SWOT Analysis and Operational Impact Analysis of Nestle

BM461 CW2 Portfolio
papers 2 & 3

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
SWOT Analysis.......................................................................................................................................3
Operational impact analysis.....................................................................................................................5
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
The business environment denotes the external factors, forces and the institutions that are
not in control of business. These affect the working and functioning of the companies. Basically
there are 2 types of business environment one which operates internally and the other is external
environment. It is very important to scrutinize the external environment so that the organization
can grow and survive in the competitive market (Elfahmi, Chandrarin and Manan, 2021). The
organization chosen for this report is Nestle which deals in food processing industry. It was
founded in the year 1866 and is headquartered in Switzerland. This report shall cover two
questions, the first is SWOT analysis of the company and secondly the operational impact
analysis of the organization.
MAIN BODY
SWOT Analysis
It is framework which identifies the strength and opportunities so that threats and
weakness can be overcome. In context to Nestle, it is discussed below-
Strength
 The main strength of the company is
it’s globally recognizing brand. The
organization has used effective
branding and advertisement strategies
so that it can create the awareness and
develop its brand image in the whole
world.
 Nestle is a highly diversified
organization that sell it products in
approximately 190 countries which
includes both developing and
developed nations. It has different
Weakness
 The main weakness of the company is
its organizational structure. Nestle has
matrix structure where in many number
of brands comes under the single
umbrella which makes it challenging
for the company to manage different
individual brands.
 Another weakness of Nestle is its social
criticism which it faced. There was a
claim of misleading labeling, water
privatization and case for making of the
chocolate using child labor that has