Source of Sustainable Competitive Advantage
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La Trobe University
Added on 2020-04-13
Source of Sustainable Competitive Advantage
La Trobe University
Added on 2020-04-13
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Running head: STRATEGIC MANAGEMENTStrategic ManagementName of StudentName of UniversityAuthor Note
1STRATEGIC MANAGEMENTTable of Contents2. Corporation identification......................................................................................................2a. Identifying a company with product or service portfolio...................................................23. Business unit research............................................................................................................2a. Business unit identification.................................................................................................2b. Identifying product and service lines.................................................................................34. Business unit revenue.............................................................................................................4a. Identifying revenue centre..................................................................................................45. External environment analysis...............................................................................................4a. Identifying PESTEL of the company.................................................................................46. Source of sustainable competitive advantage........................................................................6a. Identifying source of sustainable competitive advantage...................................................67. Strategic direction..................................................................................................................8a. Recommendations for future strategic direction.................................................................8Reference....................................................................................................................................9
2STRATEGIC MANAGEMENT2. Corporation identificationa. Identifying a company with product or service portfolioThe term corporation can be used to define a large company that is authorised to actas a single entity. These companies are recognised by the court of law and rules andregulations need to be maintained in order to remain successful (Peppard and Ward 2016).The report identifies a company with a product portfolio that helps it to expand it in thebusiness. For this purpose, the report focuses on Nestle. Nestle is a food and drinks companythat is situated in Vevey, Vaud, Switzerland. It is the largest as well as the most reputed foodcompany in the world. Nestle owns over 8500 brands in over 80 countries (Nestle.com 2017).In this regard, the product and service portfolio of the company can be analysed. Aproduct portfolio refers to the overall collection of the various products and services that areoffered by a particular company. According to Visnjic, Wiengarten and Neely (2016), theproduct portfolio analysis provides a subtle view based on stock type and growth prospects ofa company. Similarly the service portfolio of a company include providing a storage place inwhich information about the services of an organisation are maintained. In the case of Nestle,the service provided by the company to all areas of business are maintained using the currentstatus and the history of the services. In the case of product portfolio, Nestle excels inmaintaining various types of products like baby food, coffee, dairy products and so on.3. Business unit researcha. Business unit identificationAccording to Rothaermel (2015), Strategic Business Unit refers to the profit centrewhich deals with the product offering and market segment. Commonly, Strategic Business
3STRATEGIC MANAGEMENTUnit (SBU) can be considered as a business unit that is under a large corporation. SBUs havea marketing plan that helps in the analysis of the competition and the marketing campaign.However, SBUs can be composed of more than one business unit that is responsible forprofit-making activities. Nestle, is one of the most reputed companies in the world. Thecompany is famous for manufacturing products that are of high demand in the market. One ofthe SBUs of the company is the manufacturing unit of chocolates and other confectionery andbaked goods. Apart from producing coffee and tea, the company produces a large brand ofchocolates in the world. In this regard, the profits that are gained by the sale of the chocolatesare attributed to the particular SBU of the company (Nestle.com 2017).b. Identifying product and service linesAccording to Albrecht et al. (2016), product line refers to the group of relatedproducts that exist under a particular brand. However, the brands are sold by the name of onecompany. Most companies tend to sell products by creating multiple product lines. Theproduct lines under various brands provide an opportunity for one company to establish astable growth in the market. In the case of Nestle, the product lines that are followed by thebusiness unit include chocolates and confectionaries. The business unit sells varieties ofchocolates as its product line under the name of Nestle. This is one of the reasons behind thepopularity of the company as it consists of products that are of varied range. In this regard,the service line of the company can also be analysed. The service line of a company is thegrouping of the products as well as the services that are related to one particular division ofan enterprise (Hill, Jones and Schilling 2014). This can be seen in hospitals in which there aremany divisions under one building. Nestle also maintains these divisions focused onemployees as well as customers. Services to employees include encouraging and motivatingthem to perform good work. In the case of customers it includes evaluating the demand of thecustomers and trying to keep them satisfied.
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