Strategic Framework Analysis for Nestle Corporation

This report provides a strategic analysis of Nestle Corporation using frameworks such as SWOT, PESTLE, and balanced scorecard. It highlights the importance of these frameworks in helping Nestle gain a competitive advantage.

Strategic framework analysis
Nestle Corporation
Name of the Student:YAO JIA(1110843)

1STRATEGIC FRAMEWORK ANALYSIS
Executive Summary
The report was commissioned to examine the strategic analysis for Nestle Corporation. The
internal and external environmental analysis of the paper will be very much beneficial Nestle
to have a competitive advantage over the other similar organizations.
The research draws attention to the numerous frameworks such as the balanced score card,
SWOT and PESTLE analysis, detailed description of PESTLE and SWOT will be provided
in the paper as well.
Since Nestle is facing huge threats coming from the other business organizations regarding
the quality of product and services, these strategic frameworks will be very much beneficial
for Nestle to make the changes.
It is recommended that the Nestle should be considering these strategic framework tools to
understand their current market position and make changes to the necessary working
procedures.

2STRATEGIC FRAMEWORK ANALYSIS
Table of Contents
Introduction................................................................................................................................2
Background:...............................................................................................................................3
SWOT........................................................................................................................................4
Balanced Scorecard....................................................................................................................5
Porters five forces......................................................................................................................7
Work centred analysis................................................................................................................8
Detailed explanation of SWOT and Porters five forces...........................................................10
SWOT Diagram...................................................................................................................10
Porter’s five force.................................................................................................................11
Recommendation......................................................................................................................12
Implementation........................................................................................................................14
Conclusion................................................................................................................................15
Reference..................................................................................................................................16

3STRATEGIC FRAMEWORK ANALYSIS
Introduction
The notable determination of this paper is to focus on the key components which are
identified in the previous assignment where the incorporation of the Management
Information System has been provided for Nestle Corporation. The prime objective of this
assignment is to focus on the strategic framework analysis tools which are used to determine
the effectiveness of the Management Information System (Aithal 2017). It can be said that
the organizational goal of Nestle has to be aligned with the new Management Information
System so that the effectiveness of the new Information System is maintained. It can also be
said that the IT resources of Nestle have to be managed in an organized manner so that all
these resources are professionally utilized in the new MIS.
There are different types of strategic planning models which are extensively used by
the internal stakeholders of business organizations to understand the effectiveness of the
technologies which are incorporated in the working environment of business organizations.
The different types of planning models which are used in business organisations are
discussed as follows:
 Balance scorecard: The measures, targets and the initiatives of the emerging
technologies can be managed in the first place using strategic planning models. High
level strategies can be also implemented using this strategic planning model. It can
also be also said that the organizational performance can be tracked in a professional
manner using strategic planning procedure (Syahdan, Munawaroh, and Akbar 2018).
Strategic initiatives can be also managed in a professional manner using this strategic
planning model.
 SWOT Analysis: The threats, opportunities, weakness, and threats of the
technologies can be managed in an organized manner using this environmental

4STRATEGIC FRAMEWORK ANALYSIS
analysis (Bakalarska, Kim and Webb 2017). This external environmental analysis can
be very much important to deal with the complexities of the demanding market
condition.
 PESTEL Model: It is defined as the type of framework which can be used by
business organizations to monitor and analyse the macro-environmental factors
(Nurmi and Niemelä 2018). The Pestel analysis includes Political Economic Social
Technological Economic and Legal factors.
 Gap Planning: The strategic gap analysis can be very much important for most of the
business organizations to understand their business efficiency over the years (Alänge,
Clancy and Marmgren 2016). The current allocation level of business organization
can be managed in an organized manner using Gap planning.
 VRIO Framework: It is defined as the statistical analysis tool are used to protect the
resources of the organization (Chatzoglou et al. 2018). The capabilities of the
resources of the system can be managed and protected with the help of the starts
analysis tools.
Background
The incorporation of the Management Information System can be very much
important to manage the business functions in Nestle. MIS can be very much important for
business organizations to manage the entire business processes of Nestle (Dadzie et al. 2017).
The manufacturing processes of the Nestle can also be improved with the help of the MIS as
well. Security of the data can also be also managed in a professional manner with the help of
the MIS as well. The bargain and the selling power of the services providers of this
organization can be significantly impacted with the help of the MIS (Dhanesh and Sriramesh
2018). The incorporation of the MIS can be very much important to deal with the

