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Mobileye The Future Of Driverless Cars Case Study Analysis

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Mobileye The Future Of Driverless Cars Case Study Solution

Business is currently one of the greatest food chains worldwide. It was founded by Henri Mobileye The Future Of Driverless Cars in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed babies and decrease mortality rate.
Business is now a multinational business. Unlike other multinational companies, it has senior executives from various countries and attempts to make choices considering the entire world. Mobileye The Future Of Driverless Cars currently has more than 500 factories worldwide and a network spread throughout 86 nations.

Purpose

The purpose of Mobileye The Future Of Driverless Cars Corporation is to boost the quality of life of individuals by playing its part and supplying healthy food. It wants to help the world in shaping a healthy and better future for it. It likewise wishes to encourage people 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

Vision

Mobileye The Future Of Driverless Cars's vision is to supply its customers with food that is healthy, high in quality and safe to consume. Business imagines to establish a well-trained labor force which would help the company to grow
.

Mission

Mobileye The Future Of Driverless Cars's mission is that as presently, it is the leading business in the food industry, it thinks in 'Good Food, Great Life". Its mission is to provide its consumers with a range of choices that are healthy and best in taste as well. It is concentrated on supplying the best food to its customers throughout the day and night.

Products.

Business has a large range of items that it offers to its customers. Its products include food for infants, cereals, dairy items, treats, chocolates, food for animal and bottled water. It has around four hundred and fifty (450) factories around the world and around 328,000 employees. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the company has laid down its goals and goals. These goals and goals are noted below.
• One goal of the business is to reach absolutely no land fill status. (Business, aboutus, 2017).
• Another objective of Mobileye The Future Of Driverless Cars is to squander minimum food throughout production. Usually, the food produced is lost even before it reaches the consumers.
• Another thing that Business is working on is to enhance its product packaging in such a method that it would help it to lower the above-mentioned complications and would also ensure the shipment of high quality of its items to its consumers.
• Meet global standards of the environment.
• Build a relationship based upon trust with its consumers, organisation partners, employees, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the technique of NHW and investing more of its profits on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. The target of the business is not achieved as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the concept of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing modification in the client choices about food and making the food things much healthier worrying about the health problems.
The vision of this strategy is based upon the secret approach i.e. 60/40+ which just indicates that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be made with extra nutritional worth in contrast to all other products in market gaining it a plus on its dietary content.
This strategy was embraced to bring more delicious plus healthy foods and drinks in market than ever. In competition with other companies, with an objective of maintaining its trust over customers as Business Business has acquired more relied on by costumers.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real amount of spending reveals that the sales are increasing at a greater rate than its R&D costs, and enable the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This sign also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of debts. This increasing debt ratio posture a hazard of default of Business to its financiers and might lead a declining share costs. Therefore, in regards to increasing financial obligation ratio, the company ought to not spend much on R&D and needs to pay its current financial obligations to decrease the risk for investors.
The increasing threat of investors with increasing debt ratio and declining share rates can be observed by big decrease of EPS of Mobileye The Future Of Driverless Cars stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception building of customers. This sluggish growth also hinder business to further 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 in the Displays D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business should introduce more innovative products by large quantity of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the profit margins for the business. It could likewise supply Business a long term competitive advantage over its rivals.
The international expansion of Business should be concentrated on market catching of establishing countries by growth, bring in more consumers through client's loyalty. As developing countries are more populous than industrialized nations, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisMobileye The Future Of Driverless Cars should do cautious acquisition and merger of organizations, 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 track record of healthy and healthy companies. It would improve the perceptions of consumers about Business.
Business needs to not just invest its R&D on innovation, instead of it ought to also focus on the R&D spending over assessment of cost of various healthy items. This would increase expense effectiveness of its items, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not just establishing but likewise to developed nations. It needs to broaden its circle to various nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should get and merge with those nations having a goodwill of being a healthy business in the market. It would also make it possible for the business to utilize its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on four elements; age, gender, income and occupation. Business produces a number of items related to infants i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Mobileye The Future Of Driverless Cars items are quite budget-friendly by almost all levels, however its significant targeted clients, 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 almost 86 countries. Its geographical division is based upon 2 main aspects i.e. average income level of the customer along with the environment of the area. For instance, 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 consumer. For example, Business 3 in 1 Coffee target those consumers whose lifestyle is rather busy and don't have much time.

