Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Solution

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Calpine Corporation: The Evolution From Project To Corporate Finance Case Analysis

Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Help is a popular name of a New York based, world's leading company in the food and drink market. business is a leading brand in practical treats, foods and drinks with its existence in about 200 nations.

The report includes a deep analysis of different elements of the social obligations of major business in the food and beverage industry in basic, and company in specific. The report likewise supplies an examination of the degree of sustainability and CSR in the Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Analysis's organisation method along with the decision of how Case Study Analysis produces worth for its customers.

Issues Identification

Case Study Solution had actually taken certain vital steps relating to the ecological effects of its items, however, these steps are not enough to end up the criticism over the business's responsibility towards social and environmental concerns. This is required to take specific tactical steps to change the market position of its certain well-known brand names and present Case Study Analysis as a company producing healthy items in the market. In this regard, business and other food and drink companies should use their power to move the consumer taste towards healthier items to get rid of the constraints in the development of food market.

Crucial Analysis

For the couple of years, consumer food patterns have been altered drastically. The shift from making use of health food to made food has extremely impacted the health of the customers. Despite of the discovery of modern health strategies, the overall health of individuals in couple of decades have actually been highly impacted. Currently about 1 billion of individuals In United States are overweight and a minimum of 300 million of them have weight problems. Kids also dealing with the problem of obesity. The ratios of weight problems in 1980s are rather different from the current ratios. Despite of discovery of health techniques and modern-day ways to manage obesity and other diseases, the ratio of obesity has actually been doubled form the level of 1980. All of the data connected to the health issues with the incorporation of produced food in the market explain the occurrence of the health problems related to food system. These issues are indirectly the outcome of numerous practices of the food and beverage companies for developing worth for their consumers.

Value Creation at Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Solution

Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Solution being a giant business in the food and beverage industry, offers high value to its clients by different ways. Case Study Analysis has a competitive benefit in supplying its items far and wide internationally. The company is presented in about 200 nations with a big number of famous international brands.

The business develops worth for its customers by methods of offering large number of delicious food items consisting of salt, fat and sugar, which are the active ingredients that are directly linked with the emotional core of the consumer's brain. The Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Help along with other giant food and beverages companies produce worth for its consumers by manipulating these ingredients in its items. Case Study Solution along with other huge companies is interested in finding ways to increase the customer worth from its products through exploiting the vulnerability.

Along with it, the company also creates value by ways of incorporating the healthy point in its products. The business has done specific efforts in order to provide healthy items and decrease the share of Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Solution in total environmental devastation. Case Study Help has taken specific actions related to the sustainability of people and environment including the 2009 announcement of the ambitious goals and dedications associated with Case Study Analysis products, marketplace and the neighborhood.

All of these methods have been effective at creating value for the Case Study Analysis customers. Increasing health associated problems have actually raised the criticism for Case Study Solution.

Useful Function of Significant Food and Beverage Business in Resolving Social and Ecological Costs Connected With the Industry

Certainly, major food and beverage companies consisting of business, etc. can play an useful role in dealing with social and ecological costs associated with the industry. The eco-friendly expenses related to food and beverage industry consist of the ecological destruction due to the influx of nitrogen which has actually resulted in the lowered water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors results in ecological devastation which might be a huge risk to the presence of mankind in future.

Significant reason for these ecological modifications is mass use of nitrogen abundant fertilizers and the components by the food and drink companies. Therefore, food and beverage business ought to play a positive function in dealing with these concerns to remove their development restrictions connected to the criticism from the ecological neighborhoods.

In order to resolve these problems, the companies might either decrease their usage of nitrogen abundant ingredients or take specific steps to reduce the amount of nitrogen in the total environment. The business ought to avoid usage of nitrogen fertilizers and must locate the items of those farmers that do not use fertilizers for their crop. The companies might also invest in decreasing greenhouse gas emissions worldwide. The business might use sustainable energy sources at their production plant to compensate the greenhouse gas emissions from the use of nitrogen-rich products.

In addition to the eco-friendly expenses there are certain social costs connected with the food and drink industry which must be attended to by the huge food and drink business to achieve the market development and to prevent the criticism from the ecological neighborhoods. Social expenses related to the industry includes the increasing health issues connected to weight problems, cardiovascular disease, diabetes and so on. However, the huge business might play a constructive function in dealing with these concerns.

The business might move towards more healthy products by reducing the quantity of toxic compounds in their processed foods i.e. dioxin, which might result in fatal human diseases. The companies might also do efforts to move consumer tastes towards healthy products as they have managed the customer taste for couple of years.

Evaluation of Sustainability at Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Solution

There was a possible shift in the corporate technique and goals at Case Study Help. The brand-new CEO was focused on buying much healthier products for achieving sustainable growth for the company along with offering healthier future for individuals and the world both. Under the brand-new vision, the motto of the company was also altered from the "enjoyable for you" to "better for you".

