Newell Company: Acquisition Strategy Case Study Analysis

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Newell Company: Acquisition Strategy Case Help

Newell Company: Acquisition Strategy Case Study Analysis is a popular name of a New York based, world's leading company in the food and drink industry. company is a prominent brand in practical snacks, foods and beverages with its existence in about 200 countries.

The report includes a deep analysis of numerous elements of the social duties of major business in the food and drink industry in basic, and Case Help in specific. It also supplies an analysis of the growing health and ecological problems including obesity, cardiovascular disease, environmental destruction etc. in the Western nations and the function of the companies in the food and beverage market to attend to these issues. The report also supplies an evaluation of the level of sustainability and CSR in the Newell Company: Acquisition Strategy Case Study Analysis's company strategy along with the decision of how Case Study Solution creates value for its consumers. The report likewise provides particular strategic options for company to include the criticism over its social duty with certain recommendations and an application strategy.

Problems Recognition

Case Study Help had taken specific vital actions regarding the environmental impacts of its items, however, these steps are not enough to end up the criticism over the business's obligation towards social and ecological problems. This is required to take specific strategic actions to alter the market position of its particular popular brands and present Case Study Analysis as a company producing healthy items in the market. In this regard, company and other food and beverage companies ought to use their power to move the customer taste towards healthier products to get rid of the restrictions in the development of food market.

Vital Analysis

The shift from the usage of natural food to made food has extremely affected the health of the consumers. All of the information related to the health problems with the incorporation of made food in the market discuss the frequency of the health problems related to food system. These concerns are indirectly the outcome of numerous practices of the food and drink business for developing worth for their customers.

Worth Development at Newell Company: Acquisition Strategy Case Study Solution

Newell Company: Acquisition Strategy Case Study Solution being a giant business in the food and beverage market, provides high value to its customers by different means. Case Study Analysis has a competitive advantage in offering its products far and broad globally. The company is provided in about 200 nations with a large number of well-known worldwide brands.

The company develops worth for its consumers by ways of supplying large number of delicious food products consisting of salt, fat and sugar, which are the active ingredients that are directly connected with the psychological core of the consumer's brain. The Newell Company: Acquisition Strategy Case Study Analysis in addition to other huge food and drinks companies develop value for its customers by manipulating these active ingredients in its items. Case Study Solution along with other huge companies is interested in finding methods to increase the consumer value from its products through making use of the vulnerability.

Together with it, the company also produces worth by methods of including the healthy point in its products. The business has actually done specific efforts in order to provide healthy products and lower the share of Newell Company: Acquisition Strategy Case Study Solution in general environmental devastation. Case Study Solution has taken specific actions connected to the sustainability of people and environment including the 2009 statement of the ambitious goals and commitments connected to Case Study Help items, market and the community.

All of these means have actually been successful at developing worth for the business customers. Nevertheless, these methods have also cause the increased environmental concerns and the criticism over the company's role in increasing health and environmental obstacles. The incorporation of components like salt, fat and sugar in the business products for creating consumer value faces high quantity of criticism. These active ingredients are the main reason for particular fatal illness in human consisting of weight problems, diabetes, cardiovascular disease and so on. Increasing health related issues have raised the criticism for Newell Company: Acquisition Strategy Case Study Analysis.

Useful Role of Significant Food and Drink Companies in Dealing With Social and Ecological Expenses Connected With the Market

Indeed, major food and drink business including company, etc. can play an useful function in addressing social and ecological expenses associated with the industry. The environmental costs associated with food and beverage industry include the environmental destruction due to the influx of nitrogen which has resulted in the decreased water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors results in environmental destruction which could be a huge threat to the existence of humanity in future.

Major reason for these ecological modifications is mass usage of nitrogen rich fertilizers and the ingredients by the food and drink companies. Food and beverage companies must play a positive function in dealing with these concerns to remove their development constraints related to the criticism from the ecological neighborhoods.

The companies must avoid usage of nitrogen fertilizers and ought to search out the items of those farmers that do not use fertilizers for their crop. The business might utilize renewable energy sources at their production plant to compensate the greenhouse gas emissions from the use of nitrogen-rich products.

In addition to the environmental expenses there are certain social expenses associated with the food and drink industry which need to be addressed by the huge food and beverage companies to accomplish the industry development and to avoid the criticism from the ecological communities. Social expenses connected with the industry includes the increasing health concerns associated with weight problems, cardiovascular disease, diabetes and so on. Nevertheless, the huge companies might play an useful role in attending to these problems.

The companies might move towards more healthy products by reducing the amount of harmful substances in their processed foods i.e. dioxin, which might result in lethal human diseases. The companies could also do efforts to shift consumer tastes towards healthy products as they have controlled the consumer taste for couple of years.

Examination of Sustainability at Newell Company: Acquisition Strategy Case Study Analysis

There was a potential shift in the business method and goals at Case Study Help. The brand-new CEO was focused on investing in healthier items for attaining sustainable development for the company in addition to supplying healthier future for the people and the planet both. Under the brand-new vision, the motto of the company was also changed from the "enjoyable for you" to "much better for you".

