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Solar City Rapid Innovation Video Case Study Solution

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Solar City Rapid Innovation Video Case Study Solution

Business is currently one of the most significant food chains worldwide. It was established by Henri Solar City Rapid Innovation Video in 1866, a German Pharmacist who initially launched "FarineLactee"; a mix of flour and milk to feed infants and decrease death rate.
Business is now a transnational company. Unlike other international companies, it has senior executives from different countries and attempts to make decisions thinking about the whole world. Solar City Rapid Innovation Video presently 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 individuals by playing its part and offering healthy food. While making sure that the business is being successful 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 supply its consumers with food that is healthy, high in quality and safe to eat. It wants to be innovative and concurrently comprehend the requirements and requirements of its customers. Its vision is to grow quickly and offer items that would satisfy the needs of each age group. Solar City Rapid Innovation Video visualizes to establish a trained workforce which would help the business to grow
.

Mission

Solar City Rapid Innovation Video's mission is that as currently, it is the leading company in the food market, it believes in 'Good Food, Good Life". Its mission is to supply its customers with a variety of options that are healthy and best in taste too. It is focused on providing the very best food to its clients throughout the day and night.

Products.

Solar City Rapid Innovation Video has a broad range of items that it provides to its consumers. In 2011, Business was listed as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the business has laid down its goals and objectives. These goals and objectives are listed below.
• One objective of the company is to reach zero garbage dump status. It is working toward no waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective 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 consumers.
• Another thing that Business is dealing with is to improve its product packaging in such a way that it would help it to minimize those problems and would likewise guarantee the delivery of high quality of its items to its consumers.
• Meet global standards of the environment.
• Build a relationship based upon trust with its consumers, organisation partners, workers, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the method of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the company is not attained 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.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based on the concept of Nutritious, Health and Wellness (NHW). This technique deals with the concept to bringing change in the consumer choices about food and making the food stuff healthier worrying about the health concerns.
The vision of this strategy is based upon the key approach i.e. 60/40+ which merely means that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be produced with extra nutritional worth in contrast to all other products in market getting it a plus on its nutritional material.
This strategy was embraced to bring more yummy plus nutritious foods and drinks in market than ever. In competitors with other business, with an intent of maintaining its trust over customers as Business Business has actually gotten more trusted by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are decreasing with increasing actual quantity of costs reveals that the sales are increasing at a greater rate than its R&D costs, and enable the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This indicator likewise shows a thumbs-up to the R&D spending, mergers and acquisitions.
Financial obligation 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 hazard of default of Business to its financiers and might lead a decreasing share costs. Therefore, in terms of increasing debt ratio, the firm ought to not invest much on R&D and should pay its current debts to decrease the risk for financiers.
The increasing threat of investors with increasing debt ratio and declining share costs can be observed by substantial decline of EPS of Solar City Rapid Innovation Video stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This sluggish development likewise impede business to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Graphs given up the Displays D and E.

TWOS Analysis


2 analysis can be used to derive numerous methods based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more ingenious products by large quantity of R&D Costs and mergers and acquisitions. It could increase the marketplace share of Business and increase the revenue margins for the business. It might also supply Business a long term competitive advantage over its competitors.
The global growth of Business should be focused on market capturing of developing nations by growth, bring in more consumers through customer's commitment. As developing countries are more populated than developed countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisSolar City Rapid Innovation Video ought to do cautious acquisition and merger of organizations, as it could impact the consumer's and society's perceptions about Business. It needs to acquire and combine with those business which have a market credibility of healthy and healthy business. It would improve the understandings of consumers about Business.
Business must not only spend its R&D on innovation, instead of it should likewise concentrate on the R&D costs over evaluation of expense of various healthy products. This would increase cost efficiency of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business should move to not only establishing but also to industrialized nations. It should widen its circle to different countries like Unilever which operates 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 business in the market. It would also allow the company to utilize its potential resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon 4 elements; age, gender, earnings and profession. For instance, Business produces a number of items associated with infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Solar City Rapid Innovation Video products are quite cost effective by almost all levels, but 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 existence in almost 86 countries. Its geographical division is based upon two main factors i.e. average earnings level of the consumer as well as the climate of the area. Singapore Business Business's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the client. Business 3 in 1 Coffee target those clients whose life design is rather hectic and do not have much time.

