Strategic Activity-Based Management Product Mix And Pricing Case Study Analysis

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Strategic Activity-Based Management Product Mix And Pricing Case Analysis

Strategic Activity-Based Management Product Mix And Pricing Case Study Analysis is a widely known name of a New York based, world's leading company in the food and beverage market. company is a leading brand in hassle-free treats, foods and beverages with its presence in about 200 countries.

The report contains a deep analysis of various elements of the social obligations of major business in the food and beverage market in basic, and business in specific. The report also offers an evaluation of the degree of sustainability and CSR in the Strategic Activity-Based Management Product Mix And Pricing Case Study Help's organisation method along with the determination of how Case Study Analysis creates value for its consumers.

Issues Identification

Case Study Solution had actually taken certain crucial steps relating to the environmental effects of its products, but, these steps are not enough to end up the criticism over the company's duty towards social and environmental problems. This is needed to take specific strategic actions to alter the market position of its specific popular brands and present Case Study Help as a company producing healthy products in the market. In this regard, business and other food and beverage business ought to use their power to shift the consumer taste towards healthier products to get rid of the restraints in the growth of food market.

Crucial Analysis

For the couple of years, consumer food patterns have been changed significantly. The shift from making use of health food to produced food has actually extremely affected the health of the consumers. Despite of the discovery of modern-day health methods, the general health of people in few decades have actually been extremely affected. Presently about 1 billion of individuals In United States are obese and at least 300 countless them have obesity. Kids also dealing with the problem of weight problems. The ratios of weight problems in 1980s are quite various from the current ratios. Despite of discovery of health methods and modern-day ways to manage obesity and other diseases, the ratio of weight problems has been doubled form the level of 1980. All of the data connected to the health concerns with the incorporation of made food in the market explain the occurrence of the health issues related to food system. These concerns are indirectly the outcome of various practices of the food and beverage business for producing worth for their customers.

Value Creation at Strategic Activity-Based Management Product Mix And Pricing Case Study Solution

Strategic Activity-Based Management Product Mix And Pricing Case Study Solution being a huge business in the food and drink market, offers high value to its clients by numerous ways. Worth development in the food and beverage market is done through two ways i.e. taste and schedule of the product. Case Study Analysis has a competitive advantage in providing its items everywhere globally. Its marketing capability makes it able to target a large base of customers. The business is presented in about 200 countries with a large number of well-known international brands. The far and wide existence of the business products supplies high value to customers.

The company creates worth for its consumers by means of offering large number of delicious food items including salt, fat and sugar, which are the active ingredients that are directly linked with the emotional core of the consumer's brain. The Strategic Activity-Based Management Product Mix And Pricing Case Study Solution together with other giant food and drinks business produce worth for its consumers by manipulating these active ingredients in its products. Case Study Help in addition to other giant business is interested in finding methods to increase the customer worth from its items through exploiting the vulnerability.

Along with it, the company also develops worth by ways of incorporating the healthy point in its products. The company has done specific efforts in order to offer healthy products and reduce the share of Strategic Activity-Based Management Product Mix And Pricing Case Study Analysis in overall environmental destruction. Case Study Solution has taken certain actions related to the sustainability of people and environment including the 2009 statement of the ambitious goals and dedications associated with Case Study Solution products, market and the neighborhood.

All of these ways have actually been effective at developing value for the Case Study Help consumers. Increasing health associated issues have raised the criticism for Case Study Help.

Positive Function of Significant Food and Beverage Business in Resolving Social and Ecological Expenses Related To the Industry

Undoubtedly, significant food and beverage business consisting of company, and so on can play a positive function in attending to social and environmental expenses related to the market. The environmental costs related to food and beverage market consist of the ecological destruction due to the increase of nitrogen which has resulted in the lowered water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors leads to ecological devastation which might be a huge risk to the existence of humanity in future.

Significant cause of these ecological changes is mass use of nitrogen abundant fertilizers and the active ingredients by the food and beverage companies. For that reason, food and beverage companies ought to play an useful role in attending to these concerns to remove their growth restraints related to the criticism from the ecological communities.

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

Together with the ecological expenses there are specific social costs related to the food and drink market which need to be attended to by the giant food and beverage business to accomplish the market development and to avoid the criticism from the environmental communities. Social costs associated with the industry consists of the increasing health issues associated with obesity, heart problem, diabetes etc. However, the giant business might play an useful function in dealing with these issues.

The business could move towards more healthy items by lowering the amount of hazardous compounds in their processed foods i.e. dioxin, which could result in deadly human illness. The companies could also do efforts to shift consumer tastes towards healthy products as they have actually controlled the consumer taste for few years.

Evaluation of Sustainability at Strategic Activity-Based Management Product Mix And Pricing Case Study Help

There was a possible shift in the business method and goals at Case Study Help. The brand-new CEO was focused on purchasing much healthier products for achieving sustainable development for the business in addition to providing much healthier future for the people and the planet both. Under the brand-new vision, the slogan of the company was likewise changed from the "enjoyable for you" to "better for you".

Human Sustainability

The business announced specific objectives and commitments connected to human sustainability and the ecological sustainability. Strategic Activity-Based Management Product Mix And Pricing Case Study Help acquired Quaker Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy drinks and natural drinks to introduce different much healthier products in its portfolio. Despite of being thought about a Case Study Help's healthy brand, the items of Quaker Oats consisted of numerous components which were harmful to health. These dangerous components were not marketed which have ended up being the base for criticism over the healthy brands of Strategic Activity-Based Management Product Mix And Pricing Case Study Analysis.

