Solar City Rapid Innovation Video Case Study Solution

Solar City Rapid Innovation Video is currently one of the greatest 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 infants and decrease death rate. At the same time, the Page bros from Switzerland likewise found The Anglo-Swiss Condensed Milk Business. The 2 became competitors initially however later merged in 1905, leading to the birth of Solar City Rapid Innovation Video.
Business is now a global business. Unlike other multinational business, it has senior executives from different countries and attempts to make decisions thinking about the entire world. Solar City Rapid Innovation Video currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

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

Vision

Solar City Rapid Innovation Video's vision is to provide its customers with food that is healthy, high in quality and safe to consume. Business visualizes to develop a trained labor force which would help the business to grow
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Mission

Solar City Rapid Innovation Video's mission is that as currently, it is the leading business in the food industry, it believes in 'Great Food, Great Life". Its objective is to offer its customers with a range of choices that are healthy and best in taste too. It is concentrated on offering the best food to its customers throughout the day and night.

Products.

Business has a large range of items that it uses to its consumers. Its products include food for infants, cereals, dairy items, treats, chocolates, food for pet and mineral 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 rewarding company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has set its objectives and goals. These goals and objectives are noted below.
• One goal of the business is to reach no garbage dump status. (Business, aboutus, 2017).
• Another goal of Solar City Rapid Innovation Video is to lose minimum food throughout production. Most often, the food produced is squandered even before it reaches the clients.
• Another thing that Business is working on is to improve its product packaging in such a way that it would help it to minimize those complications and would also guarantee the delivery of high quality of its items to its customers.
• Meet global standards of the environment.
• Develop a relationship based on trust with its consumers, company partners, staff members, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy of NHW and investing more of its earnings on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW strategy. 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 existing Business strategy is based on the principle of Nutritious, Health and Health (NHW). This technique handles the concept to bringing change in the consumer preferences about food and making the food stuff healthier concerning about the health concerns.
The vision of this technique is based upon the key technique i.e. 60/40+ which merely implies that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be made with extra nutritional worth in contrast to all other items in market acquiring it a plus on its nutritional content.
This technique was adopted to bring more tasty plus healthy foods and drinks in market than ever. In competition with other business, with an objective of keeping its trust over clients as Business Business has actually gotten more relied on by costumers.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing real quantity of costs reveals that the sales are increasing at a greater rate than its R&D spending, and enable the business to more invest in R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise shows 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 financial obligations. This increasing debt ratio pose a danger of default of Business to its investors and might lead a declining share rates. Therefore, in regards to increasing debt ratio, the company should not invest much on R&D and should pay its current debts to decrease the danger for investors.
The increasing threat of investors with increasing financial obligation ratio and decreasing share prices can be observed by huge decrease of EPS of Solar City Rapid Innovation Video stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This sluggish growth likewise prevent business to more 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 calculations and Graphs given in the Exhibits D and E.

TWOS Analysis

2 analysis can be used to derive different techniques based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative items by big quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the profit margins for the company. It could likewise provide Business a long term competitive benefit over its rivals.
The global expansion of Business should be focused on market catching of developing countries by expansion, drawing in more consumers through consumer's commitment. As establishing nations are more populated than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Solar City Rapid Innovation Video must do careful acquisition and merger of companies, as it could affect the consumer's and society's understandings about Business. It must get and merge with those companies which have a market reputation of healthy and nutritious business. It would enhance the understandings of customers about Business.
Business must not only invest its R&D on development, rather than it must likewise focus on the R&D costs over examination of expense of numerous nutritious items. This would increase expense performance of its items, which will lead to increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business needs to transfer to not only developing however also to developed nations. It must expands its geographical expansion. This wide geographical growth towards developing and established countries would lower the threat of possible losses in times of instability in different nations. It should widen its circle to different nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Solar City Rapid Innovation Video needs to sensibly manage its acquisitions to prevent the danger of misunderstanding from the customers about Business. It needs to acquire and merge with those countries having a goodwill of being a healthy company in the market. This would not only improve the understanding of consumers about Business but would likewise increase the sales, profit margins and market share of Business. It would also allow the business to utilize its possible resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on 4 factors; age, gender, earnings and occupation. For instance, Business produces a number of products connected to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. Solar City Rapid Innovation Video items are quite economical by practically all levels, however its significant targeted consumers, in terms of earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its presence in nearly 86 nations. Its geographical division is based upon two primary aspects i.e. typical earnings level of the consumer in addition to the environment of the area. Singapore Business Business's division 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 life style of the client. For instance, Business 3 in 1 Coffee target those consumers whose lifestyle is rather busy and do not have much time.

Behavioral Segmentation

Solar City Rapid Innovation Video behavioral segmentation is based upon the mindset understanding and awareness of the customer. For example its highly nutritious items target those customers who have a health mindful mindset towards their usages.

Solar City Rapid Innovation Video Alternatives

In order to sustain the brand in the market and keep the client intact with the brand, there are 2 options:
Alternative: 1
The Company should invest 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 business can resell the obtained systems in the market, if it stops working to execute its strategy. Quantity invest on the R&D might not be restored, and it will be thought about totally sunk expense, if it do not offer possible outcomes.
3. Investing in R&D offer sluggish development in sales, as it takes long time to introduce a product. Acquisitions supply fast outcomes, as it provide the business currently established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to face misconception of consumers about Business core values of healthy and nutritious items.
2 Big costs on acquisitions than R&D would send a signal of business's inefficiency of establishing ingenious products, and would lead to customer's frustration also.
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 company unable to present new innovative products.
Option: 2.
The Business must spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the business to produce more ingenious items.
2. It would offer the company a strong competitive position in the market.
3. It would enable the company to increase its targeted customers by introducing those items which can be provided to a totally brand-new market sector.
4. Innovative items will supply long term advantages and high market share in long term.
Cons:
1. It would reduce the revenue margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk cost, and would impact the business at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which could provide a negative signal to the financiers, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Pros:
1. It would permit the business to present new ingenious products with less danger of converting the costs on R&D into sunk cost.
2. It would offer a positive signal to the investors, as the total possessions of the business would increase with its substantial R&D spending.
3. It would not impact the earnings 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 company's general wealth as well as in terms of ingenious products.
Cons:
1. Threat of conversion of R&D spending into sunk expense, greater than option 1 lesser than alternative 2.
2. Risk of misunderstanding about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Solar City Rapid Innovation Video Conclusion

Business has remained the leading market player for more than a years. It has institutionalised its methods and culture to align itself with the marketplace modifications and consumer habits, which has actually ultimately enabled it to sustain its market share. Business has established significant market share and brand identity in the city markets, it is suggested that the business ought to focus on the rural areas in terms of developing brand name commitment, awareness, and equity, such can be done by developing a specific brand name allotment technique through trade marketing techniques, that draw clear distinction between Solar City Rapid Innovation Video products and other rival items. Solar City Rapid Innovation Video must leverage 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 develop brand equity for freshly presented and already produced products on a greater platform, making the efficient use of resources and brand image in the market.

Solar City Rapid Innovation Video Exhibits