Menu

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation Case Study Help

Case Study Solution And Analysis


Home >> Harvard >> The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation >>

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation Case Study Solution

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation is currently among the most significant food cycle worldwide. It was founded by Harvard in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate. At the very same time, the Page bros from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Company. The two ended up being rivals in the beginning but later on combined in 1905, leading to the birth of The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation.
Business is now a global business. Unlike other international business, it has senior executives from different countries and attempts to make decisions considering the whole world. The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation presently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation Corporation is to improve the lifestyle of individuals by playing its part and providing healthy food. It wishes to help the world in forming a healthy and better future for it. It likewise wishes to motivate individuals to live a healthy life. While making sure that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation's vision is to offer its customers with food that is healthy, high in quality and safe to eat. It wants to be ingenious and simultaneously comprehend the needs and requirements of its clients. Its vision is to grow fast and offer products that would please the needs of each age. The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation pictures to establish a trained workforce which would help the business to grow
.

Mission

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation's mission is that as currently, it is the leading company in the food market, it thinks in 'Excellent Food, Good Life". Its objective is to offer its customers with a variety of choices that are healthy and best in taste too. It is concentrated on supplying the very best food to its customers throughout the day and night.

Products.

Business has a vast array of products that it provides to its consumers. Its products consist of food for infants, cereals, dairy items, treats, chocolates, food for pet and bottled water. It has around four hundred and fifty (450) factories around the world and around 328,000 staff members. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually put down its goals and goals. These objectives and goals are noted below.
• One goal of the business is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation is to waste minimum food throughout production. Usually, the food produced is lost even prior to it reaches the clients.
• Another thing that Business is working on is to improve its packaging in such a method that it would help it to reduce the above-mentioned problems and would likewise ensure the delivery of high quality of its items to its clients.
• Meet global requirements of the environment.
• Develop a relationship based upon trust with its consumers, service partners, staff members, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the method 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 accomplished as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Display H.

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 method deals with the idea to bringing change in the client preferences about food and making the food stuff healthier worrying about the health concerns.
The vision of this technique is based upon the key method i.e. 60/40+ which simply means that the products will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The items will be made with extra nutritional value 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 drinks in market than ever. In competition with other business, with an objective of retaining its trust over customers as Business Company has gained more relied on by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing actual quantity of costs shows that the sales are increasing at a greater rate than its R&D spending, and permit the company to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indicator also shows a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing debt ratio present a hazard of default of Business to its financiers and could lead a decreasing share costs. In terms of increasing debt ratio, the company needs to not invest much on R&D and ought to pay its present debts to decrease the threat for investors.
The increasing risk of investors with increasing debt ratio and declining share rates can be observed by huge decline of EPS of The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow development also impede 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 up the Exhibitions D and E.

TWOS Analysis


2 analysis can be used to derive various methods based on the SWOT Analysis offered above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business should introduce more innovative items by big amount of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the company. It might likewise provide Business a long term competitive advantage over its rivals.
The global expansion of Business ought to be concentrated on market recording of establishing countries by expansion, attracting more customers through customer's loyalty. As developing nations are more populated than industrialized nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation ought to do mindful acquisition and merger of companies, as it could impact the customer's and society's perceptions about Business. It ought to acquire and merge with those business which have a market track record of healthy and healthy business. It would improve the understandings of consumers about Business.
Business must not only invest its R&D on innovation, instead of it must also concentrate on the R&D costs over evaluation of cost of numerous nutritious items. This would increase cost performance of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just establishing however likewise to developed nations. It should expands its geographical growth. This broad geographical growth towards developing and developed countries would decrease the threat of prospective losses in times of instability in various countries. It needs to expand its circle to different countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to get and combine with those nations having a goodwill of being a healthy business in the market. It would also make it possible for the business to use its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon four aspects; age, gender, income and profession. Business produces several items related to children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation items are rather economical by almost all levels, but its significant targeted clients, in terms of earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in almost 86 nations. Its geographical division is based upon 2 main aspects i.e. average earnings level of the customer as well as the climate of the area. For instance, Singapore Business Business's division 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 character and lifestyle of the customer. For instance, Business 3 in 1 Coffee target those customers whose life style is quite busy and don't have much time.