Along with the inculcation of healthy brands in its portfolio through acquisitions, Strategic Activity-Based Management Product Mix And Pricing Case Study Help has taken particular sustainability actions for its market locations. Among significant examples in this regard is the Business's marketing technique associated to schools. The business markets only low calories and nutritious beverages options in schools.

Another step taken by Case Study Help towards human sustainability is the shift of its focus towards research and advancement for presenting brand-new and healthy items in its portfolio. The company has actually increased its research and advancement spending plan and has actually introduced an army of health scientists to create certain healthy products.

Environmental Sustainability

In this regard, the company devoted to minimize its product packaging by millions of tones to avoid high amount of wastes. The business has devoted to decrease greenhouse gas emissions along with the achievement of effectiveness in the energy usage.

On the basis of above analysis, it might be figured out that the business has taken several actions towards human and ecological sustainability. Nevertheless these steps are still not sufficient to achieve the wanted industrial development and to lower the criticism over the social responsibility of Strategic Activity-Based Management Product Mix And Pricing Case Study Analysis.

Alternatives

Certain long term strategic alternatives might be obtained 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 allow the company to accomplish its objective of possible development and decrease the criticism over the company. Furthermore, the options might be examined on the basis of the time frame that would be taken by an option to be implemented together with the expense and dangers connected to the option

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

The primary step that Strategic Activity-Based Management Product Mix And Pricing Case Study Help could take is to present a brand-new line of product associated with healthy food and drinks. Although, the business has currently presented certain heath associated brand names, however, the number of these brands in its portfolio is not potential to lower the criticism and attain possible development. For that reason, the business must present a wide variety of much healthier products by using its significant research and development expenses. The advantages and disadvantages associated with the intro of a healthy product line in the portfolio are given listed below:

Pros:

• Ability to target large number of consumers i.e. health mindful consumers.
• Decrease of the criticism of environmental concerned societies and neighborhood advancement companies.
• Fulfillment of the social obligation by compensation of the hazardous items with healthy items.
• Could be implemented within few years i.e. 3 to 5 years.

Cons:

• Danger of failure of the brand-new items in the market i.e. customers might not like the taste and may decline the healthier products due to the addicting nature of hazardous products.
• The harmful products in the product portfolio may make the incorporation of healthy items fail to reduce criticism.
• Huge cost of research study and development required to develop brand-new healthy items.

Alternative-2: High level Acquisition of Health related Business

Another alternative option to achieve the possible growth and decrease the criticism is to obtain the health associated business at a high level. Financial investment in these type of companies would permit Strategic Activity-Based Management Product Mix And Pricing Case Study Help to introduce a large variety of much healthier items within a brief time duration without any requirement of considerable research and development expenses. The advantages and disadvantages connected to alternative 3 are given listed below:

Pros:

• Saving of big amount of research study and development costs for brand-new product advancement.
• Incorporation of brand-new items within two years.
• Capability to target large number of consumers i.e. health conscious customers.
• Decrease of the criticism of ecological concerned societies and community advancement companies.
• Satisfaction of the social duty by settlement of the harmful products with healthy products.

Cons:

• The acquisition might not show to alter the image of Strategic Activity-Based Management Product Mix And Pricing Case Study Help as in case of Quaker Oats.
• Requirement of big quantity of capital.
• Threat of failure of the brand-new items in the market i.e. consumers might not like the taste and might not accept the healthier products due to the addicting nature of hazardous products.
• The harmful products in the item portfolio may make the incorporation of healthy products stop working to reduce criticism.

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

Another alternative choice for Strategic Activity-Based Management Product Mix And Pricing Case Study Solution is to replace all of its hazardous products with much healthier products. This could be a substantial shift in business technique and business design at business. The replacement of dangerous items with healthier items would completely change the market position of the business and would need a large number of necessary steps to be taken. The pros and cons related to alternative 3 are given below:

Pros:

• Change of market position of Strategic Activity-Based Management Product Mix And Pricing Case Study Analysis
• Ability to target large number of consumers i.e. health conscious customers.
• End of all of the criticism of ecological concerned societies and community development organizations.
• Fulfillment of the social obligation

Cons:

• Risk of failure of the new products in the market i.e. consumers might not like the taste and might not accept the much healthier products due to the addicting nature of harmful items.
• Substantial expense of research study and advancement needed to develop new healthy products.
• Worker might withstand over the modification in the business design and service technique.
• Number of years needed for the implementation.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the company's CSR, issues faced by the company and the existing industry scenario, Strategic Activity-Based Management Product Mix And Pricing Case Study Solution is suggested to consider alternative 2 of high level of acquisition of health related business. As the acquisitions would allow the business to save of substantial quantity of research study and development expenses for brand-new item advancement. Along with it, acquisitions would enable incorporation of brand-new items within two years together with the capability to target large number of customers. Additionally, the acquisitions would result in the decrease of the criticism from the worried organizations.However, the option would need substantial amount of mutual fund. The organizations may not be able to decrease the criticism. With a cautious analysis of the acquisition with an aggressive marketing projects, company might prove to be effective in attaining the targets.

This Strategic Activity-Based Management Product Mix And Pricing case study is writen by : Robert S Kaplan

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