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Serena And Lily Case Study Solution

Business is currently one of the biggest food chains worldwide. It was established by Henri Serena And Lily in 1866, a German Pharmacist who first released "FarineLactee"; a mix of flour and milk to feed infants and reduce death rate.
Business is now a global business. Unlike other international business, it has senior executives from different countries and tries to make choices considering the entire world. Serena And Lily currently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

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

Vision

Serena And Lily's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. Business pictures to develop a well-trained workforce which would help the company to grow
.

Mission

Serena And Lily's objective is that as presently, it is the leading business in the food industry, it thinks in 'Good Food, Great Life". Its objective is to supply its customers with a range of options that are healthy and best in taste. It is concentrated on providing the very best food to its consumers throughout the day and night.

Products.

Serena And Lily has a wide variety of items that it offers to its consumers. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has set its goals and goals. These goals and objectives are noted below.
• One objective of the business is to reach no garbage dump status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Serena And Lily is to squander minimum food during production. Most often, the food produced is squandered even prior to it reaches the clients.
• Another thing that Business is dealing with is to improve its packaging in such a method that it would help it to decrease those problems and would also guarantee the shipment of high quality of its products to its consumers.
• Meet international standards of the environment.
• Construct a relationship based upon trust with its consumers, business partners, workers, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW strategy. Nevertheless, the target of the business is not achieved as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given up Exhibit H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might lead to the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based upon the concept of Nutritious, Health and Wellness (NHW). This technique deals with the concept to bringing modification in the consumer choices about food and making the food things much healthier concerning about the health problems.
The vision of this technique is based upon the key technique i.e. 60/40+ which just suggests that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary value. The items will be made with additional nutritional worth in contrast to all other items in market acquiring it a plus on its dietary content.
This technique was embraced to bring more yummy plus healthy foods and drinks in market than ever. In competitors with other companies, with an intention of retaining its trust over customers as Business Company has actually acquired more relied on by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are declining 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 portion of sales is decreasing. This indicator also reveals a green light 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 financial obligations. This increasing financial obligation ratio position a danger of default of Business to its investors and could lead a declining share costs. In terms of increasing financial obligation ratio, the firm ought to not spend much on R&D and needs to pay its existing debts to reduce the threat for investors.
The increasing risk of financiers with increasing debt ratio and declining share costs can be observed by huge decline of EPS of Serena And Lily stocks.
The sales development of business is likewise low as compare to its mergers and acquisitions due to slow perception building of customers. This sluggish development also hinder business to additional spend on 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 up the Exhibits D and E.

TWOS Analysis


TWOS analysis can be used to obtain different techniques based on the SWOT Analysis offered above. A brief summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more ingenious products by big quantity of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the profit margins for the company. It might likewise provide Business a long term competitive benefit over its competitors.
The global expansion of Business must be concentrated on market capturing of establishing countries by expansion, bring in more consumers through client's loyalty. As developing nations are more populous than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisSerena And Lily ought to do cautious acquisition and merger of organizations, as it might affect the consumer's and society's perceptions about Business. It needs to obtain and merge with those business which have a market reputation of healthy and nutritious business. It would improve the understandings of consumers about Business.
Business ought to not only spend its R&D on innovation, instead of it ought to likewise focus on the R&D spending over examination of cost of different nutritious products. This would increase expense effectiveness of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business must move to not just establishing but likewise to industrialized countries. It should broaden its circle to different countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Serena And Lily must wisely manage its acquisitions to prevent the threat of misconception from the customers about Business. It should acquire and merge with those countries having a goodwill of being a healthy company in the market. This would not only enhance the perception of customers about Business but would likewise increase the sales, revenue margins and market share of Business. It would likewise allow the business to utilize its potential resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 factors; age, gender, earnings and profession. 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. Serena And Lily products are quite economical by nearly all levels, however its significant targeted consumers, in terms of income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical division of Business is composed of its existence in nearly 86 nations. Its geographical segmentation is based upon two primary elements i.e. average earnings level of the consumer along with the environment of the area. For example, 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 customer. For instance, Business 3 in 1 Coffee target those clients whose life style is quite hectic and don't have much time.

