Sadam Zuhaib (Repaired)

29
Term Report of Strategic Management Inclusive Analysis Of Nestle Submitted by: Aamir Siddiqui Saddam Lashari Asma Saher Muneer Abro Zohaib Riaz

Transcript of Sadam Zuhaib (Repaired)

Term Report of

Strategic ManagementInclusive Analysis Of Nestle

Submitted by:

Aamir SiddiquiSaddam Lashari

Asma SaherMuneer Abro

Zohaib Riaz

Table of ContentsDedication……………………………………………………………………………………………………..…1

Acknowledgement…………………………………………………………………………………………….2

Executive Summary……………………………………………………………………………………..…...3

Introduction………………………………………………………………………………………………………4

Mission Statement…………………………………………………………………………………………….4

Vision Statement……………………………………………………………………………………………….4

Goals and Objectives…………………………………………………………………………………….……4

History………………………………………………………………………………………………………………6

Hierarchy…………………………………………………………………………………………………………..9

Products…………………………………………………………………………………………………………..10

External Analysis………………………………………………………………………………………………11

BCG Model………………………………………………………………………………………………..…….12

SWOT Analysis………………………………………………………………………………………………...14

EFE Matrix…………………………………………………………………………………………….…………15

IFE Matrix……………………………………………………………………………………………………..…16

CPM Matrix………………………………………………………………………………………………….….17

Space Matrix……………………………………………………………………………………………………19

Conclusion……………………………………………………………………………………………………..…20

Suggestions…………………………………………………………………………………………………..…20

References……………………………………………………………………………………………………….21

1 | P a g e

DEDICATIONWe dedicate our project to our parents, worthy Teachers, group mates and our class fellows.Because whatever we are today it’s because of our parents. The continuous efforts of our teachers enable us to face these worldly challenges last but not the least it is the efforts and hard work of our group mate whose continues efforts resulted in the successful completion of this report.

2 | P a g e

AcknowledgementIn The Name Of Allah Who Is Most Merciful and Beneficent

We are very thankful to Almighty Allah who gave us opportunity courage and insight to explore more knowledge to complete this whole and for His blessings that have brightened in all parts of our lives and our parents whose prayers always supported us in every task. In script of this project we were guided by our experience, knowledge and interest in the subject of “Strategic Management” beyond all of the material available we are thankful to our instructor “Sir Ali Raza” for giving us such a deep knowledge about the subject. That is possible due to his unique and natural style of teaching we ever experienced during our academics. And due to his motivational behavior we were able to complete this very fruitful and healthy activity.

Executive Summary

3 | P a g e

Nestle is one of the most proficient food companies in not only Pakistan but all over the world. The employees at Nestle have finagled to retain their standards to the most high-pitched level possible in the market. They may sure of the fact that the product of the Nestle are definitely the BEST TO USE. Nestle has an assortment of the products to offer and they all are the best of their types.

Nestle was founded in 1866 by Henri Nestle. It started off with one man’s initiative to produce infant formula (for infants who are intolerant to their mothers’ milk) and grew into a multi- national cooperation worldwide. Nestle has more than 250,000 employees worldwide and factories all around the globe.

The infant product was so successful that it created demand all over Europe. Eventually this success brought in many business joint ventures and the company underwent many name changes along the way. Nestle started to enhance its product varieties and started to introduce baby cereals, breakfast cereals, chocolates, bottled drinks, beverages, ice creams, dairy products, food seasoning, pet food and many more. The product growth was encouraged by aggressive R&D.

Nestle aims to be the leader in the food and beverage industry and to meet the everyday needs of the people. This report is to analyze Nestle in the following context.

Global Marketplace Global Strategic Environment SWOT Analysis PESTLE Analysis Porter Five Forces Model IFE Matrix EFE Matrix CPM Matrix

IntroductionNestle S.A is a Swiss Multinational food and beverages company headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues.Headquarters: Vevey, Canton of Vaud, Switzerland

4 | P a g e

CEO: Paul BulckeFounded: 1866, Vevey, SwitzerlandFounders: George Page, Charles Page, Henri Nestle.

