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Coping with Threats from Internal and External Factors

   

Added on  2019-09-23

14 Pages4288 Words363 Views
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Running Head: Strategic ManagementStrategic Management
Coping with Threats from Internal and External Factors_1

2Strategic ManagementTable of Contents1.Introduction:....................................................................................................................32.Evaluation of success of the company:...........................................................................33.Reasons behind the success of the company:................................................................54.Detailed analysis of the company’s strategic capabilities-Value Chain-VRIN evaluation:65.Evaluation of contribution of leadership to the company:................................................8Leadership...................................................................................................................8Management theories..................................................................................................8Organization culture.....................................................................................................8Decision making..........................................................................................................96.Analysis of business strategies:......................................................................................9Business competitive strategies consistent with strategic capabilities.........................9International strategy...................................................................................................9Innovation strategy....................................................................................................10Collaboration.............................................................................................................107.Analysis of any external/internal factor posing threat to future success:........................11Suggestions:.....................................................................................................................118.Conclusion:...................................................................................................................12References:..........................................................................................................................13
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3Strategic Management1.Introduction: The organization that has been chosen to develop this strategic analysis report is Nestle thatis a reputed Swiss food and drink company across the globe. In terms of revenue and other factors, it is the biggest food company on this earth. The firm was founded in the year 1866. Paul Bulcke is the Chairman and Ulf Mark Schneider is the current CEO of the company. The brand sells various products such as chocolates, baby food, dairy products, ice cream, coffee, bottled water, cereals for breakfast, etc. The company can be regarded as one of the most popular brands in confectionery and the major reason of its success is the able leadership from the management and prudent strategic decisions taken by the management from time to time. For the year 2017, the Net Profit stood at CHF 7.2 billion that shows the immense volume of business achieved [ CITATION Nes18 \l 16393 ].2.Evaluation of success of the company: The performance results of the company in 2017 can be used as the tool to evaluate the success on a global scale. The group sales achieved by Nestle in the year stood at CHF 89.8 billion and the Trading Operating Profit was calculated at CHF 13.2 billion [ CITATION Nes17 \l 16393 ]. Though it was learnt that the organic sales growth was below the expectedmargin in 2017, but yet it was within the range to be considered as a profitable year for the organization. Product Portfolio of Nestle for 2017It can be seen from the above data that Nestle offers high quality of nutritional and hygienic products for individuals as well as families around the world. There are seven categories of products sold to the global consumers of all ages. Hence, it can be comprehended that the
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4Strategic Managementcompany is extremely successful in its strategic decisions as it has come up with an array of products for the consumers of different age, tastes, preferences and culture all around the world. In the year 2017, the product that was most sold by Nestle was the Powdered and Liquid Beverages category. Hence, it is not too difficult to comprehend the success of Nestleas a global food and beverage brand. The company is operating for more than 150 years across the global market and serves around 189 nations currently. In terms of global reach and expanse it is probably the most successful of the confectionary companies in the world.Global Sales of Nestle productsFrom the chart above it is possible to observe the global sales of Nestle across the world. It can be seen that in the AMS or Zone Americas the sales value was CHF 40.7 billion, in AOAor Zone Asia, Oceania and sub-Saharan Africa the company sold CHF 23 billion and in the EMENA or Zone Europe, Middle-East and North Africa the company sold CHF 26.1 billion[ CITATION Nes17 \l 16393 ]. Therefore, the success of Nestle as a global brand is well-established through the reports studied in this section. Going by the huge success of the company in the year 2017, the Board has proposed a dividend amounting to CHF 2.35 each share that was an enhancement by 5 centimes [ CITATION Nes18 \l 16393 ]. The company has ‘Nutrition’ at the core of its heart as a strategic tool with which it wishes to serve the consumers across a wide age range around the world. The modern consumers are extremely cautious about their consumption and lifestyle and they will only consume foods and beverages from a trusted brand that has been operating for decades in the global market. This is an area where Nestle management has exploited toits advantage. The company has been offering the nutritional products to these customers according to their tastes and preferences such that the needs of quality, health and taste of
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