Nestl S Corporate Strategy Analysis

2548 Words Dec 6th, 2014 11 Pages


Global Strategic Analysis of Nestlé

(Corporate Strategy by Mr Croft)

Rational model



I. Vision statements
Concerned with the desired future state of the company. What do we want to be?
« I will build a motor car for the great multitude…it will be so low in price that no man making good wages will be unable to own one…when I am through, everyone will be able to afford one and everyone will have one. » Henry Ford
“We are committed to enhancing the quality of consumers lives through nutrition, health, and wellness. Our mission of “Good Food, Good Life” is to provide the best tasting, most nutritious choices in a wide range of food and beverage categories and
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Technology creates opportunities for new product or product improvements and new techniques of marketing such as internet and e-commerce. Technology has great influence on business operations and overall decisions.
Nestle uses technology by taking orders via telephone and online by internet.
Moreover, Nestle uses technology in various business activities such as record of their customers and employees.
5. Environmental
6. Legislative
Government plays vital role by imposing the law and regulation on the companies.
Government set standard laws for companies that has to met otherwise they have to pay fines.
Nestle is trying to met all the standard laws which are set by the government. For example Health and Safety Act, Disability Act but unfortunately Nestle break the law.
Government laws and regulation in accounting standards, taxation requirements, including tax rate changes, new tax laws and revised tax law interpretations are highly influenced on Nestle business.



B. Porter’s 5 Forces Framework

We have to consider the industry sector, the stage of the industry life cycle and the critical success factors of the market.
1. Supplier Negotiating Power
Bargaining power of suppliers is very important factor to be considered in any industry as they are the main strength of the company.
Nestle is known for strong relations with the suppliers around the globe due to its immense buying power and also because of the fact that in
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