Toward Golden Pond B Case Study Solution

Toward Golden Pond B is currently among the greatest food cycle worldwide. It was established by Harvard in 1866, a German Pharmacist who initially released "FarineLactee"; a mix of flour and milk to feed babies and reduce death rate. At the same time, the Page siblings from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The 2 became competitors at first but later on merged in 1905, leading to the birth of Toward Golden Pond B.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from various nations and tries to make choices considering the whole world. Toward Golden Pond B presently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The function of Toward Golden Pond B Corporation is to improve the quality of life of people 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 likewise wants to motivate people to live a healthy life. While ensuring that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Toward Golden Pond B's vision is to supply its consumers with food that is healthy, high in quality and safe to eat. Business visualizes to develop a trained workforce which would help the company to grow
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Mission

Toward Golden Pond B's objective is that as currently, it is the leading company in the food industry, it thinks in 'Excellent Food, Excellent Life". Its objective is to provide its consumers with a range of options that are healthy and finest in taste. It is focused on supplying the best food to its consumers throughout the day and night.

Products.

Business has a wide range of products that it offers to its consumers. Its products include food for babies, cereals, dairy products, snacks, chocolates, food for pet and bottled 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 gainful company.

Goals and Objectives

• Keeping 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 company is to reach absolutely no garbage dump status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its staff members to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Toward Golden Pond B is to lose minimum food throughout production. Most often, the food produced is wasted even before it reaches the consumers.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to reduce those issues and would also guarantee the shipment of high quality of its products to its consumers.
• Meet international requirements of the environment.
• Develop a relationship based on trust with its consumers, company partners, workers, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its revenues on the R&D technology. 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 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 current Business method is based upon the principle of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing change in the consumer choices about food and making the food stuff healthier worrying about the health problems.
The vision of this strategy is based upon the secret approach i.e. 60/40+ which just implies that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be manufactured with additional nutritional worth in contrast to all other items in market gaining it a plus on its nutritional material.
This method was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competitors with other companies, with an intent of keeping its trust over clients as Business Business has gained more relied on by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing actual quantity of costs shows that the sales are increasing at a greater rate than its R&D spending, and allow the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This indication likewise shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing financial obligation ratio pose a hazard of default of Business to its financiers and could lead a declining share prices. In terms of increasing debt ratio, the firm must not spend much on R&D and needs to pay its current debts to decrease the risk for investors.
The increasing threat of financiers with increasing debt ratio and decreasing share rates can be observed by big decrease of EPS of Toward Golden Pond B stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow growth also prevent business to further spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Charts given up the Exhibits D and E.

TWOS Analysis

2 analysis can be utilized to derive various techniques based on the SWOT Analysis offered above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative products by large amount of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the business. It might likewise offer Business a long term competitive benefit over its rivals.
The international expansion of Business must be focused on market catching of developing countries by growth, attracting more clients through client's loyalty. As developing nations are more populated than developed nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Toward Golden Pond B must do cautious acquisition and merger of companies, as it might impact the consumer's and society's perceptions about Business. It needs to acquire and merge with those companies which have a market credibility of healthy and healthy companies. It would enhance the understandings of customers about Business.
Business ought to not only invest its R&D on innovation, instead of it should likewise focus on the R&D spending over examination of cost of numerous nutritious products. This would increase expense performance of its items, which will result in increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business must move to not only developing but also to industrialized nations. It needs to expand its circle to different nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

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

Segmentation Analysis

Demographic Segmentation

The group division of Business is based upon four factors; age, gender, income and profession. For example, Business produces numerous products associated with children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary items. Toward Golden Pond B items are rather budget friendly by almost all levels, however its major targeted clients, in regards to earnings level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in practically 86 countries. Its geographical division is based upon 2 primary factors i.e. average income level of the consumer along with the environment of the region. For example, Singapore Business Company'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 personality and life style of the client. For instance, Business 3 in 1 Coffee target those customers whose life style is rather busy and do not have much time.

Behavioral Segmentation

Toward Golden Pond B behavioral segmentation is based upon the mindset knowledge and awareness of the consumer. Its highly healthy items target those consumers who have a health mindful mindset towards their intakes.

Toward Golden Pond B Alternatives

In order to sustain the brand name in the market and keep the customer intact with the brand name, there are two options:
Alternative: 1
The Company should spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the business, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The business can resell the obtained systems in the market, if it fails to implement its strategy. Amount spend on the R&D might not be revived, and it will be considered entirely sunk cost, if it do not provide prospective results.
3. Spending on R&D supply slow growth in sales, as it takes long period of time to introduce a product. Acquisitions provide fast results, as it supply the company currently developed product, which can be marketed quickly 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 deal with misunderstanding of consumers about Business core worths of healthy and healthy items.
2 Big spending on acquisitions than R&D would send out a signal of business's inadequacy of establishing innovative items, and would outcomes in consumer's dissatisfaction.
3. Big acquisitions than R&D would extend the product line of the business by the items which are already present in the market, making business unable to present new ingenious products.
Alternative: 2.
The Business needs to spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the company to produce more innovative products.
2. It would offer the business a strong competitive position in the market.
3. It would enable the business to increase its targeted customers by presenting those items which can be used to a completely new market segment.
4. Innovative products will supply long term advantages and high market share in long term.
Cons:
1. It would reduce the profit margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, 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 could 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.
Pros:
1. It would permit the company to present new innovative products 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 general properties of the company would increase with its significant R&D costs.
3. It would not impact the earnings margins of the company at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the business's general wealth in addition to in regards to ingenious products.
Cons:
1. Danger of conversion of R&D spending into sunk expense, greater than option 1 lesser than alternative 2.
2. Risk of mistaken belief about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less variety of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Toward Golden Pond B Conclusion

Business has remained the top market player for more than a years. It has institutionalised its strategies and culture to align itself with the marketplace changes and customer habits, which has actually ultimately allowed it to sustain its market share. Business has established substantial market share and brand identity in the urban markets, it is recommended that the company needs to focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by creating a specific brand name allotment method through trade marketing methods, that draw clear distinction in between Toward Golden Pond B products and other competitor items. Furthermore, Business should take advantage of its brand 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 newly introduced and currently produced products on a greater platform, making the effective usage of resources and brand name image in the market.

Toward Golden Pond B Exhibits