Nestle: Strategic Management and Swot Analysis

1862 Words Sep 14th, 2014 8 Pages
1. Introduction This report is going to analyze the company of Nestlé to into the Singapore market. It is going to introduce company and country background, after that it will analyze the company of Nestlé and Singapore market by using SWOT analysis, PEST analysis and Porter’s 5 Forces. Finally, it will have recommendation and conclusion to follow it.

2. Company background Henri Nestlé founded Nestlé in 1866 in Switzerland. It is the largest food company in the world. Some of products are produced from Nestlé include baby food, coffee, dairy products, ice cream, pet food, etc. Nowadays, Nestlé has more than 400 factories around world and its operation is also in 194 countries. Nestlé has been the world’s most profitable corporation.
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PEST analysis is an important framework that provides the organization's overall view of the business environment. Firstly, it can identify the external factors that might change in the future. Secondly, it helps to reduce the impact and effect of potential treats to the organization. Finally, it enables to assess the impact of national and global access to new markets.

From the below table 2 that shows PEST analysis of “Singapore”, after that there is going to explain in detail how each of these factors impact on Nestlé.

Table 2: PEST analysis of “Singapore”

Political
Since independence has not been political violence.
High level of transparency and accountability in the business.
Law can have a mandatory sentence, only the judge without a jury.
The World’s second of the best protection of intellectual property.
Bureaucracy in business at least place in Asia.
Economic

GDP ranking the global top 10.
Top 3 in the world for foreign trade and investment.
Unemployment rate at 2.1%.
Income inequality.
The currency exchange rates have been increasing.
Socio-cultural

English, Malay, Mandarin and Tamil.
Chinese, Malay, Indian and Indo-European ethnic origin.
Buddhism, Taoism, Hinduism, Islam, Protestantism, Catholicism, Judaism, Sikhism.
An average about 4 people in a family.
5,312,400 populations.

Technology

Asia’s most network-ready country.
The Highest Rate of Internet Usage in Southeast Asia.
About 23 % of

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