5STRATEGIC FRAMEWORK ANALYSIS
complexities faced by this organization. The application of the MIS can be very much
beneficial for this organization to have a competitive advantage over the other similar
organizations. The following unit of the paper will be discussing the application of four
different types of strategic framework analysis which can be very much beneficial for Nestle.
SWOT Analysis
All the internal, as well as the external activities of the organization, can be
significantly monitored with the help of SWOT analysis. The strengths, weakness,
opportunities, and threats regarding the incorporation of the Management Information System
can be tracked in a professional manner with the help of MIS. The strength and the weakness
of the stakeholders of the organizations can be also managed in a unique manner with the
help of the Management Information System (Finak et al. 2016). The malpractices of the
organization can be also identified and stopped using the help of the SWOT analysis. All the
stakeholders of the organization can also be managed in a professional manner using the
MIS. The business opportunities of Nestle can be also determined in a professional manner
with the help of the SWOT analysis. It can be stated that the threats of the organisation can be
identified in the first place using SWOT analysis (Ghauri and Wang 2017). The current and
the future business aspects of the organization can also be done in a specialized manner with
the help of the SWOT analysis. The existing sales and marketing plan of this organization can
be conducted in a proficient manner using SWOT Analysis as well. All the low cost, as well
as the high cost of the organization, can also be identified with the help of the SWOT analysis
technique.
The strategic management of business organizations can also be enhanced in the first
place with the help of the SWOT analysis (Greer 2018). The performance of the drivers of
the business such as the service providers is also managed with the help of SWOT analysis. A

6STRATEGIC FRAMEWORK ANALYSIS
balanced scorecard is very much important to deal with the complexities coming from
challenging business conditions such as inflation. The customer perspectives of the
consumers of business organization can be understood from the below pictorial description.
Figure 1: Swot four matrices
(Source: Created by the author)
Balanced Scorecard
This performance metric can be very much important to understand each of the
stakeholders of business organizations. The financial data of the business data can be also
improved with the help of the balanced scorecard (Jenkins and Williamson 2015). The prime
specification of the balanced scorecard is that it helps in managing the learning and maintains
the growth of the organization. It can also be said that the business process can be also
managed in the first place with the help of maintaining balance scorecard.
Poor Quality raw materialss are used in the
manufacturung departments.
Price of the coofee beans are increasing each passing
day.
Increased competition among the global beverage
organiations.
Transparency can be maintained in material sourcing.
Accurate product lebelling procedures can increase
the net profitability of the business.
Selling contaminated food.
Forced child labour in third world offices such as
China, India.
Use of contaminated foods
Stronger geographic presence.
Brand portfolio.
Environmental sustainalbility efforts
Strength Weakness
ThreatsOpportunities

7STRATEGIC FRAMEWORK ANALYSIS
The learning and the growth perspectives of business organizations can also be improved
with the help of the numerous types of perspectives such as the followings:
 Learning and growth perspective: Satisfaction of the employees can be improved in
the first place with the help of the balanced scorecard. Employee retention is a
signification advantage for every business organizations which can be solved
purposefully with the help of the growth and learning perspective.
 Business process perspective: Cost and other business parameters of business
organizations can be significantly affected with the help of the balanced scorecard.
Market share of the business can also be managed with the help of the balanced
scorecards (Kenny, Cronin and Sage 2018). It can be said that throughput and the
quality of service offed by any business enterprises can be improved with the help of
the balanced score card.
 Customer perspective: Customer perspectives about the quality of products and
service offered by this organization can be improved with the help of the balanced
scorecard.
The balanced scorecard can be very much beneficial for business organizations to
understand the exact strategy which are required to maintain a competitive advantage over
other similar business organizations (Kraak, Rincón‐Gallardo Patiño and Sacks 2019). The
importance of the feedback coming from the consumers of organization can be also
understood in the first place with the help of the balanced scorecards. The performance of the
stakeholders of the business organization such as the internal stakeholders like the managers
and the employees and external stakeholders of the organizations like the service providers as
well as providers of the raw materials can be monitored and analyse using the balanced
scorecard.

8STRATEGIC FRAMEWORK ANALYSIS
Figure 2: Balanced scorecard applications
(Source: Lasserre 2017)
The customer perspective and internal perspectives can be also managed with the help
of the balanced score card (Liu et al. 2018). The ECI’s balance scorecard can be very much
important to understand the innovation and learning perspectives of business organizations
can be improved due to significant level with the help of the balanced score card.
Porters five forces
The description of the Porters Five Forces is described in the following tabular
description.
Threat coming
from the entry of
entrants
Bargain power
of the suppliers
Bargain power
of the buyers
Threat coming
from the
substitutes
Rivalry among
the existing
competitors