Behavioral Segmentation

Mobileye The Future Of Driverless Cars behavioral segmentation is based upon the mindset understanding and awareness of the customer. For example its extremely nutritious items target those clients who have a health conscious mindset towards their usages.

Mobileye The Future Of Driverless Cars Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand name, there are two options:
Option: 1
The Company should spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. However, costs on R&D would be sunk cost.
2. The business can resell the acquired systems in the market, if it stops working to implement its technique. However, quantity invest in the R&D might not be revived, and it will be thought about totally sunk cost, if it do not give potential results.
3. Investing in R&D provide sluggish development in sales, as it takes long period of time to introduce a product. Acquisitions supply quick outcomes, as it provide the business currently developed product, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to face misunderstanding 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 business's inadequacy of establishing ingenious products, and would lead to consumer's dissatisfaction also.
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 introduce new ingenious items.
Option: 2.
The Company should spend more on its R&D instead of acquisitions.
Pros:
1. It would make it possible for the company to produce more innovative items.
2. It would offer the company a strong competitive position in the market.
3. It would allow the business to increase its targeted consumers by presenting those products which can be provided to a completely new market sector.
4. Innovative items will offer long term advantages and high market share in long run.
Cons:
1. It would decrease 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 affect the business at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which might provide an unfavorable signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with considerable spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to introduce brand-new ingenious products with less threat of transforming the costs on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the overall assets of the business would increase with its significant R&D costs.
3. It would not affect 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 regards to the company's overall wealth in addition to in regards to innovative products.
Cons:
1. Risk of conversion of R&D costs into sunk cost, greater than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Intro of less variety of ingenious items than alternative 2 and high number of innovative items than alternative 1.

Mobileye The Future Of Driverless Cars Conclusion

RecommendationsIt has institutionalised its techniques and culture to align itself with the market modifications and client behavior, which has ultimately allowed it to sustain its market share. Business has actually established considerable market share and brand name identity in the metropolitan markets, it is advised that the business ought to focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by creating a specific brand allocation strategy through trade marketing tactics, that draw clear distinction in between Mobileye The Future Of Driverless Cars items and other rival products.

Mobileye The Future Of Driverless Cars Exhibits

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

Transforming requirements of worldwide food.
Enhanced market share. Transforming understanding in the direction of healthier products Improvements in R&D and QA departments.

Introduction of E-marketing.
No such influence as it is beneficial. Problems over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest considering that 4000 Greatest after Organisation with much less development than Organisation 8th Lowest
R&D Spending Highest possible considering that 2003 Highest after Organisation 8th Cheapest
Net Profit Margin Highest since 2003 with rapid development from 2003 to 2011 As a result of sale of Alcon in 2012. Nearly equal to Kraft Foods Consolidation Nearly equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as health and wellness variable Greatest number of brand names with sustainable practices Biggest confectionary and also refined foods brand worldwide Biggest dairy items and mineral water brand name in the world
Segmentation Center and also upper center level customers worldwide Individual customers together with household team Every age and Income Client Groups Center and top center degree consumers worldwide
Number of Brands 1st 4th 1st 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 53836 733584 257385 439326 512651
Net Profit Margin 3.84% 5.31% 42.74% 2.51% 76.41%
EPS (Earning Per Share) 88.44 2.15 9.43 2.38 13.35
Total Asset 184454 555298 992139 916459 91696
Total Debt 71594 84832 93644 11871 95369
Debt Ratio 89% 89% 93% 29% 58%
R&D Spending 7119 1153 6368 6766 8688
R&D Spending as % of Sales 6.15% 6.77% 9.82% 1.26% 1.27%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations