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Dream Big Academy Charter School B Case Study Analysis

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Dream Big Academy Charter School B Case Study Analysis

Dream Big Academy Charter School B is presently among the biggest food cycle worldwide. It was established by Harvard in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed babies and reduce death rate. At the same time, the Page bros from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The two became competitors at first however later on merged in 1905, leading to the birth of Dream Big Academy Charter School B.
Business is now a transnational company. Unlike other multinational companies, it has senior executives from different countries and tries to make decisions considering the entire world. Dream Big Academy Charter School B currently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

The purpose of Business Corporation is to improve 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

Dream Big Academy Charter School B's vision is to offer its customers with food that is healthy, high in quality and safe to eat. Business visualizes to establish a well-trained workforce which would help the company to grow
.

Mission

Dream Big Academy Charter School B's objective is that as currently, it is the leading business in the food industry, it believes in 'Great Food, Good Life". Its objective is to offer its consumers with a range of options that are healthy and finest in taste. It is concentrated on supplying the best food to its customers throughout the day and night.

Products.

Dream Big Academy Charter School B has a large variety of items that it offers to its consumers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has set its goals and objectives. These objectives and goals are listed below.
• One objective of the company is to reach no land fill status. (Business, aboutus, 2017).
• Another goal of Dream Big Academy Charter School B is to lose minimum food during production. Frequently, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to reduce those problems and would likewise ensure the delivery of high quality of its products to its clients.
• Meet worldwide standards of the environment.
• Construct a relationship based upon trust with its customers, organisation partners, employees, and government.

Critical Issues

Recently, Business Business is focusing more towards the method of NHW and investing more of its revenues on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW technique. The target of the company is not attained as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might lead to the declined profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based on the idea of Nutritious, Health and Health (NHW). This method handles the idea to bringing modification in the customer preferences about food and making the food things much healthier concerning about the health concerns.
The vision of this method is based upon the secret technique i.e. 60/40+ which just indicates that the items will have a score of 60% on the basis of taste and 40% is based on its dietary value. The products will be made with extra nutritional value in contrast to all other products in market getting it a plus on its dietary content.
This technique was adopted to bring more yummy plus healthy foods and beverages in market than ever. In competitors with other business, with an objective of maintaining its trust over clients as Business Company has gotten more trusted by costumers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual amount of costs shows that the sales are increasing at a greater rate than its R&D spending, and permit the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indicator also shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement 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 prices. In terms of increasing debt ratio, the firm should not spend much on R&D and must pay its existing financial obligations to reduce the threat for financiers.
The increasing danger of financiers with increasing financial obligation ratio and decreasing share rates can be observed by substantial decline of EPS of Dream Big Academy Charter School B stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish growth also prevent 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 computations and Graphs given up the Exhibitions D and E.

TWOS Analysis


TWOS analysis can be used to derive various techniques based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more innovative items by large quantity of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the business. It might likewise provide Business a long term competitive advantage over its competitors.
The global expansion of Business should be concentrated on market recording of developing countries by growth, drawing in more customers through consumer's loyalty. As developing nations are more populated than developed nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisDream Big Academy Charter School B should do careful acquisition and merger of organizations, as it could affect the customer's and society's perceptions about Business. It must obtain and combine with those companies which have a market track record of healthy and nutritious business. It would improve the understandings of consumers about Business.
Business must not just spend its R&D on development, instead of it must also focus on the R&D spending over evaluation of cost of various nutritious products. This would increase expense performance of its products, which will result in increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business must move to not just establishing however likewise to industrialized countries. It should widens its geographical expansion. This large geographical expansion towards developing and developed nations would lower the risk of potential losses in times of instability in different countries. It ought to expand its circle to different nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Dream Big Academy Charter School B should sensibly manage its acquisitions to prevent the danger of mistaken belief from the consumers about Business. It must acquire and combine with those nations having a goodwill of being a healthy company in the market. This would not just enhance the perception of customers about Business however would also increase the sales, profit margins and market share of Business. It would also allow the business to use its prospective 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 upon 4 factors; age, gender, income and profession. For instance, Business produces a number of products related to infants i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Dream Big Academy Charter School B products are quite economical by almost all levels, but its significant targeted consumers, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in nearly 86 countries. Its geographical division is based upon 2 main factors i.e. typical income level of the consumer along with the climate of the area. For example, Singapore Business Business'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 client. For example, Business 3 in 1 Coffee target those clients whose lifestyle is quite busy and do not have much time.

