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

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Business is presently one of the biggest food chains worldwide. It was established by Henri Venture Capital At The Harvard Management Company In Historical Perspective in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate.
Business is now a global company. Unlike other multinational companies, it has senior executives from various countries and tries to make choices thinking about the whole world. Venture Capital At The Harvard Management Company In Historical Perspective presently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

The function of Venture Capital At The Harvard Management Company In Historical Perspective Corporation is to boost 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 better future for it. It also wants to encourage people to live a healthy life. While making certain that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

Venture Capital At The Harvard Management Company In Historical Perspective's vision is to provide its consumers with food that is healthy, high in quality and safe to eat. Business imagines to establish a well-trained labor force which would help the business to grow
.

Mission

Venture Capital At The Harvard Management Company In Historical Perspective's objective is that as currently, it is the leading business in the food industry, it believes in 'Excellent Food, Good Life". Its objective is to supply its consumers with a range of choices that are healthy and finest in taste too. It is concentrated on supplying the best food to its customers throughout the day and night.

Products.

Venture Capital At The Harvard Management Company In Historical Perspective has a broad range of items that it uses to its clients. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the business has set its objectives and goals. These objectives and goals are noted below.
• One goal of the company is to reach absolutely no landfill status. It is working toward zero 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 goal of Venture Capital At The Harvard Management Company In Historical Perspective is to lose minimum food during production. Usually, the food produced is wasted even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its product packaging in such a method that it would help it to minimize the above-mentioned issues and would likewise ensure the delivery of high quality of its products to its clients.
• Meet global standards of the environment.
• Build a relationship based upon trust with its consumers, organisation partners, staff members, 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 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 anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based upon the idea of Nutritious, Health and Wellness (NHW). This strategy handles the concept to bringing change in the customer choices about food and making the food stuff healthier worrying about the health problems.
The vision of this method is based on the key approach i.e. 60/40+ which merely suggests that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The products will be produced with extra dietary value in contrast to all other products in market acquiring it a plus on its dietary material.
This method was adopted to bring more yummy plus healthy foods and drinks in market than ever. In competitors with other business, with an intention of retaining its trust over customers as Business Company has gotten more relied on by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are decreasing with increasing actual amount of spending reveals that the sales are increasing at a greater rate than its R&D spending, and permit the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is decreasing. This sign also reveals 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 development instead of payment of debts. This increasing financial obligation ratio pose a hazard of default of Business to its investors and could lead a decreasing share rates. In terms of increasing financial obligation ratio, the company must not invest much on R&D and must pay its present debts to reduce the danger for investors.
The increasing threat of investors with increasing financial obligation ratio and declining share costs can be observed by huge decline of EPS of Venture Capital At The Harvard Management Company In Historical Perspective stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow growth also impede business to additional 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 in the Exhibitions D and E.

TWOS Analysis


TWOS analysis can be used to derive different techniques based on the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative items by big amount of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the company. It could also offer Business a long term competitive advantage over its rivals.
The international growth of Business should be focused on market catching of establishing countries by growth, drawing in more clients through client's commitment. As establishing countries are more populated than developed nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisVenture Capital At The Harvard Management Company In Historical Perspective must do careful acquisition and merger of companies, as it could impact the customer's and society's perceptions about Business. It needs to obtain and combine with those business which have a market credibility of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business must not just spend its R&D on innovation, instead of it must likewise focus on the R&D spending over examination of cost of various nutritious products. This would increase expense efficiency of its products, which will lead to increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business must relocate to not only developing however likewise to developed countries. It needs to broadens its geographical expansion. This broad geographical growth towards developing and established nations would lower the risk of possible losses in times of instability in various nations. It must widen its circle to various nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought 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 company to use 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 on four aspects; age, gender, earnings and occupation. Business produces numerous items related to children i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Venture Capital At The Harvard Management Company In Historical Perspective items are quite economical by almost all levels, but its significant targeted customers, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in nearly 86 nations. Its geographical division is based upon two main factors i.e. typical income level of the consumer along with the environment of the region. For instance, Singapore Business Company's division is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the client. For example, Business 3 in 1 Coffee target those consumers whose lifestyle is quite hectic 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 customer. For example its extremely nutritious items target those customers who have a health conscious attitude towards their intakes.

