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The University Of Notre Dame Endowment Case Study Solution

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The University Of Notre Dame Endowment Case Study Analysis

The University Of Notre Dame Endowment is presently one of the most significant food chains worldwide. It was established by Harvard in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate. At the very same time, the Page siblings from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The two became rivals in the beginning but later on combined in 1905, leading to the birth of The University Of Notre Dame Endowment.
Business is now a global company. Unlike other multinational business, it has senior executives from different nations and tries to make decisions thinking about the entire world. The University Of Notre Dame Endowment currently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

The function of The University Of Notre Dame Endowment Corporation is to improve the lifestyle of individuals by playing its part and supplying healthy food. It wants to help the world in forming a healthy and much better future for it. It also wishes to motivate individuals 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 much better and healthy future

Vision

The University Of Notre Dame Endowment's vision is to provide its clients with food that is healthy, high in quality and safe to consume. It wishes to be innovative and at the same time comprehend the needs and requirements of its clients. Its vision is to grow quickly and provide products that would please the needs of each age. The University Of Notre Dame Endowment imagines to develop a well-trained workforce which would help the business to grow
.

Mission

The University Of Notre Dame Endowment's objective is that as currently, it is the leading business in the food market, it thinks in 'Good Food, Excellent Life". Its objective is to provide its consumers with a variety of choices that are healthy and finest in taste as well. It is focused on providing the best food to its customers throughout the day and night.

Products.

Business has a large range of items that it provides to its clients. Its items include food for infants, cereals, dairy items, snacks, chocolates, food for animal and mineral water. It has around 4 hundred and fifty (450) factories around the world and around 328,000 staff members. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the company has set its objectives and goals. These objectives and goals are noted below.
• One goal of the business is to reach absolutely no landfill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of The University Of Notre Dame Endowment is to waste minimum food throughout production. Usually, the food produced is wasted even prior to it reaches the customers.
• Another thing that Business is dealing with is to improve its product packaging in such a method that it would help it to lower those problems and would likewise guarantee the delivery of high quality of its items to its clients.
• Meet international requirements of the environment.
• Develop a relationship based on trust with its customers, business partners, employees, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique 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 higher 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 existing Business technique is based on the concept of Nutritious, Health and Wellness (NHW). This method handles the idea to bringing change in the client choices about food and making the food things much healthier concerning about the health issues.
The vision of this technique is based upon the secret technique i.e. 60/40+ which simply suggests that the products will have a score of 60% on the basis of taste and 40% is based on its dietary value. The products will be produced with additional nutritional value in contrast to all other items in market acquiring it a plus on its dietary content.
This method was adopted to bring more delicious plus nutritious foods and beverages in market than ever. In competition with other business, with an objective of retaining its trust over customers as Business Business has gotten more trusted by clients.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing real quantity of costs shows that the sales are increasing at a higher rate than its R&D spending, and permit the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This sign also shows a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio pose a hazard of default of Business to its investors and might lead a decreasing share rates. For that reason, in regards to increasing financial obligation ratio, the company ought to not invest much on R&D and should pay its existing debts to decrease the danger for investors.
The increasing threat of financiers with increasing debt ratio and decreasing share prices can be observed by huge decline of EPS of The University Of Notre Dame Endowment stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception building of customers. This slow development likewise prevent business to additional 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 estimations and Charts given in the Exhibits D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative items by big amount of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the profit margins for the business. It might likewise provide Business a long term competitive advantage over its competitors.
The international expansion of Business need to be focused on market recording of establishing nations by growth, drawing in more clients through consumer's loyalty. As developing countries are more populated than developed nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe University Of Notre Dame Endowment needs to do cautious acquisition and merger of companies, as it could impact the consumer's and society's perceptions about Business. It should acquire and merge with those business which have a market track record of healthy and healthy companies. It would enhance the perceptions of customers about Business.
Business ought to not just spend its R&D on innovation, instead of it must likewise concentrate on the R&D costs over examination of expense of different nutritious products. This would increase expense performance of its products, which will result in increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business should transfer to not only developing however likewise to developed countries. It ought to expands its geographical expansion. This large geographical expansion towards developing and established nations would reduce the danger of possible losses in times of instability in different nations. It must widen its circle to different countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to acquire and merge with those countries having a goodwill of being a healthy business in the market. It would likewise enable the company to utilize its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on four elements; age, gender, income and occupation. For example, Business produces a number of products associated with children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary items. The University Of Notre Dame Endowment items are quite economical by nearly all levels, but its major targeted customers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its presence in almost 86 countries. Its geographical division is based upon two main aspects i.e. average earnings level of the consumer as well as the climate of the region. Singapore Business Company's segmentation is done on the basis of the weather condition 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 customer. Business 3 in 1 Coffee target those customers whose life design is quite busy and don't have much time.

