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Seitel Inc Case Study Analysis

Business is presently one of the greatest food chains worldwide. It was established by Henri Seitel Inc in 1866, a German Pharmacist who first launched "FarineLactee"; a mix of flour and milk to feed babies and decrease mortality rate.
Business is now a global company. Unlike other multinational companies, it has senior executives from various countries and attempts to make decisions considering the entire world. Seitel Inc presently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The function of Seitel Inc Corporation is to enhance the lifestyle of individuals by playing its part and providing healthy food. It wants to help the world in forming a healthy and much better future for it. It likewise wants to motivate individuals to live a healthy life. While ensuring 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

Seitel Inc's vision is to provide its clients with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and simultaneously comprehend the needs and requirements of its customers. Its vision is to grow quickly and provide products that would satisfy the requirements of each age group. Seitel Inc pictures to establish a well-trained labor force which would help the business to grow
.

Mission

Seitel Inc's objective is that as presently, it is the leading business in the food market, it thinks in 'Good Food, Excellent Life". Its mission is to offer its consumers with a variety of choices that are healthy and best in taste. It is focused on offering the best food to its customers throughout the day and night.

Products.

Business has a large range of products that it offers to its customers. Its products include food for infants, cereals, dairy products, snacks, chocolates, food for pet and bottled water. It has around 4 hundred and fifty (450) factories around the globe and around 328,000 staff members. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has put down its goals and goals. These objectives and objectives are listed below.
• One objective of the business is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of Seitel Inc is to lose minimum food throughout production. Frequently, the food produced is wasted even before it reaches the clients.
• Another thing that Business is dealing with is to enhance its product packaging in such a method that it would help it to lower the above-mentioned problems and would also guarantee the shipment of high quality of its products to its clients.
• Meet global standards of the environment.
• Construct a relationship based upon trust with its customers, business partners, staff members, and government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its revenues 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%, offered in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based upon the principle of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing modification in the consumer preferences about food and making the food stuff healthier worrying about the health concerns.
The vision of this technique is based upon the secret method i.e. 60/40+ which simply implies that the items will have a rating of 60% on the basis of taste and 40% is based on its dietary worth. The items will be manufactured with extra nutritional worth in contrast to all other items in market getting it a plus on its dietary material.
This method was adopted to bring more yummy plus nutritious foods and beverages in market than ever. In competition with other business, with an intent of keeping its trust over customers as Business Company has actually gotten more relied on by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing real quantity of costs reveals that the sales are increasing at a greater rate than its R&D spending, and permit the company to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indicator likewise reveals a green light to the R&D costs, 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 financial obligations. This increasing debt ratio pose a risk of default of Business to its investors and could lead a decreasing share rates. In terms of increasing debt ratio, the company ought to not spend much on R&D and needs to pay its present debts to decrease the danger for investors.
The increasing threat of financiers with increasing financial obligation ratio and declining share rates can be observed by big decrease of EPS of Seitel Inc stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow development also prevent company to further spend on 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 in the Displays D and E.

TWOS Analysis


TWOS analysis can be utilized to obtain numerous techniques based upon the SWOT Analysis provided above. A short summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative products by large amount of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It could also offer Business a long term competitive benefit over its rivals.
The worldwide growth of Business must be concentrated on market catching of developing nations by expansion, drawing in more clients through customer's commitment. As developing countries are more populous than industrialized countries, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisSeitel Inc should do careful acquisition and merger of organizations, as it might affect the consumer's and society's perceptions about Business. It needs to obtain and merge with those companies which have a market credibility of healthy and nutritious business. It would enhance the understandings of consumers about Business.
Business ought to not only spend its R&D on development, instead of it should also concentrate on the R&D costs over examination of cost of various healthy items. This would increase cost effectiveness of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing however also to developed nations. It ought to expand its circle to various nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It must obtain and combine with those nations having a goodwill of being a healthy company in the market. It would also make it possible for the company to utilize its possible resources effectively on its other operations rather than acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon four elements; age, gender, earnings and profession. For instance, Business produces a number of products related to babies i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. Seitel Inc products are rather budget-friendly by practically all levels, but its significant targeted clients, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its existence in nearly 86 nations. Its geographical division is based upon 2 primary aspects i.e. typical income level of the customer in addition to the environment of the region. For example, Singapore Business Company's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and life style of the consumer. For example, Business 3 in 1 Coffee target those clients whose life style is rather hectic and do not have much time.

