Novartis Venture Fund: Valuation Dilemmas Case Study Analysis

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Novartis Venture Fund: Valuation Dilemmas Case Analysis

Novartis Venture Fund: Valuation Dilemmas Case Study Solution is a well-known name of a New York based, world's leading organization in the food and drink industry. Case Study Analysis is a prominent brand in convenient snacks, foods and drinks with its existence in about 200 countries. Significant brand names of the company consist of; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive benefit of the business is its ability to market the item at everywhere places. Furthermore, the business is doing efforts to make product development as its new source of competitive benefit.

The report includes a deep analysis of numerous elements of the social responsibilities of significant companies in the food and drink industry in basic, and business in particular. The report likewise supplies an assessment of the extent of sustainability and CSR in the Novartis Venture Fund: Valuation Dilemmas Case Study Analysis's service method along with the determination of how Case Study Help creates worth for its customers.

Issues Recognition

Case Study Solution had taken specific vital actions concerning the environmental effects of its items, but, these steps are not enough to end up the criticism over the business's responsibility towards social and eco-friendly concerns. This is required to take certain strategic steps to change the market position of its particular popular brand names and present Case Study Help as a business producing healthy products in the market. In this regard, business and other food and drink companies ought to use their power to shift the customer taste towards healthier items to get rid of the restrictions in the development of food market.

Critical Analysis

The shift from the usage of natural food to produced food has extremely affected the health of the consumers. All of the data related to the health problems with the incorporation of manufactured food in the market describe the occurrence of the health issues related to food system. These problems are indirectly the result of numerous practices of the food and beverage companies for producing value for their consumers.

Worth Creation at Novartis Venture Fund: Valuation Dilemmas Case Study Help

Novartis Venture Fund: Valuation Dilemmas Case Study Solution being a huge business in the food and beverage industry, provides high value to its clients by numerous methods. Value development in the food and beverage market is done through 2 methods i.e. taste and availability of the item. Case Study Help has a competitive advantage in providing its products everywhere internationally. Its marketing ability makes it able to target a big base of customers. The business exists in about 200 countries with a a great deal of famous worldwide brands. The far and wide presence of the company products provides high value to consumers.

Additionally, the business creates worth for its consumers by methods of providing large number of tasty food including salt, fat and sugar, which are the components that are straight gotten in touch with the psychological core of the customer's brain. The Novartis Venture Fund: Valuation Dilemmas Case Study Solution in addition to other giant food and beverages business develop worth for its customers by controling these active ingredients in its items. Case Study Help in addition to other giant companies is interested in finding methods to increase the customer value from its products through exploiting the vulnerability.

Along with it, the business also produces value by ways of integrating the healthy point in its products. The business has actually done particular efforts in order to provide healthy products and lower the share of Novartis Venture Fund: Valuation Dilemmas Case Study Help in general ecological devastation. Case Study Help has taken particular steps associated with the sustainability of people and environment including the 2009 announcement of the ambitious objectives and dedications connected to Case Study Help items, marketplace and the neighborhood.

All of these methods have been successful at developing worth for the Case Study Solution consumers. Increasing health associated issues have raised the criticism for Case Study Help.

Positive Function of Significant Food and Beverage Business in Attending To Social and Ecological Expenses Connected With the Market

Major food and drink business consisting of Novartis Venture Fund: Valuation Dilemmas Case Study Solution etc. can play a constructive function in attending to social and environmental costs associated with the industry. The eco-friendly expenses connected to food and beverage market include the environmental devastation due to the influx of nitrogen which has led to the minimized water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors leads to ecological destruction which might be a huge hazard to the presence of mankind in future.

Significant reason for these environmental changes is mass use of nitrogen abundant fertilizers and the active ingredients by the food and beverage companies. Food and drink business need to play a constructive function in attending to these issues to remove their growth restraints related to the criticism from the environmental communities.

The companies ought to prevent usage of nitrogen fertilizers and need to browse out the items of those farmers that do not use fertilizers for their crop. The companies might use eco-friendly energy sources at their production plant to compensate the greenhouse gas emissions from the use of nitrogen-rich products.

Together with the ecological costs there are specific social expenses related to the food and drink industry which must be dealt with by the giant food and beverage business to achieve the industry development and to prevent the criticism from the environmental communities. Social expenses connected with the market consists of the increasing health concerns associated with obesity, cardiovascular disease, diabetes and so on. Nevertheless, the giant companies might play an useful role in dealing with these concerns.

The business could move towards more healthy products by minimizing the amount of poisonous compounds in their processed foods i.e. dioxin, which could lead to fatal human diseases. In addition to it, the business must utilize more nutritious components instead of derivatives of Corn and Soy to increase number of calories from their items. The business could also do efforts to shift consumer tastes towards healthy items as they have actually managed the customer taste for couple of decades. In this way the huge food and beverage companies could play a positive function in resolving social and environmental costs related to the market.

Examination of Sustainability at Novartis Venture Fund: Valuation Dilemmas Case Study Help

There was a possible shift in the corporate strategy and objectives at Case Study Solution. The new CEO was concentrated on investing in healthier products for achieving sustainable development for the business together with offering healthier future for individuals and the world both. Under the brand-new vision, the motto of the company was also changed from the "fun for you" to "much better for you".

