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Simple Regression Mathematics Case Study Analysis

Simple Regression Mathematics is presently among the most significant food cycle 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 found The Anglo-Swiss Condensed Milk Company. The two ended up being rivals in the beginning however later on merged in 1905, resulting in the birth of Simple Regression Mathematics.
Business is now a global business. Unlike other international companies, it has senior executives from different nations and attempts to make choices considering the whole world. Simple Regression Mathematics currently has more than 500 factories around the world and a network spread throughout 86 nations.

Purpose

The purpose of Simple Regression Mathematics Corporation is to improve the quality of life of people by playing its part and supplying healthy food. It wants to help the world in shaping a healthy and much better future for it. It also wishes to encourage individuals to live a healthy life. While making certain that the company is being successful in the long run, that's how it plays its part for a better and healthy future

Vision

Simple Regression Mathematics's vision is to offer its clients with food that is healthy, high in quality and safe to consume. It wishes to be ingenious and at the same time comprehend the needs and requirements of its customers. Its vision is to grow quick and provide items that would satisfy the needs of each age group. Simple Regression Mathematics envisions to establish a trained workforce which would help the business to grow
.

Mission

Simple Regression Mathematics's objective is that as currently, it is the leading company in the food market, it thinks in 'Great Food, Good Life". Its objective is to offer its consumers with a variety of choices that are healthy and finest in taste. It is concentrated on providing the very best food to its clients throughout the day and night.

Products.

Business has a wide range of products that it uses to its consumers. Its items consist of food for babies, cereals, dairy products, snacks, chocolates, food for animal and mineral water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 workers. In 2011, Business was listed as the most gainful organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the business has set its objectives and goals. These objectives and objectives are noted below.
• One goal of the business is to reach zero landfill status. It is working toward no waste, where no waste of the factory is landfilled. It encourages its workers to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Simple Regression Mathematics is to waste minimum food during production. Usually, the food produced is lost even before it reaches the clients.
• Another thing that Business is dealing with is to enhance its packaging in such a method that it would help it to decrease those problems and would likewise ensure the shipment of high quality of its products to its clients.
• Meet global standards of the environment.
• Build a relationship based on trust with its consumers, business partners, employees, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the strategy 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. However, the target of the company is not attained as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given up Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it might lead to the decreased profits rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based upon the principle of Nutritious, Health and Health (NHW). This technique deals with the concept to bringing modification in the customer preferences about food and making the food stuff healthier worrying about the health issues.
The vision of this strategy is based upon the key approach i.e. 60/40+ which merely indicates that the items will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The items will be manufactured with extra nutritional value in contrast to all other items in market acquiring it a plus on its nutritional content.
This strategy was adopted to bring more tasty plus nutritious foods and beverages in market than ever. In competition with other companies, with an objective of keeping its trust over clients as Business Business has gotten more trusted by costumers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing real quantity of costs reveals that the sales are increasing at a greater rate than its R&D spending, and enable the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a portion 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 advancement instead of payment of financial obligations. This increasing financial obligation ratio posture a danger of default of Business to its investors and might lead a declining share rates. For that reason, in regards to increasing financial obligation ratio, the company ought to not invest much on R&D and ought to pay its existing debts to decrease the threat for investors.
The increasing threat of financiers with increasing debt ratio and decreasing share rates can be observed by huge decline of EPS of Simple Regression Mathematics stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow development likewise prevent business to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given in the Exhibitions D and E.

TWOS Analysis


2 analysis can be used to derive different methods based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given up Display H.

Strategies to exploit Opportunities using Strengths

Business ought to present more innovative items by large quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the business. It could also supply Business a long term competitive benefit over its competitors.
The worldwide expansion of Business must be focused on market catching of establishing countries by growth, drawing in more consumers through customer's loyalty. As developing countries are more populated than industrialized nations, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisSimple Regression Mathematics ought to do cautious acquisition and merger of organizations, as it might affect the client's and society's understandings about Business. It must acquire and combine with those companies which have a market track record of healthy and healthy business. It would enhance the perceptions of customers about Business.
Business must not only spend its R&D on innovation, rather than it ought to likewise focus on the R&D costs over evaluation of cost of various healthy items. This would increase expense efficiency of its products, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business ought to transfer to not only developing but also to industrialized nations. It must widens its geographical growth. This wide geographical growth towards establishing and established countries would reduce the risk of potential losses in times of instability in numerous countries. It should widen its circle to various countries like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It ought to acquire and merge with those nations having a goodwill of being a healthy company in the market. It would likewise make it possible for the business to utilize its possible resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on 4 factors; age, gender, income and profession. Business produces a number of items related to children i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary products. Simple Regression Mathematics items are quite economical by nearly all levels, but its significant targeted clients, in regards to income level are middle and upper middle level consumers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in nearly 86 countries. Its geographical segmentation is based upon 2 main elements i.e. typical income level of the consumer as well as the climate of the area. Singapore Business Company'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 lifestyle of the consumer. Business 3 in 1 Coffee target those consumers whose life design is quite busy and don't have much time.

