Menu

The Weather Company Creating Consumer Apps That Leverage Its Big Data Case Study Solution

Case Study Solution And Analysis


Home >> Kelloggs >> The Weather Company Creating Consumer Apps That Leverage Its Big Data >>

The Weather Company Creating Consumer Apps That Leverage Its Big Data Case Study Solution

The Weather Company Creating Consumer Apps That Leverage Its Big Data is presently one of the most significant food chains worldwide. It was founded by Kelloggs in 1866, a German Pharmacist who initially introduced "FarineLactee"; a combination of flour and milk to feed infants and decrease mortality rate. At the exact same time, the Page bros from Switzerland also found The Anglo-Swiss Condensed Milk Business. The 2 became competitors at first but in the future combined in 1905, resulting in the birth of The Weather Company Creating Consumer Apps That Leverage Its Big Data.
Business is now a transnational company. Unlike other international companies, it has senior executives from different countries and attempts to make choices thinking about the whole world. The Weather Company Creating Consumer Apps That Leverage Its Big Data currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The purpose of The Weather Company Creating Consumer Apps That Leverage Its Big Data Corporation is to enhance the lifestyle of individuals by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and better future for it. It likewise wants to motivate individuals to live a healthy life. While ensuring that the business is being successful in the long run, that's how it plays its part for a better and healthy future

Vision

The Weather Company Creating Consumer Apps That Leverage Its Big Data's vision is to offer its customers with food that is healthy, high in quality and safe to eat. Business envisions to establish a well-trained workforce which would help the company to grow
.

Mission

The Weather Company Creating Consumer Apps That Leverage Its Big Data's mission is that as currently, it is the leading company in the food industry, it thinks in 'Great Food, Great Life". Its mission is to provide its customers with a range of options that are healthy and best in taste as well. It is focused on supplying the very best food to its customers throughout the day and night.

Products.

The Weather Company Creating Consumer Apps That Leverage Its Big Data has a large variety of products that it provides to its consumers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has put down its goals and goals. These objectives and goals are listed below.
• One objective of the business is to reach absolutely no garbage dump 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 spin-offs. (Business, aboutus, 2017).
• Another goal of The Weather Company Creating Consumer Apps That Leverage Its Big Data is to lose minimum food throughout production. Most often, the food produced is lost even before it reaches the customers.
• Another thing that Business is working on is to enhance its product packaging in such a method that it would help it to minimize those complications and would likewise guarantee the shipment of high quality of its products to its consumers.
• Meet worldwide requirements of the environment.
• Develop a relationship based on trust with its consumers, company partners, employees, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy of NHW and investing more of its profits on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW method. The target of the business is not accomplished as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H. There is a need to focus more on the sales then the development technology. Otherwise, it may lead to the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique 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 stuff healthier worrying about the health problems.
The vision of this strategy is based on the secret approach i.e. 60/40+ which just means that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The items will be made with additional nutritional worth in contrast to all other items in market getting it a plus on its dietary material.
This technique was embraced to bring more yummy plus healthy foods and drinks in market than ever. In competition with other companies, with an intention of retaining its trust over consumers as Business Company has actually gotten more relied on by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing actual 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 Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise reveals a thumbs-up to the R&D spending, mergers and acquisitions.
Debt ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio pose a risk of default of Business to its financiers and might lead a declining share rates. In terms of increasing debt ratio, the company needs to not invest much on R&D and should pay its existing financial obligations to reduce the danger for investors.
The increasing risk of investors with increasing financial obligation ratio and declining share costs can be observed by big decline of EPS of The Weather Company Creating Consumer Apps That Leverage Its Big Data stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding building of consumers. This sluggish growth likewise prevent company 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 in the Exhibitions D and E.

TWOS Analysis


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

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative products by big amount of R&D Costs and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the company. It could likewise offer Business a long term competitive advantage over its competitors.
The global growth of Business need to be concentrated on market capturing of establishing countries by growth, bring in more clients through consumer's loyalty. As establishing nations are more populous than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisThe Weather Company Creating Consumer Apps That Leverage Its Big Data must do careful acquisition and merger of companies, as it might affect the client's and society's perceptions about Business. It ought to acquire and merge with those companies which have a market track record of healthy and healthy companies. It would enhance the perceptions of customers about Business.
Business should not only invest its R&D on innovation, instead of it must also focus on the R&D spending over evaluation of expense of various nutritious items. This would increase cost performance of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business needs to transfer to not just establishing but likewise to industrialized nations. It must widens its geographical expansion. This wide geographical expansion towards establishing and established nations would decrease the danger of prospective losses in times of instability in different nations. It should widen its circle to various nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

The Weather Company Creating Consumer Apps That Leverage Its Big Data should sensibly manage its acquisitions to avoid the risk of misconception from the consumers about Business. It needs to acquire and merge with those nations having a goodwill of being a healthy business in the market. This would not only improve the perception of customers about Business but would likewise increase the sales, earnings margins and market share of Business. It would likewise make it possible for the business to use its potential resources efficiently on its other operations instead of acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on four elements; age, gender, earnings and occupation. Business produces numerous items related to infants i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary products. The Weather Company Creating Consumer Apps That Leverage Its Big Data items are rather budget-friendly by nearly all levels, however its significant targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in practically 86 nations. Its geographical segmentation is based upon two primary factors i.e. average income level of the customer in addition to the environment of the area. For instance, Singapore Business Business's division is done on the basis of the weather condition 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 example, Business 3 in 1 Coffee target those clients whose lifestyle is rather busy and don't have much time.