Behavioral Segmentation

The University Of Notre Dame Endowment behavioral division is based upon the mindset understanding and awareness of the customer. Its highly nutritious products target those customers who have a health conscious mindset towards their intakes.

The University Of Notre Dame Endowment Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand name, there are two options:
Alternative: 1
The Business needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the business, increasing the wealth of the company. Spending on R&D would be sunk expense.
2. The company can resell the obtained systems in the market, if it stops working to implement its method. However, amount spend on the R&D might not be revived, and it will be considered totally sunk cost, if it do not offer prospective outcomes.
3. Spending on R&D offer sluggish growth in sales, as it takes very long time to present a product. Acquisitions offer quick outcomes, as it provide the company currently developed product, 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 business to deal with misunderstanding of customers about Business core values of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send a signal of business's inadequacy of establishing ingenious products, and would results in customer's frustration.
3. Big acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making company unable to introduce brand-new innovative products.
Option: 2.
The Business needs to invest more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the company to produce more innovative items.
2. It would supply the company a strong competitive position in the market.
3. It would allow the company to increase its targeted customers by introducing those items which can be used to a completely new market sector.
4. Innovative items will provide long term benefits and high market share in long run.
Cons:
1. It would reduce the profit margins of the company.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would affect the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might provide a negative 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 present new innovative products with less danger of converting the spending on R&D into sunk expense.
2. It would provide a favorable signal to the financiers, as the overall possessions of the company would increase with its considerable R&D costs.
3. It would not affect the profit margins of the company 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 general wealth along with in terms of innovative products.
Cons:
1. Threat of conversion of R&D costs into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high variety of innovative products than alternative 1.

The University Of Notre Dame Endowment Conclusion

RecommendationsBusiness has remained the leading market gamer for more than a years. It has institutionalized its techniques and culture to align itself with the marketplace modifications and client habits, which has actually eventually permitted 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 needs to focus on the rural areas in terms of developing brand name commitment, awareness, and equity, such can be done by producing a specific brand allocation method through trade marketing tactics, that draw clear difference between The University Of Notre Dame Endowment items and other competitor items. The University Of Notre Dame Endowment should utilize its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will enable the company to establish brand name equity for freshly introduced and currently produced items on a greater platform, making the effective use of resources and brand image in the market.

The University Of Notre Dame Endowment Exhibits

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

Changing criteria of international food.
Enhanced market share.
Transforming assumption in the direction of healthier products
Improvements in R&D and QA divisions.

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

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest considering that 2000
Greatest after Business with much less growth than Business 7th Most affordable
R&D Spending Highest possible since 2002 Greatest after Business 1st Lowest
Net Profit Margin Greatest because 2001 with rapid development from 2007 to 2019 Due to sale of Alcon in 2013. Practically equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as wellness factor Highest possible number of brand names with sustainable methods Biggest confectionary as well as refined foods brand name in the world Largest milk items as well as bottled water brand name worldwide
Segmentation Middle and also top center level customers worldwide Private consumers in addition to house team All age and Income Client Groups Middle as well as top center degree customers worldwide
Number of Brands 5th 5th 1st 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 77785 933253 542178 869493 112881
Net Profit Margin 4.55% 5.25% 21.12% 7.51% 88.65%
EPS (Earning Per Share) 88.99 8.56 6.41 4.91 65.49
Total Asset 372895 862835 641513 353583 42744
Total Debt 75427 67672 61845 82136 79875
Debt Ratio 55% 85% 25% 52% 73%
R&D Spending 8347 5947 6653 2248 3917
R&D Spending as % of Sales 3.84% 6.45% 9.94% 1.19% 7.66%

The University Of Notre Dame Endowment Executive Summary The University Of Notre Dame Endowment Swot Analysis The University Of Notre Dame Endowment Vrio Analysis The University Of Notre Dame Endowment Pestel Analysis
The University Of Notre Dame Endowment Porters Analysis The University Of Notre Dame Endowment Recommendations