Newell Co: Acquisition Strategy Case Study Solution
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Newell Co: Acquisition Strategy Case Help
Newell Co: Acquisition Strategy Case Study Solution is a well-known name of a New York based, world's leading company in the food and drink industry. Case Study Analysis is a prominent brand in practical treats, foods and beverages with its presence in about 200 countries. Major brand names of the company consist of; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive advantage of the company is its capability to market the item at far and wide places. Additionally, the business is doing efforts to make product development as its brand-new source of competitive advantage.
The report includes a deep analysis of different elements of the social obligations of major business in the food and drink market in general, and Case Help in specific. It also supplies an analysis of the growing health and ecological issues including obesity, cardiovascular disease, environmental destruction and so on in the Western countries and the role of the business in the food and beverage market to deal with these problems. The report also offers an evaluation of the level of sustainability and CSR in the Newell Co: Acquisition Strategy Case Study Solution's company strategy in addition to the decision of how Case Study Solution develops worth for its customers. The report also provides specific strategic options for company to integrate the criticism over its social duty with particular suggestions and an implementation strategy.
Case Study Analysis had actually taken specific important steps relating to the environmental effects of its items, but, these steps are not enough to end up the criticism over the business's obligation towards social and environmental issues. This is needed to take particular tactical actions to change the market position of its specific famous brands and present Case Study Solution as a business producing healthy products in the market. In this regard, company and other food and drink business must utilize their power to shift the consumer taste towards much healthier items to get rid of the restraints in the growth of food industry.
The shift from the usage of natural food to manufactured food has actually highly impacted the health of the consumers. All of the information related to the health issues with the incorporation of produced food in the market discuss the frequency of the health problems related to food system. These issues are indirectly the outcome of different practices of the food and beverage business for producing worth for their consumers.
Worth Development at Newell Co: Acquisition Strategy Case Study Analysis
Newell Co: Acquisition Strategy Case Study Analysis being a huge business in the food and drink market, provides high worth to its consumers by different methods. Value production in the food and drink industry is done through 2 methods i.e. taste and schedule of the item. Case Study Solution has a competitive advantage in supplying its items far and wide worldwide. Its marketing ability makes it able to target a large base of customers. The company is presented in about 200 countries with a a great deal of popular global brands. The far and wide presence of the company products provides high worth to consumers.
The company creates value for its customers by methods of offering big number of tasty food items including salt, fat and sugar, which are the components that are straight connected with the emotional core of the customer's brain. The Newell Co: Acquisition Strategy Case Study Analysis in addition to other huge food and drinks companies produce worth for its consumers by controling these active ingredients in its products. Case Study Solution along with other giant business is interested in discovering methods to increase the consumer value from its items through making use of the vulnerability.
Together with it, the business also creates value by ways of integrating the healthy point in its products. The company has actually done specific efforts in order to supply healthy products and reduce the share of Newell Co: Acquisition Strategy Case Study Analysis in overall ecological devastation. Case Study Analysis has actually taken particular actions associated with the sustainability of people and environment including the 2009 statement of the ambitious goals and dedications related to Case Study Analysis items, marketplace and the neighborhood.
All of these methods have actually been successful at producing value for the Case Study Help consumers. Increasing health related issues have raised the criticism for Case Study Solution.
Useful Role of Major Food and Beverage Companies in Dealing With Social and Ecological Expenses Associated with the Market
Undoubtedly, significant food and beverage companies consisting of company, and so on can play a constructive role in attending to social and environmental costs related to the market. The eco-friendly costs connected to food and drink market consist of the ecological devastation due to the increase of nitrogen which has actually led to the lowered water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors results in environmental devastation which might be a huge risk to the presence of humanity in future.
Significant cause of these ecological changes is mass use of nitrogen rich fertilizers and the components by the food and drink companies. For that reason, food and drink companies ought to play a constructive function in addressing these issues to remove their growth constraints connected to the criticism from the environmental communities.
The business need to avoid usage of nitrogen fertilizers and ought to search out the products of those farmers that do not utilize fertilizers for their crop. The business could utilize sustainable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich items.
Along with the eco-friendly expenses there are certain social costs associated with the food and drink market which must be dealt with by the giant food and beverage business to achieve the industry development and to prevent the criticism from the ecological communities. Social expenses related to the industry consists of the increasing health problems associated with obesity, heart problem, diabetes and so on. However, the giant business might play a constructive role in addressing these issues.
The business could move towards more healthy items by decreasing the amount of poisonous compounds in their processed foods i.e. dioxin, which might lead to lethal human diseases. In addition to it, the business should use more healthy active ingredients rather than derivatives of Corn and Soy to increase variety of calories from their products. The business might also do efforts to shift consumer tastes towards healthy products as they have actually managed the consumer taste for few decades. In this method the huge food and drink companies could play a positive role in resolving social and ecological expenses associated with the market.
Assessment of Sustainability at Newell Co: Acquisition Strategy Case Study Analysis
There was a prospective shift in the corporate technique and goals at Case Study Help. The new CEO was concentrated on investing in healthier products for achieving sustainable growth for the company along with offering healthier future for individuals and the world both. Under the new vision, the motto of the business was likewise altered from the "enjoyable for you" to "much better for you".
