the leading market player for more than a decade. It has actually institutionalized its strategies and culture to align itself with the marketplace modifications and consumer habits, which has actually eventually allowed it to sustain its market share. Though, Business has actually established considerable market share and brand name identity in the city markets, it is advised that the company ought to concentrate on the backwoods in terms of developing brand commitment, awareness, and equity, such can be done by developing a particular brand name allotment technique through trade marketing techniques, that draw clear difference in between Cambridge Technology Partners 1991 Start Up items and other competitor products. Cambridge Technology Partners 1991 Start Up must take advantage of its brand image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will permit the company to develop brand name equity for freshly introduced and currently produced items on a higher platform, making the reliable use of resources and brand name image in the market.

Cambridge Technology Partners 1991 Start Up Exhibits

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

Transforming standards of global food.
Boosted market share. Transforming assumption towards healthier items Improvements in R&D as well as QA departments.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 5000 Greatest after Company with less growth than Service 1st Most affordable
R&D Spending Greatest since 2004 Greatest after Service 4th Cheapest
Net Profit Margin Highest because 2003 with fast development from 2004 to 2017 Because of sale of Alcon in 2019. Practically equal to Kraft Foods Unification Practically equal to Unilever N/A
Competitive Advantage Food with Nourishment and health factor Greatest number of brand names with sustainable methods Biggest confectionary and also refined foods brand name worldwide Largest milk products as well as bottled water brand name on the planet
Segmentation Middle and upper middle degree consumers worldwide Individual consumers together with family team All age and Income Customer Teams Center as well as top middle degree consumers worldwide
Number of Brands 8th 6th 5th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 49616 831862 325355 316652 499185
Net Profit Margin 9.58% 7.71% 57.37% 2.86% 89.93%
EPS (Earning Per Share) 57.15 7.61 3.44 4.61 64.21
Total Asset 683462 693933 635284 185819 56197
Total Debt 88938 92989 22313 27483 56888
Debt Ratio 76% 17% 15% 48% 88%
R&D Spending 7613 3522 9427 3585 5851
R&D Spending as % of Sales 3.66% 5.86% 7.99% 9.98% 1.34%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations