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Yale University Investments Office June 2003 Case Study Analysis

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Yale University Investments Office June 2003 Case Study Solution

Yale University Investments Office June 2003 is presently one of the most significant food cycle worldwide. It was established by Harvard in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed infants and decrease mortality rate. At the very same time, the Page bros from Switzerland also found The Anglo-Swiss Condensed Milk Company. The 2 became rivals at first but later merged in 1905, resulting in the birth of Yale University Investments Office June 2003.
Business is now a transnational company. Unlike other multinational companies, it has senior executives from different nations and tries to make decisions thinking about the whole world. Yale University Investments Office June 2003 currently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The function of Business Corporation is to improve the quality of life of people by playing its part and providing healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Yale University Investments Office June 2003's vision is to provide its consumers with food that is healthy, high in quality and safe to consume. It wishes to be innovative and all at once comprehend the requirements and requirements of its clients. Its vision is to grow quick and supply items that would please the requirements of each age. Yale University Investments Office June 2003 envisions to establish a trained labor force which would help the business to grow
.

Mission

Yale University Investments Office June 2003's objective is that as currently, it is the leading business in the food market, it believes in 'Good Food, Good Life". Its mission is to supply its customers with a range of choices that are healthy and best in taste too. It is focused on providing the very best food to its consumers throughout the day and night.

Products.

Yale University Investments Office June 2003 has a broad variety of items that it uses to its clients. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has put down its objectives and goals. These objectives and objectives are listed below.
• One objective of the company is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another objective of Yale University Investments Office June 2003 is to squander minimum food throughout production. Most often, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to decrease those issues and would also guarantee the delivery of high quality of its items to its customers.
• Meet global standards of the environment.
• Develop a relationship based on trust with its consumers, company partners, workers, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW strategy. The target of the company is not attained 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 Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the idea of Nutritious, Health and Health (NHW). This technique handles the idea to bringing modification in the client choices about food and making the food stuff healthier concerning about the health issues.
The vision of this method is based on the key technique i.e. 60/40+ which merely indicates that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be made with additional dietary worth in contrast to all other items in market gaining it a plus on its dietary material.
This technique was adopted to bring more delicious plus nutritious foods and beverages in market than ever. In competition with other business, with an intention of maintaining its trust over consumers as Business Business has gotten more trusted by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and enable the company to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is decreasing. This indication likewise reveals a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing financial obligation ratio posture a risk of default of Business to its investors and might lead a decreasing share prices. In terms of increasing financial obligation ratio, the firm must not invest much on R&D and must pay its present financial obligations to reduce the risk for financiers.
The increasing threat of financiers with increasing financial obligation ratio and decreasing share costs can be observed by big decrease of EPS of Yale University Investments Office June 2003 stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish growth likewise prevent business to additional spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Graphs given up the Exhibits D and E.

TWOS Analysis


2 analysis can be utilized to obtain numerous techniques based upon the SWOT Analysis offered above. A short summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business should present more innovative items by big 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 could also provide Business a long term competitive advantage over its rivals.
The international expansion of Business ought to be focused on market capturing of developing countries by expansion, drawing in more customers through client's loyalty. As establishing nations are more populous than developed countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisYale University Investments Office June 2003 should do careful acquisition and merger of companies, as it might affect the customer's and society's perceptions about Business. It should get and merge with those business which have a market reputation of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business needs to not just spend its R&D on innovation, instead of it needs to likewise focus on the R&D costs over assessment of expense of numerous nutritious items. This would increase expense performance of its products, which will result in increasing its sales, due to decreasing prices, and margins.

Strategies to use strengths to overcome threats

Business should relocate to not only establishing however likewise to developed countries. It must widens its geographical expansion. This wide geographical expansion towards establishing and developed nations would decrease the danger of prospective losses in times of instability in different nations. It should expand its circle to various nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Yale University Investments Office June 2003 must carefully control its acquisitions to prevent the risk of mistaken belief from the consumers about Business. It should acquire and combine with those nations having a goodwill of being a healthy business in the market. This would not just improve the understanding of customers about Business however would also increase the sales, profit margins and market share of Business. It would likewise make it possible for the company to use its prospective resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on four aspects; age, gender, income and profession. Business produces a number of items related to infants i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. Yale University Investments Office June 2003 items are quite affordable by almost all levels, however its significant targeted consumers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in nearly 86 nations. Its geographical division is based upon two primary aspects i.e. average earnings level of the consumer in addition to the environment of the area. Singapore Business Company's division 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 clients whose life design is quite hectic and don't have much time.