Behavioral Segmentation

Solar City Rapid Innovation Video behavioral division is based upon the mindset knowledge and awareness of the customer. For example its extremely nutritious products target those customers who have a health conscious attitude towards their consumptions.

Solar City Rapid Innovation Video Alternatives

In order to sustain the brand in the market and keep the customer intact with the brand name, there are 2 options:
Alternative: 1
The Company needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the company, increasing the wealth of the company. However, costs on R&D would be sunk cost.
2. The company can resell the gotten units in the market, if it fails to implement its strategy. However, amount spend on 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 supply sluggish development in sales, as it takes very long time to introduce an item. Acquisitions offer fast results, as it provide the company currently established product, which can be marketed soon 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 face misunderstanding of customers about Business core worths of healthy and healthy products.
2 Large costs on acquisitions than R&D would send out a signal of company's inadequacy of establishing ingenious items, and would results in consumer's frustration also.
3. Big acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making company unable to introduce brand-new innovative items.
Alternative: 2.
The Business ought to invest more on its R&D rather than acquisitions.
Pros:
1. It would enable the company to produce more ingenious items.
2. It would provide the business a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by presenting those items which can be offered to an entirely new market segment.
4. Innovative items will provide long term benefits and high market share in long run.
Cons:
1. It would decrease the earnings margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would impact the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could provide a negative signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to present brand-new innovative products with less danger of converting the spending on R&D into sunk cost.
2. It would offer a favorable signal to the investors, as the total possessions of the business would increase with its substantial R&D costs.
3. It would not affect the revenue margins of the business at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the company's total wealth as well as in terms of ingenious products.
Cons:
1. Risk of conversion of R&D costs into sunk expense, higher than alternative 1 lower than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high variety of ingenious products than alternative 1.

Solar City Rapid Innovation Video Conclusion

RecommendationsBusiness has remained the leading market gamer for more than a years. It has actually institutionalised its methods and culture to align itself with the marketplace modifications and client habits, which has eventually allowed it to sustain its market share. Though, Business has actually established significant market share and brand name identity in the city markets, it is advised that the company should concentrate on the backwoods in regards to developing brand loyalty, awareness, and equity, such can be done by developing a specific brand name allocation method through trade marketing techniques, that draw clear difference in between Solar City Rapid Innovation Video items and other rival items. Additionally, Business ought to utilize 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 equity for freshly introduced and currently produced items on a greater platform, making the efficient usage of resources and brand image in the market.

Solar City Rapid Innovation Video Exhibits

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

Changing requirements of international food.
Enhanced market share.
Changing understanding towards healthier products
Improvements in R&D and also QA divisions.

Intro of E-marketing.
No such effect as it is beneficial.
Concerns over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 1000
Greatest after Organisation with less development than Organisation 3rd Most affordable
R&D Spending Highest because 2003 Greatest after Company 1st Lowest
Net Profit Margin Greatest given that 2004 with quick growth from 2007 to 2016 As a result of sale of Alcon in 2014. Nearly equal to Kraft Foods Unification Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and also wellness variable Highest variety of brand names with sustainable practices Largest confectionary as well as refined foods brand name worldwide Biggest milk products and mineral water brand in the world
Segmentation Middle as well as upper center level consumers worldwide Individual consumers in addition to household group All age as well as Income Customer Teams Middle and also top middle level consumers worldwide
Number of Brands 9th 8th 9th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 71541 349938 448954 211387 474186
Net Profit Margin 4.68% 1.42% 47.79% 7.46% 63.81%
EPS (Earning Per Share) 96.12 5.32 1.79 7.22 73.67
Total Asset 666732 817599 951883 176281 95254
Total Debt 98422 43483 85593 76637 41818
Debt Ratio 26% 36% 68% 78% 98%
R&D Spending 5997 8278 8244 4526 9399
R&D Spending as % of Sales 7.79% 4.88% 9.45% 4.99% 4.95%

Solar City Rapid Innovation Video Executive Summary Solar City Rapid Innovation Video Swot Analysis Solar City Rapid Innovation Video Vrio Analysis Solar City Rapid Innovation Video Pestel Analysis
Solar City Rapid Innovation Video Porters Analysis Solar City Rapid Innovation Video Recommendations