Facebook B Case Study Help

Facebook B is presently one of the greatest food chains worldwide. It was established by Kelloggs in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate. At the same time, the Page bros from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The two ended up being competitors initially but in the future combined in 1905, leading to the birth of Facebook B.
Business is now a multinational company. Unlike other international business, it has senior executives from different countries and tries to make decisions thinking about the whole world. Facebook B presently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

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

Vision

Facebook B's vision is to offer its consumers with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and all at once comprehend the needs and requirements of its clients. Its vision is to grow fast and supply products that would satisfy the needs of each age group. Facebook B visualizes to develop a well-trained labor force which would help the business to grow
.

Mission

Facebook B's mission is that as currently, it is the leading business in the food market, it believes in 'Good Food, Excellent Life". Its mission is to offer its consumers with a variety of options that are healthy and best in taste too. It is focused on offering the best food to its customers throughout the day and night.

Products.

Facebook B has a large variety of products that it offers to its customers. In 2011, Business was noted as the most rewarding company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has actually laid down its objectives and objectives. These objectives and objectives are noted below.
• One objective of the company is to reach no land fill status. It is working toward absolutely no waste, where no waste of the factory is landfilled. It encourages its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another goal of Facebook B is to waste minimum food during production. Usually, the food produced is squandered even prior to it reaches the clients.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to lower the above-mentioned issues and would likewise guarantee the delivery of high quality of its products to its clients.
• Meet worldwide standards of the environment.
• Develop a relationship based upon trust with its consumers, service partners, employees, and federal government.

Critical Issues

Recently, Business Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW strategy. Nevertheless, the target of the company is not achieved as the sales were anticipated to grow higher at the rate of 10% each year and the operating margins to increase by 20%, given in Exhibition H. There is a requirement to focus more on the sales then the development technology. Otherwise, it may lead to the decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based upon the idea of Nutritious, Health and Wellness (NHW). This method deals with the concept to bringing change in the consumer choices about food and making the food stuff healthier concerning about the health problems.
The vision of this method is based on the secret technique i.e. 60/40+ which just indicates that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The products will be produced with additional nutritional value in contrast to all other products in market getting it a plus on its nutritional content.
This strategy was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competition with other business, with an intent of keeping its trust over consumers as Business Company has gotten more relied on by costumers.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing actual amount of spending shows that the sales are increasing at a higher rate than its R&D costs, and allow the company to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion of sales is declining. This indicator also shows a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio pose a hazard of default of Business to its financiers and might lead a decreasing share prices. Therefore, in regards to increasing debt ratio, the company should not invest much on R&D and must pay its existing financial obligations to reduce the threat for investors.
The increasing threat of financiers with increasing debt ratio and declining share rates can be observed by huge decrease of EPS of Facebook B stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow perception building of consumers. This sluggish development also impede business to further 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 Charts given up the Displays D and E.

TWOS Analysis

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

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative products by big amount of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the earnings margins for the business. It could also provide Business a long term competitive advantage over its rivals.
The international expansion of Business must be focused on market capturing of developing countries by growth, attracting more clients through client's commitment. As establishing countries are more populated than industrialized nations, it might increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Facebook B needs to do mindful acquisition and merger of organizations, as it could impact the customer's and society's perceptions about Business. It should get and merge with those companies which have a market credibility of healthy and healthy companies. It would improve the understandings of consumers about Business.
Business must not just invest its R&D on innovation, instead of it must also focus on the R&D costs over evaluation of expense of various nutritious products. This would increase cost efficiency of its items, which will lead to 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 should expands its geographical growth. This large geographical growth towards developing and developed countries would lower the risk of possible losses in times of instability in different countries. It ought to expand its circle to numerous nations like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to get and combine with those nations having a goodwill of being a healthy company in the market. It would also enable the company to use its prospective resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on 4 elements; age, gender, earnings and profession. Business produces a number of items related to children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Facebook B items are rather inexpensive by nearly all levels, but its major targeted clients, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in practically 86 countries. Its geographical segmentation is based upon 2 primary factors i.e. average income level of the customer as well as the climate of the region. For example, Singapore Business Business's segmentation 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 character and lifestyle of the client. Business 3 in 1 Coffee target those customers whose life design is quite hectic and do not have much time.

Behavioral Segmentation

Facebook B behavioral segmentation is based upon the mindset understanding and awareness of the customer. Its highly healthy products target those customers who have a health conscious attitude towards their intakes.

Facebook B Alternatives

In order to sustain the brand name in the market and keep the client intact with the brand, there are two choices:
Option: 1
The Business should invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the company, increasing the wealth of the business. However, spending on R&D would be sunk expense.
2. The company can resell the gotten units in the market, if it fails to implement its strategy. Amount spend on the R&D might not be restored, and it will be considered entirely sunk cost, if it do not offer prospective results.
3. Spending on R&D provide slow growth in sales, as it takes long time to introduce a product. Nevertheless, acquisitions offer fast outcomes, as it offer the company already established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with 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 company's inadequacy of establishing innovative products, and would results in customer's discontentment as well.
3. Big acquisitions than R&D would extend the product line of the business by the items which are currently present in the market, making company unable to present brand-new ingenious products.
Option: 2.
The Business must spend more on its R&D instead of acquisitions.
Pros:
1. It would enable the company to produce more ingenious products.
2. It would supply the company a strong competitive position in the market.
3. It would allow the business to increase its targeted customers by presenting those items which can be offered to a completely brand-new market sector.
4. Ingenious items will offer long term advantages and high market share in long run.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the entire costs on R&D would be considered as sunk cost, 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 offer a negative signal to the investors, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Pros:
1. It would enable the business to introduce new ingenious items with less danger of converting the spending on R&D into sunk cost.
2. It would supply a positive signal to the financiers, as the overall properties of the company would increase with its considerable R&D costs.
3. It would not impact the profit margins of the business at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in regards to the company's overall wealth as well as in terms of ingenious items.
Cons:
1. Threat of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Risk of misunderstanding about the acquisitions, greater than alternative 2 and lower than option 1.
3. Introduction of less number of ingenious items than alternative 2 and high number of ingenious products than alternative 1.

Facebook B Conclusion

It has actually institutionalized its strategies and culture to align itself with the market changes and customer habits, which has actually eventually enabled it to sustain its market share. Business has established significant market share and brand name identity in the metropolitan markets, it is suggested that the company must focus on the rural locations in terms of developing brand loyalty, awareness, and equity, such can be done by creating a particular brand allocation strategy through trade marketing methods, that draw clear distinction between Facebook B items and other competitor items.

Facebook B Exhibits