Elephant Bar Restaurant Mezzanine Financing Case Study Analysis

Elephant Bar Restaurant Mezzanine Financing is presently one of the biggest food cycle worldwide. It was founded by Kelloggs in 1866, a German Pharmacist who initially launched "FarineLactee"; a mix of flour and milk to feed infants and decrease death rate. At the very same time, the Page bros from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two ended up being rivals in the beginning but in the future combined in 1905, leading to the birth of Elephant Bar Restaurant Mezzanine Financing.
Business is now a transnational company. Unlike other international companies, it has senior executives from different nations and tries to make choices considering the whole world. Elephant Bar Restaurant Mezzanine Financing currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The function of Elephant Bar Restaurant Mezzanine Financing Corporation is to enhance the lifestyle of individuals by playing its part and offering healthy food. It wants 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 certain that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Elephant Bar Restaurant Mezzanine Financing's vision is to provide its clients with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and all at once comprehend the requirements and requirements of its consumers. Its vision is to grow fast and provide products that would satisfy the needs of each age group. Elephant Bar Restaurant Mezzanine Financing visualizes to develop a trained labor force which would help the company to grow
.

Mission

Elephant Bar Restaurant Mezzanine Financing's mission is that as presently, it is the leading company in the food industry, it thinks in 'Excellent Food, Great Life". Its mission is to provide its consumers with a variety of options that are healthy and finest in taste too. It is concentrated on supplying the very best food to its customers throughout the day and night.

Products.

Elephant Bar Restaurant Mezzanine Financing has a broad variety of items that it uses to its consumers. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the business has actually put down its objectives and goals. These goals and objectives are noted below.
• One objective of the company is to reach absolutely no land fill status. (Business, aboutus, 2017).
• Another goal of Elephant Bar Restaurant Mezzanine Financing is to waste minimum food throughout production. Usually, the food produced is squandered even prior to it reaches the clients.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to reduce the above-mentioned issues and would likewise guarantee the shipment of high quality of its products to its customers.
• Meet global requirements of the environment.
• Construct a relationship based upon trust with its customers, business partners, employees, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the technique 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 technique. 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 in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business strategy is based upon the concept of Nutritious, Health and Wellness (NHW). This strategy deals with the concept to bringing change in the consumer preferences about food and making the food things much healthier concerning about the health issues.
The vision of this method is based on the secret approach i.e. 60/40+ which just implies that the items will have a score of 60% on the basis of taste and 40% is based on its nutritional worth. The items will be made with extra dietary value in contrast to all other items in market getting it a plus on its nutritional material.
This method was embraced to bring more delicious plus healthy foods and drinks in market than ever. In competition with other companies, with an intent of retaining its trust over clients as Business Company has gotten more trusted by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing actual amount of spending reveals that the sales are increasing at a greater rate than its R&D costs, and allow the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is declining. This indicator also reveals a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing debt ratio posture a threat of default of Business to its investors and could lead a decreasing share costs. Therefore, in regards to increasing financial obligation ratio, the company should not spend much on R&D and must pay its current financial obligations to reduce the danger for financiers.
The increasing danger of investors with increasing financial obligation ratio and declining share costs can be observed by big decline of EPS of Elephant Bar Restaurant Mezzanine Financing stocks.
The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This sluggish growth also hinder business to more 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 computations and Graphs given up the Exhibits D and E.

TWOS Analysis

2 analysis can be utilized to derive numerous methods based on the SWOT Analysis offered above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more innovative products by large quantity of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the company. It might also supply Business a long term competitive benefit over its competitors.
The international expansion of Business must be concentrated on market catching of establishing nations by expansion, attracting more customers through client's loyalty. As establishing nations are more populated than industrialized countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Elephant Bar Restaurant Mezzanine Financing ought to do mindful acquisition and merger of companies, as it could impact the client's and society's understandings about Business. It must acquire and combine with those companies which have a market credibility of healthy and healthy business. It would enhance the understandings of customers about Business.
Business ought to not just invest its R&D on innovation, instead of it ought to likewise concentrate on the R&D spending over examination of cost of numerous nutritious items. This would increase cost efficiency of its items, which will lead to increasing its sales, due to decreasing rates, and margins.

Strategies to use strengths to overcome threats

Business needs to move to not just establishing however also to developed countries. It ought to widen its circle to various nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to get and merge with those countries having a goodwill of being a healthy company in the market. It would also enable the business to utilize its possible resources effectively on its other operations rather than acquisitions of those companies slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based upon four aspects; age, gender, income and profession. Business produces a number of products related to children i.e. Cerelac, Nido, and so on and related to adults i.e. confectionary products. Elephant Bar Restaurant Mezzanine Financing items are quite affordable by nearly all levels, however its significant targeted customers, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its presence in almost 86 nations. Its geographical division is based upon two primary factors i.e. average earnings level of the consumer along with the environment of the region. For instance, Singapore Business Business's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and life style of the customer. For instance, Business 3 in 1 Coffee target those consumers whose life style is rather hectic and don't have much time.

Behavioral Segmentation

Elephant Bar Restaurant Mezzanine Financing behavioral division is based upon the attitude knowledge and awareness of the consumer. For example its highly nutritious items target those consumers who have a health mindful attitude towards their usages.

Elephant Bar Restaurant Mezzanine Financing Alternatives

In order to sustain the brand name in the market and keep the consumer undamaged with the brand name, there are two alternatives:
Option: 1
The Business must spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the company, increasing the wealth of the company. Costs on R&D would be sunk cost.
2. The business can resell the obtained systems in the market, if it stops working to execute its method. However, quantity spend on the R&D could not be restored, and it will be thought about totally sunk cost, if it do not provide prospective results.
3. Investing in R&D offer sluggish development in sales, as it takes very long time to present a product. Acquisitions supply quick outcomes, as it offer the business currently developed item, which can be marketed soon 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 deal with misunderstanding of customers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of establishing innovative products, and would results in customer's frustration as well.
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 unable to present brand-new innovative products.
Option: 2.
The Business should invest more on its R&D rather than acquisitions.
Pros:
1. It would allow the company to produce more ingenious items.
2. It would supply the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted consumers by introducing those items which can be offered to a completely brand-new market sector.
4. Ingenious items will supply long term benefits and high market share in long run.
Cons:
1. It would reduce the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, and would impact the company at large. The threat 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 could result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Pros:
1. It would permit the company to introduce new innovative items with less risk of transforming the spending on R&D into sunk cost.
2. It would supply a positive signal to the investors, as the general possessions of the company would increase with its considerable R&D spending.
3. It would not affect the revenue margins of the business at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the company's general wealth along with in regards to innovative items.
Cons:
1. Danger of conversion of R&D costs into sunk cost, greater than option 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 ingenious items than alternative 2 and high variety of ingenious items than alternative 1.

Elephant Bar Restaurant Mezzanine Financing Conclusion

It has institutionalized its techniques and culture to align itself with the market changes and consumer behavior, which has actually ultimately enabled it to sustain its market share. Business has actually established considerable market share and brand name identity in the city markets, it is suggested that the business must focus on the rural areas in terms of developing brand loyalty, awareness, and equity, such can be done by creating a specific brand allowance method through trade marketing strategies, that draw clear difference between Elephant Bar Restaurant Mezzanine Financing items and other competitor items.

Elephant Bar Restaurant Mezzanine Financing Exhibits