Strategic management Report 2022

RUNNING HEAD: STRATEGIC MANAGEMENT
0
Strategic
Management
Student’s Details-
8/24/2019

STRATEGIC MANAGEMENT 1
Executive Summary
Strategic Management is concerned with management of the strategies made and evaluation of
those strategies for the purpose of gaining the long term goals of the company. The report is
prepared on the strategic analysis of Nestle by making use of various tools and framework of
strategic management. For making the secondary research, various journal articles, academic
books and different sources from websites are utilized. The purpose of the report is to make an
analysis of environmental factors and industry attractiveness to determine the possibility of
making profits and also analyzing the strategic option through the identification of the various
growth strategies along with the discussion regarding the objectives that can be achieved in next
five years.

STRATEGIC MANAGEMENT 2
Contents
Task 01....................................................................................................................... 3
Analysis of Macro-environment..................................................................................................3
Industry Attractiveness................................................................................................................4
Task 02....................................................................................................................... 4
Strength........................................................................................................................................5
Weakness.....................................................................................................................................5
Opportunity..................................................................................................................................5
Threats..........................................................................................................................................5
Task 03....................................................................................................................... 6
Market Penetration.......................................................................................................................6
Product Development...................................................................................................................7
Market Development....................................................................................................................7
Diversification..............................................................................................................................7
Task 04....................................................................................................................... 8
References................................................................................................................. 9

STRATEGIC MANAGEMENT 3
Task 01
Nestle is the international food and beverage company in the world. The products of the
company baby food, dog food, medical food, breakfast and other related snacks and dairy
products (Nestle., 2011). The Mission of the company is “Good Food Good Life" which is to
facilitate nutritious and healthy food to the customers with the wide range of food and beverages
products (Nestle.com, 2019). The vision of Nestle is to provide quality products to the
consumers by meeting the everyday needs of the consumers and to create trust in the consumers
which is the result of company’s many years of knowledge.
Analysis of Macro-environment
Macro environmental factors analyze the impact of external environment on the performance of
the company as the activities of the external factors can have a direct influence on the
profitability and sales of the company (Aragay, et al., 2011). Moreover, PESTEL Analysis
can be utilized for the analysis of the macro environment of the Nestle which can be understood
by the following points:
 Political factors can impact the operations of Nestle. The company has multinational
operations in more than 190 countries and hence the company faces risk due to changes
in policies and regulations of the government (Nestle, 2018).
 Economic factors such as foreign exchange rates greatly affected the profits of the
company. Further, due to the shits in the economy, it has increased the demand of the
products and also affected the company’s sales due to changing needs and preferences of
the consumers (Hanson, et al., 2016).
 Social factors include the attitude, behavior and changes in the trends cause impact on the
company. Due to healthy eating habits of the people, they are moving towards the Nestle
as it provides healthier and tastier snacks.
 Technological factors help a company to innovate their processes and mechanism.
Similarly, Nestle uses the technology to maintain the records of their operations through
software.