Background Information of Nestlle

Business
strategy
Name-Yadanar Soe
| [COMPANY ADDRESS]
ID- LGO5203

Table of Content
s
Background information of Nestle............................................................................................2
Analysis of macro environment and its impact and influence upon the organization and
business strategies.....................................................................................................................3
Value Chain................................................................................................................................5
Porter five forces.........................................................................................................................8
Internal situation.......................................................................................................................11
Objective setting.......................................................................................................................12
Strategy development...............................................................................................................13
Tactical plan.............................................................................................................................13
Control......................................................................................................................................14
Conclusion................................................................................................................................14
References.................................................................................................................................15
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I am appointed as a business analyst of Nestle who have responsibilities to evaluate the environment
and improve strategic planning. Thus, this assignment will present the analysis of internal and
external environment for the development of strategic plan in order to survive and success within an
organization. After this, this assignment will evaluate most appropriate strategies for an organization
to improve competitive edge.
Background information of Nestle
Nestle is known as the largest food and beverages organization in the world. At first, this
company sold only infant’s cereal but has now branched out to contain different products like
chocolate, coffee, and soup. Its headquarter is in Vevey, Switzerland and has over 308000 employees
around the world. Generally, this company has about 447 production facilities and has operations in
more than 189 countries They aim to have a product line for each stage of a consumer's life cycle
from their infancy to their retirement stage. Nestle's mission of “Good food, Good life” is to make
hygienic food with the best tasting and provide eating occasions, from morning to night. So that
people can possess a better life. Top competitors involve Unilever, Mars, and PepsiCo
(Luenendonk, 2020).
Analysis of macro environment and its impact and influence upon the organization and
business strategies.
There is no doubt that business is greatly influenced by its environment. There are many strategic
tools that a firm can use. Among them, PESTLE analysis is more common to use for detailed
analysis of the macro environment to know the opportunity and threats that are present among the
market in which the business operates. Following are the pest analysis of Nestle (pratap, 2020):
Politic and Legal factors
As Nestle works across 190+ countries, it is heavily influenced by politically due to different
regulations and rules of each country. Regulation in accounting standard taxation requirements, tax
rate changes are heavily influenced on Nestle business. It is necessary to accept legal formalities of
each country in where Nestle is currently operating. Main concerned laws to look after for nestle is
health and safety law, consumer protection law, laws association with control of environment and
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labor laws for smooth and constant growth. If a company break any rule, a company had to pay a
large sum the form of court cases and public trials. These things can be threatening for the
profitability and market position of nestle. It is why a large company like nestle spends a lot on legal
compliance (pratap, 2020). Brexit ( exit of British from EU) is an example of recent political factor
impacting the growth of company. Many FMCG and beverage businesses lose their skilled
professional EU workers in the UK because of Brexit deal. It created a gap of a non-skilled
workforce, and it has become very difficult to hire skilled professionals (Shaw, 2020).
Economic
It is very crucial for a company to have enough information about the country inflation rate,
economic growth rate, and national per personal capital income which all are vary in each country.
Besides, multinational company has to deal with many exchange rates of different countries. Even a
small change in the price of exchange rate would have a huge impact on the revenue of the
company. According to research conducted by Mintel Global Food and Drink Trends in 2020, the
trend of fast and comfort food is growing, and it continues to grow in the next 10 years. This is an
opportunity for the company to increases it sales in this category (Shaw, 2020).
Social
The social and cultural environment that impact on Nestle which are constantly changing. Every
country had different culture associated with beliefs, lifestyle, food, and their language. Moreover,
different countries have different consumer taste and behavior. As company is completely
dependent on the consumer attitude and lifestyle, company need enough information about the
consumer lifestyle before launching the product. Now most of the people becoming health
conscious so a company has an opportunity to fulfill their needs by operating low fat and sugar
containing product categories (pratap, 2020).
Technology
Technology is an essential factor for both the internal and external integrity of an organization.
Because it creates opportunities for new product, process improvements and advances marketing
techniques such as social media and e-commerce are also effective platforms for Nestle market
expansion. (pratap, 2020). Nestle spends a plethora of resources on research and development of
finding more efficient ways of preparing quality and healthier products to the customers. That
conducting research is much easier because of digital, technology and social media marketing. More,
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