Nestle: Strategic Management and Swot Analysis

Report includes political, economic, social and technological factors. This analysis is done in order to predict the future impacts of these factors on Arcadia Group. The main points are discussed:

PEST analysis will be able to be utilized to help detect trends in the external environment that will eventually discover their method into the competitive environment. It gives a relation between the general and competitive environments in that weak signals in the general

Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material

PEST analysis is used for to understand market growth or decline and to discover the position, potential and direction of a business. It is also defined as business measurement tool. PEST stands for Political,

Nestlé has to face huge competition from broad range of product categories. The competition, all the rougher as, Nestlé has to deal with multinational organizations competitors with similar range of products. Moreover, the company

Nestlé is the global leading nutrition, health and wellness company based in Switzerland. Its product line includes baby food, breakfast cereals, coffee, confectionery, dairy products, frozen food, pet foods, yoghurt and snacks with high revenues making it the world’s largest food company. Nestlé operates in 197 countries with over 340,000 employees, in 2014 its group sales account CHF 91.6 billion (USD 99.9 billion), whereas its trading operating profit is CHF 14 billion (USD 15 billion). “The Group’s net debt fell from CHF 14.7 billion to CHF 12.3 billion reflecting strong free cash flow during the year at CHF 14.1 billion more than offsetting the payment of the dividend of CHF 6.9 billion and the initial phase of the current share buy-back programme” (Nestle, 2014).

Nestle is the world’s largest and leading food, nutrition, health and wellness company having 2000 plus brands worldwide.

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

Economy of countries differs everywhere. So Nestle has to set different economic policies for different targeted segments. The price of the product is an important decision to take while strategizing the economic policies according the inflation rate and the buying power of the segments. Nestle company should made an analysis report on frequent basis to get the knowledge of the inflation rates and different income levels.

The PEST analysis is more of long-term analysis that can help determine how Political, Economical, Social, and Technological change will affect the performance and activities of a business.

Nestle is a swiss multinational food and beverages company. Its headquarters is located at vevey, Switzerland. In terms of revenue it is largest food company in world. Nestle produces the portified products such as baby food ,bottled water ,breakfast cereals ,coffee ,tea ,dairy products ,ice cream ,frozen food ,pet foods ,and snacks .Nestle provided 167 billion servings of fortified products .Among them 29 brands of Nestle are getting turnover of $US1.1 billions. Nestle is one of main shareholders of L’OREAL company, the worlds largest cosmetic company.

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.

PEST Analysis shows the external business environment. Pollution-Economic-Social-Technology, analysis looks at the impact of each of these factors in the business. Outcomes could lead to expand opportunities or reduction in polluting environment and public, better growth it economic, good socialization with consumers and community, better change in technology according to customer tastes. It shows in 4 squares, with 4 specific topics which help to improve in external environments of the specific firm.

Nestle is one of the major companies in the food processing industry. It was founded in by Henri Nestle in 1866 in Switzerland, and currently has up to 333,000 employees (Nestle, n.d.). Moreover, it appeared in several Forbes lists owing to its high profits, sales, assets, and market value, eventually being labeled as one of the World’s most

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.