Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms Case Study Analysis

Business is currently one of the greatest food chains worldwide. It was established by Henri Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed infants and decrease death rate.
Business is now a multinational business. Unlike other multinational business, it has senior executives from different nations and attempts to make choices considering the entire world. Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms currently has more than 500 factories around the world and a network spread throughout 86 countries.

Purpose

The purpose of Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms Corporation is to enhance the lifestyle of people by playing its part and offering healthy food. It wishes to help the world in forming a healthy and much better future for it. It also wants to encourage individuals to live a healthy life. 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

Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms's vision is to provide its consumers with food that is healthy, high in quality and safe to eat. It wishes to be innovative and concurrently comprehend the needs and requirements of its customers. Its vision is to grow fast and provide items that would satisfy the needs of each age. Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms envisions to develop a well-trained labor force which would help the company to grow
.

Mission

Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms's mission is that as currently, it is the leading business in the food industry, it thinks in 'Excellent Food, Great Life". Its objective is to offer its consumers with a range of options that are healthy and best in taste as well. It is concentrated on providing the best food to its customers throughout the day and night.

Products.

Business has a wide variety of products that it provides to its consumers. Its products consist of food for infants, cereals, dairy products, treats, chocolates, food for pet and bottled water. It has around 4 hundred and fifty (450) factories worldwide and around 328,000 employees. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has laid down its goals and goals. These goals and objectives are listed below.
• One objective of the business is to reach absolutely no land fill status. (Business, aboutus, 2017).
• Another goal of Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms is to waste minimum food during production. Usually, the food produced is lost even prior to it reaches the consumers.
• Another thing that Business is working on is to enhance its packaging in such a method that it would help it to minimize those complications and would likewise ensure the shipment of high quality of its items to its clients.
• Meet international requirements of the environment.
• Develop a relationship based upon trust with its customers, business partners, staff members, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the technique of NHW and investing more of its profits on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW strategy. The target of the company 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.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based upon the concept of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing modification in the consumer choices about food and making the food stuff much healthier worrying about the health issues.
The vision of this technique is based upon the secret approach i.e. 60/40+ which just implies that the products will have a score of 60% on the basis of taste and 40% is based upon its dietary worth. The products will be manufactured with extra nutritional worth in contrast to all other products in market gaining it a plus on its dietary content.
This strategy was embraced to bring more delicious plus nutritious foods and drinks in market than ever. In competitors with other companies, with an objective of retaining its trust over clients as Business Company has actually gained more trusted by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real amount of costs reveals that the sales are increasing at a higher rate than its R&D costs, and permit the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This sign likewise shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio position a threat of default of Business to its financiers and might lead a decreasing share prices. In terms of increasing debt ratio, the firm should not invest much on R&D and must pay its current financial obligations to decrease the risk for investors.
The increasing danger of financiers with increasing debt ratio and declining share prices can be observed by huge decline of EPS of Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow perception building of customers. This slow development also prevent company to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Graphs given in the Displays D and E.

TWOS Analysis

2 analysis can be used to derive numerous strategies based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should introduce more ingenious products by large amount of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the business. It could also provide Business a long term competitive advantage over its competitors.
The international growth of Business ought to be focused on market catching of developing nations by growth, drawing in more customers through consumer's commitment. As developing countries are more populated than developed countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms must do mindful acquisition and merger of companies, as it could affect the consumer's and society's perceptions about Business. It should acquire and merge with those companies which have a market credibility of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business should not only spend its R&D on development, instead of it ought to also concentrate on the R&D spending over assessment of expense of numerous healthy products. This would increase expense efficiency of its products, which will result in increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just developing but likewise to industrialized nations. It needs to broadens its geographical expansion. This wide geographical growth towards establishing and established countries would reduce the risk of potential losses in times of instability in numerous nations. It should broaden its circle to numerous countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It must acquire and merge with those countries having a goodwill of being a healthy business in the market. It would also enable the business to use its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based upon 4 aspects; age, gender, earnings and occupation. Business produces numerous products related to children i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary items. Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms products are rather budget friendly by practically all levels, however its major targeted consumers, in regards to 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 two main aspects i.e. typical income level of the customer in addition to the climate of the region. 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 division of Business is based upon the character and lifestyle of the customer. Business 3 in 1 Coffee target those customers whose life style is quite hectic and do not have much time.

Behavioral Segmentation

Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms behavioral division is based upon the mindset knowledge and awareness of the customer. Its highly nutritious products target those clients who have a health mindful mindset towards their intakes.

Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are 2 options:
Alternative: 1
The Company ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the company, increasing the wealth of the business. Spending on R&D would be sunk cost.
2. The business can resell the gotten systems in the market, if it stops working to execute its method. Nevertheless, quantity spend on the R&D might not be revived, and it will be thought about entirely sunk cost, if it do not give prospective outcomes.
3. Spending on R&D supply sluggish development in sales, as it takes very long time to introduce a product. Nevertheless, acquisitions supply fast results, as it supply the company currently developed product, which can be marketed right 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 deal with misunderstanding of customers about Business core worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send out a signal of company's inadequacy of developing ingenious products, and would outcomes in consumer's frustration.
3. Large acquisitions than R&D would extend the product line of the business by the items which are currently present in the market, making company unable to introduce new ingenious items.
Alternative: 2.
The Business must spend more on its R&D instead of acquisitions.
Pros:
1. It would allow the company to produce more ingenious products.
2. It would offer the company a strong competitive position in the market.
3. It would allow the company to increase its targeted clients by introducing those items which can be offered to an entirely new market section.
4. Ingenious items will offer long term advantages and high market share in long run.
Cons:
1. It would reduce the earnings margins of the company.
2. In case of failure, the whole 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 company, which could offer a negative signal to the investors, and could result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Pros:
1. It would enable the company to present brand-new ingenious products with less threat of transforming the spending on R&D into sunk cost.
2. It would supply a favorable signal to the investors, as the general assets of the business would increase with its significant R&D costs.
3. It would not impact the profit margins of the company at a big rate as compare to alternative 2.
4. It would offer the company a strong long term market position in terms of the business's total wealth along with in regards to ingenious items.
Cons:
1. Threat of conversion of R&D costs into sunk cost, greater than option 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Introduction of less number of innovative items than alternative 2 and high variety of innovative products than alternative 1.

Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms Conclusion

Business has stayed the top market player for more than a decade. It has actually institutionalised its methods and culture to align itself with the market modifications and client behavior, which has actually eventually permitted it to sustain its market share. Though, Business has established significant market share and brand name identity in the city markets, it is recommended that the company should focus on the backwoods in regards to establishing brand name commitment, awareness, and equity, such can be done by producing a specific brand allocation method through trade marketing methods, that draw clear distinction between Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms products and other rival items. Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms ought to utilize its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will enable the company to establish brand equity for recently introduced and already produced products on a higher platform, making the efficient use of resources and brand image in the market.

Predicting Earnings Manipulation By Indian Firms Using Machine Learning Algorithms Exhibits