Behavioral Segmentation

Serena And Lily behavioral division is based upon the mindset knowledge and awareness of the customer. Its highly nutritious products target those customers who have a health mindful attitude towards their usages.

Serena And Lily Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand name, there are two choices:
Alternative: 1
The Company must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Spending on R&D would be sunk expense.
2. The business can resell the gotten units in the market, if it stops working to implement its method. Amount spend on the R&D might not be restored, and it will be thought about entirely sunk expense, if it do not offer prospective outcomes.
3. Investing in R&D provide sluggish development in sales, as it takes very long time to introduce an item. Nevertheless, acquisitions supply fast outcomes, as it provide the company currently developed product, which can be marketed right after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the business to face misconception of consumers about Business core worths of healthy and nutritious items.
2 Big costs on acquisitions than R&D would send a signal of business's ineffectiveness of developing ingenious products, and would results in consumer's frustration.
3. Large acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making business not able to introduce brand-new innovative products.
Option: 2.
The Business must spend more on its R&D rather than acquisitions.
Pros:
1. It would allow the business to produce more ingenious items.
2. It would supply the business a strong competitive position in the market.
3. It would allow the business to increase its targeted customers by presenting those products which can be offered to an entirely new market section.
4. Ingenious items will supply long term benefits and high market share in long term.
Cons:
1. It would reduce the earnings 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 company at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might offer a negative signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to introduce brand-new ingenious products with less threat of transforming the spending on R&D into sunk expense.
2. It would supply a favorable signal to the investors, as the total assets of the company would increase with its significant R&D spending.
3. It would not impact the profit margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in regards to the business's general wealth along with in terms of innovative 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, higher than alternative 2 and lower than alternative 1.
3. Intro of less number of ingenious items than alternative 2 and high variety of innovative products than alternative 1.

Serena And Lily Conclusion

RecommendationsBusiness has stayed the leading market gamer for more than a decade. It has actually institutionalised its strategies and culture to align itself with the market changes and client behavior, which has eventually allowed it to sustain its market share. Though, Business has actually established considerable market share and brand name identity in the metropolitan markets, it is advised that the business must focus on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by creating a specific brand name allowance method through trade marketing methods, that draw clear difference between Serena And Lily items and other rival products. Serena And Lily should leverage its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will enable the business to develop brand equity for freshly presented and already produced items on a higher platform, making the effective usage of resources and brand name image in the market.

Serena And Lily Exhibits

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

Altering criteria of worldwide food.
Enhanced market share.
Transforming perception in the direction of much healthier products
Improvements in R&D and QA divisions.

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

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest since 1000
Highest possible after Business with much less development than Service 8th Cheapest
R&D Spending Greatest because 2007 Greatest after Organisation 7th Cheapest
Net Profit Margin Highest possible since 2001 with fast growth from 2001 to 2018 As a result of sale of Alcon in 2011. Nearly equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness element Highest number of brand names with lasting methods Biggest confectionary as well as refined foods brand name in the world Biggest milk products and bottled water brand in the world
Segmentation Center and also top middle level customers worldwide Individual consumers together with household team Every age and also Earnings Client Groups Center as well as top middle level customers worldwide
Number of Brands 3rd 4th 8th 4th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 84237 269356 875522 786114 951468
Net Profit Margin 3.26% 1.38% 51.53% 8.71% 75.66%
EPS (Earning Per Share) 26.69 6.73 5.87 9.76 84.17
Total Asset 623216 973458 679213 179376 52346
Total Debt 16994 31751 34899 91945 56767
Debt Ratio 72% 57% 99% 78% 96%
R&D Spending 5882 5224 7896 6937 9567
R&D Spending as % of Sales 3.73% 2.78% 2.18% 6.55% 3.75%

Serena And Lily Executive Summary Serena And Lily Swot Analysis Serena And Lily Vrio Analysis Serena And Lily Pestel Analysis
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