Strategic Option Evaluation for Nestle: MBA Assignment Report

This report evaluates the strategic choice of product development for Nestle, the world's largest food company. It examines the strategy's suitability, acceptability, and feasibility. The analysis incorporates Porter's value chain to assess operations and Mendelow's Power Interest Grid to analyze stakeholders. The report emphasizes resource allocation, including financial, physical, and technological resources. It also addresses the importance of environmentally and socially acceptable products, such as recyclable packaging and organic food. The conclusion highlights the vital role of strategic choice in guiding company activities and stresses the importance of a suitable, feasible, and acceptable product development strategy. The report provides references from relevant academic sources.

Strategic Choice
STUDENT’S DETAILS-

Executive Summary
 Strategic Choice is the selection of the strategy that the company can
use for the future.
 The selected strategy is product development strategy as it will give
wide scope for the company to expand their business.
 The new products will be helpful in gaining competitive advantage
against the competitors.
 Thus, the presentation is on the evaluation of the strategic option to be
selected for Nestle which is the world’s largest food company.
 However, it is noted that the selected strategic options is evaluated in
terms of feasibility, acceptability and suitability.
 Porter’s value chain analysis and Mendelow’s Power Interest Grid are
being analyzed by the company to analyze the operations and
contribution of the stakeholders.
 Further, the company should allocate resources and make the new
product that is acceptable to the society and the environment.

Contents
Evaluation of Strategic Option
Suitability
Acceptability
Feasibility
Porter’s Value Chain Analysis
Key Stakeholders
Mendelow’s Matrix
Resource Allocation
Financial Resources
Physical Resources
Technological Resources
Greener and Socially Acceptable
Conclusion
References

Evaluation of Strategic Option
Suitability
Acceptability
Feasibility

Acceptability
Risk Returns
Reactions
by
Stakeholder
s

Feasibility
 Determining the availability of resources for the
development of new product.
 Analyzing the competencies of the product to
determine the possibility of the product to survive
into the market.
 Financial Test such as break even and cash flow can
be helpful in analyzing the financial feasibility of the
product.

Porter’s Value Chain Analysis
 Inbound Logistics
 Operations
 Outbound Logistics
 Marketing and Sales
 Service
 Procurement
 Technological Development
 Human resource Management
 Firm Infrastructure

Key Stakeholders

Resource Allocation
Financial Resources
Physical Resources
Technological Resources

Greener and Socially Acceptable
 The product should contain recyclable packaging.
 Preparation of organic food(Chen & Chai, 2010).
 The packaging should not include plastic bottles.
 The product should not harm the sentiments of the
society.
 The Strategy should be to add value to the customers.
 The products should be made available at affordable
prices for the customers.

Conclusion
 In the end, it can be noted that strategic choice plays a vital role
in strategizing the activities of the company.
 For the selected strategy of product development, various
analysis can be made to determine the effectiveness of the
outcome.
 The product development strategy used by Nestle should be
suitable, feasible and suitable.
 Porter’s value chain analysis is the tool for determining the
activities involved in the new product development.
 Further, Mendelow’s Power Interest Grid is useful for determining
the interest and expectations of the key stakeholders of the
company.
 Lastly it can be assessed that various resources required for
developing a new product and the product should be socially and
environmentally accepted.

References
 Chen, T. & Chai, L., 2010. Attitude towards the environment and green
products: consumers' perspective. Management science and engineering,
4(2), p. 27.
 Fearne, A., Garcia Martinez, M. & Dent, B., 2012. Dimensions of sustainable
value chains: implications for value chain analysis. Supply Chain
Management: An International Journal, 17(6), pp. 575-581.
 Harms, R., Kraus, S. & Schwarz, E., 2009. The suitability of the configuration
approach in entrepreneurship research. Entrepreneurship and Regional
Development, 21(1), pp. 25-49.
 Hester, P., Bradley, J. & Adams, K., 2012. Stakeholders in systems problems.
International Journal of System of Systems Engineering, 3(3-4), pp. 225-232.
 Klingebiel, R. & Rammer, C., 2014. Resource allocation strategy for
innovation portfolio. Strategic Management Journal, 35(2), pp. 246-268.
 Kogan, L., Papanikolaou, D., Seru, A. & Stoffman, N., 2017. Technological
innovation, resource allocation, and growth. The Quarterly Journal of
Economics, 132(2), pp. 665-712.

Continue
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