Section B: Case Study Analysis (70 marks) OATSIDE: SINGAPORE PLANT-BASED MILK STARTUP Interest in alternative and sustainable protein is at an all-time high, attracting billions of dollars in investments and the trendy endorsement of celebrities. Some experts even believe the pandemic quickened the adoption of plant-based meat and dairy as consumers became more health-conscious and grocery shopping surged globally. It was also around this time, as Singapore entered a lockdown in 2020 and many stayed home to whip up their own version of dalgona coffee, that budding entrepreneur Benedict Lim began experimenting with making his own oat milk. As an executive in the food industry, he was obsessed with getting it perfect. Mr. Lim wanted a drink with a distinct creamy texture that wouldn't overpower other drinks it was paired with. He definitely didn't want the strange aftertaste that has turned many off. Having spent about 2 years refining and producing the product, the former Kraft Heinz executive has launched a brand called Oatside. Oatside's rendition of oat milk has malty notes and many people who grew up in Asia have commented that the drink tastes familiar, Mr. Lim said. His company raised S$22 million in December 2020 in a round led by Proterra Investment Partners Asia. He also attracted further investment from Commonwealth Ventures and HTC Corporation to finance his research and development, which took 6 months, and setting up an oat milk production line, which took 12 months. Instead of using a contract manufacturer, Oatside has a factory in Bandung, Indonesia where it has access to natural spring water. The quality of water matters, Lim said, because it makes up 80 per cent of the drink Oatside has started selling to consumers in Singapore through Redmart and Shopee, and will be available in major supermarkets soon. The product is available in barista blend, chocolate and chocolate hazelnut variants, and retails for S$6 as compared to its competitor, Oatly's regular oat milk variant which retails for S$6.85 online. Coffee chains Baker & Cook, PPP Coffee and The Coffee Bean & Tea Leaf also uses Oatside in their drinks and desserts. Mr. Lim has plans to scale the business in South Korea and Japan as well. The 2 markets and China are huge opportunities for Oatside because they have the largest dairy markets, he noted. The 31-year-old is hoping to tap his experience at Kraft Heinz, where he was Chief Financial Officer of Heinz ABC Indonesia and head of mergers and acquisitions for Kraft Heinz Asia-Pacific. "I learnt how a food company works in terms of supply chain management, finance, distribution and marketing. But the most impactful thing! learnt from Heinz was product obsession - how do you create a product that tastes the best." he said. Still, Outside is coming up against some strong competition. Oatly, for instance, has tied up with Singapore's F&B manufacturer Yeo Hiap Seng to invest S$30 million in producing the drink in Singapore. It's the first time the Swedish company will be producing its popular oat milk brand outside Europe and North America. Oatly raised US$1.4 billion in an initial public offering on Nasdaq in May last year at an implied valuation of around US$10 billion, though its shares have since fallen 67.7 per cent amid heavy competition and supply chain issues. But players like Oatside and Oatly will likely continue to benefit from the growing alternative protein industry globally. Venture capital investment in the plant-based dairy and eggs space reached US$16 billion in 2020, from US$64 million in 2015, according to data provider Dealroom. Besides Oatside, Singapore-based companies working on plant-based milk include WhatIf Foods, which launched BamNut Milk made from the Bambara groundnut. Meanwhile, TurtleTree Labs is developing lab-grown cell-based milk and recently raised US$30 million for its exploits. Source: Adapted from Business Times article titled "Singapore plant-based milk startup sings a new car to joy" written Claudia Chong dated 10 February 2022. ANSWER ALL QUESTIONS (70 MARKS) 2. Demonstrate your understanding of the concepts of efficiency vs effectiveness by explaining how the following evidences from the case study relates to both efficiency and effectiveness. ("Instead of using a contract manufacturer, Oatside has a factory in Bandung, Indonesia, where it has access to natural spring water. The quality of water matters as it makes up 80 percent of the drink.* (5 marks) (i) 'His company raised $22 million in December 2020 in a round led by Proterra Investment Partners Asia. He also attracted top companies like Commonwealth Ventures and HTC Technologies to invest in Oatside. Research and development took 6 months, and setting up an oat milk production line, which took 12 months.' (5 marks) (iii) "Oatside has started selling to consumers in Singapore through Redmart and Shopee, and will be available in major supermarkets soon. Coffee chains Baker & Cook, PPP Coffee and The Coffee Bean & Tea Leaf also uses Oatside in their drinks and desserts." (5 marks) 3. (a) Using an example you are familiar with (NOT related to the case on Oatside), describe each of the FOUR (4) forces in Albert Humphrey's SWOT Analysis. (12 marks) (b) Apply each of the FOUR (4) forces of the SWOT Analysis to Oatside to determine what is the probability of success for this new product in Singapore and globally. (24 marks) 4. (a) Using an example you are familiar with (NOT related to the case on Oatside), describe each of the FOUR (4) corporate level strategies adopted by companies to grow their business. (12 marks) (b) Identify and describe the TWO (2) corporate-level strategies Mr. Benedict Lim have adopted to grow its business and evaluate its likelihood of success. (7 