Mission Statement

Nestle is the world’s leading nutrition, health and wellness company. Our mission of “Good Food, Good Life” is to provide with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

Vision Statement

To a leading, competitive, nutrition, health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, and preferred supplier selling preferred products.

Goals and Objectives

Nestlé’s objectives are to be recognized as the world leader in nutrition, health and wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry.

We believe that leadership is not just about size it is also about behavior. Trust, too, is about behavior and we recognize that trust is earned only over a long period of time by consistently delivering on our promises. These objectives and behaviors are encapsulated in the simple phrase “Good Food, Good Life”, a phrase that sums our corporate ambition.

We are seeking to achieve leadership and earn that trust by satisfying the expectations of consumers. Whose daily choices drive our performance, of shareholders, of the communities in which we operate and of society as whole. We believe that it is only possible to create long-term sustainable value for our shareholders, if our behavior, strategies and operations are also creating value for the communities where we operate, for our business partners and off course creating value for the communities where we operate, for our business partners and off course for our consumers. We call this, “Creating Shared Value”.

We are investing for the future to ensure the financial and environmental sustainability of our actions and operations in capacity, in technologies, in capabilities, in people, in brands, in R&D.

Our aim is to meet today’s needs without compromising the ability of future generations to meet their needs, and to do so in a way which will ensure profitable growth year after year and a high level of returns for our shareholders and society at large over the long-term.

5 | P a g e

History1866-Our history begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by Anglo-Swiss Condensed Milk Company

1867-In Vevey, Switzerland, Our founder Henri Nestle a German Pharmacist, launched his Farine Lactee a combination of cow’s milk, wheat flour and sugar, saving the life of a neighbor’s child. Nutrition has been the cornerstone of our company ever since.

6 | P a g e

1905- The Anglo-Swiss condensed Milk Company, founded by Americans Charles And George Page, merged with Nestle after a couple of decades as fierce competitors to form the Nestle and Anglos Swiss Milk Company.

1914-The onset of World War I brought severe disruption to us along with the rest of the world. Acquiring raw materials and distributing products became increasingly difficult. Shortage of fresh milk throughout Europe forced factories to sell almost all their supplies to meet the needs of local towns.

1918-Nevertheless, the war created new demand for dairy products, largely in the form of government contracts. To keep up, Nestle purchased several existing factories in the USA and, by war’s end, we had 40 factories worldwide.

1925-The 1920’s were a time of deep economic hardship, and Nestle suffered severe difficulties along with much of world. Operations were partially streamlined, but the company was able to continue, and with the acquisition of Peter, Cailler, Kohler Swiss Chocolate Company, chocolate became an integral part of our business. This sparked further variety in the products we offered- including malted milk and a powdered drink called Milo.

1938-Nescafe coffee was launched.

1940- Nescafe became an instant success and was followed in the early 1940’s by Nestea.

1945-The close of World War II marked the beginning of a particularly dynamic phase of our history. Dozens of new products were added as our growth accelerated and we acquired outside companies

1947- The Maggie products, from seasoning to soups, become part of the Nestle Family following the merger with Alimentana S.A

1948- Nesquil, the instant chocolate drink, was developed in the United States. Its original name of Quik was a direct allusion to the sped and the simplicity of its preparations.

1974- For the first time we diversified outside the food industry when we became a major shareholder in L’Oreal, one of the world’s leading makers of cosmetics.

1977- Rising oil prices and slow growth in industrialized countries meant that we needed to respond to a radically changed marketplace. In 1977, we made our second venture outside the food industry by acquiring Alcon Laboratories Inc. a US Manufacturer of pharmaceutical and ophthalmic products.

1981- In 1981 the World Health Assembly adopted the international code for the marketing of Breast-Milk Substitutes (WHO Code) and recommended that its member States implement it.

7 | P a g e

Nestle was the first company to develop policies based on the WHO Code and apply them across our entire operations in developing countries.

1984- An improved bottom line allowed us to make new acquisitions, including a public offer of USD 3 Billion for the American food giant, Carnation. At the time, this was one of the largest acquisitions in the history of the food industry.

