The company has achieved growth since its inception inbut has also struggled very hard to maintain profitability levels. However, inthe Natureview Farm arranged for an equity infusion from a venture capital VC firm to fund its strategic investments. The VC firm now needed to cash out of its investment in Natureview. Natureview management now needed to find another investor or position itself for acquisition.
The company always laid emphasis on natural ingredients and has Leland Electric Motor Company a reputation on the basis of high quality and great taste. This strong reputation helped the company to grow up to national distribution and went on to attain leadership in natural foods channel. By the yearNatureview Farm started producing twelve refrigerated yogurt flavors, in 8-oz' cups and four flavors in32 oz.
The company Natureview Farm Company also started exploring multipack yogurt products as a growth option. The company earned a position of major brand in the natural foods channel and this position helped the company to build strong and valuable relationships with leading natural foods retailers like the chains whole foods and Wild Oats.
Another issue is the company needs to find another investor as Venture Capital is demanding a cash out of its investment in the company. The prospect of alternative financing is also difficult until Venture Capital cashed out completely. The company has three options in front and needs to adopt one of them to meet its revenue related goals.
The first option is to expand six SKUs An Italian Design Company the 8-oz. The third option is to introduce two SKUs of a children's multi-pack into the natural foods channel. The three options available to the company have their own importance and benefits. But, the options available also have some limitations attached to them.
We will analyze the options one by one in detail using qualitative economic model. In the first option, the company is to expand six SKUs of the 8-oz. The option is feasible as 8-oz is the best selling cup size of the company exhibit 2. This option has great potential of business but involves risks and higher costs.
The second option available to the company is Zimmer Manufacturing Company expand four SKUs of the 32'oz. The third option available is to introduce two SKUs of a children's multi-pack into the natural foods channel.
For third option multi pack product need to be developed. The three options available require different costs to be incurred on marketing and advertisement expenditures.
The balanced scorecard is a performance management system that keeps a check whether there is an aalignment between the large scale objectives and the smaller scale operational activities of a company that too on terms Company Names Not Used sight and smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and scheme.
The balanced scorecard proposes the four general perspectives. The financial perspective keeps a check weather the strategies implemented and applied by the company are contributing to the bottom-line improvement of the company.
Key performance indicators of this perspective are the cash flow statement; return on fund invested; financial result; return on capital employed and return on equity. These key performance indicators would decide weather the strategy implemented by Natureview Farm is beneficial for the company and is providing contribution in the financial improvement of the company. This internal process perspective deals with the complete processes that actually Natureview Farm Company and deliver the value proposition to the customer.
Its main focus is to provide the value to the customers both productively and efficiently. The key performance indicators are number of activities; opportunity success rate; accident ratios; overall equipment effectiveness. These performance indicators would measure the efficiency of strategy implemented and applied by Natureview Farm Company. The innovation and learning perspective keeps its focus mainly on the internal skills and capabilities that are required to support internal processes of value creation.
It deals with the human capital; information capital and the organizational capital of the company and provides foundation in the strategy development. The strategy is developed on the basis of internal skills and capabilities. Proposed strategy of expanding to a supermarket channel would be judged on the basis of investment rate and other key parameters that indicate and lays down the base for the formulation of strategy.
Activity based costing is a technique that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption by each. It helps an organization to establish the real cost of products and services.
This technique is majorly used to support strategic decisions such as pricing, outsourcing and identification and measurement of process improvement initiatives. It supports the identification of inefficient product, section and action in the company. This technique also helps to allocate appropriate resources on productive product, section and activity.
This technique supports to control the cost at individual level and on departmental level and helps to find unnecessary costs. It is easy to allocate direct costs but this technique helps in allocation of indirect cost to products.
Using activity based costing; we would review all the three strategic options available to the company. In the option 1, the Valley Fence Company New Mexico is to expand six SKUs of the 8-oz. The 8-oz. Natureview Farm's sales Ilkeston Shed Company had indicated that supporting this cup size would require quarterly trade promotions and a meaningful marketing budget.
These launch expenditures were in addition to the trade promotion expenditures the company would need to make. With this level of advertising, Natureview would be able to achieve a 1. In Oman Ship Management Company Saoc option 2, the company is to expand four SKUs of the 32'oz.
Although slotting expenses would be higher because national distribution would require slotting fees across a larger number of retailers, promotional expenses would be lower-the oz. For a oz. Additions to sales headcount for the oz.
In the option 3, the company is to introduce two SKUs of a children's multi-pack into the natural foods channel. Sales and marketing expenses in this channel were lower; the cost of the complimentary cases was estimated at 2.
The sales and marketing expenses in the third option are comparatively lower than the first two options. The anticipated incremental retail unit sales for the three options are in line with the costs incurred on the three strategic options available. But, there are certain other factors before recommending to any strategic option. The future prospects of the options also need to be considered.
In option 1, Eight-ounce cups represented the largest dollar and unit share of the refrigerated yogurt market, providing significant revenue potential.
Other natural foods brands had successfully expanded their distribution into the supermarket channel. In the option2, although oz. In the option 3, The Company already had strong relationships with the leading natural foods channel retailers, and expansion into the supermarket channel could potentially affect these relationships.
Yogurt was an important product to natural foods retailers from both revenue and a profit standpoint. Natureview does not have the necessary resources or skill-set to sell effectively to and through supermarkets. Natureview Farm's all-natural ingredients would provide the perfect positioning from which to launch its own children multi-pack product offering into their core sales channel.