Behavioral Segmentation

Yale University Investments Office June 2003 behavioral division is based upon the attitude understanding and awareness of the customer. Its highly healthy products target those clients who have a health mindful attitude towards their usages.

Yale University Investments Office June 2003 Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are two options:
Alternative: 1
The Business must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total properties of the company, increasing the wealth of the business. Spending on R&D would be sunk cost.
2. The company can resell the obtained units in the market, if it stops working to execute its strategy. However, amount spend on the R&D might not be revived, and it will be considered entirely sunk expense, if it do not give possible results.
3. Spending on R&D offer slow development in sales, as it takes long period of time to present a product. However, acquisitions provide fast outcomes, as it supply the company already established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core worths of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send out a signal of company's ineffectiveness of developing ingenious products, and would outcomes in customer's dissatisfaction.
3. Large 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 must spend more on its R&D rather than acquisitions.
Pros:
1. It would make it possible for the company to produce more ingenious items.
2. It would offer the business 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 provided to an entirely new market segment.
4. Innovative items will provide long term benefits 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 thought about as sunk expense, and would impact the business at big. The danger is not in the case of acquisitions.
3. It would not increase the wealth of business, which could supply a negative signal to the financiers, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present new ingenious items with less danger of converting the costs on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the total possessions of the company would increase with its significant R&D costs.
3. It would not impact the revenue margins of the business at a big rate as compare to alternative 2.
4. It would provide the business a strong long term market position in regards to the company's general wealth in addition to in terms of ingenious products.
Cons:
1. Risk of conversion of R&D spending into sunk cost, higher than option 1 lesser than alternative 2.
2. Danger of misunderstanding about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less number of ingenious items than alternative 2 and high variety of ingenious products than alternative 1.

Yale University Investments Office June 2003 Conclusion

RecommendationsIt has institutionalized its methods and culture to align itself with the market changes and consumer behavior, which has ultimately allowed it to sustain its market share. Business has developed substantial market share and brand name identity in the city markets, it is recommended that the business needs to focus on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by producing a particular brand allocation technique through trade marketing tactics, that draw clear difference in between Yale University Investments Office June 2003 products and other competitor products.

Yale University Investments Office June 2003 Exhibits

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

Altering standards of worldwide food.
Improved market share.
Changing perception in the direction of much healthier products
Improvements in R&D and QA divisions.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 6000
Highest possible after Organisation with less development than Business 7th Cheapest
R&D Spending Highest because 2005 Highest after Business 7th Most affordable
Net Profit Margin Greatest since 2009 with rapid growth from 2006 to 2013 As a result of sale of Alcon in 2018. Nearly equal to Kraft Foods Incorporation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health aspect Highest variety of brands with lasting practices Biggest confectionary as well as refined foods brand worldwide Biggest milk products as well as mineral water brand on the planet
Segmentation Middle and also top center level consumers worldwide Individual customers along with house group All age and Revenue Client Groups Center as well as top center level consumers worldwide
Number of Brands 1st 3rd 8th 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 35198 314265 932519 917264 857151
Net Profit Margin 8.55% 2.82% 62.21% 1.15% 13.16%
EPS (Earning Per Share) 27.53 3.49 4.41 9.54 52.93
Total Asset 248342 741113 782982 219319 69277
Total Debt 84358 52369 97639 49646 74364
Debt Ratio 72% 37% 37% 85% 82%
R&D Spending 5551 7348 4675 7414 8141
R&D Spending as % of Sales 1.82% 5.89% 6.98% 3.96% 8.15%

Yale University Investments Office June 2003 Executive Summary Yale University Investments Office June 2003 Swot Analysis Yale University Investments Office June 2003 Vrio Analysis Yale University Investments Office June 2003 Pestel Analysis
Yale University Investments Office June 2003 Porters Analysis Yale University Investments Office June 2003 Recommendations