Century National Bank Na Case Study Help

Century National Bank Na is presently among the greatest food cycle worldwide. It was established by Harvard in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate. At the very same time, the Page siblings from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The two ended up being rivals in the beginning however later combined in 1905, leading to the birth of Century National Bank Na.
Business is now a multinational company. Unlike other international business, it has senior executives from different countries and tries to make decisions considering the entire world. Century National Bank Na presently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

The function of Century National Bank Na Corporation is to improve the lifestyle of individuals by playing its part and providing healthy food. It wishes to help the world in shaping a healthy and much better future for it. It likewise wants to motivate individuals to live a healthy life. While making certain that the business is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Century National Bank Na's vision is to provide its customers with food that is healthy, high in quality and safe to eat. Business imagines to develop a well-trained workforce which would help the company to grow
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Mission

Century National Bank Na's mission is that as currently, it is the leading business in the food industry, it believes in 'Great Food, Great Life". Its objective is to provide its consumers with a variety of options that are healthy and finest in taste too. It is concentrated on offering the very best food to its clients throughout the day and night.

Products.

Century National Bank Na has a broad range of items that it uses to its consumers. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the company has laid down its objectives and objectives. These goals and goals are noted below.
• One goal of the company is to reach absolutely no land fill status. It is working toward zero waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Century National Bank Na is to lose minimum food throughout production. Most often, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its product packaging in such a way that it would help it to lower the above-mentioned problems and would likewise ensure the shipment of high quality of its items to its clients.
• Meet global standards of the environment.
• Develop a relationship based upon trust with its consumers, service partners, employees, and government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its earnings on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW method. The target of the company is not achieved as the sales were expected to grow greater 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 strategy is based upon the principle of Nutritious, Health and Health (NHW). This technique deals with the concept to bringing modification in the consumer preferences about food and making the food stuff healthier concerning about the health issues.
The vision of this strategy is based upon the key technique i.e. 60/40+ which simply indicates that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary value. The items will be manufactured with additional nutritional value in contrast to all other products in market getting it a plus on its dietary content.
This method was adopted to bring more delicious plus healthy foods and drinks in market than ever. In competitors with other companies, with an objective of retaining its trust over consumers as Business Company has actually gotten more relied on by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real amount of costs shows that the sales are increasing at a higher rate than its R&D costs, and enable the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indication also shows a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing financial obligation ratio pose a hazard of default of Business to its investors and might lead a decreasing share rates. In terms of increasing debt ratio, the company ought to not invest much on R&D and must pay its current debts to reduce the risk for investors.
The increasing risk of financiers with increasing financial obligation ratio and decreasing share prices can be observed by substantial decline of EPS of Century National Bank Na stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding building of consumers. This slow development likewise hinder company to more invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given in the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be used to derive numerous strategies based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative items by large quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the company. It could also offer Business a long term competitive benefit over its rivals.
The international expansion of Business should be focused on market recording of establishing countries by expansion, bring in more consumers through consumer's commitment. As developing nations are more populated than developed nations, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Century National Bank Na ought to do mindful acquisition and merger of organizations, as it could impact the consumer's and society's understandings about Business. It must acquire and merge with those companies which have a market credibility of healthy and healthy business. It would enhance the perceptions of customers about Business.
Business ought to not just invest its R&D on development, rather than it must likewise focus on the R&D costs over evaluation of cost of different nutritious products. This would increase cost efficiency of its items, which will result in increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business should relocate to not only developing but likewise to developed countries. It ought to broadens its geographical expansion. This broad geographical expansion towards establishing and developed countries would lower the danger of potential losses in times of instability in different nations. It ought to widen its circle to different nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It must get and combine with those countries having a goodwill of being a healthy company in the market. It would likewise enable the company to use its prospective resources effectively on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based upon 4 aspects; age, gender, earnings and profession. For instance, Business produces numerous items associated with babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Century National Bank Na items are rather cost effective by almost all levels, but its significant targeted consumers, in terms of earnings 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 segmentation is based upon 2 primary factors i.e. average income level of the consumer along with the environment of the area. 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 character and lifestyle of the customer. Business 3 in 1 Coffee target those customers whose life design is rather busy and don't have much time.

Behavioral Segmentation

Century National Bank Na behavioral division is based upon the attitude knowledge and awareness of the consumer. Its extremely nutritious products target those customers who have a health mindful mindset towards their usages.

Century National Bank Na Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand name, there are 2 alternatives:
Option: 1
The Business should invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. However, spending on R&D would be sunk cost.
2. The business can resell the acquired systems in the market, if it stops working to implement its technique. However, quantity invest in the R&D could not be revived, and it will be considered totally sunk expense, if it do not offer potential outcomes.
3. Spending on R&D supply slow development in sales, as it takes very long time to present an item. Nevertheless, acquisitions supply fast outcomes, as it supply the business currently developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's values like Kraftz foods can lead the business to deal with mistaken belief of consumers about Business core values of healthy and nutritious products.
2 Big spending on acquisitions than R&D would send a signal of company's inadequacy of developing innovative items, and would results in consumer's dissatisfaction as well.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are already present in the market, making company unable to introduce brand-new innovative products.
Alternative: 2.
The Company must spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the business to produce more ingenious products.
2. It would supply the business a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by presenting those products which can be provided to a completely brand-new market section.
4. Innovative items will supply long term advantages and high market share in long term.
Cons:
1. It would decrease 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 big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of business, which could supply a negative signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Pros:
1. It would enable the company to present brand-new innovative items with less threat of transforming the costs on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the total possessions of the company would increase with its significant R&D costs.
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 business's overall wealth along with in regards to ingenious items.
Cons:
1. Danger of conversion of R&D costs into sunk cost, higher than alternative 1 lower than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Intro of less number of ingenious items than alternative 2 and high number of ingenious items than alternative 1.

Century National Bank Na Conclusion

Business has actually remained the leading market gamer for more than a years. It has actually institutionalized its methods and culture to align itself with the market modifications and client behavior, which has ultimately enabled it to sustain its market share. Though, Business has developed significant market share and brand identity in the metropolitan markets, it is suggested that the company ought to focus on the backwoods in regards to developing brand name loyalty, awareness, and equity, such can be done by creating a specific brand allocation technique through trade marketing techniques, that draw clear difference in between Century National Bank Na items and other rival items. Furthermore, Business must utilize its brand name 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 enable the company to develop brand equity for freshly presented and already produced items on a higher platform, making the efficient usage of resources and brand image in the market.

Century National Bank Na Exhibits