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Disrupting Wall Street High Frequency Trading Case Study Analysis

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Disrupting Wall Street High Frequency Trading Case Study Solution

Disrupting Wall Street High Frequency Trading is presently among the greatest 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 death rate. At the same time, the Page bros from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The two became competitors initially but in the future combined in 1905, resulting in the birth of Disrupting Wall Street High Frequency Trading.
Business is now a global business. Unlike other international companies, it has senior executives from various nations and attempts to make choices considering the entire world. Disrupting Wall Street High Frequency Trading presently has more than 500 factories around the world 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 business is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Disrupting Wall Street High Frequency Trading'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 simultaneously comprehend the requirements and requirements of its customers. Its vision is to grow fast and offer products that would please the needs of each age. Disrupting Wall Street High Frequency Trading imagines to develop a well-trained labor force which would help the company to grow
.

Mission

Disrupting Wall Street High Frequency Trading's mission is that as currently, it is the leading business in the food industry, it believes in 'Good Food, Excellent Life". Its objective is to offer its customers with a range of options that are healthy and finest in taste also. It is concentrated on supplying the best food to its clients throughout the day and night.

Products.

Business has a wide variety of items that it provides to its consumers. Its items consist of food for infants, cereals, dairy items, snacks, chocolates, food for family pet and bottled water. It has around four hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has put down its objectives and goals. These objectives and goals are listed below.
• One objective of the business is to reach absolutely no landfill status. It is working toward absolutely no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another goal of Disrupting Wall Street High Frequency Trading is to lose minimum food throughout production. Most often, the food produced is wasted even prior to it reaches the consumers.
• Another thing that Business is dealing with is to improve its packaging in such a way that it would help it to decrease the above-mentioned problems and would likewise guarantee the shipment of high quality of its items to its consumers.
• Meet worldwide requirements of the environment.
• Construct a relationship based on trust with its customers, business partners, workers, 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 achieved as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H. There is a need to focus more on the sales then the development technology. Otherwise, it may result in the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based on the idea of Nutritious, Health and Wellness (NHW). This method handles the concept to bringing modification in the consumer choices about food and making the food things much healthier concerning about the health concerns.
The vision of this strategy is based on the secret method i.e. 60/40+ which merely 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 additional nutritional value in contrast to all other items in market gaining it a plus on its dietary material.
This method was adopted to bring more tasty plus nutritious foods and drinks in market than ever. In competition with other business, with an intention of keeping its trust over clients as Business Company has actually gained more relied on by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing actual quantity of spending shows that the sales are increasing at a higher rate than its R&D spending, and permit the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This indicator likewise 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 development rather than payment of financial obligations. This increasing financial obligation ratio position a hazard of default of Business to its investors and might lead a decreasing share rates. In terms of increasing financial obligation ratio, the company must not invest much on R&D and ought to pay its present debts to reduce the danger for investors.
The increasing danger of financiers with increasing debt ratio and decreasing share prices can be observed by huge decline of EPS of Disrupting Wall Street High Frequency Trading stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This sluggish growth 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 estimations and Charts given up the Exhibitions D and E.

TWOS Analysis


TWOS analysis can be utilized to obtain numerous strategies based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by large quantity of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It might likewise supply Business a long term competitive benefit over its rivals.
The international growth of Business ought to be concentrated on market recording of developing nations by growth, attracting more clients through consumer's loyalty. As developing nations are more populated than industrialized countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisDisrupting Wall Street High Frequency Trading ought to do mindful acquisition and merger of companies, as it might impact the client's and society's perceptions about Business. It needs to get and combine with those companies which have a market reputation of healthy and nutritious business. It would improve the perceptions of customers about Business.
Business should not only invest its R&D on innovation, rather than it should also concentrate on the R&D spending over assessment of expense of different healthy items. 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 needs to move to not only developing but likewise to developed countries. It should expand its circle to numerous countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

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

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on four aspects; age, gender, earnings and profession. For example, Business produces a number of items related to babies i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. Disrupting Wall Street High Frequency Trading items are rather inexpensive by almost all levels, but its major targeted clients, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in practically 86 countries. Its geographical segmentation is based upon 2 main aspects i.e. average income level of the customer along with the climate of the area. For example, Singapore Business Company's segmentation is done on the basis of the weather of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and life style of the consumer. Business 3 in 1 Coffee target those consumers whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Disrupting Wall Street High Frequency Trading behavioral segmentation is based upon the attitude understanding and awareness of the consumer. For example its highly nutritious items target those clients who have a health conscious mindset towards their usages.

