Enron Collapse Case Study Help

Enron Collapse is presently one of the biggest food cycle worldwide. It was founded by Harvard in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate. At the same time, the Page brothers from Switzerland also found The Anglo-Swiss Condensed Milk Company. The 2 became competitors at first however in the future merged in 1905, resulting in the birth of Enron Collapse.
Business is now a transnational company. Unlike other multinational companies, it has senior executives from various countries and attempts to make choices considering the whole world. Enron Collapse currently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The purpose of Enron Collapse Corporation is to improve the lifestyle of people by playing its part and supplying healthy food. It wishes to help the world in forming a healthy and better future for it. It also wishes to motivate people to live a healthy life. While making sure that the company is being successful in the long run, that's how it plays its part for a better and healthy future

Vision

Enron Collapse's vision is to supply its clients with food that is healthy, high in quality and safe to consume. Business envisions to establish a trained workforce which would help the company to grow
.

Mission

Enron Collapse's mission is that as presently, it is the leading business in the food market, it believes in 'Excellent Food, Excellent Life". Its objective is to offer its consumers with a range of options that are healthy and finest in taste. It is concentrated on offering the best food to its consumers throughout the day and night.

Products.

Business has a vast array of items that it uses to its clients. Its products include food for babies, cereals, dairy products, treats, 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 workers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the company has actually set its goals and objectives. These goals and goals are listed below.
• One goal of the company is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of Enron Collapse is to squander minimum food during production. Frequently, the food produced is lost even before it reaches the clients.
• Another thing that Business is dealing with is to enhance its product packaging in such a way that it would help it to decrease those issues and would likewise ensure the delivery of high quality of its items to its customers.
• Meet worldwide requirements of the environment.
• Build a relationship based on trust with its customers, company partners, employees, and federal 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 nation is investing more on acquisitions and mergers to support its NHW method. The target of the business 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 technique is based on the principle of Nutritious, Health and Wellness (NHW). This method deals with the concept to bringing modification in the consumer choices about food and making the food stuff much healthier concerning about the health problems.
The vision of this strategy is based on the secret approach i.e. 60/40+ which just suggests that the items will have a score of 60% on the basis of taste and 40% is based on its nutritional value. The items will be manufactured with extra nutritional value in contrast to all other products in market acquiring it a plus on its dietary content.
This technique was embraced to bring more delicious plus healthy foods and drinks in market than ever. In competition with other business, with an objective of keeping its trust over consumers as Business Business has actually acquired more relied on by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual amount of spending shows that the sales are increasing at a higher rate than its R&D costs, and permit the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This sign also shows a thumbs-up to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing debt ratio pose a danger of default of Business to its investors and could lead a decreasing share rates. In terms of increasing debt ratio, the company needs to not invest much on R&D and should pay its present debts to decrease the threat for financiers.
The increasing danger of financiers with increasing debt ratio and decreasing share costs can be observed by big decrease of EPS of Enron Collapse stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This sluggish growth also hinder business to additional 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 Exhibits D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative products by large quantity of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the business. It might likewise offer Business a long term competitive benefit over its competitors.
The international growth of Business need to be focused on market capturing of developing countries by expansion, drawing in more consumers through client's commitment. As developing countries are more populated than industrialized countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Enron Collapse needs to do cautious acquisition and merger of companies, as it might impact the client's and society's understandings about Business. It should obtain and combine with those companies which have a market credibility of healthy and healthy companies. It would enhance the perceptions of consumers about Business.
Business needs to not just invest its R&D on innovation, rather than it ought to likewise concentrate on the R&D spending over assessment of expense of various nutritious items. This would increase expense efficiency of its items, which will result in increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing but likewise to industrialized countries. It ought to widens its geographical expansion. This broad geographical growth towards establishing and developed nations would minimize the threat of potential losses in times of instability in various countries. It needs to broaden its circle to different countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to obtain and merge with those nations having a goodwill of being a healthy business in the market. It would also allow the business to utilize its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on 4 factors; age, gender, earnings and profession. Business produces a number of products related to children i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Enron Collapse items are rather cost effective by almost all levels, but 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 existence in practically 86 nations. Its geographical segmentation is based upon 2 main aspects i.e. average income level of the consumer as well as the climate of the region. Singapore Business Company's division 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. For example, Business 3 in 1 Coffee target those clients whose life style is quite hectic and don't have much time.

Behavioral Segmentation

Enron Collapse behavioral segmentation is based upon the mindset knowledge and awareness of the client. For example its highly healthy products target those consumers who have a health conscious attitude towards their consumptions.

Enron Collapse Alternatives

In order to sustain the brand in the market and keep the consumer undamaged with the brand name, there are two options:
Option: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the company, increasing the wealth of the company. Spending on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it fails to implement its method. However, amount invest in the R&D might not be restored, and it will be thought about completely sunk expense, if it do not provide possible results.
3. Spending on R&D provide slow growth in sales, as it takes long period of time to introduce a product. However, acquisitions offer quick results, as it supply the business currently developed product, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to face mistaken belief of customers about Business core values of healthy and healthy products.
2 Big spending on acquisitions than R&D would send a signal of business's inadequacy of establishing ingenious items, and would outcomes in consumer's frustration.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making company unable to present brand-new ingenious products.
Option: 2.
The Company must invest 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 offer the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted consumers by introducing those products which can be offered to an entirely brand-new market sector.
4. Innovative items will offer long term advantages and high market share in long run.
Cons:
1. It would reduce the profit margins of the company.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, and would impact the company at big. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might supply an unfavorable signal to the investors, and might result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Pros:
1. It would permit the company to introduce new innovative products with less risk of transforming the costs on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the general possessions of the company would increase with its significant R&D spending.
3. It would not affect the earnings 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 total wealth along with in regards to innovative products.
Cons:
1. Risk of conversion of R&D costs into sunk expense, higher than option 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less variety of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

Enron Collapse Conclusion

Business has remained the top market gamer for more than a decade. It has institutionalised its techniques and culture to align itself with the market modifications and consumer behavior, which has ultimately permitted it to sustain its market share. Business has developed considerable market share and brand identity in the city markets, it is recommended that the business ought to focus on the rural locations in terms of developing brand name loyalty, awareness, and equity, such can be done by developing a particular brand name allocation strategy through trade marketing techniques, that draw clear distinction between Enron Collapse items and other rival products. Enron Collapse needs to 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 allow the company to establish brand name equity for freshly presented and already produced items on a higher platform, making the reliable usage of resources and brand name image in the market.

Enron Collapse Exhibits