Venture Capital At The Harvard Management Company In Historical Perspective Case Study Help

Case Study Solution And Analysis

Home >> Harvard >> Venture Capital At The Harvard Management Company In Historical Perspective >>

Venture Capital At The Harvard Management Company In Historical Perspective Case Study Help

Venture Capital At The Harvard Management Company In Historical Perspective is presently among the greatest food chains worldwide. It was established by Harvard in 1866, a German Pharmacist who first released "FarineLactee"; a combination of flour and milk to feed infants and reduce mortality rate. At the same time, the Page brothers from Switzerland also discovered The Anglo-Swiss Condensed Milk Business. The 2 became competitors in the beginning however later combined in 1905, resulting in the birth of Venture Capital At The Harvard Management Company In Historical Perspective.
Business is now a global company. Unlike other international business, it has senior executives from various nations and tries to make choices thinking about the whole world. Venture Capital At The Harvard Management Company In Historical Perspective currently has more than 500 factories around the world and a network spread throughout 86 nations.


The purpose of Venture Capital At The Harvard Management Company In Historical Perspective Corporation is to enhance the quality of life of individuals by playing its part and supplying healthy food. It wishes to help the world in forming a healthy and much better future for it. It likewise wants to encourage individuals 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


Venture Capital At The Harvard Management Company In Historical Perspective's vision is to provide its clients with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and at the same time understand the requirements and requirements of its clients. Its vision is to grow quick and provide products that would please the needs of each age. Venture Capital At The Harvard Management Company In Historical Perspective pictures to develop a trained labor force which would help the business to grow


Venture Capital At The Harvard Management Company In Historical Perspective's objective is that as presently, it is the leading company in the food industry, it thinks in 'Excellent Food, Excellent Life". Its mission is to provide its consumers with a range of options that are healthy and finest in taste also. It is focused on providing the very best food to its customers throughout the day and night.


Business has a wide range of items that it offers to its customers. Its items consist of food for babies, cereals, dairy products, snacks, chocolates, food for pet and bottled water. It has around four hundred and fifty (450) factories worldwide and around 328,000 staff members. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the business has set its goals and objectives. These goals and goals are noted below.
• One objective of the business is to reach no garbage dump status. (Business, aboutus, 2017).
• Another objective of Venture Capital At The Harvard Management Company In Historical Perspective is to squander minimum food throughout production. Usually, the food produced is wasted even before it reaches the clients.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to reduce those complications and would also ensure the shipment of high quality of its products to its consumers.
• Meet worldwide requirements of the environment.
• Build a relationship based upon trust with its customers, company partners, workers, and government.

Critical Issues

Recently, Business Company is focusing more towards the method of NHW and investing more of its profits on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the business is not accomplished 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 Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the idea of Nutritious, Health and Wellness (NHW). This strategy handles the idea to bringing change in the consumer preferences about food and making the food stuff much healthier concerning about the health problems.
The vision of this method is based on the key technique i.e. 60/40+ which merely indicates that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional value. The items will be made with additional dietary value in contrast to all other products in market gaining it a plus on its nutritional content.
This technique was adopted to bring more delicious plus healthy foods and drinks in market than ever. In competitors with other companies, with an intent of maintaining its trust over clients as Business Company has actually gotten more trusted by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing actual amount of spending shows that the sales are increasing at a higher rate than its R&D costs, and allow the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indicator likewise shows a thumbs-up to the R&D costs, 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 debts. This increasing debt ratio position a hazard of default of Business to its financiers and might lead a declining share rates. Therefore, in terms of increasing debt ratio, the company ought to not invest much on R&D and should pay its current financial obligations to reduce the danger for financiers.
The increasing danger of investors with increasing debt ratio and decreasing share costs can be observed by big decrease of EPS of Venture Capital At The Harvard Management Company In Historical Perspective stocks.
The sales development of company is likewise low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow growth also prevent company 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 Graphs given up the Exhibits D and E.

TWOS Analysis

2 analysis can be used to obtain various techniques based on the SWOT Analysis provided above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative products by big amount of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the business. It might likewise supply Business a long term competitive benefit over its rivals.
The global expansion of Business should be focused on market recording of developing nations by growth, bring in more clients through consumer's commitment. As establishing countries are more populated than industrialized nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisVenture Capital At The Harvard Management Company In Historical Perspective ought to do mindful acquisition and merger of organizations, as it might affect the customer's and society's perceptions about Business. It needs to acquire and combine with those business which have a market reputation of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business should not just spend its R&D on development, instead of it needs to likewise focus on the R&D costs over assessment of expense of numerous nutritious items. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just developing however likewise to developed nations. It ought to broaden its circle to numerous countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It needs to acquire and combine with those nations having a goodwill of being a healthy company in the market. It would also enable the business to utilize its potential resources effectively on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based upon 4 factors; age, gender, earnings and occupation. Business produces a number of items related to babies i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Venture Capital At The Harvard Management Company In Historical Perspective products are quite affordable by nearly all levels, however its significant targeted consumers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is made up of its existence in almost 86 nations. Its geographical division is based upon two main aspects i.e. average earnings level of the consumer as well as the climate of the area. 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 division of Business is based upon the character and life style of the client. Business 3 in 1 Coffee target those consumers whose life style is quite busy and do not have much time.

