Nestle company.

Added on - 30 Sep 2019

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NESTLE COMPANYResearch Assignment
Table of ContentsIntroduction......................................................................................................................................2Pestle Analysis.................................................................................................................................31.Political segment...................................................................................................................32.Economic segment................................................................................................................33.Social segment......................................................................................................................34.Technological segment.........................................................................................................35.Legal segment.......................................................................................................................36.Environmental segment........................................................................................................3Porter’s five forces Model...............................................................................................................31.Bargaining power of buyers..................................................................................................32.Bargaining power of Suppliers.............................................................................................33.Threat of substitute...............................................................................................................34.Threat of new entrants..........................................................................................................35.Threat of existing competitors..............................................................................................3Recommendation.............................................................................................................................3Conclusion.......................................................................................................................................3References........................................................................................................................................4
IntroductionIn this present paper, we will discuss the analysis of nestling company. The paper also analyzesthe company by pestle analysis and porters five forces model. On the basis of the analysis,recommendations have been made.Nestle company is a transnational drink and food company which lies in food processingindustry. Headquarter of the company is in Switzerland, and it is the largest food processorcompany according to the revenue of the company. The company produces medical food,coffee,breakfast cereals, ice cream, tea, and others. The total revenue of the company in 2015 is 88.8Billion. The company was founded in 1905 by the merger of Anglo-Swiss Milk Company (v etal., 2016) .The company is primarily listed on the SIX Swiss exchange and then secondary listedon the Euro next. The company is having a wide range of portfolio which includes the hugerange of products such as Nesquik, Nescafe, and others. The total employees of the company in2015 were 335,000. The company serves its product across the world. The company operates ineighty countries, and the most profitable market is North America. The company has stronginternationalization strategy which shows the commitment of the company towards its resourcesand development of the capability to the external environment.Pestle AnalysisThe pestle analysis reflects the various external forces which influence the dynamics of anindustry. These forces impact on the behavior of the consumers. The company has the ability toensure a level of adoption, which is required for the various markets driven by differentconsumer behavior and cultures.
1.Political segmentThe political segment of the company is changing regulation which is surrounded by the actionsof markets and foods standards. The international process is facing the risk due to thegovernment stability in new emerging economies. The changes in the standardized practice ofglobal regulation lead to the adoption by various political forces. The company faces variousproblems due to regulations in various countries which do not allow come products in variousmarkets. The company has to follow different political changes in the developing countries dueto which the price of the product become expensive and citizens of developing country are notcapable of buying various products (Steger et al., 2015).2.Economic segmentThe knowledge of the change in economic rate, inflation rate, a level of income is requiredbecause it impacts on the economic stability of the company. The alteration in the budget ofconsumers and increase in the cost conscious consumer impacts on the profit margin of thecompany. The rise in the cost of raw material or increase in the demand of suppliers due towhich price increases it leads to decrease the profitability of the company. The company facesthe problem of economic changes in different countries due to which the problem of supplyingthe products to the consumers is faced by them. The price of raw material also increase due towhich can cost of raw material also increases and selling price of the product is not afford by theconsumers in developing countries (Loughlin et al., 2015).3.Social segmentIt includes the change in the attitude of the consumers towards the nutrition and healthierproducts within the same product line by the initiatives of the government. The change in the
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