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Snow Canyon Resort Paradise Ski Lift Case Study Solution

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Snow Canyon Resort Paradise Ski Lift Case Study Analysis

Business is currently one of the greatest food chains worldwide. It was founded by Henri Snow Canyon Resort Paradise Ski Lift in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed babies and decrease mortality rate.
Business is now a transnational company. Unlike other multinational business, it has senior executives from various countries and attempts to make choices thinking about the whole world. Snow Canyon Resort Paradise Ski Lift presently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of Snow Canyon Resort Paradise Ski Lift Corporation is to enhance the quality of life of individuals by playing its part and supplying healthy food. It wants to help the world in forming a healthy and better future for it. It also wishes to encourage people to live a healthy life. While making certain that the company is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Snow Canyon Resort Paradise Ski Lift's vision is to offer its clients with food that is healthy, high in quality and safe to eat. Business envisions to develop a trained workforce which would help the company to grow
.

Mission

Snow Canyon Resort Paradise Ski Lift's mission is that as presently, it is the leading business in the food industry, it thinks in 'Good Food, Great Life". Its mission is to offer its consumers with a range of choices that are healthy and finest in taste. It is focused on providing the best food to its clients throughout the day and night.

Products.

Business has a large range of items that it uses to its consumers. Its items include food for infants, cereals, dairy items, snacks, chocolates, food for family pet and mineral water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has set its objectives and goals. These objectives and goals are listed below.
• One objective of the company is to reach no landfill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another goal of Snow Canyon Resort Paradise Ski Lift is to squander minimum food throughout production. Most often, the food produced is wasted even prior to it reaches the clients.
• Another thing that Business is dealing with is to improve its packaging in such a way that it would help it to decrease the above-mentioned issues and would also ensure the delivery of high quality of its items to its clients.
• Meet worldwide requirements of the environment.
• Construct a relationship based upon trust with its consumers, organisation partners, staff members, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the method 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 accomplished as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibition H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it might result in the decreased revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based upon the principle of Nutritious, Health and Health (NHW). This technique deals with the concept to bringing modification in the consumer choices about food and making the food things healthier concerning about the health problems.
The vision of this method is based on the secret approach i.e. 60/40+ which merely means that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be manufactured with extra dietary worth in contrast to all other products in market gaining it a plus on its dietary material.
This strategy was adopted 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 acquired more relied on by costumers.

Quantitative Analysis.

R&D Costs 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 spending, and allow the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indication also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio pose a risk of default of Business to its investors and might lead a declining share prices. For that reason, in regards to increasing debt ratio, the company needs to not invest much on R&D and ought to pay its present financial obligations to decrease the risk for financiers.
The increasing threat of financiers with increasing debt ratio and declining share rates can be observed by huge decrease of EPS of Snow Canyon Resort Paradise Ski Lift stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception structure of consumers. This sluggish growth likewise 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 estimations and Charts given in the Displays D and E.

TWOS Analysis


TWOS analysis can be utilized to derive numerous techniques based on the SWOT Analysis given above. A short summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by large amount of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the company. It might also supply Business a long term competitive benefit over its rivals.
The global expansion of Business must be concentrated on market catching of developing countries by growth, drawing in more consumers through customer's loyalty. As establishing nations are more populous than industrialized countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisSnow Canyon Resort Paradise Ski Lift needs to do mindful acquisition and merger of organizations, as it could impact the customer's and society's perceptions about Business. It ought to obtain and merge 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 invest its R&D on innovation, instead of it needs to also focus on the R&D spending over evaluation of cost of numerous nutritious items. This would increase cost effectiveness of its items, which will result in increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business ought to relocate to not just developing but likewise to developed countries. It must expands its geographical growth. This broad geographical growth towards establishing and established countries would reduce the risk of potential losses in times of instability in numerous countries. It must widen its circle to numerous nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

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

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on four elements; age, gender, income and occupation. For example, Business produces numerous products associated with babies i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. Snow Canyon Resort Paradise Ski Lift products are quite inexpensive by almost all levels, however its major targeted customers, in terms of earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its presence in practically 86 nations. Its geographical division is based upon 2 primary aspects i.e. typical income level of the consumer along with the climate of the region. For example, Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and lifestyle of the consumer. Business 3 in 1 Coffee target those clients whose life design is rather hectic and don't have much time.

