What Is The External Environment Of Nestle

This framework is a key instrument used by strategists to identify a firm’s present business conditions. It allows them to make a summary and evaluation of external factors of a business such cultural, social, demographic, competitive information, political, legal, etc.

Analyze the external and internal environment for opportunities, threats, strengths, and weaknesses that impact the firm’s competitiveness.

On the other hand, an external scan of the organization’s environment shows that the company is competitive in the market. The company is able to satisfy its customers as required. There are other competitors in the market that offer stiff competition to the organization. This is a threat to the company. The company has opportunities as well such as expanding its market to the international level. An external scan of the environment is able to provide the external opportunities and threat that the company has.

Whilst making marketing decisions a business must decide their method of marketing. This will then be the way in which all future marketing activities will be planned. This is marketing planning. It has a huge number of benefits for any business. It’s influenced by the strategic plans of the business and its corporate objectives. Large public limited companies such as Nestle will usually have an overall plan for the business and has set objectives which they’re able to achieve. Smaller companies within the business will then create their own marketing plans which fit in with the overall strategic plan. The business has to consider several questions before coming up with the marketing plan:

In every company, they deal with internal and external factors that affect every day business. External factors include oil price change, new laws and regulations for building codes, food distribution and many more. Companies that wish to succeed in their business should try and anticipate these internal and external factors. By identifying a companies opportunities and threats, a company can protect themselves from future harm and take advantage of opportunities that they have prepared for. Analyzing the opportunities and threats can be crucial for a company to turn a profit, expand the company across the country, and bring in and keep new and old customers.

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

* Foreign companies, such as Nestle, have a strong competitive advantage. Nestle has a long-term investment strategy, use local production and supplier to reduce cost, train and develop local staff who has a better understanding of the local market , and develop its own storage facilities, distribution and marketing network.. In addition, Nestle develop product that fit Russian taste and traditions.

Nestlé Company also cooperates with local government to provide technical assistance to farmers in planting and harvesting crops. In a way of farmer get income and Nestlé Company get fresh raw materials to produce their food locally and save cost from imported raw materials. Consumers also could enjoy local productions with lower price. When more consumers buy the productions, Nestlé Company will gain more profit from the

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).

The organization that has been chosen for this assignment is Nestle. Nestle or Nestle S.A., French pronunciation which is the Swiss biggest multinational food and beverage organization. Nestle is in the food processing industry where it produces raw food products and finished processed product that includes cannery, meat processing and food packaging that compliance with the Safety Health Awareness and Recognition Program (SHARP). Nestle is an organizatio that produces pet foods such as Friskies, Fancy Feast, Dog Chow and Beneful, breakfast cereals such as Cookie Crisp, Chocopic, and Honey Stars , coffee and tea such as Nescafe, Coffee Mate and Nestea, confenctionery and chocolates such as Kit Kat,

Technology gives many opportunities for the development of new products or improvement of existing ones. New techniques of marketing such as internet and e-commerce are important to focus in this modern era. Therefore Nestle uses technology in several business operations like to maintain the databases with the help of software. Nestle should follow such a maxim that accelerate innovation with the help of technological advancements. Nestle is already using the state of the art technology for the production of various products, they are meeting the global standards by installing the contemporary

Nestlé gives a workplace which ensures the wellbeing and welfare of the representatives as per the most astounding moderate principles of security, cleanliness and security. Every worker ought watch over her/his own wellbeing as well as that of her/his associates. Along these lines, recommendations for development are welcome and will be given prime

According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.

This analysis consists of analyzing the external environment of the company (competitors, social, technological, regulations, etc.). The purpose is to identify the key opportunities and threats in the environment.

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.