Essay on Strategic Management Case Study on Swiss-based Nestle

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Executive Summary This paper provides a case analysis and case solution to a Harvard Business School strategic management case study on Swiss-based Nestle, the world’s largest food and beverage company with 2007 sales exceeding CHF100 billion or about US$112 billion(Bell & Shelman, 2009, p. 1). While extensive background information dating to Nestle’s 1867 founding is provided, the primary time setting for the case is April 2008, shortly after 29-year Nestle veteran Paul Bulcke advances to the position of CEO, replacing Brabeck, who retired after a highly successful 12 year reign as CEO. The case focuses on Bulcke’s efforts to formulate plans for advancing his strategic vision at Nestle. Nestle is a…show more content…
10). Problem Statement Nestle must formulate and implement the optimal strategy which will allow it to meet the growth and performance goals related to the Nestle Model while at the same time achieving a sustainable competitive advantage within the global food giant’s broader vision of transitioning to a health, nutrition and wellness company, and responding to threats and opportunities in the external environment. Problem Analysis An analysis of the problem and an appraisal of Nestle is provided below with the assistance of three analytical tools: a pest analysis, a Porter’s Five Forces analysis, and a S.W.O.T. (strengths-weaknesses-opportunities-threats) analysis. P.E.S.T. Analysis Political. Globalization is unquestionably one of the most important political factors in the food and beverage industry. Nestle is clearly a global business, and in recent years as globalization has become a reality, it has learned that globalization means a lot more than just access to emerging markets. As Jose Lopez, Nestle’s Vice President of operations observed, “the impact of globalization has been different than we thought it would be. For those of us in the West, globalization meant developing countries opening their markets for us to sell to. Yet that’s not how it turned out...instead of being globalized we are learning to react to global markets” (Bell & Shelman, 2009, p. 10). Nestle’s status as a global corporation makes it a target for anti-globalists (Conlin,
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