Disrupting Wall Street High Frequency Trading Alternatives

In order to sustain the brand in the market and keep the customer intact with the brand, there are 2 alternatives:
Alternative: 1
The Business ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the business, increasing the wealth of the business. Spending on R&D would be sunk expense.
2. The company can resell the gotten systems in the market, if it stops working to execute its technique. Quantity invest on the R&D could not be restored, and it will be considered totally sunk expense, if it do not give prospective outcomes.
3. Investing in R&D offer slow development in sales, as it takes very long time to present an item. Acquisitions offer fast results, as it supply the business currently established product, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and healthy items.
2 Big costs on acquisitions than R&D would send a signal of business's ineffectiveness of establishing ingenious items, and would results in consumer's discontentment as well.
3. Large acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making business not able to present brand-new innovative products.
Option: 2.
The Business must invest more on its R&D instead of acquisitions.
Pros:
1. It would enable the company to produce more innovative 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 items which can be provided to an entirely new market segment.
4. Ingenious products will offer long term advantages and high market share in long term.
Cons:
1. It would reduce the profit margins of the business.
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 company, which could offer a negative signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to present new innovative items with less danger of transforming the spending on R&D into sunk cost.
2. It would provide a favorable signal to the investors, as the total assets of the company would increase with its considerable R&D costs.
3. It would not impact the revenue margins of the business at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the business's overall wealth along with in regards to innovative products.
Cons:
1. Threat of conversion of R&D spending into sunk expense, greater than option 1 lesser than alternative 2.
2. Danger of misunderstanding about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less number of innovative items than alternative 2 and high number of innovative products than alternative 1.

Disrupting Wall Street High Frequency Trading Conclusion

RecommendationsIt has actually institutionalized its strategies and culture to align itself with the market changes and customer habits, which has actually ultimately enabled it to sustain its market share. Business has actually developed considerable market share and brand identity in the metropolitan markets, it is advised that the company needs to focus on the rural locations in terms of establishing brand name loyalty, awareness, and equity, such can be done by producing a particular brand name allocation technique through trade marketing strategies, that draw clear difference between Disrupting Wall Street High Frequency Trading products and other rival items.

Disrupting Wall Street High Frequency Trading Exhibits

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

Changing criteria of international food.
Boosted market share. Changing perception towards much healthier items Improvements in R&D as well as QA divisions.

Introduction of E-marketing.
No such impact as it is good. Worries over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 2000 Greatest after Business with less growth than Organisation 4th Cheapest
R&D Spending Highest because 2005 Greatest after Organisation 1st Lowest
Net Profit Margin Greatest since 2004 with quick development from 2001 to 2019 As a result of sale of Alcon in 2019. Almost equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health aspect Highest number of brand names with lasting methods Biggest confectionary as well as processed foods brand in the world Biggest milk products and bottled water brand name on the planet
Segmentation Center and also top middle degree consumers worldwide Individual clients along with home team All age as well as Income Client Groups Middle as well as top middle degree customers worldwide
Number of Brands 9th 6th 7th 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 71682 815243 843751 817349 413469
Net Profit Margin 9.75% 7.98% 66.57% 2.15% 87.89%
EPS (Earning Per Share) 12.83 8.95 9.44 5.18 73.75
Total Asset 182624 256266 525954 656791 56256
Total Debt 42144 38462 72591 78469 83768
Debt Ratio 12% 37% 62% 52% 62%
R&D Spending 3834 8989 4568 7896 7955
R&D Spending as % of Sales 1.41% 6.97% 1.16% 7.78% 2.98%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations