Brentwood Associates Exiting Zoes Kitchen Case Study Help

Business is presently one of the biggest food chains worldwide. It was established by Henri Brentwood Associates Exiting Zoes Kitchen in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed infants and reduce mortality rate.
Business is now a multinational business. Unlike other international companies, it has senior executives from various countries and attempts to make choices considering the entire world. Brentwood Associates Exiting Zoes Kitchen currently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The function of Business Corporation is to enhance the quality of life of individuals by playing its part and supplying 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

Brentwood Associates Exiting Zoes Kitchen's vision is to supply its customers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and at the same time comprehend the needs and requirements of its customers. Its vision is to grow quickly and supply products that would satisfy the requirements of each age. Brentwood Associates Exiting Zoes Kitchen imagines to develop a well-trained labor force which would help the company to grow
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Mission

Brentwood Associates Exiting Zoes Kitchen's mission is that as presently, it is the leading business in the food industry, it believes in 'Good Food, Excellent Life". Its mission is to provide its consumers with a range of options that are healthy and finest in taste too. It is focused on offering the very best food to its clients throughout the day and night.

Products.

Business has a wide range of items that it provides to its consumers. Its products 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 around the globe 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 actually set its objectives and objectives. These objectives and objectives are noted below.
• One goal of the company is to reach zero garbage dump status. (Business, aboutus, 2017).
• Another objective of Brentwood Associates Exiting Zoes Kitchen is to lose minimum food during production. Frequently, the food produced is lost even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to minimize those issues and would also guarantee the shipment of high quality of its items to its customers.
• Meet global standards of the environment.
• Construct a relationship based upon trust with its consumers, service partners, staff members, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its earnings on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the business is not accomplished 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. There is a need to focus more on the sales then the innovation technology. Otherwise, it may lead to the decreased income rate. (Henderson, 2012).

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 technique deals with the concept to bringing change in the client choices about food and making the food things healthier concerning about the health issues.
The vision of this technique is based on the key technique 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 additional nutritional value in contrast to all other items in market gaining it a plus on its nutritional material.
This strategy was adopted to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other companies, with an objective of keeping its trust over consumers as Business Business has actually acquired more relied on by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing actual amount of spending shows that the sales are increasing at a higher rate than its R&D spending, and enable the business to more invest in 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.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio pose a hazard of default of Business to its investors and might lead a decreasing share rates. In terms of increasing financial obligation ratio, the company needs to not spend much on R&D and must pay its current debts to decrease the threat for investors.
The increasing danger of investors with increasing debt ratio and declining share prices can be observed by substantial decrease of EPS of Brentwood Associates Exiting Zoes Kitchen stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development also prevent 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 calculations and Graphs given in the Exhibitions D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative items by big quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the company. It might likewise offer Business a long term competitive advantage over its rivals.
The global growth of Business ought to be focused on market recording of developing countries by growth, drawing in more customers through consumer's commitment. As developing countries are more populous than industrialized nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Brentwood Associates Exiting Zoes Kitchen should do cautious acquisition and merger of organizations, as it might impact the customer's and society's understandings about Business. It ought to get and merge with those companies which have a market reputation of healthy and nutritious companies. It would improve the understandings of consumers about Business.
Business should not only invest its R&D on development, rather than it ought to likewise concentrate on the R&D spending over evaluation of cost of various healthy items. This would increase cost 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 establishing but also to industrialized countries. It should expand its circle to numerous nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Brentwood Associates Exiting Zoes Kitchen needs to carefully control its acquisitions to avoid the danger of misconception from the customers about Business. It must acquire and merge with those countries having a goodwill of being a healthy business in the market. This would not only enhance the understanding of customers about Business however would likewise increase the sales, revenue margins and market share of Business. It would likewise enable the business to use its potential resources efficiently on its other operations instead of acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on 4 factors; age, gender, income and profession. Business produces several items related to children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary products. Brentwood Associates Exiting Zoes Kitchen items are quite budget-friendly by almost all levels, however its major targeted consumers, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is made up of its existence in practically 86 countries. Its geographical division is based upon 2 main aspects i.e. typical earnings level of the consumer in addition to the climate of the area. Singapore Business Business's division is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and lifestyle of the consumer. For instance, Business 3 in 1 Coffee target those customers whose life style is quite busy and do not have much time.

Behavioral Segmentation

Brentwood Associates Exiting Zoes Kitchen behavioral segmentation is based upon the mindset knowledge and awareness of the consumer. For example its extremely healthy items target those clients who have a health conscious mindset towards their usages.

Brentwood Associates Exiting Zoes Kitchen Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand, there are two alternatives:
Alternative: 1
The Business should invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. Costs on R&D would be sunk cost.
2. The company can resell the obtained systems in the market, if it stops working to implement its technique. Quantity spend on the R&D could not be revived, and it will be thought about totally sunk cost, if it do not offer prospective outcomes.
3. Investing in R&D supply sluggish growth in sales, as it takes long time to introduce a product. Nevertheless, acquisitions provide quick results, as it supply the company already developed product, which can be marketed right 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 face mistaken belief of consumers about Business core worths of healthy and healthy products.
2 Large costs on acquisitions than R&D would send a signal of business's inefficiency of establishing ingenious products, and would outcomes in customer's frustration.
3. Large acquisitions than R&D would extend the line of product of the business by the products which are already present in the market, making business unable to present brand-new innovative items.
Alternative: 2.
The Company must spend more on its R&D rather than acquisitions.
Pros:
1. It would enable the company to produce more ingenious products.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted clients by presenting those products which can be used to an entirely brand-new market segment.
4. Innovative products will offer long term benefits and high market share in long term.
Cons:
1. It would decrease the revenue margins of the business.
2. In case of failure, the whole spending on R&D would be thought about 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 business, which might supply a negative signal to the investors, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with considerable costs on in R&D Program.
Pros:
1. It would allow the company to present new innovative products with less threat of converting the costs on R&D into sunk cost.
2. It would provide a positive signal to the financiers, as the general possessions of the company would increase with its substantial 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 offer the company a strong long term market position in regards to the business's overall wealth along with in terms of ingenious products.
Cons:
1. Danger of conversion of R&D spending into sunk cost, greater than alternative 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less variety of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

Brentwood Associates Exiting Zoes Kitchen Conclusion

It has actually institutionalized its strategies and culture to align itself with the market changes and consumer habits, which has eventually enabled it to sustain its market share. Business has developed significant market share and brand identity in the urban markets, it is advised that the business needs to focus on the rural areas in terms of developing brand name commitment, awareness, and equity, such can be done by creating a specific brand allocation method through trade marketing techniques, that draw clear difference in between Brentwood Associates Exiting Zoes Kitchen items and other competitor items.

Brentwood Associates Exiting Zoes Kitchen Exhibits