The sales team was confident that they could achieve distribution for the two SKUs. The financial potential Natureview Farm Company very attractive. Gross profitability of the line would be But, somehow I feel there are certain limitations attached to my analysis. The analysis of the three strategic options available for the company is done only on the basis of cost and the anticipated incremental unit sales. There are number of other prospects which should be considered before selecting any option available to the company.
The other prospects which shall be included in the analysis are the strategies implemented by the competitors and weather these competitors are also looking for the same options of launching their products.
The analysis is also short in taking other factors in account like increase in the costs of production by the company in different package of cup sizes etc. In short, such strategic decisions need to analyze all the features related to the production; marketing and distribution of the products.
After going through all the financial and non financial factors of the strategic options available, I recommend option 3, that is, to introduce two SKUs of a children's multi-pack into the natural foods channel. All these factors would certainly help the company in future in expanding its business and to emerge as a leader of organic products all over the country. The exact cost of production of the multi-pack can only be ascertained only when the multi-pack is launched in the market.
Customer profitability analysis focuses on the relationships between employee satisfaction; customer satisfaction and corporate profitability. It provides an understanding to increase customer revenues and to decrease customer costs.
Customer profitability analysis can be done in three steps. Understanding and analyzing customer profitability. Maintaining and increasing customer profitability. Turning unprofitable customers into profitable ones.
To determine customer profitability, the causes of revenues and the costs should be well understood. This customer profit analysis would help Natureview Farm to bring together marketing and accounting professionals to analyze, manage, and improve customer profitability.
The customer profitability analysis would also help Natureview Farm in increasing their customer satisfaction profitably. This would also lead the management to focus on the areas of improvement and that would lead to higher customer satisfaction and greater corporate profitability. The company can use activity based accounting to determine how to increase customer satisfaction and the profitability of both individual customers and customer segments.
This analysis would provide information regarding improved profitability of the company and the customer satisfaction. Before initiating such a project, financial controller of the company should keep a good record of the customer value propositions. Financial controller should also make use of customer perspective applied in balanced scorecard. Option 1- The first option is to expand six SKUs of the 8-oz.
Option 3- The third option is to introduce two SKUs of a children's multi-pack into the natural foods channel. Reference: 1. If you are the original author of this content and no longer wish to have it published on our website then please click on the link below to request removal:. Essay UK offers students a complete range Holden Car Company free resources for undergraduate, post graduate, PhD and professional courses.
Mar 27, 2018 · Natureview Farm’s revenues had grown from a 100 thousand dollars to 13 million dollars. Now the main problem is the company wants to increase its revenues by 50% but the confusion is to promote which product line in order to achieve the target. Strategic Situation Facing Management in the Case 1.Analyze Customers and the Market…
Home. B&B. Farm stall. Tariffs. Activities. Photo Gallery. Location. Contact us. NATURE VIEW FARM Bed and Breakfast Accommodation Farm Stall Tea Garden…
Jun 08, 2016 · Natureview Farm : Harvard Business School Case 1. BACKGROUND 1989 • Founded and manufactured in Cabot, Vermont • Entered market with 8-oz and 32-oz with plain and vanilla flavor • Used natural ingredient with longer average shelf-life of 50 days 1999 • Company revenue growth from $ 100,000 to $13 million • Fruit on the bottom yogurt • Low-cost “guerilla marketing” tactics 2000 ...…
Jul 06, 2016 · Natureview Farm Harvard Case Study 1. NATUREVIEW FARM CASE STUDY By - Kunal Gupta IIT Bombay 2. INTRODUCTION Founded in 1989 Manufacturer and Marketer of Refrigerated Cup Yogurt Differentiators: - All Natural Ingredients - Longer Shelf Life (50 days) - Reputation for high quality and great taste Key Success Factor: - Strong Brand - Guerrilla Marketing - Strong Relationship and ……
Natureview Farm is a company that manufactures organic yogurt and is the industry leader with 24% market share. Its manufacturing process including the special recipe, longer shelf-life, no artificial ingredients, and product variety differentiated the brand and positioned it distinctively.…
This is a presentation for a fictional yogurt company, Natureview Farm.…
Dec 30, 2019 · Introduction. Natureview is facing a rather daunting challenge ever since its inception in 1989. The farm’s attempt to maintain its profitability saw the hiring of Jim Wagner as chief financial officer whose central role was to formulate and implement strategies ……
Natureview Farm Timeline 1989: founded in Cabot, Vermount manufactured and marketed refrigerated cup yoghurt with 2 flavors (plain and Vanila) 1996: Jim Wagner was hired as CFO Natureview farm was funded by a VC firm. 1999: revenue grows from $100,000 to $13 million in 10 years. Natureview Farm Main Issues An unplanned exit by its venture ...5/5(7)…
Natureview Farm Case Study Analysis of Natureview Farm's operating environment and its internal capabilities. The Natureview Farm Inc, a small yoghurt manufacturer, wants to grow its revenues by over 50% by the end of 2001. The company has achieved growth since its inception in 1989, but has also struggled very hard to maintain profitability ...…
Sep 23, 2017 · 1. Supermarket OR Not?? Natureview Farm case study. 2. A small yogurt manufacturer company Natureview Farm 3. ã Barry Landers ( CEO) ãChristine Walker (Vice-President……