Strategic Management Analysis Report: Nestle Company

This report provides a comprehensive strategic analysis of Nestle, a prominent company in the food processing industry. It begins with an introduction to Nestle's history and market presence, followed by a detailed examination of its strategic management approach. The main body of the report includes a strategic analysis of the business, assessing its position within the competitive landscape and evaluating the business environment through PESTEL and SWOT analyses. The report identifies Nestle's core competencies, such as product research and marketing, and explores key industry developments and their impact on the company. A strategic analysis section examines the company's adopted strategies and strategic position, followed by recommendations for future growth, including product development, e-commerce, and technological advancements. The report concludes with a summary of findings and references.

Strategic management for
business
Table of Contents

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Strategic analysis of business............................................................................................................3
Business environment analysis..........................................................................................................3
Core competencies of business..........................................................................................................5
Key industry developments and impacts............................................................................................5
Strategic analysis...............................................................................................................................6
Strategic position of company...........................................................................................................6
Recommendation...............................................................................................................................7
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................9

INTRODUCTION
There has to be a strategic management which needs to be present in the organization
so that there would be better functioning. Nestle has been in this market from a long run
which is from over 154 years and the founder of the company is Henri Nestle. The
headquarters is in Switzerland and the products which the organization has expanded
themselves into which are dairy products, ice cream, baby food, etc. To have a faster and
successful functioning there needs to be a better planning and strategies which have to be
implemented so that there can be faster productivity and operating. There are a lot of
frameworks which are present in the market and they have to be understood and planned
according to the market.
MAIN BODY
Strategic analysis of business
Nestle Company is among the leading organisation part of the food processing
industry. The organisation has grown over the period of time in the industry. Company was
established in the year 1866 and till now the company has grown rapidly. Food processing
sector has also one of the most rapidly growing market sectors as the sector delivers plenty of
food products like baby food, coffee, dairy products, biscuits and other food products. Over
the period of time the industry has produced many different types of products. Nestle
Company is one of the major brand parts of food processing. Company also get tough
competition from other brands like Amul and many other brands. Apart from the aggressive
market competition the organisation has entertained effective growth rate. Company is
currently growing at the rate of 3.5% approximately (Chuchrova, Vilamova and Kozel,
2016). This is an impressive growth rate considering the fact that the industry is very
competitive in nature.
Business environment analysis
Business environment analysis involves both internal analysis and external analysis.
External analysis is conducted with the support of PESTEL Analysis tool and internal
analysis will project with the support of SWOT Analysis tool.
PESTEL Analysis

PESTEL Analysis is an external business environment analysis involves factors like
political, economical, social, technological, environment and legal factors.
Political factor: Political factor involve government policies and strategies related to growth
and development of food processing sector. Nestle Company is associated with the business
operations all across the globe. The policies of government belongs to food processing sector
of all across the globe will be a part of this factor. Government has always been very
supportive towards the growth of the sector and that the main reason why the sector is among
the major growing sector all across the globe.
Economic factor: Economic factor project the situation of economies at all such locations
part of the business portfolio of Nestle Company. Economic factor has also supported
company to grow the business (Gomes and et.al., 2016). Per capita income at all such
business locations of company have witnessed an increasing trend that has also supported
Nestle Company to achieve the better growth rate. Inflation is the factor that has been
challenging for the Nestle Company as restricts the buying capacity of all the buyers of
Nestle Company’s products.
Social factor: Social factor is also a crucial business environment factor influence the
business of company. This involves social values and religious values of people all across the
globe. Company has channelized various marketing campaigns based on the religious values
of the society that has also allowed company to take competitive advantages in the market.
Technological factor: Technological factor is among the major business environment factor
supported company in achieving an effective growth rate in market. Nestle Company has
utilised technology in all its business operations such as marketing, sales and other functions
which has transformed into effective growth of company.
Environment factor: Environment factor involve eco friendly food products. Company has
always followed the policy to sale natural food products which also channelized into
customer loyalty. Company has also been a part of many corporate social responsibility that
has also delivered the effective brand value of company.
Legal factor: Legal factor involve all laws and government regulations.
SWOT Analysis

This is an internal analysis support company to achieve all different business
objectives. This involves strength, weakness, opportunity and threats.
Strength
 Diversified product portfolio
 Affordable prices
 Resources
Weakness
 Outdated marketing campaigns.
 Non aggressive research
Opportunity
 Product development opportunity
 Market development opportunity
 Online sale
Threat
 Competition is a huge threat
Core competencies of business
Nestle Company has put a huge investment in conducting market research for
enhancing the growth of business. Company has been engaged in research related to product
development. The result of that is company is now catering in multiple products like food
products, coffee and many other products (Khalifa and et.al.,2018). All these products of
company have made the product portfolio of company to be well diversified in nature.
Company has also focused equivalently over the promotions of products in such an extent
company has been able to deliver the best sales every year with the support of aggressive
product research along with promoting company’s products. Product research and marketing
can be stated as among the major competencies behind the growth of company in market.
Key industry developments and impacts
Food processing sector has been among the major growing sector all across the globe.
Various reasons have played a significant role for the industry to entertain effective growth in
business environment. Over the period of time the industry has achieved immense growth and

success due to its product development which has channelized market demands also.
Technological development and implementation has also played an effective role for the
indystry to grow in the market. Nestle Company has also been involved in product research
that has allowed company to produce different products in market (Mostova, 2017). This has
made the product portfolio of company such a wide that company could enhance its market
growth. This allowed the industry and company to attract new customers on a continuous
basis. The pricing has also been one of the key reason behind the organisation has entertained
such a healthy growth in market. All the food products offer by Nestle Company is very
budget friendly and easily accessible in market. Even the peoples belong to middle class
background can easily afford such products. Continuous product development tactics has
worked significantly for the industry and company to sustain the customer’s base along with
attracting new customers.
Strategic analysis
Strategic analysis involve analysing different strategies company has adopted over the
period to entertain growth in business. Nestle Company has applied the strategy related to
continuous product development. This strategic choice has supported company to achieve the
high level of growth in market. Continuous level of product development has allowed
company to keep the product diversified as it allows company to launch new food products
on a continuous basis. It becomes important for the companies to launch new products on a
continuous basis as it drives company to attract new customers in market (Niu, 2018).
Company has also followed the digital marketing and promotion strategies. This is another
effective strategic choice Nestle Company has adopted that has allowed company to achieve
the high level of market growth. Digital marketing has enhanced the growth of company.
Both the strategies applied by company have allowed the organisation to achieve the high
level of growth and success in market. Both strategies have delivered into sustaining the
existing customers of company along with attracting new customers in market.
Strategic position of company
Strategic position is the position of company strategically in target market. Nestle
Company has entertained the growth rate of 3.5 % approximately. The growth rate denoted
that company has achieved an effective growth in market. Recently the industry has
witnessed major crisis in demands due to COVID 19 crisis (Sotiriadis, 2018). This crisis has
reduced the market demands as the income of peoples gets stopped which did not allow them
to spend. It can be denoted that strategic position of company is reasonably impressive as the

company carry an impressive brand value. Customers in the market are very much fond
towards the products offer by Nestle Company. Company contains a loyal base of customers
across the globe. Nestle Company is a global brand associated with food processing sector.
Company has also continuously involved in the product development strategy that has further
supported company in achieving the high level of growth in market. Company also needs to
deal with heavy market competition in order to conduct different business activities. It can be
projected that strategically the Nestle Company has been in a decent position which allowed
company to achieve the effective profitability and growth rate in market.
Recommendation
Nestle Company has been growing constantly over the period of time. It can be
projected that company can invest more on product development and differentiation strategy
to improve the growth rate from 3.5%. Product development will also allow company to
attract more customer segment in market. Company can also reduce the prices of some of its
food products. Some products of company are expensive and non affordable in nature.
Company can attract more customers by reducing prices of some of its products. Company
can also focus on e-commerce trade. This will allow company to expand the sales potential in
market. E-commerce is the modern way to conduct the business trade (Zaitseva and et.al.,
2017). Company can improve the level of customer satisfaction with the support of e-
commerce trade. Company must also invest more on technological advancement and
development. This will allow company to improve the business potential. Company get to
channelizes and control different campaign with the support of technology. Company will
also feel capable to entertain all differences issues raised by customers. Customer satisfaction
is among the key tool that drives company to achieve the effective business growth. It can be
projected that with the support of all the above recommendations company can improve its
growth rate and market presence.
CONCLUSION
There must be a better decision which needs to be taken for the organizations because
the competition in the market is increasing. There are a lot of decisions which have to be
taken because the market is changing and the trends as well for the customers which have to
be maintained so that there would be better functioning. There are a lot of issues which are
present in the market but they have to be analysed and then with respect to the market and the
competition in the market only then they must be implemented effectively. To have the right

decisions is going to make the company have better reputation and standards for themselves
in the market. Challenges have to be overcome and there have to be right decisions which
will have to be taken up so that the organization can have competitive advantage.

REFERENCES
Books and Journals
Chuchrova, K., Vilamova, S. and Kozel, R., 2016. Strategic analysis as a tool for strategic
decision-making processes at industrial companies. Актуальні проблеми
економіки. (2). pp.180-191.
Gomes, P. and et.al., 2016. Environmental indicators for sustainability: a strategic analysis
for the sugarcane ethanol context in Brazil. Environmental technology. 37(1). pp.16-
27.
Khalifa, N. B. and et.al.,2018, May. Profit and strategic analysis for MNO-MVNO
partnership. In 2018 IFIP Networking Conference (IFIP Networking) and
Workshops (pp. 325-333). IEEE.
Mostova, A., 2017. A methodological approach to the strategic analysis of food
security. Baltic Journal of Economic Studies. 3(5). pp.319-328.
Niu, H., 2018. A strategic analysis of Chinese infrastructure projects in Latin America and
the Caribbean. BUILDING. p.180.
Sotiriadis, M., 2018. Strategic Analysis and Competition Analysis. The Emerald Handbook of
Entrepreneurship in Tourism, Travel and Hospitality. Emerald Publishing Limited.
pp.53-70.
Zaitseva, N. A. and et.al., 2017. Methodological basis for the strategic analysis of
development of international hotel chains in Russia. Journal of Advanced Research
in Law and Economics. 8(2 (24)). pp.689-696.