Human Sustainability

The company revealed particular goals and dedications associated with human sustainability and the ecological sustainability. Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Analysis got Quaker Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy drinks and organic drinks to present different much healthier products in its portfolio. Despite of being thought about a Case Study Solution's healthy brand, the items of Quaker Oats included several ingredients which were hazardous to health. These hazardous active ingredients were not marketed which have actually become the base for criticism over the healthy brands of Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Help.

Together with the inculcation of healthy brand names in its portfolio through acquisitions, Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Help has taken specific sustainability actions for its market locations. One of significant examples in this regard is the Company's marketing technique associated to schools. The company markets only low calories and healthy drinks options in schools.

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

Environmental Sustainability

In this regard, the business dedicated to reduce its product packaging by millions of tones to avoid high amount of wastages. The business has actually devoted to decrease greenhouse gas emissions along with the accomplishment of efficiency in the energy usage.

On the basis of above analysis, it might be identified that the company has actually taken numerous actions towards human and environmental sustainability. Nevertheless these actions are still not adequate to achieve the preferred industrial development and to decrease the criticism over the social obligation of Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Help.

Alternatives

Certain long term strategic alternatives 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 alternative would allow the company to achieve its objective of possible growth and reduce the criticism over the business. Moreover, the alternatives might be evaluated on the basis of the time frame that would be taken by an option to be executed in addition to the expense and threats associated with the option

Alternative-1: intro of a New Product line Related to Healthy Foods and Beverages

The initial step that Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Solution could take is to present a new product line connected to healthy food and beverages. Although, the business has actually currently introduced particular heath associated brands, however, the number of these brand names in its portfolio is not possible to minimize the criticism and attain potential growth. Therefore, the business needs to present a wide range of much healthier products by using its substantial research and development expenses. The benefits and drawbacks related to the intro of a healthy product line in the portfolio are provided listed below:

Pros:

• Ability to target large number of consumers i.e. health conscious customers.
• Reduction of the criticism of environmental concerned societies and neighborhood advancement organizations.
• Fulfillment of the social obligation by payment of the dangerous products with healthy items.
• Could be executed within few years i.e. 3 to 5 years.

Cons:

• Danger of failure of the new products in the market i.e. customers might not like the taste and might decline the much healthier products due to the addicting nature of dangerous products.
• The harmful items in the item portfolio might make the incorporation of healthy products fail to minimize criticism.
• Big cost of research study and advancement needed to build brand-new healthy items.

Alternative-2: High level Acquisition of Health related Companies

Another alternative choice to attain the possible growth and lower the criticism is to obtain the health associated companies at a high level. Financial investment in these kind of business would allow Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Help to introduce a large variety of healthier products within a brief time period with no requirement of significant research and advancement expenditures. The pros and cons related to alternative 3 are provided listed below:

Pros:

• Conserving of substantial amount of research study and advancement expenses for brand-new item development.
• Incorporation of new items within two years.
• Ability to target large number of customers i.e. health mindful customers.
• Reduction of the criticism of environmental worried societies and community advancement companies.
• Fulfillment of the social responsibility by settlement of the harmful products with healthy items.

Cons:

• The acquisition may not prove to change the image of Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Solution as in case of Quake Oats.
• Requirement of huge quantity of capital.
• Risk of failure of the new items in the market i.e. customers might not like the taste and might decline the healthier items due to the addictive nature of dangerous products.
• The dangerous products in the item portfolio may make the incorporation of healthy products fail to lower criticism.

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

Another alternative option for Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Analysis is to change all of its harmful products with much healthier products. This could be a huge shift in the business method and the business model at company. The replacement of hazardous products with much healthier items would completely alter the market position of the company and would need a large number of essential steps to be taken. The advantages and disadvantages connected to alternative 3 are provided below:

Pros:

• Modification of market position of Calpine Corporation: The Evolution From Project To Corporate Finance Case Study Analysis
• Ability to target large number of consumers i.e. health mindful customers.
• End of all of the criticism of ecological worried societies and community development organizations.
• Fulfillment of the social responsibility

Cons:

• Risk of failure of the brand-new items in the market i.e. customers may not like the taste and might not accept the healthier items due to the addictive nature of hazardous items.
• Huge expense of research study and advancement needed to construct new healthy items.
• Worker may withstand over the modification in the business design and organisation technique.
• Number of years required for the application.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the company's CSR, issues faced by the company and the present market scenario, Case Study Solution is suggested to consider alternative 2 of high level of acquisition of health related business. As the acquisitions would make it possible for the business to conserve of big amount of research study and development costs for brand-new item advancement. Along with it, acquisitions would allow incorporation of new items within two years along with the capability to target big number of consumers.

This Calpine Corporation: The Evolution From Project To Corporate Finance case study is writen by : Benjamin C Esty

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