1986-The Nespresso story began in 1986 with a simple idea, enable anyone to create the perfect cup of espresso soffee, just like a skilled barista.

1988- The Italian brand Buitoni, In Sansepolcro, became part of our portfolio in 1988. Nestled in the hills of Tuscany, Casa Buitoni is the symbol of the brand’s ongoing commitment to quality, creativity, and tradition.

1993-The first half of 1990s were favorable for Nestle with the opening up of central and Eastern Europe, as well as China – Good news for a company with such far-flung and diverse interests.

2001- We merged with the Ralston Purina Company, Which had been founded in 1983, in 2001 to form a new pet food company, Nestle Purina Pet Care Company.

2002-Two major acquisitions were made in north America in 2001, in july, the merge of our US ice-cream business with Dreyer’s and in august, a USD 2.6 Billion aczuisition of chef America Inc. a leading frozen food product business.

2003-Nestle acquired Movenpick Ice-cream, enhancing our position as a market leader in the super premium category.

2005-Our Chairman Peter Brabeck recognized that the eating habits of the world’s population were changing and we began our own transformation. We began to move away from being a producer of agricultural commodities towards becoming a producer of food with added benefits and ultimately a provider of a wide range of products and services in the areas of nutrition, health and wellness.

2006-We Acquired Jenny Craig and Uncle Toby

2007- We acquired Novartis Medical Nutrition, Gerber and Henniez

2009-We held the first Creating Shared Value Forum in New York, with leading experts in the areas of nutrition, water and rural development coming together to discuss serious global challenges facing us in these areas and the role of business in helping to solve them. The Creating Shared Value Forum has been held on an annual basis since then, with London in 2010 and Washington, D.C in 2011.

8 | P a g e

We celebrated the opening of the Chocolate Centre Of Excellence in Broc, Switzerland.

January 2010- We sold our remaining Alcon shares to Novartis and also acquired Kraft Foods frozen pizza business.

March 2010- We faced a challenge from Greenpeace who wanted to be reassured about our commitment to sustainable Palm Oil. It was the first time we saw social media being used in a substantial way to challenge us and ask questions. We didn’t get the handling of our response to the campaign itself quite right in social media, but on the issue at its heart Palm Oil we took steps to both strengthen our position and to explain it more clearly.

May 2010- This month Nestle launched Special Tea

We launched the Nestle Cocoa Plan which will supply 38 million high quality, disease-resistant plantlets to farmers helping them rejuvenate their farms and increase productivity. The Nescafe plan was also launched investing CHF 500 million to address responsible farming. Sourcing and consumption across our coffee supply chain.

We also awarded the first Nestle Prize in Creating Shared Value to ODE Cambodia for its Farm Business Advisors Program and we announced our partnership with the Forest Trust to work to combat deforestation.

September 2010- We announced the creation of Nestle Health Science and the Nestle Institute of Health Sciences, innovative ventures aimed at the prevention and eventually treatment of chronic medical conditions with science-based personalized nutrition solutions.

January 2011-We voluntarily submitted our policies and procedures to FTSE4Good policy committee for independent review.

March 2011-We became the first infant formula manufacturer to be included in the FTSE4Good Index.

April 2011-China was at the forefront, as we announced a partnership in April with Chinese Food Company yinlu, a manufacturer of readt-to-drink peanut milk and canned rice porridge.

July 2011- We announced a partnership with Hsu Fu Chi, a confectionary and Snacks manufacturer.November 2011-We became the first food company to partner with the Fair Labor Association. This partnership will help us investigate if children are working in cocoa farms that supply our factories and, where we find problems, to solve them.

9 | P a g e

Hierarchy

ProductsMost people know us through our brands. Our portfolio covers almost every food and beverage category, giving consumers tastier and healthier products to enjoy at every eating occasion and throughout life’s stages including times of special nutritional need. Here is a sample of some of our brands. For more information, visit our Brands section.