Human Sustainability

business obtained Quaker Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy drinks and natural drinks to present numerous much healthier items in its portfolio. Despite of being thought about a Case Solution's healthy brand, the products of Quake Oats included a number of ingredients which were hazardous to health.

Along with the inculcation of healthy brands in its portfolio through acquisitions, Novartis Venture Fund: Valuation Dilemmas Case Study Help has actually taken certain sustainability actions for its market locations. One of major examples in this regard is the Business's marketing strategy associated to schools. The business markets only low calories and nutritious beverages choices in schools.

Another action taken by Case Study Help towards human sustainability is the shift of its focus towards research study and development for presenting brand-new and healthy products in its portfolio. The business has actually increased its research study and development budget plan and has presented an army of health scientists to design specific healthy products.

Environmental Sustainability

In this regard, the business committed to decrease its product packaging by millions of tones to avoid high amount of wastages. The company has devoted to lower greenhouse gas emissions along with the accomplishment of effectiveness in the energy use.

On the basis of above analysis, it could be figured out that the company has taken a number of steps towards human and ecological sustainability. However these actions are still not adequate to accomplish the desired commercial development and to minimize the criticism over the social duty of Novartis Venture Fund: Valuation Dilemmas Case Study Analysis.

Alternatives

Specific long term strategic alternatives might be obtained for the company on the basis of above analysis. These options can be assessed on the basis of the reality that how the option would make it possible for the company to achieve its goal of potential development and minimize the criticism over the company. Additionally, the alternatives could be evaluated on the basis of the time frame that would be taken by an alternative to be executed together with the expense and dangers related to the alternative

Alternative-1: intro of a New Line of product Related to Healthy Foods and Beverages

The very first step that Novartis Venture Fund: Valuation Dilemmas Case Study Analysis might take is to present a brand-new product line related to healthy food and drinks. The company needs to introduce a large range of much healthier items by utilizing its substantial research and advancement expenses.

Pros:

• Capability to target a great deal of consumers i.e. health conscious consumers.
• Decrease of the criticism of environmental concerned societies and neighborhood advancement organizations.
• Satisfaction of the social responsibility by compensation of the dangerous items with healthy products.
• Might be implemented within few years i.e. 3 to 5 years.

Cons:

• Risk of failure of the brand-new products in the market i.e. customers might not like the taste and may not accept the much healthier items due to the addicting nature of harmful items.
• The harmful items in the item portfolio may make the incorporation of healthy items fail to reduce criticism.
• Huge expense of research and development required to construct brand-new healthy products.

Alternative-2: High level Acquisition of Health associated Companies

Another alternative option to achieve the prospective development and reduce the criticism is to get the health associated business at a high level. Investment in these type of companies would allow Novartis Venture Fund: Valuation Dilemmas Case Study Solution to present a big range of much healthier items within a short time period without any requirement of considerable research study and advancement expenses. The benefits and drawbacks associated with alternative 3 are provided listed below:

Pros:

• Saving of substantial amount of research and development costs for brand-new product development.
• Incorporation of new items within two years.
• Capability to target a great deal of customers i.e. health conscious consumers.
• Decrease of the criticism of environmental concerned societies and neighborhood advancement companies.
• Satisfaction of the social duty by compensation of the harmful items with healthy products.

Cons:

• The acquisition may not prove to change the image of Novartis Venture Fund: Valuation Dilemmas Case Study Help as in case of Quaker Oats.
• Requirement of big quantity of capital.
• Risk of failure of the brand-new items in the market i.e. consumers might not like the taste and may decline the healthier products due to the addicting nature of dangerous items.
• The hazardous products in the item portfolio may make the incorporation of healthy items stop working to minimize criticism.

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

Another alternative choice for Novartis Venture Fund: Valuation Dilemmas Case Study Solution is to replace all of its harmful products with healthier items. This might be a big shift in the business strategy and the business model at company. The replacement of dangerous items with healthier products would totally change the marketplace position of the company and would require a large number of essential steps to be taken. The benefits and drawbacks connected to alternative 3 are offered listed below:

Pros:

• Change of market position of Novartis Venture Fund: Valuation Dilemmas Case Study Solution
• Ability to target a great deal of customers i.e. health conscious consumers.
• End of all of the criticism of environmental concerned societies and neighborhood advancement companies.
• Fulfillment of the social responsibility

Cons:

• Threat of failure of the new items in the market i.e. consumers might not like the taste and may decline the healthier products due to the addicting nature of hazardous items.
• Substantial cost of research study and development needed to build new healthy items.
• Worker might withstand over the modification in business model and company technique.
• Variety of years needed for the execution.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the business's CSR, issues dealt with by the business and the existing market situation, Novartis Venture Fund: Valuation Dilemmas Case Study Analysis is advised to think about alternative 2 of high level of acquisition of health related companies. As the acquisitions would allow the company to conserve of big amount of research study and advancement expenses for brand-new item development. In addition to it, acquisitions would permit incorporation of brand-new products within 2 years together with the ability to target large number of consumers. Furthermore, the acquisitions would lead to the decrease of the criticism from the concerned organizations.However, the alternative would need big amount of investment funds. The organizations may not be able to decrease the criticism. With a cautious analysis of the acquisition with an aggressive marketing campaigns, company might show to be successful in accomplishing the targets.

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

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