Behavioral Segmentation

The Weather Company Creating Consumer Apps That Leverage Its Big Data behavioral segmentation is based upon the attitude understanding and awareness of the client. Its extremely healthy products target those customers who have a health mindful mindset towards their usages.

The Weather Company Creating Consumer Apps That Leverage Its Big Data Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand name, there are 2 options:
Option: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total possessions of the business, increasing the wealth of the company. However, costs on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it fails to execute its method. Nevertheless, quantity spend on the R&D might not be restored, and it will be considered totally sunk cost, if it do not give prospective outcomes.
3. Spending on R&D provide slow development in sales, as it takes long period of time to present an item. However, acquisitions offer quick outcomes, as it offer the business currently developed product, which can be marketed right 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 face misconception of customers about Business core values of healthy and healthy products.
2 Big costs on acquisitions than R&D would send a signal of business's inadequacy of establishing ingenious items, and would outcomes in customer's dissatisfaction.
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 company unable to introduce brand-new ingenious items.
Option: 2.
The Company ought to spend more on its R&D rather than acquisitions.
Pros:
1. It would make it possible for the company to produce more ingenious products.
2. It would provide 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 products which can be offered to a totally new market segment.
4. Ingenious products will provide long term advantages and high market share in long term.
Cons:
1. It would reduce the profit margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk cost, and would affect the company at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which could supply a negative signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would enable the business to present brand-new ingenious items with less risk of converting the costs on R&D into sunk expense.
2. It would offer a positive signal to the financiers, as the general possessions of the business would increase with its significant R&D spending.
3. It would not affect the profit 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 terms of the company's overall wealth as well as in regards to innovative items.
Cons:
1. Threat of conversion of R&D costs into sunk cost, greater than option 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative products than alternative 2 and high number of ingenious items than alternative 1.

The Weather Company Creating Consumer Apps That Leverage Its Big Data Conclusion

RecommendationsBusiness has remained the leading market gamer for more than a decade. It has actually institutionalised its techniques and culture to align itself with the marketplace changes and customer behavior, which has eventually allowed it to sustain its market share. Business has developed substantial market share and brand name identity in the city markets, it is suggested that the company ought to focus on the rural areas in terms of establishing brand name commitment, awareness, and equity, such can be done by creating a particular brand name allotment technique through trade marketing techniques, that draw clear distinction between The Weather Company Creating Consumer Apps That Leverage Its Big Data products and other rival items. The Weather Company Creating Consumer Apps That Leverage Its Big Data needs to take advantage of its brand image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will allow the business to develop brand equity for freshly presented and currently produced products on a higher platform, making the effective usage of resources and brand image in the market.

The Weather Company Creating Consumer Apps That Leverage Its Big Data Exhibits

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

Changing requirements of international food.
Improved market share.
Changing perception towards much healthier products
Improvements in R&D and QA divisions.

Introduction of E-marketing.
No such effect as it is beneficial.
Worries over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible since 6000
Highest possible after Business with much less development than Company 1st Lowest
R&D Spending Highest possible considering that 2006 Greatest after Service 1st Lowest
Net Profit Margin Greatest considering that 2004 with quick development from 2009 to 2017 Because of sale of Alcon in 2015. Virtually equal to Kraft Foods Unification Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and wellness variable Greatest variety of brands with lasting methods Largest confectionary as well as refined foods brand name worldwide Largest dairy items as well as mineral water brand name in the world
Segmentation Center as well as top middle degree customers worldwide Specific consumers together with family team Any age and Earnings Client Groups Middle as well as upper center degree customers worldwide
Number of Brands 2nd 2nd 9th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 92529 229923 973758 767967 254995
Net Profit Margin 4.62% 4.94% 77.76% 8.52% 92.76%
EPS (Earning Per Share) 38.73 6.78 3.66 1.72 38.37
Total Asset 245291 961557 948169 419413 73513
Total Debt 84475 64589 95844 59133 94168
Debt Ratio 95% 84% 31% 51% 19%
R&D Spending 8897 8245 8279 3969 3927
R&D Spending as % of Sales 1.47% 9.75% 5.45% 5.13% 3.65%

The Weather Company Creating Consumer Apps That Leverage Its Big Data Executive Summary The Weather Company Creating Consumer Apps That Leverage Its Big Data Swot Analysis The Weather Company Creating Consumer Apps That Leverage Its Big Data Vrio Analysis The Weather Company Creating Consumer Apps That Leverage Its Big Data Pestel Analysis
The Weather Company Creating Consumer Apps That Leverage Its Big Data Porters Analysis The Weather Company Creating Consumer Apps That Leverage Its Big Data Recommendations