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 name, there are two alternatives:
Alternative: 1
The Business needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the business, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it stops working to implement its strategy. Nevertheless, amount invest in the R&D might not be restored, and it will be thought about entirely sunk cost, if it do not provide possible results.
3. Investing in R&D offer slow development in sales, as it takes very long time to introduce a product. However, acquisitions offer fast outcomes, as it provide the business currently developed item, which can be marketed right after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the company to deal with misunderstanding of customers about Business core values of healthy and healthy items.
2 Large costs on acquisitions than R&D would send out a signal of company's inadequacy of developing ingenious items, and would results in customer's frustration too.
3. Large acquisitions than R&D would extend the line of product of the company by the products which are already present in the market, making business not able to present new innovative products.
Alternative: 2.
The Company must spend more on its R&D rather than acquisitions.
Pros:
1. It would allow the business to produce more innovative products.
2. It would supply the company a strong competitive position in the market.
3. It would enable the business to increase its targeted consumers by introducing those products which can be used to a completely brand-new market sector.
4. Ingenious products will provide long term advantages and high market share in long run.
Cons:
1. It would reduce the revenue margins of the business.
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 threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might 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 company to introduce new ingenious items with less threat of converting the costs on R&D into sunk expense.
2. It would offer a favorable signal to the investors, as the total assets of the business would increase with its substantial R&D costs.
3. It would not affect the revenue margins of the business at a big rate as compare to alternative 2.
4. It would provide the company a strong long term market position in terms of the business's general wealth as well as in terms of ingenious items.
Cons:
1. Risk of conversion of R&D spending into sunk expense, higher than alternative 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Intro of less number of innovative products than alternative 2 and high number of innovative products than alternative 1.

Venture Capital At The Harvard Management Company In Historical Perspective Conclusion

RecommendationsIt has institutionalized its strategies and culture to align itself with the market modifications and client habits, which has actually ultimately enabled it to sustain its market share. Business has developed significant market share and brand name identity in the urban markets, it is advised that the company ought to focus on the rural locations in terms of establishing brand name commitment, awareness, and equity, such can be done by developing a specific brand name allotment method through trade marketing techniques, that draw clear difference between Venture Capital At The Harvard Management Company In Historical Perspective items and other competitor items.

Venture Capital At The Harvard Management Company In Historical Perspective Exhibits

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

Altering standards of worldwide food.
Boosted market share.
Transforming assumption towards much healthier items
Improvements in R&D as well as QA departments.

Intro of E-marketing.
No such impact as it is favourable.
Concerns over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible because 2000
Greatest after Business with less growth than Service 9th Least expensive
R&D Spending Greatest given that 2003 Highest after Company 9th Most affordable
Net Profit Margin Highest possible because 2002 with fast development from 2006 to 2017 Because of sale of Alcon in 2012. Practically equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment and health and wellness aspect Highest variety of brand names with lasting methods Biggest confectionary and refined foods brand name worldwide Largest dairy products and mineral water brand on the planet
Segmentation Center and top middle degree consumers worldwide Individual customers together with family group Any age and Income Customer Teams Center and top center degree customers worldwide
Number of Brands 5th 7th 6th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 66489 454865 163511 281676 918469
Net Profit Margin 1.11% 8.85% 39.27% 2.42% 65.77%
EPS (Earning Per Share) 85.59 7.75 7.23 8.43 42.33
Total Asset 361139 324618 614128 379123 68234
Total Debt 23196 57964 24288 74743 55276
Debt Ratio 88% 77% 35% 66% 55%
R&D Spending 7959 3689 7935 8548 7686
R&D Spending as % of Sales 6.99% 3.45% 3.72% 7.27% 5.88%

Venture Capital At The Harvard Management Company In Historical Perspective Executive Summary Venture Capital At The Harvard Management Company In Historical Perspective Swot Analysis Venture Capital At The Harvard Management Company In Historical Perspective Vrio Analysis Venture Capital At The Harvard Management Company In Historical Perspective Pestel Analysis
Venture Capital At The Harvard Management Company In Historical Perspective Porters Analysis Venture Capital At The Harvard Management Company In Historical Perspective Recommendations