Behavioral Segmentation

Venture Capital At The Harvard Management Company In Historical Perspective behavioral segmentation is based upon the attitude knowledge and awareness of the client. Its highly healthy products target those clients who have a health mindful mindset towards their consumptions.

Venture Capital At The Harvard Management Company In Historical Perspective Alternatives

In order to sustain the brand in the market and keep the client intact with the brand, there are two alternatives:
Option: 1
The Company should invest more on acquisitions than on the R&D.
1. Acquisitions would increase total assets of the company, increasing the wealth of the business. However, spending on R&D would be sunk expense.
2. The company can resell the obtained systems in the market, if it fails to implement its method. Quantity spend on the R&D might not be restored, and it will be considered totally sunk expense, if it do not provide prospective outcomes.
3. Investing in R&D provide slow growth in sales, as it takes long period of time to present an item. Acquisitions supply quick results, as it supply the business currently established product, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to face mistaken belief of customers about Business core values of healthy and nutritious products.
2 Big spending on acquisitions than R&D would send out a signal of company's ineffectiveness of establishing ingenious products, and would results in customer's discontentment.
3. Big acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making company not able to introduce new ingenious products.
Option: 2.
The Company needs to invest more on its R&D instead of acquisitions.
1. It would enable the company to produce more innovative products.
2. It would offer the company a strong competitive position in the market.
3. It would enable the company to increase its targeted clients by presenting those products which can be used to an entirely new market sector.
4. Innovative products will supply long term advantages and high market share in long term.
1. It would reduce the profit margins of the company.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would affect the business at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could supply a negative signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present new ingenious products with less danger of converting the spending on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the total assets of the business would increase with its substantial R&D spending.
3. It would not impact 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 terms of the company's total wealth as well as in regards to innovative products.
1. Threat of conversion of R&D spending into sunk cost, higher than option 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 ingenious items than alternative 2 and high variety of ingenious products than alternative 1.

Venture Capital At The Harvard Management Company In Historical Perspective Conclusion

RecommendationsBusiness has actually stayed the leading market gamer for more than a years. It has institutionalized its methods and culture to align itself with the market changes and client behavior, which has actually ultimately allowed it to sustain its market share. Though, Business has actually developed considerable market share and brand identity in the metropolitan markets, it is advised that the business should concentrate on the rural areas in regards to establishing brand loyalty, awareness, and equity, such can be done by producing a specific brand name allotment strategy through trade marketing strategies, that draw clear distinction in between Venture Capital At The Harvard Management Company In Historical Perspective items and other rival items. Venture Capital At The Harvard Management Company In Historical Perspective ought to leverage its brand image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will permit the company to develop brand equity for freshly presented and already produced products on a greater platform, making the efficient usage of resources and brand image in the market.

Venture Capital At The Harvard Management Company In Historical Perspective Exhibits

PESTEL Analysis
Governmental assistance

Changing standards of international food.
Improved market share. Altering understanding towards much healthier products Improvements in R&D and also QA departments.

Intro of E-marketing.
No such effect as it is good. Worries over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 6000 Highest after Organisation with less development than Company 3rd Least expensive
R&D Spending Highest possible considering that 2007 Greatest after Service 5th Most affordable
Net Profit Margin Highest possible given that 2007 with rapid growth from 2004 to 2014 Because of sale of Alcon in 2012. Nearly equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness factor Highest possible variety of brands with sustainable practices Largest confectionary and refined foods brand worldwide Biggest dairy items and also bottled water brand on the planet
Segmentation Center and also upper center degree consumers worldwide Private customers together with home group All age and Income Client Teams Center as well as top center degree customers worldwide
Number of Brands 1st 3rd 4th 7th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 21397 396599 637614 172586 833365
Net Profit Margin 9.34% 5.55% 85.69% 6.96% 67.77%
EPS (Earning Per Share) 57.75 6.25 9.41 1.19 82.26
Total Asset 823423 971745 786294 621888 19636
Total Debt 75125 56274 22968 87571 24949
Debt Ratio 25% 84% 96% 91% 32%
R&D Spending 1937 5236 9267 9769 3484
R&D Spending as % of Sales 1.76% 8.54% 7.83% 9.97% 2.19%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations