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[BUMGT 3702 STRATEGIC MANAGEMENT]September 24, 2012Executive SummaryThe purpose of this report is to evaluate Nestle Company industry based on the casestudy and comprehend how the company develop strategic intent for their businessorganisations following the analysis of external and internal business environments. I willanalyse the strategic management process as firm used to achieve strategic competitivenessand earn above-average returns. I will discuss the strategy formulation that includes business-level strategy and corporate-level strategy.It also aims to identify market place opportunities and threats in the externalenvironment and to decide how to use their resources, capabilities and core competencies inthe firm’s internal environment to pursue opportunities and overcome threats. In order tostrengthen this assignment about Nestle, there are several methods of gathering data has beenconducted, such as PEST analysis, Porter’s 5 forces model, value chain analysis and SWOTanalysis. By the end of this assignment, future strategy will be mentioned as well as myrecommendations about Nestle that will fit into strategic orientation in order to perform betterin their business world. And continue to develop and implement its learning approach as thechosen large company by using different strategies.Nestlé Company1
[BUMGT 3702 STRATEGIC MANAGEMENT]September 24, 2012Table of ContentsExecutive Summary11.0Introduction41.1Industry and Nestle Summary4EXTERNAL ANALYSIS52.0General Environment Analysis52.1Demographic Segment52.2Economic Segment62.3Political or Legal Segment62.4Socio-cultural Segment62.5Technological Segment72.6Global Segment73.0Industry Environment Analysis73.1Threat of New Entrants83.2Bargaining Power of Supplier83.3Bargaining Power of Buyers83.4Threat of Substitute Products 93.5Intensity of rivalry among Competitors94.0Competitive Environment105.0Opportunities and Threats of Nestlé115.1 Opportunities 115.2 Threats11INTERNAL ANALYSIS116.0Nestlé’s Resources, Tangible and Intangible126.1Tangible Resources of Nestlé 126.2 Intangible Resources of Nestlé137.0Capabilities of Nestlé 13Nestlé Company2
[BUMGT 3702 STRATEGIC MANAGEMENT]September 24, 2012Appendix 641.0 IntroductionThe most important thing for most of business company is an understanding theirsuccessful performance among the other competitors in market place. For some parties, likeshareholders, it is essential for company to make a profit and gain above-average returns. In