Human Sustainability

The business revealed specific goals and commitments connected to human sustainability and the ecological sustainability. Newell Company: Acquisition Strategy Case Study Help acquired Quaker Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy beverages and organic drinks to introduce numerous much healthier products in its portfolio. Nevertheless, despite of being thought about a Case Study Solution's healthy brand name, the products of Quaker Oats included numerous active ingredients which were harmful to health. These hazardous active ingredients were not advertised which have ended up being the base for criticism over the healthy brands of Newell Company: Acquisition Strategy Case Study Solution.

Along with the inculcation of healthy brand names in its portfolio through acquisitions, Newell Company: Acquisition Strategy Case Study Solution has taken particular sustainability actions for its market places. One of major examples in this regard is the Company's marketing technique associated to schools. The company markets only 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 study and advancement for presenting brand-new and healthy products in its portfolio. The company has increased its research study and development spending plan and has introduced an army of health scientists to develop specific healthy items.

Environmental Sustainability

In this regard, the company devoted to lower its packaging by millions of tones to prevent high amount of wastes. The company has actually committed 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 business has taken numerous steps towards human and ecological sustainability. These steps are still not sufficient to accomplish the desired industrial growth and to minimize the criticism over the social responsibility of Case Study Analysis.

Alternatives

Specific long term strategic options could be obtained for the business on the basis of above analysis. These alternatives can be evaluated on the basis of the reality that how the alternative would allow the company to accomplish its objective of prospective growth and lower the criticism over the company. The alternatives could be evaluated on the basis of the time frame that would be taken by an alternative to be executed along with the expense and threats related to the alternative

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

The first step that Newell Company: Acquisition Strategy Case Study Analysis might take is to introduce a brand-new line of product related to healthy food and beverages. Although, the business has already presented specific heath related brand names, however, the number of these brands in its portfolio is not possible to lower the criticism and attain prospective development. The company ought to present a broad variety of healthier products by using its significant research study and advancement expenses. The advantages and disadvantages associated with the introduction of a healthy product line in the portfolio are given listed below:

Pros:

• Capability to target a great deal of customers i.e. health conscious consumers.
• Decrease of the criticism of environmental worried societies and neighborhood advancement companies.
• Fulfillment of the social duty by settlement of the dangerous items with healthy products.
• Might be executed within couple of years i.e. 3 to 5 years.

Cons:

• Threat of failure of the brand-new items in the market i.e. customers might not like the taste and may not accept the much healthier items due to the addictive nature of harmful products.
• The hazardous items in the product portfolio may make the incorporation of healthy products stop working to lower criticism.
• Huge cost of research and advancement needed to develop brand-new healthy products.

Alternative-2: High level Acquisition of Health related Companies

Another alternative option to accomplish the prospective growth and decrease the criticism is to get the health related business at a high level. Investment in these type of business would allow Newell Company: Acquisition Strategy Case Study Solution to present a big range of much healthier items within a short time period without any need of considerable research study and development expenditures. The pros and cons connected to alternative 3 are provided listed below:

Pros:

• Conserving of huge quantity of research study and development costs for brand-new product advancement.
• Incorporation of brand-new items within two years.
• Ability to target a great deal of consumers i.e. health mindful customers.
• Decrease of the criticism of environmental concerned societies and neighborhood development companies.
• Fulfillment of the social responsibility by settlement of the hazardous products with healthy items.

Cons:

• The acquisition might not show to alter the image of Newell Company: Acquisition Strategy Case Study Solution as in case of Quake Oats.
• Requirement of big quantity of capital.
• Danger of failure of the new products in the market i.e. customers might not like the taste and might decline the much healthier items due to the addictive nature of harmful products.
• The dangerous products in the product portfolio may make the incorporation of healthy products stop working to minimize criticism.

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

Another alternative option for Newell Company: Acquisition Strategy Case Study Help is to replace all of its dangerous products with healthier products. The replacement of dangerous products with much healthier items would completely alter the market position of the business and would require a big number of needed actions to be taken.

Pros:

• Modification of market position of Newell Company: Acquisition Strategy Case Study Help
• Capability to target a great deal of consumers i.e. health mindful customers.
• End of all of the criticism of environmental concerned societies and community development companies.
• Satisfaction of the social responsibility

Cons:

• Threat of failure of the brand-new products in the market i.e. consumers might not like the taste and may not accept the healthier products due to the addictive nature of harmful products.
• Substantial cost of research and advancement required to construct new healthy products.
• Staff member might withstand over the modification in business design and business technique.
• Variety of years required for the execution.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the business's CSR, concerns faced by the business and the current industry situation, Newell Company: Acquisition Strategy Case Study Help is advised to consider alternative 2 of high level of acquisition of health related companies. As the acquisitions would enable the business to save of huge amount of research and development costs for new item advancement. In addition to it, acquisitions would enable incorporation of brand-new items within two years along with the ability to target large number of consumers. Additionally, the acquisitions would result in the reduction of the criticism from the concerned organizations.However, the alternative would require big amount of mutual fund. Furthermore, the organizations may not have the ability to minimize the criticism. With a mindful analysis of the acquisition with an aggressive marketing campaigns, business might show to be successful in attaining the targets.

This Newell Company: Acquisition Strategy case study is writen by : David J Collis

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