Ibm Watson Case Study Help

Ibm Watson is currently one of the biggest food cycle worldwide. It was established by Kelloggs in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and reduce death rate. At the same time, the Page siblings from Switzerland also discovered The Anglo-Swiss Condensed Milk Company. The two became rivals initially however later on combined in 1905, resulting in the birth of Ibm Watson.
Business is now a multinational company. Unlike other international business, it has senior executives from various nations and attempts to make choices thinking about the entire world. Ibm Watson presently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of Ibm Watson Corporation is to boost the quality of life of people by playing its part and supplying healthy food. It wants to help the world in forming a healthy and better future for it. It also wants to motivate people 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

Ibm Watson's vision is to offer its customers with food that is healthy, high in quality and safe to consume. It wants to be innovative and concurrently comprehend the needs and requirements of its clients. Its vision is to grow fast and provide items that would please the requirements of each age group. Ibm Watson visualizes to develop a well-trained labor force which would help the business to grow
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Mission

Ibm Watson's objective is that as currently, it is the leading business in the food market, it thinks in 'Great Food, Excellent Life". Its objective is to provide its customers with a range of options that are healthy and best in taste as well. It is concentrated on supplying the very best food to its clients throughout the day and night.

Products.

Business has a wide variety of products that it provides to its customers. Its items consist of food for infants, cereals, dairy products, snacks, chocolates, food for family pet and bottled water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Keeping in mind the vision and objective of the corporation, the business has laid down its objectives and goals. These goals and objectives are noted below.
• One objective of the business is to reach no landfill status. It is working toward no waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Ibm Watson is to waste minimum food during production. Most often, the food produced is squandered 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 reduce those issues and would also guarantee the delivery of high quality of its items to its clients.
• Meet worldwide requirements of the environment.
• Construct a relationship based upon trust with its customers, business partners, employees, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the method 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 technique. The target of the company is not achieved as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may result in the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business strategy is based upon the concept of Nutritious, Health and Wellness (NHW). This strategy handles the idea to bringing change in the customer choices about food and making the food things healthier worrying about the health concerns.
The vision of this method is based upon the secret technique i.e. 60/40+ which just suggests that the products will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The products will be manufactured with additional nutritional value in contrast to all other items in market acquiring it a plus on its nutritional content.
This technique was adopted to bring more delicious plus nutritious foods and beverages in market than ever. In competitors with other companies, with an objective of retaining its trust over customers as Business Business has actually acquired more trusted by clients.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing real amount of costs shows that the sales are increasing at a higher rate than its R&D costs, and permit the company to more spend on R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This sign likewise shows a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of debts. This increasing financial obligation ratio present a risk of default of Business to its financiers and might lead a decreasing share costs. Therefore, in regards to increasing financial obligation ratio, the firm must not spend much on R&D and should pay its existing debts to decrease the threat for financiers.
The increasing risk of investors with increasing financial obligation ratio and declining share costs can be observed by big decrease of EPS of Ibm Watson stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This slow development likewise hinder company to further 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 estimations and Graphs given in the Displays D and E.

TWOS Analysis

TWOS analysis can be used to derive numerous techniques based upon the SWOT Analysis offered above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business should introduce more ingenious items by large 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 competitors.
The global growth of Business ought to be focused on market capturing of establishing countries by expansion, bring in more clients through customer's commitment. As establishing nations are more populated than developed nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Ibm Watson should do cautious acquisition and merger of companies, as it might affect the client's and society's understandings about Business. It must get and combine with those companies which have a market credibility of healthy and nutritious business. It would enhance the understandings of customers about Business.
Business needs to not only invest its R&D on innovation, instead of it must also concentrate on the R&D costs over assessment of expense of numerous healthy items. This would increase expense efficiency of its items, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business should move to not just establishing but likewise to developed 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 must acquire and combine with those nations having a goodwill of being a healthy company in the market. It would also enable the business to utilize its potential resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon 4 elements; age, gender, earnings and profession. Business produces several products related to children i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary items. Ibm Watson items are quite affordable by practically all levels, however its significant targeted clients, in terms of earnings 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 segmentation is based upon two primary factors i.e. typical earnings level of the consumer as well as the climate of the region. For instance, Singapore Business Business's segmentation is done on the basis of the weather 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. Business 3 in 1 Coffee target those consumers whose life design is quite hectic and do not have much time.

Behavioral Segmentation

Ibm Watson behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its highly nutritious items target those clients who have a health mindful attitude towards their intakes.

Ibm Watson Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand, there are two options:
Alternative: 1
The Company should invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the business, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the gotten units in the market, if it stops working to execute its strategy. Amount invest on the R&D could not be restored, and it will be considered completely sunk cost, if it do not provide potential outcomes.
3. Spending on R&D provide slow growth in sales, as it takes long time to present a product. Nevertheless, acquisitions provide fast results, as it provide the business currently established product, which can be marketed right after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the business to deal with misconception of customers about Business core values of healthy and healthy products.
2 Big costs on acquisitions than R&D would send out a signal of business's inefficiency of developing ingenious items, and would lead to customer's discontentment also.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making company unable to present new innovative products.
Option: 2.
The Company needs to spend more on its R&D rather than acquisitions.
Pros:
1. It would make it possible for the business to produce more innovative products.
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 introducing those items which can be used to a totally brand-new market segment.
4. Ingenious products 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 costs on R&D would be considered as sunk cost, and would impact the company at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which could supply an unfavorable signal to the investors, and might result I declining 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 ingenious products with less danger of converting the costs on R&D into sunk cost.
2. It would provide a favorable signal to the investors, as the general possessions of the business would increase with its considerable R&D costs.
3. It would not impact the earnings margins of the business at a big rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the business's overall wealth in addition to in terms of ingenious items.
Cons:
1. Threat of conversion of R&D spending into sunk cost, greater than alternative 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Intro of less number of innovative products than alternative 2 and high number of innovative products than alternative 1.

Ibm Watson Conclusion

Business has stayed the leading market gamer for more than a decade. It has institutionalized its methods and culture to align itself with the marketplace modifications and customer behavior, which has actually eventually permitted it to sustain its market share. Business has actually established significant market share and brand identity in the urban markets, it is recommended that the business must focus on the rural areas in terms of establishing brand commitment, awareness, and equity, such can be done by developing a particular brand name allotment strategy through trade marketing techniques, that draw clear distinction between Ibm Watson products and other competitor items. Ibm Watson ought to take advantage of its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will allow the company to establish brand equity for recently introduced and currently produced items on a higher platform, making the efficient usage of resources and brand name image in the market.

Ibm Watson Exhibits