Behavioral Segmentation

Seitel Inc behavioral division is based upon the mindset understanding and awareness of the consumer. Its extremely nutritious products target those customers who have a health mindful mindset towards their consumptions.

Seitel Inc Alternatives

In order to sustain the brand in the market and keep the client intact with the brand name, there are two options:
Alternative: 1
The Company ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the business, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it stops working to execute its method. Nevertheless, quantity invest in the R&D might not be revived, and it will be thought about completely sunk expense, if it do not offer possible results.
3. Spending on R&D offer slow growth in sales, as it takes long time to introduce a product. Nevertheless, acquisitions offer quick results, as it supply the company currently developed item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the company to deal with mistaken belief of customers about Business core values of healthy and healthy items.
2 Large costs on acquisitions than R&D would send out a signal of company's inefficiency of establishing innovative items, and would lead to consumer's discontentment also.
3. Big acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making business unable to present new ingenious items.
Alternative: 2.
The Company should spend more on its R&D instead of acquisitions.
Pros:
1. It would allow the company to produce more ingenious products.
2. It would supply the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those products which can be used to a completely brand-new market section.
4. Innovative products will supply long term benefits and high market share in long term.
Cons:
1. It would reduce the earnings margins of the business.
2. In case of failure, the entire spending on R&D would be thought about as sunk cost, and would impact the company at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might supply a negative signal to the investors, and could result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present brand-new innovative products with less threat of converting the spending on R&D into sunk cost.
2. It would supply a favorable signal to the investors, as the general properties of the company would increase with its substantial R&D costs.
3. It would not impact the earnings margins of the business at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the business's total wealth in addition to in terms of ingenious items.
Cons:
1. Risk of conversion of R&D costs into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Risk of misunderstanding about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Introduction of less variety of ingenious products than alternative 2 and high variety of innovative products than alternative 1.

Seitel Inc Conclusion

RecommendationsBusiness has actually remained the top market player for more than a years. It has institutionalised its strategies and culture to align itself with the marketplace modifications and consumer behavior, which has eventually allowed it to sustain its market share. Though, Business has established significant market share and brand name identity in the metropolitan markets, it is recommended that the business ought to concentrate on the rural areas in regards to establishing brand loyalty, awareness, and equity, such can be done by producing a particular brand name allocation method through trade marketing tactics, that draw clear difference between Seitel Inc products and other competitor items. Additionally, Business must take advantage of its brand name picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will enable the company to establish brand name equity for recently introduced and already produced items on a higher platform, making the reliable use of resources and brand name image in the market.

Seitel Inc Exhibits

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

Changing criteria of worldwide food.
Enhanced market share.
Transforming perception in the direction of much healthier items
Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such impact as it is beneficial.
Issues over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 2000
Highest possible after Company with less development than Company 4th Cheapest
R&D Spending Highest since 2008 Highest after Business 1st Most affordable
Net Profit Margin Highest possible considering that 2008 with quick growth from 2007 to 2015 Due to sale of Alcon in 2017. Practically equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health and wellness aspect Highest number of brands with sustainable practices Largest confectionary and also refined foods brand name in the world Biggest milk products as well as mineral water brand worldwide
Segmentation Center and also top center degree consumers worldwide Individual consumers together with home group Every age and also Income Consumer Groups Center and also top center level consumers worldwide
Number of Brands 7th 6th 5th 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 96434 576483 515741 479421 449453
Net Profit Margin 6.24% 3.26% 68.15% 2.29% 57.16%
EPS (Earning Per Share) 72.21 7.21 9.87 4.99 17.77
Total Asset 625687 389934 921975 811556 62424
Total Debt 11895 59796 69432 71812 53965
Debt Ratio 46% 92% 39% 12% 49%
R&D Spending 4639 5524 3269 2122 5595
R&D Spending as % of Sales 8.28% 2.36% 7.71% 2.58% 3.18%

Seitel Inc Executive Summary Seitel Inc Swot Analysis Seitel Inc Vrio Analysis Seitel Inc Pestel Analysis
Seitel Inc Porters Analysis Seitel Inc Recommendations