9STRATEGIC FRAMEWORK ANALYSIS
The government
regulations can
be very difficult
to maintain for
Nestle due to the
threat coming
from the new
entrants. Low
customer loyalty
is a very
important
business
perspective for
Nestle which can
be tackled with
the help of this
statistical
analysis tools.
The economics of
sale can be
identified in the
first place using
Porter's Five
Forces.
The
complexities of
the suppliers
can be managed
in a professional
manner with the
help of this
framework for
Nestle (Lopez
and Monfort
2017). There
are difficulties
in terms of the
availability and
supply of the
raw materials
and the
technologies in
Nestle which
can be solved
purposefully
with the help of
this framework.
The access
control is a
huge concern in
most of the
global
corporation like
Nestle as they
have their
stakeholders all
over the world.
This issue can
be identified
and resolved in
the first place
with the help of
this framework.
The switching
cost of the
suppliers can
also be
managed in the
first place with
the help of this
logical
framework in
Nestle
Corporation.
The new and
innovative
strategies taken
by the new
buyers can be
also identified
with the help of
this framework.
The prices of
the product and
the service
offered by
Nestle can be
trailed in a
proficient
manner with the
help of this
framework.
There are
numerous
business
competitors
associated with
Nestle which
can be
identified and
managed with
the help of this
statistical
analysis tools.
Table 1: Detailed description of Porter’s five forces
(Source: Created by the author)
Work centered analysis
The WCA framework can be very much important to understand the role of the
stakeholders of business organizations. This framework can be very much important to deal
with the complexities between the stakeholders of the business.

10STRATEGIC FRAMEWORK ANALYSIS
Figure 3: WCA framework
(Source: Miah et al. 2018)
Customer
The direct use of the technologies used in
business organizations can have a direct
impact on the growth and productivity of
the organization. The products and
services offered by the organization can
Products
The products offered by the business
organizations can be improved in a
professional manner with the help of the WCA
framework. The end products and service
offered by the organization can be also

11STRATEGIC FRAMEWORK ANALYSIS
be also determined with the help of the
WCA framework.
improved with the help of emerging
technologies such as big data analytics.
The loan facilities from world banks which are provided by the banking industries can be
very much essential for the consumers of business organizations.
Major activities or processes
All the activities of the business organization can be managed in a professional way with
the help of the major activities.
Table 2: WCA framework
(Source: Created by the author)
Detailed explanation of SWOT and Porters five forces
SWOT Diagram
Figure 4: SWOT Diagram
(Source: Mialon and Mialon 2018)
The above diagram can be much important to understand the implementation of the
Management Information System in Nestle. The system development lifecycle which is
maintained in a working environment of Nestle can be managed in a professional manner
using SWOT analysis. Each of the components of the incorporated the Management
Information System can be tried and tested according this external environmental analysis. It

12STRATEGIC FRAMEWORK ANALYSIS
can be also said that the organizational goals can be also accomplished using SWOT analysis
procedure. The incorporation of the SWOT analysis can have a significant impact on the
growth and productivity of Nestle (Olšanová, Cook, and Zlatić 2018). SWOT analysis can
have a lasting impact on the business sales of Nestle as it would help them to understand the
business strategies which are taken by the other similar organizations such as McDonalds.
The SWOT analysis can help Nestle to understand its consumption of water and other
ingredients which are used in the production rooms. New and innovative business
opportunities can be also identified in Nestle with the help of the SWOT analysis procedure.
The price of the coffee beans can be set in an organized manner with the help of the
SWOT analysis procedure. The geographically diverse revenue sources can be identified by
Nestle with the help of the SWOT analysis as well. The consumer issues of the Nestle can
also be resolved with the help of the SWOT analysis, at the same time it can also be said that
the SWOT analysis technique can be very much beneficial for Nestle to understand the
increasing r the decreasing income level or the revenue of the organization. The strategic
alliances can be also improved using SWOT analysis (Scott, Hawkins and Knai 2017). It can
be also said that the ethical issues face by Nestle can be solved purposefully with the help of
the SWOT analysis of Nestle. The process of the commodities can also be set by Nestle using
SWOT analysis at the same time it can be also said that this external environmental analysis
can be very much important to create and implement innovative business strategies. The
application of marketing tools such as Business analytics, SEO can also improve with the
help of the SWOT analysis.
Porter’s five force
The incorporation of Porter's five forces can be very much beneficial for business
organization for business organizations to deal with the challenges coming from the threat of