Behavioral Segmentation

Simple Regression Mathematics behavioral segmentation is based upon the mindset knowledge and awareness of the customer. Its highly nutritious products target those clients who have a health conscious mindset towards their usages.

Simple Regression Mathematics Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are 2 choices:
Option: 1
The Company needs to 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. 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. Nevertheless, quantity invest in the R&D could not be restored, and it will be considered completely sunk expense, if it do not offer possible results.
3. Investing in R&D provide slow development in sales, as it takes very long time to introduce an item. Nevertheless, acquisitions offer quick outcomes, as it offer the company currently established item, which can be marketed not long after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the company to deal with misunderstanding of customers about Business core values of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send out a signal of business's ineffectiveness of developing ingenious items, and would outcomes in customer's discontentment.
3. Large acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making company not able to present new ingenious items.
Alternative: 2.
The Company must invest more on its R&D instead of acquisitions.
Pros:
1. It would enable the business to produce more ingenious products.
2. It would offer 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 provided to a completely new market sector.
4. Innovative items will offer long term benefits and high market share in long run.
Cons:
1. It would reduce the revenue margins of the company.
2. In case of failure, the entire spending on R&D would be thought about as sunk cost, and would affect the business at big. The threat is not when it comes to acquisitions.
3. It would not increase the wealth of business, which might provide a negative signal to the investors, and could result I declining stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the company to present new innovative items with less danger of converting the spending on R&D into sunk cost.
2. It would offer a favorable signal to the financiers, as the general possessions of the company would increase with its considerable R&D costs.
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 overall wealth as well as in regards to ingenious products.
Cons:
1. Threat of conversion of R&D spending into sunk cost, greater than option 1 lower than alternative 2.
2. Threat of mistaken belief about the acquisitions, higher than alternative 2 and lower than alternative 1.
3. Introduction of less number of innovative products than alternative 2 and high number of ingenious items than alternative 1.

Simple Regression Mathematics Conclusion

RecommendationsBusiness has remained the top market gamer for more than a years. It has actually institutionalised its methods and culture to align itself with the market modifications and consumer habits, which has ultimately allowed it to sustain its market share. Though, Business has developed considerable market share and brand identity in the city markets, it is suggested that the business should concentrate on the rural areas in regards to establishing brand name loyalty, awareness, and equity, such can be done by developing a particular brand name allocation technique through trade marketing techniques, that draw clear difference between Simple Regression Mathematics items and other rival items. Moreover, Business must utilize its brand name 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 company to develop brand name equity for recently introduced and currently produced items on a greater platform, making the effective use of resources and brand name image in the market.

Simple Regression Mathematics Exhibits

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

Transforming standards of global food.
Enhanced market share.
Altering perception towards much healthier products
Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such impact as it is good.
Worries over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible considering that 2000
Highest after Organisation with much less growth than Company 7th Lowest
R&D Spending Highest possible since 2008 Greatest after Service 3rd Lowest
Net Profit Margin Highest possible given that 2007 with fast growth from 2004 to 2017 Because of sale of Alcon in 2016. Nearly equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health aspect Greatest number of brand names with sustainable methods Largest confectionary as well as refined foods brand worldwide Biggest dairy products as well as bottled water brand on the planet
Segmentation Center and also upper middle level consumers worldwide Individual consumers together with home group Every age as well as Income Consumer Groups Center and top middle level consumers worldwide
Number of Brands 5th 4th 3rd 3rd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 83277 127986 472113 384729 173826
Net Profit Margin 1.19% 2.98% 18.23% 6.51% 91.75%
EPS (Earning Per Share) 11.28 2.24 1.39 8.11 37.22
Total Asset 182861 351149 618334 439391 48977
Total Debt 72654 71626 99884 36552 11818
Debt Ratio 85% 19% 15% 14% 72%
R&D Spending 9384 3183 2223 6499 4815
R&D Spending as % of Sales 4.32% 5.96% 9.17% 3.56% 5.17%

Simple Regression Mathematics Executive Summary Simple Regression Mathematics Swot Analysis Simple Regression Mathematics Vrio Analysis Simple Regression Mathematics Pestel Analysis
Simple Regression Mathematics Porters Analysis Simple Regression Mathematics Recommendations