marks) Section B: Case Study Analysis (70 marks) OATSIDE: SINGAPORE PLANT-BASED MILK STARTUP Interest in alternative and sustainable protein is at an all-time high, attracting billions of dollars in investments and the trendy endorsement of celebrities. Some experts even believe the pandemic quickened the adoption of plant-based meat and dairy as consumers became more health-conscious and grocery shopping surged globally. It was also around this time, as Singapore entered a lockdown in 2020 and many stayed home to whip up their own version of dalgona coffee, that budding entrepreneur Benedict Lim began experimenting with making his own oat milk. As an executive in the food industry, he was obsessed with getting it perfect. Mr. Lim wanted a drink with a distinct creamy texture that wouldn't overpower other drinks it was paired with. He definitely didn't want the strange aftertaste that has turned many off. Having spent about 2 years refining and producing the product, the former Kraft Heinz executive has launched a brand called Oatside. Oatside's rendition of oat milk has malty notes and many people who grew up in Asia have commented that the drink tastes familiar, Mr. Lim said. His company raised S$22 million in December 2020 in a round led by Proterra Investment Partners Asia. He also attracted further investment from Commonwealth Ventures and HTC Corporation to finance his research and development, which took 6 months, and setting up an oat milk production line, which took 12 months. Instead of using a contract manufacturer, Oatside has a factory in Bandung, Indonesia where it has access to natural spring water. The quality of water matters, Lim said, because it makes up 80 per cent of the drink Oatside has started selling to consumers in Singapore through Redmart and Shopee, and will be available in major supermarkets soon. The product is available in barista blend, chocolate and chocolate hazelnut variants, and retails for S$6 as compared to its competitor, Oatly's regular oat milk variant which retails for S$6.85 online. Coffee chains Baker & Cook, PPP Coffee and The Coffee Bean & Tea Leaf also uses Oatside in their drinks and desserts. Mr. Lim has plans to scale the business in South Korea and Japan as well. The 2 markets and China are huge opportunities for Oatside because they have the largest dairy markets, he noted. The 31-year-old is hoping to tap his experience at Kraft Heinz, where he was Chief Financial Officer of Heinz ABC Indonesia and head of mergers and acquisitions for Kraft Heinz Asia-Pacific. "I learnt how a food company works in terms of supply chain management, finance, distribution and marketing. But the most impactful thing! learnt from Heinz was product obsession - how do you create a product that tastes the best." he said. Still, Outside is coming up against some strong competition. Oatly, for instance, has tied up with Singapore's F&B manufacturer Yeo Hiap Seng to invest S$30 million in producing the drink in Singapore. It's the first time the Swedish company will be producing its popular oat milk brand outside Europe and North America. Oatly raised US$1.4 billion in an initial public offering on Nasdaq in May last year at an implied valuation of around US$10 billion, though its shares have since fallen 67.7 per cent amid heavy competition and supply chain issues. But players like Oatside and Oatly will likely continue to benefit from the growing alternative protein industry globally. Venture capital investment in the plant-based dairy and eggs space reached US$16 billion in 2020, from US$64 million in 2015, according to data provider Dealroom. Besides Oatside, Singapore-based companies working on plant-based milk include WhatIf Foods, which launched BamNut Milk made from the Bambara groundnut. Meanwhile, TurtleTree Labs is developing lab-grown cell-based milk and recently raised US$30 million for its exploits. Source: Adapted from Business Times article titled "Singapore plant-based milk startup sings a new car to joy" written Claudia Chong dated 10 February 2022. ANSWER ALL QUESTIONS (70 MARKS) 2. Demonstrate your understanding of the concepts of efficiency vs effectiveness by explaining how the following evidences from the case study relates to both efficiency and effectiveness. ("Instead of using a contract manufacturer, Oatside has a factory in Bandung, Indonesia, where it has access to natural spring water. The quality of water matters as it makes up 80 percent of the drink.* (5 marks) (i) 'His company raised $22 million in December 2020 in a round led by Proterra Investment Partners Asia. He also attracted top companies like Commonwealth Ventures and HTC Technologies to invest in Oatside. Research and development took 6 months, and setting up an oat milk production line, which took 12 months.' (5 marks) (iii) "Oatside has started selling to consumers in Singapore through Redmart and Shopee, and will be available in major supermarkets soon. Coffee chains Baker & Cook, PPP Coffee and The Coffee Bean & Tea Leaf also uses Oatside in their drinks and desserts." (5 marks) 3. (a) Using an example you are familiar with (NOT related to the case on Oatside), describe each of the FOUR (4) forces in Albert Humphrey's SWOT Analysis. (12 marks) (b) Apply each of the FOUR (4) forces of the SWOT Analysis to Oatside to determine what is the probability of success for this new product in Singapore and globally. (24 marks) 4. (a) Using an example you are familiar with (NOT related to the case on Oatside), describe each of the FOUR (4) corporate level strategies adopted by companies to grow their business. (12 marks) (b) Identify and describe the TWO (2) corporate-level strategies Mr. Benedict Lim have adopted to grow its business and evaluate its likelihood of success. (7 marks)