Business Growth Strategies for Nestle: A PESTLE and STP Analysis

Written piece business
growth strategies

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis...................................................................................................................3
STP Analysis..........................................................................................................................5
Perceptual Map.......................................................................................................................6
Growth Strategies...................................................................................................................8
Buyer Behaviour...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
The business environment is generally described as sum or aggregate of internal as well
as external factors and aspects which result in impacting upon operations and activities carried
out by a business entity. For instance, primary and major of these factors include industry or
market trends, government policies, market competition, technology, etc. which result in
influencing as well as affecting business operations and activities. Nestle is among the world’s
largest business organisations engaged in manufacturing and serving food and beverages in the
consumer market. Moreover, the respective organisation is headquartered in Vevey, Switzerland
while serving their products and services worldwide. Nestle V has a bar of certified vegan
chocolate which is made with sustainable Cocoa and rise-based alternative instead of milk. This
report assessment will provide an understanding of business mechanism of respective with the
application of various different frameworks (Chadraba and Springer, 2020). Furthermore, it will
facilitate in identification and determination of factors affecting business operations as well as
strategies of respective company in order to market their products.
MAIN BODY
PESTLE Analysis
This analysis is generally defined as a framework taken into consideration in order to
identify and determine external factors in the business environment which result in a positive or
negative impact upon a particular business organisation. In addition to that, factors determined in
this framework are further classified into several categories which are as follows:
Political Factors
 Changes in government policies: Business organisations in an economic nation are
majorly influenced and affected by government regulations and policies in that particular
geographical location. In order to ensure smooth functioning of business operations,
Nestle has to be abide by government policies in that particular geographic location.
Furthermore, negligence of these policies and regulations could result in serious issues
and challenges to respective business organisation.
 Brexit: The situation of Brexit resulted in a wrench in the strategic plan of respective
organisation as Europe is one of the most important markets for Nestle. For instance,

uncertainty and instability during the phase of Brexit emerged into various barriers to
operations and activities of respective company (Ji, and et. al.,2018).
Social Factors
 Attitude & Preferences of customers towards diet: Preferences and attitude of people
in society has been shifted towards nutritious and healthy diet. For instance, it will
facilitate Nestle in attracting higher amount of customers towards their Vegan product
with low concentration of fats. Therefore, it has been considered as positive external
factor which contributes additional values towards organisational success and growth.
 Negative impact of allegations: Nestle has been a part of major controversies over
extraction and use of excess drinking water in their operations. For instance, respective
organisation has been claimed to be using excess drinking water and leaving behind
polluted out of it which has adverse effects upon various different locations including
Canada, Flint, Mich, etc. Though products offered by respective organisation is still
preferred but the company itself is not preferred by customers in society due to these
allegations and claims.
Technological Factors
 Research & Technology: With the advancement of technology and increasing usage of
the internet, business organisations have access to essential information and knowledge.
For instance, Research & Development department of Nestle further facilitates in
gathering necessary information including upcoming market trends, consumer
preferences, opportunities, etc. In addition to that, information gathered and analysed
through research and development of respective organisation further contribute towards
fulfilling consumer demands and leads to innovation of products.
 Digital Industrial Revolution: The existing era of digital revolution is resulting in
changes in buying behaviour and attitude of customers. For instance, people are
determined at verifying quality of products and services through IoT (Internet of Things)
prior to their purchase. It creates a necessity for businesses to adapt these changes in
order to ensure organisational success and growth. Furthermore, Digital marketing
practices are determined as primary consideration to be taken into account in carrying out
marketing activities and practices (Jiang, and et. al., 2020). Therefore, lack of this