Case Study on Nestle

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NESTLE
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About Company

• Nestle is a one the leading food and nutrition
  providers of the world.
• It is a Swiss company that was founded in 1866.
  The headquarter of company is located in Vevey,
  Switzerland.
• Nestle is managing wide range of brands in
  different kinds of food products such as baby
  food, cereals, chocolate, soft drinks, ice cream,
  etc. in the all over the world.
• Example of products kit kat, alpo, nespray,
  nescafe and butterfinger.

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Importance of external analysis of organization

• External analysis helps management for assessment
  of overall position of business entity in
  different market situation market.
• With the help of external analysis, the
  management of Nestle can identify various factors
  that could affect performance and operations of
  organization.
• It supports in development of strategy and firm
  can easily deal with challenges present in the
  environment
• External analysis provides an opportunity in
  order to gain competitive advantage in market

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Steeple analysis

• Social factors
• Technological elements
• Economic factors
• Environmental elements
• Political elements
• Legal factor
• Ethical factor

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Porter's value chain analysis of Nestle
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Ansoff Matrix of Nestle
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Product life cycle of Nestle
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BCG matrix of Nestle
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STPD analysis of Nestle

• The approach can be termed as segmentation,
  targeting, positioning and differentiation of
  particular product and services.
• There are various food products offered by Nestle
  such chocolate, ice cream etc.
• STEPD analysis of Nestle Kit Kat is mentioned
  below
• Segmentation Geographic Segmentation,
  Demographic Segmentation and Psychographic
  Segmentation.

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Contd..

• Targeting
• Positioning
• Differentiation

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Porter's five force analysis of Nestle

• Threat of New Entrants
• Threat of Substitute Goods
• Bargaining Power of Suppliers

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Contd..

• Bargaining Power of Customers
• Competitive Rivalry within the Industry

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Future drivers that would change business
environment for food processing industry

• In next 5 years, health consciousness among
  people for healthy and nutritional food would be
  increased. It will influence Nestle in order to
  implement more nutritional elements in process
  foods.
• In future, economy development in new emerging
  markets such as India would lead change in
  lifestyle of people. It could lead increase in
  demand of processed food.
• In next five years, the health and safety along
  with food quality standards would strengthened by
  various domestic and international authorities.
• This will influence Nestle in order to alter the
  production and transportation process.
• Global competition will be raised.

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Key opportunities and Threats

• Opportunities
• Development of food product with efficient
  nutritional elements
• Expansion of business in new emerging market
• Development of partnership with new companies

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Contd..

• Threats
• Market Saturation
• Raise in price of raw material
• Change in interests of people
• Quality assurance
• Tough competition

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Reference

• Daft, R., 2012.Organization theory and design.
  Cengage learning.
• Gander, P. and et.al., 2011. Fatigue risk
  management Organizational factors at the
  regulatory and industry/company level. Accident
  Analysis Prevention. 43(2). pp,573-590.
• Hill, C., Jones, G. and Schilling, M., 2014.
  Strategic Management Theory An Integrated
  Approach. Cengage Learning.
• Hussain, S. and et.al., 2013. ANSOFF Matrix,
  Environment, and Growth-An Interactive Triangle.
  Management and Administrative Sciences Review.
  2(2). pp.196-206.
• Lee, H., Kim, M. S. and Park, Y., 2012. An
  analytic network process approach to
  operationalization of five forces model. Applied
  Mathematical Modelling. 36(4). pp.1783-1795.
• Song, W. Y. and Hwang, K. Y., 2012. Effects of
  External Environment and Organizational Resources
  and Capabilities on Strategy and Performance An
  evidence from an analysis on ventures. The
  Journal of the Korea Contents Association. 12(2).
  pp.369-387.
• Zhu, Q., Sarkis, J. and Lai, K. H., 2013.
  Institutional-based antecedents and performance
  outcomes of internal and external green supply
  chain management practices. Journal of Purchasing
  and Supply Management. 19(2). pp.106-117.

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