13STRATEGIC FRAMEWORK ANALYSIS
substitute, buying power of the buyers, bargain power of the suppliers and the threat coming
from the entry of new business organizations. The innovative products offered by similar
organizations can have a huge impact on the business organization (Smith 2017). Porter's five
forces are very much helpful for most business organization to understand the high profits as
well as the low profits of the organization.
 Threat coming from the new entrants: Based on the above discussion it can be said
that the quality of products offered by Nestle be improved significantly using Porters
five forces.
 Bargain power of the suppliers: The level of consumer satisfaction can be also
improved with the help of Porters five forces. Nestle must be maintaining a good ad
business relationship with each of the suppliers so that the bargain power of the
suppliers are controlled in a professional manner.
 Threat from substitute products: There is a tough competition faced by Nestle due
to the emergence of the other food and beverage organizations. The quality of product
offered by this organization must be improved every time so that the complaints
coming from the consumers of this organization are minimised.
 Bargain power of the consumers: The needs and requirements of the consumers of
Nestle must be understood by the strategic team of Nestle in order to provide better
quality products and enhance the net profitability of the business as most of the
consumers of the food industry are very much cautious about their health.
 Rivalry among the competitors: New and fresh business strategies must be created
by the strategic planners of this business organization in order to deal with the
competition coming from the other similar organizations.

14STRATEGIC FRAMEWORK ANALYSIS
Recommendation
The implementation of the Management Information System can be very much
important for Nestle as it would help them to grow in the competitive market as compared
with the other industries that are not using the Management Information System in their
working environment. This unit of the paper will be very much important for the readers of
this document to understand the implementation procedure of the new Management
Information System.
The factors which are needed to be sorted by the management team of Nestle before
the implementation of the Management Information System are recommended as followings:
 Commitment: Commitment level of each of the stakeholders of the organization are
needed for the successful implementation of the new Information System.
Commitment levels must be including the top management as well as from the
employees which will be working with this technology after it is going to be installed.
 Compatibility issue: There must be no compatibility issues with the other
technologies which are already being used in the working environment of Nestle.
 Knowledge: All the stakeholders who will be associated with this new Information
System must know all the advantages as well as the disadvantages of the new system.
The potential of the new systems has to be introduced in the first place to each of the
associated stakeholders of this organization.
The following pictorial diagram can be very much important for the readers of this
document to understand the implementation procedure of the new Information System in an
organized manner.

15STRATEGIC FRAMEWORK ANALYSIS
Figure 5: Implementation of the Management Information System in Nestle
(Source: Tuzovic, Wirtz and Heracleous 2018)
Implementation
The four key stages of the implementation procedure are discussed as follows:
 Specification: The selection of the appropriate MIS must be done with the help of IT
professionals considering the cost of implementation, aligning with the business
practices, capacity planning and HR systems.
 Selection: All the potential references as well as the suppliers of Nestle must be
understand the reason behind the installation of the new system. Discounted cash flow
techniques are the other essential aspects of the implementation procedure of the MIS
in Nestle.
 Acquisition: The purchase contract of the MIS must be planned and managed so that
the capital cost of the hardware is reduced. All the overhead cost regarding the
implementation of the new MIS must be minimized, at the same time it can be also

16STRATEGIC FRAMEWORK ANALYSIS
recommended that the onsite training during the implementation should be done only
by professional experts having years of experience working with MIS.
 Implementation: All the business inconsistencies associated with the working
environment of Nestle must be aligned during the implementation procedure of the
MIS.
Implementation plan
Activity Time
Ma
y
June July Augus
t
September October November
Identification of the
current issues in Nestle

Evaluation the reason
behind the issues
 
Finding a solution for
the identified issues

Selection of the correct
MIS
  
Identify resources
required
 
Budget management  
IT governance plan  
Selection of work forces
for the implementation
 
Buying the new MIS 
Installation of the new
system

Training session for the
employees
 
Evaluation of the
effectiveness of the new
system
 
Table 3: Implementation plan for the new MIS in Nestle
(Source: Created by the author)
Conclusion
This paper concludes the effectiveness and the efficiency of the Management
Information System in global business organizations such Nestle. The importance and the

17STRATEGIC FRAMEWORK ANALYSIS
effectiveness of the knowledge processing tools which can provide Nestle a competitive
advantage over the other similar organizations which has been critically reviewed in this
report. The importance of strategic framework analysis can be concluded from the paper as
well in terms of the SWOT analysis and Porter’s five forces. The report helps in concluding
the implementation plan which can be used by Nestle as well as other global organization if
they want to install an Information System in their working environment. The commitment
need from each of the stakeholders can be also determined from the paper as well. Thus, the
paper help in understanding both the importance of the strategic analysis tools which
determines the effectiveness of any ICT innovation such as the MIS and also the importance
of MIS which can provide a competitive advantage to Nestle over the other similar
organizations.

18STRATEGIC FRAMEWORK ANALYSIS
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