The company announced specific goals and commitments related to human sustainability and the environmental sustainability. Newell Co: Acquisition Strategy Case Study Help acquired Quake Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy beverages and organic drinks to introduce numerous healthier products in its portfolio. Despite of being considered a Case Study Help's healthy brand, the products of Quaker Oats consisted of a number of active ingredients which were hazardous to health. These dangerous components were not marketed which have actually become the base for criticism over the healthy brands of Newell Co: Acquisition Strategy Case Study Analysis.
Together with the inculcation of healthy brands in its portfolio through acquisitions, Newell Co: Acquisition Strategy Case Study Solution has taken certain sustainability actions for its market places. One of significant examples in this regard is the Business's marketing method related to schools. The business markets just low calories and nutritious drinks options in schools.
Another step taken by Case Study Analysis 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 increased its research study and development spending plan and has introduced an army of health scientists to develop certain healthy items.
In this regard, the company dedicated to decrease its product packaging by millions of tones to prevent high amount of wastes. The business has dedicated to lower greenhouse gas emissions along with the accomplishment of effectiveness in the energy usage.
On the basis of above analysis, it could be determined that the company has actually taken several steps towards human and ecological sustainability. These steps are still not sufficient to achieve the preferred industrial growth and to minimize the criticism over the social duty of Case Study Analysis.
Particular long term tactical options could be derived for the company on the basis of above analysis. These options can be examined on the basis of the reality that how the option would enable the business to attain its objective of possible growth and minimize the criticism over the business. The options might be evaluated on the basis of the time frame that would be taken by an alternative to be implemented along with the expense and risks related to the alternative
Alternative-1: introduction of a New Line of product Associated with Healthy Foods and Beverages
The primary step that Newell Co: Acquisition Strategy Case Study Analysis could take is to present a brand-new line of product related to healthy food and beverages. The company has actually already introduced particular heath associated brands, but, the number of these brand names in its portfolio is not prospective to reduce the criticism and attain potential development. Therefore, the company should present a wide range of healthier products by using its substantial research and development expenses. The benefits and drawbacks connected to the introduction of a healthy product line in the portfolio are offered listed below:
• Ability to target a great deal of customers i.e. health conscious consumers.
• Reduction of the criticism of ecological worried societies and community development companies.
• Satisfaction of the social obligation by settlement of the hazardous items with healthy items.
• Could be implemented within few years i.e. 3 to 5 years.
• Risk of failure of the new products in the market i.e. consumers might not like the taste and may decline the much healthier products due to the addicting nature of dangerous products.
• The dangerous items in the item portfolio might make the incorporation of healthy products fail to minimize criticism.
• Substantial expense of research and advancement needed to develop brand-new healthy items.
Alternative-2: High level Acquisition of Health related Companies
Another alternative option to accomplish the possible growth and minimize the criticism is to acquire the health associated business at a high level. Investment in these type of business would enable Newell Co: Acquisition Strategy Case Study Analysis to present a large range of healthier items within a short time period without any need of significant research and development expenditures. The pros and cons connected to alternative 3 are provided listed below:
• Conserving of big quantity of research and development costs for brand-new item advancement.
• Incorporation of brand-new items within 2 years.
• Ability to target large number of customers i.e. health conscious consumers.
• Reduction of the criticism of environmental concerned societies and neighborhood development organizations.
• Satisfaction of the social responsibility by payment of the dangerous products with healthy products.
• The acquisition may not prove to change the image of Newell Co: Acquisition Strategy Case Study Analysis as in case of Quake Oats.
• Requirement of huge quantity of capital.
• Danger of failure of the brand-new products in the market i.e. customers might not like the taste and might decline the much healthier products due to the addictive nature of hazardous items.
• The dangerous items in the item portfolio may make the incorporation of healthy products stop working to lower criticism.
Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio
Another alternative option for Newell Co: Acquisition Strategy Case Study Analysis is to replace all of its hazardous items with healthier items. This could be a substantial shift in business method and the business design at company. The replacement of dangerous products with healthier items would totally change the market position of the company and would need a a great deal of needed actions to be taken. The advantages and disadvantages associated with alternative 3 are provided listed below:
• Change of market position of Newell Co: Acquisition Strategy Case Study Analysis
• Capability to target large number of consumers i.e. health mindful consumers.
• End of all of the criticism of environmental concerned societies and neighborhood advancement organizations.
• Fulfillment of the social obligation
• Risk of failure of the new products in the market i.e. customers might not like the taste and might decline the healthier products due to the addicting nature of harmful products.
• Substantial expense of research study and development needed to develop new healthy products.
• Staff member might withstand over the change in business model and organisation technique.
• Number of years needed for the application.
• Shift of focus from the core proficiencies.
With the deep analysis of the business's CSR, issues dealt with by the business and the existing market situation, Case Study Help 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 substantial quantity of research and advancement costs for new product development. Along with it, acquisitions would enable incorporation of brand-new products within two years along with the capability to target large number of customers.
This Newell Co: Acquisition Strategy case study is writen by : David J Collis
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