Yale University Investments Office June 2003 Case Study Solution

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Yale University Investments Office June 2003 Case Study Analysis

Yale University Investments Office June 2003 is presently among the greatest food chains worldwide. It was founded by Harvard in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate. At the exact same time, the Page bros from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The two ended up being competitors in the beginning but later on merged in 1905, leading to the birth of Yale University Investments Office June 2003.
Business is now a multinational company. Unlike other multinational business, it has senior executives from different nations and attempts to make choices considering the entire world. Yale University Investments Office June 2003 currently has more than 500 factories worldwide and a network spread throughout 86 countries.


The purpose of Yale University Investments Office June 2003 Corporation is to enhance the lifestyle of individuals by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and much better future for it. It also wants to encourage individuals to live a healthy life. While making sure that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future


Yale University Investments Office June 2003's vision is to supply its customers with food that is healthy, high in quality and safe to consume. Business pictures to establish a trained labor force which would help the business to grow


Yale University Investments Office June 2003's mission is that as presently, it is the leading business in the food industry, it thinks in 'Good Food, Good Life". Its objective is to supply its customers with a variety of options that are healthy and finest in taste. It is focused on providing the best food to its consumers throughout the day and night.


Business has a large range of products that it offers to its customers. Its products include food for infants, cereals, dairy products, snacks, chocolates, food for family pet and bottled water. It has around four hundred and fifty (450) factories around the globe 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 mission of the corporation, the company has set its objectives and objectives. These goals and objectives are noted below.
• One objective of the business is to reach absolutely no land fill status. It is pursuing no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another goal of Yale University Investments Office June 2003 is to squander minimum food throughout production. Usually, the food produced is lost even prior to it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to lower the above-mentioned problems and would likewise 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 consumers, company partners, staff members, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the strategy 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 technique. The target of the business is not attained 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 Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based on the concept of Nutritious, Health and Wellness (NHW). This method handles the concept to bringing change in the client preferences about food and making the food things healthier concerning about the health issues.
The vision of this technique is based upon the key approach i.e. 60/40+ which merely means that the items will have a score of 60% on the basis of taste and 40% is based upon its dietary value. The items will be manufactured with extra nutritional value in contrast to all other products in market gaining it a plus on its dietary material.
This technique was embraced to bring more yummy plus nutritious foods and beverages in market than ever. In competition with other companies, with an intent of maintaining its trust over clients as Business Company has gotten more trusted by costumers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual amount of costs shows that the sales are increasing at a greater rate than its R&D costs, and permit the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This sign likewise reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio posture a danger of default of Business to its investors and could lead a declining share prices. In terms of increasing debt ratio, the company must not invest much on R&D and must pay its present financial obligations to reduce the risk for investors.
The increasing risk of financiers with increasing debt ratio and declining share prices can be observed by huge decline of EPS of Yale University Investments Office June 2003 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 development likewise hinder company to more 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 computations and Graphs given up the Exhibits D and E.

TWOS Analysis

TWOS analysis can be utilized to derive numerous strategies based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should introduce more ingenious products by large quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the company. It might likewise offer Business a long term competitive benefit over its rivals.
The international growth of Business ought to be focused on market catching of developing countries by growth, bring in more consumers through customer's commitment. As developing nations are more populated than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisYale University Investments Office June 2003 ought to do cautious acquisition and merger of organizations, as it might affect the client's and society's perceptions about Business. It should obtain and combine with those companies which have a market track record of healthy and healthy business. It would improve the understandings of customers about Business.
Business must not just invest its R&D on innovation, instead of it should likewise concentrate on the R&D costs over evaluation of cost of various healthy products. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing however also to developed countries. It ought to broaden its circle to different nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Yale University Investments Office June 2003 should carefully manage its acquisitions to prevent the risk of misconception from the consumers about Business. It needs to get and merge with those countries having a goodwill of being a healthy company in the market. This would not just enhance the understanding of consumers about Business but would also increase the sales, earnings margins and market share of Business. It would likewise allow the business to use its prospective resources efficiently on its other operations instead of acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on 4 elements; age, gender, income and occupation. For example, Business produces a number of items associated with children i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Yale University Investments Office June 2003 products are rather budget-friendly by almost all levels, but its major targeted clients, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in almost 86 countries. Its geographical division is based upon two primary aspects i.e. average earnings level of the customer in addition to the climate of the area. Singapore Business Business's division is done on the basis of the weather condition of the region 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 clients whose lifestyle is quite busy and don't have much time.