Behavioral Segmentation

Snow Canyon Resort Paradise Ski Lift behavioral segmentation is based upon the mindset understanding and awareness of the customer. For example its extremely nutritious items target those clients who have a health conscious mindset towards their consumptions.

Snow Canyon Resort Paradise Ski Lift Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand, there are 2 options:
Option: 1
The Company ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the business, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The company can resell the gotten systems in the market, if it fails to execute its method. Quantity spend on the R&D might not be restored, and it will be thought about totally sunk expense, if it do not offer possible results.
3. Spending on R&D provide sluggish growth in sales, as it takes long period of time to introduce a product. Nevertheless, acquisitions provide fast results, as it provide the business already developed product, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core values of healthy and healthy products.
2 Big spending on acquisitions than R&D would send out a signal of company's ineffectiveness of developing innovative items, and would lead to customer's discontentment as well.
3. Large acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making business unable to present new innovative products.
Option: 2.
The Business should invest more on its R&D instead of acquisitions.
Pros:
1. It would allow the business to produce more ingenious 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 presenting those items which can be used to a totally new market section.
4. Innovative products will supply long term benefits and high market share in long run.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would affect the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which could supply an unfavorable signal to the financiers, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to introduce brand-new innovative items with less risk of converting the spending on R&D into sunk expense.
2. It would offer a favorable signal to the financiers, as the total properties of the business would increase with its substantial R&D spending.
3. It would not affect the earnings margins of the business at a large rate as compare to alternative 2.
4. It would offer the company a strong long term market position in regards to the business's overall wealth in addition to in terms of innovative products.
Cons:
1. Risk of conversion of R&D costs into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of innovative products than alternative 2 and high number of ingenious products than alternative 1.

Snow Canyon Resort Paradise Ski Lift Conclusion

RecommendationsIt has actually institutionalised its techniques and culture to align itself with the market changes and consumer behavior, which has eventually enabled it to sustain its market share. Business has established significant market share and brand identity in the city markets, it is advised that the company should focus on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by developing a specific brand allocation strategy through trade marketing techniques, that draw clear difference between Snow Canyon Resort Paradise Ski Lift items and other competitor items.

Snow Canyon Resort Paradise Ski Lift Exhibits

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

Transforming criteria of worldwide food.
Improved market share.
Changing understanding towards much healthier products
Improvements in R&D and also QA divisions.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 6000
Highest possible after Company with much less growth than Organisation 6th Lowest
R&D Spending Highest given that 2006 Highest possible after Company 7th Most affordable
Net Profit Margin Greatest since 2007 with quick growth from 2003 to 2014 Because of sale of Alcon in 2013. Nearly equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nourishment and wellness element Highest possible number of brands with lasting methods Biggest confectionary and also processed foods brand name worldwide Largest dairy products and also bottled water brand name on the planet
Segmentation Center and top middle degree customers worldwide Specific consumers together with family group Every age as well as Income Customer Groups Middle and top middle degree consumers worldwide
Number of Brands 2nd 8th 9th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 35659 821154 247423 633897 319798
Net Profit Margin 4.48% 1.81% 64.63% 5.34% 87.87%
EPS (Earning Per Share) 43.44 5.23 1.12 7.22 52.68
Total Asset 294945 464791 891344 643226 73499
Total Debt 35226 47887 15137 54395 76483
Debt Ratio 72% 89% 21% 58% 74%
R&D Spending 8438 1865 3119 7612 7127
R&D Spending as % of Sales 7.92% 8.16% 9.62% 5.22% 1.81%

Snow Canyon Resort Paradise Ski Lift Executive Summary Snow Canyon Resort Paradise Ski Lift Swot Analysis Snow Canyon Resort Paradise Ski Lift Vrio Analysis Snow Canyon Resort Paradise Ski Lift Pestel Analysis
Snow Canyon Resort Paradise Ski Lift Porters Analysis Snow Canyon Resort Paradise Ski Lift Recommendations