Sanofi Aventis Tender Offer For Genzyme Case Study Help

Business is currently one of the biggest food chains worldwide. It was founded by Henri Sanofi Aventis Tender Offer For Genzyme in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate.
Business is now a multinational business. Unlike other multinational business, it has senior executives from different countries and attempts to make choices thinking about the whole world. Sanofi Aventis Tender Offer For Genzyme currently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The purpose of Business Corporation is to enhance the quality of life of people by playing its part and offering healthy food. While making sure that the company is being successful in the long run, that's how it plays its part for a much better and healthy future

Vision

Sanofi Aventis Tender Offer For Genzyme's vision is to provide its customers with food that is healthy, high in quality and safe to consume. It wants to be innovative and at the same time comprehend the needs and requirements of its customers. Its vision is to grow quickly and offer products that would please the needs of each age. Sanofi Aventis Tender Offer For Genzyme pictures to establish a well-trained labor force which would help the company to grow
.

Mission

Sanofi Aventis Tender Offer For Genzyme's objective is that as currently, it is the leading business in the food industry, it thinks in 'Good Food, Excellent Life". Its objective is to provide its customers with a variety of options that are healthy and finest in taste. It is focused on offering the very best food to its customers throughout the day and night.

Products.

Business has a large range of products that it provides to its customers. Its products include 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 workers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually set its objectives and objectives. These objectives and objectives are noted below.
• One goal of the business is to reach absolutely no garbage dump status. (Business, aboutus, 2017).
• Another goal of Sanofi Aventis Tender Offer For Genzyme is to lose minimum food throughout production. Most often, the food produced is squandered even before it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to reduce the above-mentioned issues and would also guarantee the delivery of high quality of its items to its consumers.
• Meet international standards of the environment.
• Build a relationship based upon trust with its customers, organisation partners, staff members, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its profits on the R&D innovation. 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 greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might result in the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business strategy is based upon the idea of Nutritious, Health and Health (NHW). This method deals with the concept to bringing modification in the client choices about food and making the food things much healthier worrying about the health concerns.
The vision of this strategy is based upon the key approach i.e. 60/40+ which just means that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be made with extra dietary value in contrast to all other products in market getting it a plus on its dietary content.
This strategy was adopted to bring more yummy plus nutritious foods and drinks in market than ever. In competitors with other companies, with an intent of retaining its trust over clients as Business Business has actually gotten more relied on by customers.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing actual amount of costs shows that the sales are increasing at a higher rate than its R&D costs, and allow the business to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is decreasing. This indication also shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of debts. This increasing financial obligation ratio posture a danger of default of Business to its investors and might lead a declining share prices. In terms of increasing debt ratio, the firm should not invest much on R&D and must pay its current debts to decrease the risk for financiers.
The increasing threat of investors with increasing financial obligation ratio and decreasing share prices can be observed by huge decline of EPS of Sanofi Aventis Tender Offer For Genzyme stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of customers. This sluggish development likewise prevent company to more 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 calculations and Graphs given in the Displays D and E.

TWOS Analysis

TWOS analysis can be used to derive various techniques based upon the SWOT Analysis given above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should present more innovative products by big quantity of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the business. It might also offer Business a long term competitive benefit over its rivals.
The global growth of Business ought to be focused on market recording of developing nations by growth, attracting more customers through customer's loyalty. As developing nations are more populous than industrialized countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Sanofi Aventis Tender Offer For Genzyme needs to do mindful acquisition and merger of organizations, as it could affect the customer's and society's perceptions about Business. It must acquire and merge with those business which have a market reputation of healthy and healthy companies. It would enhance the perceptions of consumers about Business.
Business must not only invest its R&D on innovation, rather than it ought to likewise concentrate on the R&D spending over assessment of cost of various nutritious items. This would increase cost 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 transfer to not just establishing however also to industrialized countries. It must broadens its geographical expansion. This broad geographical growth towards establishing and developed nations would reduce the risk of possible losses in times of instability in numerous countries. It must broaden its circle to various nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Sanofi Aventis Tender Offer For Genzyme must sensibly manage its acquisitions to prevent the risk of misconception from the customers about Business. It ought to get and combine with those nations having a goodwill of being a healthy company in the market. This would not just enhance the understanding of customers about Business but would likewise increase the sales, profit margins and market share of Business. It would also make it possible for the business to utilize its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on four factors; age, gender, earnings and profession. Business produces several products related to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. Sanofi Aventis Tender Offer For Genzyme products are rather affordable by almost all levels, however its significant targeted consumers, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in practically 86 countries. Its geographical segmentation is based upon 2 primary aspects i.e. typical earnings level of the consumer as well as the climate of the area. Singapore Business Business'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. Business 3 in 1 Coffee target those customers whose life design is rather busy and do not have much time.

Behavioral Segmentation

Sanofi Aventis Tender Offer For Genzyme behavioral division is based upon the mindset understanding and awareness of the client. Its extremely healthy items target those customers who have a health conscious attitude towards their consumptions.

Sanofi Aventis Tender Offer For Genzyme Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand, there are two alternatives:
Option: 1
The Business must 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. Nevertheless, costs on R&D would be sunk expense.
2. The business can resell the obtained systems in the market, if it fails to execute its strategy. Nevertheless, amount invest in the R&D might not be revived, and it will be thought about totally sunk expense, if it do not provide potential outcomes.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to introduce an item. Nevertheless, acquisitions provide quick outcomes, as it supply the company already developed item, which can be marketed right 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 worths of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send out a signal of company's inefficiency of establishing ingenious items, and would outcomes in consumer's discontentment.
3. Large acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making company not able to introduce brand-new innovative products.
Alternative: 2.
The Business ought to spend more on its R&D instead of acquisitions.
Pros:
1. It would allow the company to produce more innovative items.
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 presenting those items which can be used to an entirely brand-new market segment.
4. Innovative items will offer long term advantages and high market share in long run.
Cons:
1. It would reduce the revenue margins of the company.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would impact the company at large. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might 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 allow the business to present brand-new innovative items with less danger of transforming the costs on R&D into sunk expense.
2. It would offer a favorable signal to the financiers, as the overall properties of the business would increase with its considerable R&D spending.
3. It would not impact the profit margins of the business at a large rate as compare to alternative 2.
4. It would supply the business a strong long term market position in terms of the business's total wealth as well as in regards to innovative products.
Cons:
1. Danger of conversion of R&D costs into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Threat of misunderstanding about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less variety of innovative items than alternative 2 and high number of ingenious items than alternative 1.

Sanofi Aventis Tender Offer For Genzyme Conclusion

Business has actually stayed the leading market gamer for more than a years. It has institutionalised its techniques and culture to align itself with the marketplace changes and client behavior, which has actually ultimately allowed it to sustain its market share. Business has developed substantial market share and brand identity in the urban markets, it is advised that the company needs to focus on the rural locations in terms of developing brand name commitment, awareness, and equity, such can be done by producing a specific brand name allotment strategy through trade marketing methods, that draw clear distinction in between Sanofi Aventis Tender Offer For Genzyme products and other competitor products. Additionally, Business should take advantage of its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will permit the business to establish brand equity for newly presented and already produced items on a higher platform, making the reliable use of resources and brand name image in the market.

Sanofi Aventis Tender Offer For Genzyme Exhibits