Behavioral Segmentation

Yale University Investments Office June 2003 behavioral segmentation is based upon the mindset understanding and awareness of the client. Its extremely healthy products target those clients who have a health conscious mindset towards their usages.

Yale University Investments Office June 2003 Alternatives

In order to sustain the brand in the market and keep the customer intact with the brand name, there are two choices:
Alternative: 1
The Business needs to spend more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. However, spending on R&D would be sunk cost.
2. The company can resell the gotten systems in the market, if it fails to execute its method. Amount spend on the R&D could not be restored, and it will be considered totally sunk cost, if it do not give potential outcomes.
3. Investing in R&D supply sluggish development in sales, as it takes long time to present a product. Acquisitions provide fast outcomes, as it provide the company already established item, which can be marketed quickly after the acquisition.
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 worths of healthy and healthy items.
2 Big costs on acquisitions than R&D would send out a signal of business's inadequacy of establishing innovative products, and would results in consumer's dissatisfaction also.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making business not able to introduce new innovative products.
Alternative: 2.
The Company needs to invest more on its R&D rather than acquisitions.
1. It would allow the business to produce more ingenious items.
2. It would provide the business a strong competitive position in the market.
3. It would allow the business to increase its targeted consumers by introducing those products which can be provided to an entirely new market sector.
4. Innovative products will offer long term advantages and high market share in long run.
1. It would reduce the revenue margins of the business.
2. In case of failure, the whole spending on R&D would be considered as sunk cost, and would impact the business at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which could provide an unfavorable signal to the financiers, and might 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 allow the business to present new ingenious products with less risk of converting the spending on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the total properties of the business would increase with its considerable R&D spending.
3. It would not affect the earnings margins of the company at a large rate as compare to alternative 2.
4. It would supply the business a strong long term market position in regards to the business's total wealth along with in regards to innovative products.
1. Danger of conversion of R&D costs into sunk cost, higher than alternative 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Intro of less variety of innovative products than alternative 2 and high variety of ingenious items than alternative 1.

Yale University Investments Office June 2003 Conclusion

RecommendationsBusiness has actually remained the top market player for more than a decade. It has actually institutionalised its strategies and culture to align itself with the marketplace modifications and consumer habits, which has eventually enabled it to sustain its market share. Though, Business has developed substantial market share and brand identity in the city markets, it is suggested that the company should focus on the rural areas in regards to establishing brand name loyalty, awareness, and equity, such can be done by producing a specific brand allocation technique through trade marketing techniques, that draw clear difference in between Yale University Investments Office June 2003 items and other competitor items. Yale University Investments Office June 2003 must leverage its brand name 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 name equity for freshly presented and currently produced items on a greater platform, making the reliable use of resources and brand name image in the market.

Yale University Investments Office June 2003 Exhibits

PESTEL Analysis
Governmental assistance

Transforming criteria of worldwide food.
Boosted market share. Altering understanding towards much healthier items Improvements in R&D and QA divisions.

Intro of E-marketing.
No such effect as it is beneficial. Problems over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest given that 1000 Highest possible after Service with less growth than Business 6th Lowest
R&D Spending Greatest because 2006 Highest after Company 3rd Least expensive
Net Profit Margin Highest possible because 2002 with fast growth from 2006 to 2017 Because of sale of Alcon in 2019. Nearly equal to Kraft Foods Incorporation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as wellness variable Greatest variety of brands with lasting methods Biggest confectionary and processed foods brand on the planet Biggest milk products and bottled water brand name on the planet
Segmentation Center and also top middle degree consumers worldwide Individual clients in addition to family team All age as well as Earnings Customer Teams Middle and also upper middle level customers worldwide
Number of Brands 6th 5th 1st 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 25318 787672 134761 561864 742173
Net Profit Margin 1.52% 1.51% 87.87% 3.67% 11.39%
EPS (Earning Per Share) 64.79 1.69 4.75 4.38 13.43
Total Asset 139249 915927 772188 414864 67173
Total Debt 35527 37164 97614 28584 57675
Debt Ratio 74% 91% 45% 89% 85%
R&D Spending 5245 9239 1917 7839 6765
R&D Spending as % of Sales 6.49% 8.11% 6.53% 2.46% 1.97%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations