Nestle Global Analysis - [BUMGT 3702 STRATEGIC MANAGEMENT Executive Summary The purpose of this report is to evaluate Nestle Company industry based on

Nestle Global Analysis - [BUMGT 3702 STRATEGIC MANAGEMENT...

  • Aletheia University
  • BUMGT 3702
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  • Agent_Atom_Mandrill12
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[ BUMGT 3702 STRATEGIC MANAGEMENT ] September 24, 2012 Executive Summary The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develop strategic intent for their business organisations following the analysis of external and internal business environments. I will analyse the strategic management process as firm used to achieve strategic competitiveness and 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 external environment and to decide how to use their resources, capabilities and core competencies in the firm’s internal environment to pursue opportunities and overcome threats. In order to strengthen this assignment about Nestle, there are several methods of gathering data has been conducted, such as PEST analysis, Porter’s 5 forces model, value chain analysis and SWOT analysis. By the end of this assignment, future strategy will be mentioned as well as my recommendations about Nestle that will fit into strategic orientation in order to perform better in their business world. And continue to develop and implement its learning approach as the chosen large company by using different strategies. Nestlé Company 1
[ BUMGT 3702 STRATEGIC MANAGEMENT ] September 24, 2012 Table of Contents Executive Summary 1 1.0 Introduction 4 1.1 Industry and Nestle Summary4 EXTERNAL ANALYSIS 5 2.0 General Environment Analysis 5 2.1 Demographic Segment 5 2.2 Economic Segment 6 2.3 Political or Legal Segment 6 2.4 Socio-cultural Segment 6 2.5 Technological Segment 7 2.6 Global Segment 7 3.0 Industry Environment Analysis 7 3.1 Threat of New Entrants 8 3.2 Bargaining Power of Supplier8 3.3 Bargaining Power of Buyers 8 3.4 Threat of Substitute Products 9 3.5 Intensity of rivalry among Competitors 9 4.0 Competitive Environment 10 5.0 Opportunities and Threats of Nestlé 11 5.1 Opportunities 11 5.2 Threats 11 INTERNAL ANALYSIS 11 6.0 Nestlé’s Resources, Tangible and Intangible 12 6.1 Tangible Resources of Nestlé 12 6.2 Intangible Resources of Nestlé13 7.0 Capabilities of Nestlé 13 Nestlé Company 2
[ BUMGT 3702 STRATEGIC MANAGEMENT ] September 24, 2012 8.0 Core Competencies Analysis 15 9.0 Value Chain Analysis of Nestlé 16 9.1. Primary Activities 16 9.1.1 Inbound Logistics 16 9.1.2 Operations 16 9.1.3 Outbound Logistics 16 9.1.4 Marketing and Sales 16 9.1.5 Services 17 9.2 Support Activities 17 9.2.1 Procurement 17 9.2.2 Technological Development 17 9.2.3 Human Resources Management 17 9.2.4 Firm Infrastructure 18 10.0 Weaknesses 18 11.0 SWOT Analysis 18 11.1Strengths 18 11.2Weaknesses 19 11.3Opportunities 19 11.4Threats 19 12.0 Current Strategy 19 13.0 Strategy 20 14.0 Conclusion 21 References 22 Appendices 23 Appendix 123 Appendix 223 Appendix 324 Appendix 426 Appendix 526 Nestlé Company 3
[ BUMGT 3702 STRATEGIC MANAGEMENT ] September 24, 2012 Appendix 64 1.0 Introduction The most important thing for most of business company is an understanding their successful performance among the other competitors in market place. For some parties, like shareholders, it is essential for company to make a profit and gain above-average returns. In

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