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The Internet Of Things Iot Applications Investments And Challenges For Enterprises Case Study Solution

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The Internet Of Things Iot Applications Investments And Challenges For Enterprises Case Study Analysis

Business is currently one of the greatest food chains worldwide. It was founded by Henri The Internet Of Things Iot Applications Investments And Challenges For Enterprises in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed babies and reduce death rate.
Business is now a transnational business. Unlike other multinational business, it has senior executives from various nations and tries to make decisions thinking about the entire world. The Internet Of Things Iot Applications Investments And Challenges For Enterprises currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

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

Vision

The Internet Of Things Iot Applications Investments And Challenges For Enterprises's vision is to provide its customers with food that is healthy, high in quality and safe to consume. It wants to be innovative and all at once understand the requirements and requirements of its consumers. Its vision is to grow quickly and supply products that would please the requirements of each age group. The Internet Of Things Iot Applications Investments And Challenges For Enterprises envisions to establish a well-trained workforce which would help the company to grow
.

Mission

The Internet Of Things Iot Applications Investments And Challenges For Enterprises's objective is that as currently, it is the leading business in the food industry, it believes in 'Excellent Food, Great Life". Its objective is to offer its consumers with a range of choices that are healthy and finest in taste. It is concentrated on offering the very best food to its clients throughout the day and night.

Products.

Business has a vast array of items that it offers to its consumers. Its products consist of food for infants, cereals, dairy products, snacks, chocolates, food for animal and mineral water. It has around 4 hundred and fifty (450) factories worldwide and around 328,000 employees. 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 actually set its objectives and objectives. These goals and objectives are noted below.
• One objective of the company is to reach absolutely no garbage dump status. (Business, aboutus, 2017).
• Another objective of The Internet Of Things Iot Applications Investments And Challenges For Enterprises is to lose minimum food during production. Usually, the food produced is squandered even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a way that it would help it to reduce those issues and would also guarantee the delivery of high quality of its products to its consumers.
• Meet international standards of the environment.
• Build a relationship based upon trust with its consumers, business partners, employees, and 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 technology. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the business is not attained 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 Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based on the idea of Nutritious, Health and Health (NHW). This technique handles the idea to bringing modification in the client preferences about food and making the food stuff much healthier worrying about the health problems.
The vision of this strategy is based upon the key method i.e. 60/40+ which merely suggests that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be produced with extra nutritional value in contrast to all other products in market getting it a plus on its dietary material.
This method was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competition with other business, with an objective of keeping its trust over consumers as Business Business has acquired more trusted by customers.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing actual quantity of costs reveals that the sales are increasing at a higher rate than its R&D spending, and permit the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a percentage of sales is declining. This indication 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 debts. This increasing debt ratio posture a threat of default of Business to its investors and might lead a decreasing share costs. In terms of increasing financial obligation ratio, the firm must not invest much on R&D and should pay its present debts to reduce the danger for financiers.
The increasing threat of investors with increasing financial obligation ratio and declining share costs can be observed by huge decline of EPS of The Internet Of Things Iot Applications Investments And Challenges For Enterprises stocks.
The sales growth of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish development also prevent company 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 computations and Charts given up the Displays D and E.

TWOS Analysis


TWOS analysis can be used to derive various methods based on the SWOT Analysis offered above. A quick summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business needs to introduce more ingenious items by large amount of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the profit margins for the business. It could also provide Business a long term competitive benefit over its competitors.
The worldwide growth of Business need to be concentrated on market capturing of developing nations by expansion, drawing in more clients through client's commitment. As establishing nations are more populous than industrialized nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe Internet Of Things Iot Applications Investments And Challenges For Enterprises should do mindful acquisition and merger of organizations, as it could affect the client's and society's understandings about Business. It needs to get and merge with those companies which have a market track record of healthy and nutritious business. It would enhance the understandings of consumers about Business.
Business should not just spend its R&D on development, instead of it must also focus on the R&D spending over examination of expense of numerous nutritious products. This would increase cost performance of its products, which will result in increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not just developing however likewise to industrialized countries. It should broadens its geographical growth. This broad geographical expansion towards establishing and established countries would lower the danger of potential losses in times of instability in different countries. It needs to expand its circle to various nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It should get and combine with those countries having a goodwill of being a healthy business in the market. It would likewise allow the company to use its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group division of Business is based on 4 aspects; age, gender, earnings and profession. For instance, Business produces a number of products related to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. The Internet Of Things Iot Applications Investments And Challenges For Enterprises products are rather affordable by practically all levels, but its significant targeted consumers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in practically 86 nations. Its geographical division is based upon two main elements i.e. typical earnings level of the customer along with the climate of the region. Singapore Business Company's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

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

Behavioral Segmentation

The Internet Of Things Iot Applications Investments And Challenges For Enterprises behavioral division is based upon the mindset knowledge and awareness of the consumer. For example its extremely nutritious items target those clients who have a health conscious mindset towards their consumptions.