Behavioral Segmentation

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation behavioral segmentation is based upon the attitude understanding and awareness of the customer. For example its highly healthy items target those consumers who have a health mindful attitude towards their consumptions.

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation Alternatives

In order to sustain the brand in the market and keep the customer intact with the brand name, there are two options:
Option: 1
The Business must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the business, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk expense.
2. The company can resell the gotten units in the market, if it stops working to execute its technique. However, amount invest in the R&D could not be restored, and it will be thought about completely sunk expense, if it do not offer possible outcomes.
3. Spending on R&D provide slow growth in sales, as it takes long time to introduce an item. However, acquisitions supply quick results, as it offer the business currently established product, which can be marketed right after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the company to deal with misunderstanding of consumers about Business core worths of healthy and nutritious products.
2 Big spending on acquisitions than R&D would send out a signal of business's inadequacy of developing innovative items, and would results in customer's frustration.
3. Large acquisitions than R&D would extend the product line of the business by the items which are already present in the market, making business not able to introduce new innovative products.
Alternative: 2.
The Business ought to invest more on its R&D instead of acquisitions.
Pros:
1. It would enable the business to produce more ingenious products.
2. It would supply the business a strong competitive position in the market.
3. It would enable the business to increase its targeted clients by presenting those items which can be offered to an entirely brand-new market section.
4. Ingenious items will provide long term advantages and high market share in long run.
Cons:
1. It would decrease the earnings margins of the business.
2. In case of failure, the whole spending on R&D would be thought about as sunk cost, and would affect the company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable 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.
Vrio AnalysisPros:
1. It would allow the business to introduce new ingenious items with less danger of transforming the spending on R&D into sunk expense.
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 affect 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 company's general wealth as well as in regards to ingenious products.
Cons:
1. Threat of conversion of R&D costs into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Danger of misconception about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Intro of less number of innovative products than alternative 2 and high number of ingenious items than alternative 1.

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation Conclusion

RecommendationsIt has institutionalized its techniques and culture to align itself with the market changes and client behavior, which has actually eventually permitted it to sustain its market share. Business has developed significant market share and brand identity in the metropolitan markets, it is recommended that the company should focus on the rural areas in terms of developing brand name commitment, awareness, and equity, such can be done by producing a specific brand name allocation method through trade marketing methods, that draw clear difference between The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation products and other rival products.

The Manda Pitch Book Proposed Acquisition Of Heller Financial By United Technologies Corporation Exhibits

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

Changing criteria of global food.
Improved market share. Changing assumption towards healthier items Improvements in R&D as well as QA departments.

Introduction of E-marketing.
No such effect as it is favourable. Problems over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest because 2000 Greatest after Business with much less development than Business 1st Least expensive
R&D Spending Highest considering that 2007 Greatest after Business 5th Lowest
Net Profit Margin Highest given that 2006 with fast development from 2002 to 2013 Due to sale of Alcon in 2016. Nearly equal to Kraft Foods Unification Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health variable Highest possible number of brands with sustainable methods Biggest confectionary and also processed foods brand name in the world Biggest dairy products as well as bottled water brand name worldwide
Segmentation Center and also upper middle degree customers worldwide Specific customers along with house group Any age and also Earnings Customer Groups Middle as well as upper middle degree consumers worldwide
Number of Brands 2nd 5th 3rd 9th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 57936 724456 927747 651776 481469
Net Profit Margin 1.31% 8.13% 93.91% 1.93% 76.58%
EPS (Earning Per Share) 95.15 9.44 4.14 2.87 49.68
Total Asset 477357 229818 575376 135787 97965
Total Debt 93215 35279 43987 12111 95696
Debt Ratio 91% 42% 59% 67% 43%
R&D Spending 6316 3674 5743 4185 9196
R&D Spending as % of Sales 9.59% 5.26% 3.33% 8.53% 8.65%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations