Novartis Venture Fund Valuation Dilemmas Case Study Analysis

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Novartis Venture Fund Valuation Dilemmas Case Solution

Novartis Venture Fund Valuation Dilemmas Case Study Analysis is a well-known name of a New York based, world's leading organization in the food and drink market. company is a prominent brand in hassle-free treats, foods and beverages with its existence in about 200 nations.

The report contains a deep analysis of different elements of the social obligations of major companies in the food and drink market in general, and company in specific. The report likewise provides an assessment of the level of sustainability and CSR in the Novartis Venture Fund Valuation Dilemmas Case Study Solution's company strategy along with the determination of how Case Study Solution develops worth for its consumers.

Problems Identification

The giant food and beverage company was going through a criticism over its obligation towards various social and ecological problems consisting of; obesity, heart diseases, environmental devastation etc. These criticisms lead, to reconsider about the business strategy of Novartis Venture Fund Valuation Dilemmas Case Study Solution. The Beneoit Leleux has realized that the general society, the way of life of individuals and individuals at whole have actually been altered now. In this circumstance with increasing patterns towards much healthier items and the increasing environmental concerns, Case Study Analysis ought to change its direction towards much healthier products. Although, Case Study Help had actually taken certain vital actions relating to the ecological impacts of its items, however, these actions are inadequate to end up the criticism over the business's responsibility towards social and eco-friendly problems. The needed to take certain tactical steps to change the market position of its specific popular brands and present Online Case Study Analysis as a business producing healthy items in the market. In this regard, Case Study Analysis and other food and drink companies must use their power to shift the consumer taste towards much healthier items to remove the restraints in the development of food market.

Important Analysis

The shift from the use of natural food to made food has actually extremely impacted the health of the consumers. All of the data related to the health issues with the incorporation of manufactured food in the market discuss the prevalence of the health problems related to food system. These issues are indirectly the result of various practices of the food and beverage business for developing worth for their consumers.

Worth Creation at Novartis Venture Fund Valuation Dilemmas Case Study Analysis

Novartis Venture Fund Valuation Dilemmas Case Study Solution being a giant company in the food and drink industry, supplies high value to its consumers by numerous methods. Case Study Solution has a competitive advantage in providing its items far and large worldwide. The company is presented in about 200 countries with a big number of famous international brands.

Furthermore, the business creates value for its customers by ways of providing a great deal of tasty foodstuff consisting of salt, fat and sugar, which are the ingredients that are straight gotten in touch with the emotional core of the customer's brain. The Novartis Venture Fund Valuation Dilemmas Case Study Analysis in addition to other huge food and beverages companies develop worth for its customers by controling these active ingredients in its products. Case Study Help together with other giant companies has an interest in discovering ways to increase the customer worth from its items through exploiting the vulnerability.

In addition to it, the business likewise produces worth by ways of including the healthy point in its items. The business has actually done certain efforts in order to supply healthy items and lower the share of Novartis Venture Fund Valuation Dilemmas Case Study Help in overall environmental destruction. Case Study Analysis has taken particular actions associated with the sustainability of people and environment consisting of the 2009 announcement of the enthusiastic objectives and dedications connected to Case Study Solution products, marketplace and the neighborhood.

All of these ways have achieved success at producing value for the business customers. These ways have likewise lead to the increased ecological issues and the criticism over the company's role in increasing health and environmental difficulties. The incorporation of active ingredients like salt, fat and sugar in the business products for producing customer value deals with high amount of criticism. These components are the main reason for specific deadly illness in human consisting of weight problems, diabetes, cardiovascular disease and so on. Increasing health associated concerns have actually raised the criticism for Novartis Venture Fund Valuation Dilemmas Case Study Help.

Useful Role of Major Food and Beverage Business in Addressing Social and Ecological Expenses Related To the Market

Significant food and drink business consisting of Novartis Venture Fund Valuation Dilemmas Case Study Help and so on can play a constructive function in dealing with social and ecological expenses associated with the market. The ecological expenses connected to food and drink industry consist of the ecological devastation due to the influx of nitrogen which has resulted in the minimized water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors leads to environmental devastation which might be a big risk to the existence of humankind in future.

Major cause of these environmental modifications is mass use of nitrogen rich fertilizers and the ingredients by the food and drink business. Therefore, food and drink companies need to play a positive function in attending to these problems to remove their growth constraints connected to the criticism from the environmental communities.

In order to address these concerns, the business could either minimize their usage of nitrogen rich ingredients or take specific actions to reduce the quantity of nitrogen in the overall environment. The companies must avoid usage of nitrogen fertilizers and should locate the items of those farmers that do not utilize fertilizers for their crop. The business might also invest in decreasing greenhouse gas emissions worldwide. For instance, the companies could utilize renewable energy sources at their production plant to compensate the greenhouse gas emissions from making use of nitrogen-rich products.

Together with the environmental expenses there are certain social costs associated with the food and beverage market which must be attended to by the huge food and drink companies to attain the industry development and to avoid the criticism from the environmental neighborhoods. Social expenses connected with the industry consists of the increasing health issues associated with obesity, heart problem, diabetes and so on. Nevertheless, the giant business could play a constructive role in dealing with these concerns.

The companies could move towards more healthy products by reducing the quantity of hazardous substances in their processed foods i.e. dioxin, which could result in fatal human diseases. The business could also do efforts to move customer tastes towards healthy products as they have controlled the customer taste for few decades.

Examination of Sustainability at Novartis Venture Fund Valuation Dilemmas Case Study Solution

There was a possible shift in the corporate strategy and goals at Case Study Analysis. The brand-new CEO was concentrated on purchasing much healthier items for attaining sustainable development for the business along with providing healthier future for individuals and the planet both. Under the brand-new vision, the motto of the business was likewise changed from the "fun for you" to "much better for you".

Human Sustainability

The company revealed specific goals and dedications connected to human sustainability and the environmental sustainability. Novartis Venture Fund Valuation Dilemmas Case Study Analysis obtained Quake Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy drinks and organic drinks to introduce various healthier products in its portfolio. Despite of being thought about a Case Study Solution's healthy brand, the products of Quaker Oats included several components which were hazardous to health. These dangerous active ingredients were not marketed which have ended up being the base for criticism over the healthy brands of Novartis Venture Fund Valuation Dilemmas Case Study Solution.

In addition to the inculcation of healthy brand names in its portfolio through acquisitions, Novartis Venture Fund Valuation Dilemmas Case Study Solution has taken certain sustainability steps for its market places. One of major examples in this regard is the Company's marketing method related to schools. The business markets just low calories and nutritious drinks choices in schools.

Another step taken by Case Study Solution towards human sustainability is the shift of its focus towards research study and advancement for introducing new and healthy items in its portfolio. The business has actually increased its research and development budget plan and has presented an army of health researchers to design certain healthy products.

Environmental Sustainability

In this regard, the business dedicated to lower its packaging by millions of tones to avoid high quantity of wastes. The business has actually devoted to minimize greenhouse gas emissions along with the accomplishment of effectiveness in the energy use.

On the basis of above analysis, it might be identified that the company has taken a number of steps towards human and ecological sustainability. These actions are still not sufficient to accomplish the wanted commercial development and to reduce the criticism over the social obligation of Case Study Solution.

Alternatives

Specific long term strategic options might be obtained for the business on the basis of above analysis. These options can be evaluated on the basis of the truth that how the option would enable the company to attain its goal of prospective growth and minimize the criticism over the company. Moreover, the options might be examined on the basis of the time frame that would be taken by an alternative to be carried out in addition to the cost and threats associated with the option

Alternative-1: intro of a New Product line Associated with Healthy Foods and Beverages

The primary step that Novartis Venture Fund Valuation Dilemmas Case Study Help might take is to introduce a brand-new line of product connected to healthy food and beverages. The company has already introduced particular heath associated brand names, but, the number of these brands in its portfolio is not potential to reduce the criticism and attain possible development. For that reason, the company must introduce a wide range of healthier items by using its significant research and development expenditures. The advantages and disadvantages associated with the intro of a healthy product line in the portfolio are offered below:

Pros:

• Ability to target a great deal of consumers i.e. health conscious consumers.
• Reduction of the criticism of environmental worried societies and neighborhood advancement companies.
• Fulfillment of the social obligation by payment of the harmful products with healthy items.
• Might be carried out within few years i.e. 3 to 5 years.

Cons:

• Risk of failure of the new products in the market i.e. consumers might not like the taste and may decline the much healthier items due to the addicting nature of harmful items.
• The harmful items in the product portfolio may make the incorporation of healthy products stop working to decrease criticism.
• Substantial cost of research and advancement needed to construct new healthy items.

Alternative-2: High level Acquisition of Health associated Business

Another alternative option to accomplish the potential development and reduce the criticism is to get the health related business at a high level. Investment in these type of companies would allow Novartis Venture Fund Valuation Dilemmas Case Study Help to introduce a large range of healthier products within a short time duration without any requirement of substantial research and advancement expenditures. The advantages and disadvantages connected to alternative 3 are provided listed below:

Pros:

• Saving of big amount of research and advancement expenses for new product advancement.
• Incorporation of new items within 2 years.
• Ability to target a great deal of consumers i.e. health conscious customers.
• Reduction of the criticism of ecological concerned societies and neighborhood development companies.
• Satisfaction of the social duty by compensation of the harmful items with healthy items.

Cons:

• The acquisition might not show to alter the image of Novartis Venture Fund Valuation Dilemmas Case Study Help as in case of Quaker Oats.
• Requirement of substantial amount of capital.
• Threat of failure of the new items in the market i.e. customers may not like the taste and might not accept the much healthier items due to the addictive nature of harmful items.
• The hazardous products in the item portfolio might make the incorporation of healthy products stop working to decrease criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative option for Novartis Venture Fund Valuation Dilemmas Case Study Solution is to change all of its dangerous products with much healthier items. This could be a substantial shift in business strategy and business design at business. The replacement of dangerous products with much healthier products would totally change the marketplace position of the company and would require a large number of essential steps to be taken. The pros and cons associated with alternative 3 are given below:

Pros:

• Modification of market position of Novartis Venture Fund Valuation Dilemmas Case Study Analysis
• Capability to target large number of consumers i.e. health conscious consumers.
• End of all of the criticism of environmental worried societies and neighborhood development organizations.
• Satisfaction of the social duty

Cons:

• Risk of failure of the new items in the market i.e. consumers might not like the taste and may not accept the healthier products due to the addictive nature of hazardous products.
• Big cost of research study and advancement required to construct brand-new healthy products.
• Worker might withstand over the modification in the business model and service strategy.
• Variety of years required for the application.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the business's CSR, issues faced by the business and the current industry circumstance, Case Study Solution is recommended to think about alternative 2 of high level of acquisition of health associated companies. As the acquisitions would enable the business to conserve of huge amount of research and advancement expenses for brand-new item advancement. Along with it, acquisitions would enable incorporation of brand-new items within two years along with the capability to target big number of customers.

This Novartis Venture Fund Valuation Dilemmas case study is writen by : Beneoit Leleux

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