The Internet Of Things Iot Applications Investments And Challenges For Enterprises Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are two options:
Alternative: 1
The Company must invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the business, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the obtained systems in the market, if it fails to implement its technique. Quantity invest on the R&D could not be revived, and it will be thought about entirely sunk cost, if it do not give possible results.
3. Spending on R&D provide sluggish growth in sales, as it takes very long time to present an item. Acquisitions provide fast outcomes, as it provide the business already developed product, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the company's values like Kraftz foods can lead the business to face mistaken belief of customers about Business core values of healthy and nutritious products.
2 Big spending on acquisitions than R&D would send out a signal of business's ineffectiveness of developing ingenious items, and would results in consumer's dissatisfaction.
3. Big acquisitions than R&D would extend the product line of the company by the products which are currently present in the market, making business not able to introduce new innovative items.
Option: 2.
The Business should 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 company to increase its targeted clients by presenting those products which can be used to a completely brand-new market segment.
4. Innovative products will provide long term advantages and high market share in long term.
Cons:
1. It would decrease the revenue margins of the company.
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 could provide a negative signal to the financiers, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the company to present new ingenious items with less risk of converting the costs on R&D into sunk expense.
2. It would provide a positive signal to the investors, as the total possessions of the business would increase with its significant R&D costs.
3. It would not impact the earnings margins of the company 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 general wealth along with in terms of innovative products.
Cons:
1. Risk of conversion of R&D costs into sunk cost, greater than option 1 lesser than alternative 2.
2. Threat of mistaken belief about the acquisitions, greater than alternative 2 and lower than option 1.
3. Intro of less number of ingenious items than alternative 2 and high number of ingenious items than alternative 1.

The Internet Of Things Iot Applications Investments And Challenges For Enterprises Conclusion

RecommendationsBusiness has actually remained the top market gamer for more than a years. It has institutionalised its methods and culture to align itself with the marketplace modifications and customer behavior, which has eventually enabled it to sustain its market share. Business has actually established substantial market share and brand identity in the urban markets, it is suggested that the business should focus on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by creating a particular brand allowance method through trade marketing methods, that draw clear difference in between The Internet Of Things Iot Applications Investments And Challenges For Enterprises items and other rival items. Furthermore, Business must leverage its brand name picture of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will allow the company to develop brand name equity for newly presented and currently produced items on a higher platform, making the reliable use of resources and brand name image in the market.

The Internet Of Things Iot Applications Investments And Challenges For Enterprises Exhibits

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

Changing standards of international food.
Boosted market share.
Changing perception in the direction of healthier products
Improvements in R&D as well as QA departments.

Introduction of E-marketing.
No such impact as it is favourable.
Problems over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible given that 4000
Greatest after Organisation with less growth than Company 6th Cheapest
R&D Spending Highest given that 2008 Highest after Business 8th Lowest
Net Profit Margin Greatest since 2008 with rapid development from 2004 to 2013 Due to sale of Alcon in 2017. Practically equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and health and wellness element Highest number of brands with lasting techniques Largest confectionary and also processed foods brand name worldwide Biggest milk items as well as mineral water brand in the world
Segmentation Center as well as top middle level consumers worldwide Private consumers together with house team Every age and Earnings Customer Groups Center as well as top middle level customers worldwide
Number of Brands 2nd 6th 3rd 6th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 24529 593767 134483 927658 296449
Net Profit Margin 9.64% 8.45% 35.46% 1.89% 24.38%
EPS (Earning Per Share) 41.53 6.36 2.77 2.81 37.73
Total Asset 538928 633657 977652 576624 24987
Total Debt 35269 25819 45287 25375 36625
Debt Ratio 75% 67% 68% 49% 82%
R&D Spending 6975 7281 7967 6134 9937
R&D Spending as % of Sales 5.19% 1.57% 1.89% 4.66% 5.17%

The Internet Of Things Iot Applications Investments And Challenges For Enterprises Executive Summary The Internet Of Things Iot Applications Investments And Challenges For Enterprises Swot Analysis The Internet Of Things Iot Applications Investments And Challenges For Enterprises Vrio Analysis The Internet Of Things Iot Applications Investments And Challenges For Enterprises Pestel Analysis
The Internet Of Things Iot Applications Investments And Challenges For Enterprises Porters Analysis The Internet Of Things Iot Applications Investments And Challenges For Enterprises Recommendations