Behavioral Segmentation

Dream Big Academy Charter School B behavioral segmentation is based upon the attitude understanding and awareness of the customer. For instance its highly healthy items target those clients who have a health conscious attitude towards their consumptions.

Dream Big Academy Charter School B Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand, there are two options:
Option: 1
The Business must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the business, increasing the wealth of the company. However, spending on R&D would be sunk expense.
2. The business can resell the obtained systems in the market, if it fails to implement its strategy. Nevertheless, amount spend on the R&D could not be restored, and it will be thought about entirely sunk cost, if it do not give prospective results.
3. Investing in R&D supply slow growth in sales, as it takes long time to introduce an item. However, acquisitions offer quick results, as it offer the business currently established 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 company to deal with mistaken belief of consumers about Business core values of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send out a signal of business's inadequacy of establishing innovative products, and would results in customer's dissatisfaction also.
3. Big acquisitions than R&D would extend the line of product of the business by the products which are currently present in the market, making business not able to present brand-new innovative products.
Option: 2.
The Company must spend more on its R&D rather than acquisitions.
Pros:
1. It would make it possible for the business to produce more innovative items.
2. It would supply the business a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted consumers by introducing those products which can be offered to a totally new market segment.
4. Ingenious 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 affect the business at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could supply a negative signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to introduce brand-new ingenious items with less risk of transforming the spending on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the general assets of the company would increase with its significant R&D costs.
3. It would not impact the profit margins of the company at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in regards to the company's overall wealth along with in regards to innovative items.
Cons:
1. Risk of conversion of R&D costs into sunk cost, greater than alternative 1 lower than alternative 2.
2. Risk of misunderstanding about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Introduction of less number of innovative products than alternative 2 and high number of ingenious items than alternative 1.

Dream Big Academy Charter School B Conclusion

RecommendationsBusiness has actually remained the top market gamer for more than a years. It has actually institutionalized its techniques and culture to align itself with the marketplace changes and customer habits, which has actually ultimately enabled it to sustain its market share. Business has established considerable market share and brand identity in the urban markets, it is suggested that the business ought to focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by developing a particular brand name allotment technique through trade marketing strategies, that draw clear difference in between Dream Big Academy Charter School B items and other rival products. Moreover, Business needs to utilize its brand name picture of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will allow the business to develop brand name equity for recently introduced and currently produced products on a higher platform, making the reliable use of resources and brand name image in the market.

Dream Big Academy Charter School B Exhibits

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

Altering requirements of worldwide food.
Enhanced market share.
Altering understanding towards healthier items
Improvements in R&D as well as QA divisions.

Intro of E-marketing.
No such influence as it is beneficial.
Issues over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 3000
Highest after Service with much less development than Business 5th Least expensive
R&D Spending Highest considering that 2003 Greatest after Business 6th Cheapest
Net Profit Margin Greatest because 2003 with rapid development from 2003 to 2015 As a result of sale of Alcon in 2014. Almost equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nourishment and also health and wellness variable Highest variety of brand names with lasting techniques Largest confectionary and refined foods brand worldwide Largest dairy products as well as mineral water brand name worldwide
Segmentation Middle and upper center degree customers worldwide Individual customers along with family group All age and also Revenue Consumer Groups Center and also top center degree consumers worldwide
Number of Brands 7th 1st 7th 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 59236 673274 118421 833146 984654
Net Profit Margin 2.45% 4.85% 19.53% 3.53% 61.42%
EPS (Earning Per Share) 68.37 9.99 4.48 1.68 42.71
Total Asset 953475 389198 228891 392955 28917
Total Debt 27712 78957 83178 12146 45651
Debt Ratio 58% 27% 41% 16% 69%
R&D Spending 3326 2445 7277 1962 3919
R&D Spending as % of Sales 5.17% 9.12% 4.94% 4.22% 2.49%

Dream Big Academy Charter School B Executive Summary Dream Big Academy Charter School B Swot Analysis Dream Big Academy Charter School B Vrio Analysis Dream Big Academy Charter School B Pestel Analysis
Dream Big Academy Charter School B Porters Analysis Dream Big Academy Charter School B Recommendations