Coffee Nescafé, Taster's Choice, Ricoré, Ricoffy, Nespresso, Bonka, Zoégas

Water Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel, Contrex, S.pellegrino,acqua Panna, Levissima, Arrowhead, Poland Spring, Deer Park, Ozarka, hépar, Ice Mountain, Zephyrhills

10 | P a g e

Other drinks Nestea, Nesquik, Nescau, Milo, Carnation, Libby's, Caro, Nestomalt,nestlé

Shelf stable Nestlé Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça, klim, Gloria, Svelty, Molico, Nestlé Omega Plus, Bear Brand, Coffee-Mate

Chilled Nestlé Sveltesse, La Laitière, La Lechera, Ski, Yoco, Svelty, Molico, Lc1,chiquitin

Ice creamNestlé Antica Gelateria del Corso, Dreyer's/edy's, Drumstick/extrême,maxibon/tandem, Mega, Mövenpick, Sin Parar/sem Parar/non Stop

Baby food Nestlé Nan, Lactogen, Beba, Nestogen, Cerelac, Neslac, Nestum,guigoz, Good Start

Performance food Powerbar, Pria, Musashi

Health care nutrition Nutren, Clinutren, Peptamen, Modulen

Bouillons, soups, seasonings, pasta, sauces Maggi, Buitoni, Thomy, Winiary,torchin

Solidified nourishments (ready dishes, pizzas) Stouffer's, Lean Cuisin

External AnalysisDemographic External factor

More the education more will be the awareness about brand and quality food. If the income level of people is high then purchasing power will be high so they

will purchase more Nestle products are made for people belonging from all age groups Both male/female are included equally in its target market

Economic environment

11 | P a g e

If the inflation rate is high then there will be decrease in purchasing power. so inflation indirectly affects the company’s sale.

Nation varies greatly in its level and distribution of income Changes in major economic variables such as income, cost of living, interest rate

and savings have a large impact on the market place

Political environment

Government regulations to protect interest of society and from unfair business practices

Unstable political conditions Law order situation getting worse

Legal environment

Registered in the stock exchanges of Pakistan

Social/cultural environment:

Consumption behavior of Pakistani people is high so they consume more goods As Pakistan is Muslim country so we cannot add any ingredient which is

prohibited in Islam or which is not “Halal”. As nestle water is the branded item so the people who are brand conscious will

prefer to use nestle water .so nestle is focusing more on the posh areas.

Technological environment

Technological environment is changing rapidly Most dramatic force shaping company’s offerings and the way product is

marketed Company’s must keep up with technological changes to match up with its

environment

BCG MatrixSTARS:

The two SBU’s, Mineral water and Confectioneries succumb to this classification of the BCG. These SBU’s have high piece of the pie and high industry growth rate. These SBU's are obliging loads of speculation to contend in the developing market. Case in point, bunches of cash is constantly used and techniques have been executed for the Mineral water to

12 | P a g e

manufacture and support piece of the pie. Settle Pure Life has caught 50 % of the bottled-water advertise in Pakistan since it was presented in 1998. Its inexact bargains for 1999 are Rs. 70, 401000. This bargains figure is quite impressive as the deals climbed truly high in standout year. It is anticipated that there will be extra development in the mineral water class in advancing years .the offers of the confectioneries rose to Rs. 106,559 000 from Rs. 87,758 000. The tremendous build of Rs. 18, 801 000 puts this SBU in the stars category and reveals to its expanding piece of the overall industry. There is a developing market for the items in confectioneries for instance Kitkat (even though it's imported), Polo Smarties and so on. This could be demonstrated from the way that Nestle continues presenting new items in this class for instance Allen's Sootherswere started throughout the last quarter of 1998.

CASHCOW:

Milk items, Coffee and Dietetic and Infant nourishment have a high piece of the pie and are working together in adult commercial ventures. Since the customers of this item class are faithful, the showcasing expenses of these SBU’s are very low and thus a lot of money might be generated. Customer Loyalty is an unquestionable requirement for these Cash-cows to keep up their piece of the overall industry. The offers of the Milk items have expanded to Rs. 108,430000 from Rs. 87,758000. This enormous expand in deals reflects the high piece of the overall industry of this SBU. In any case, its development rate is low since when all is said in done this category is in its development arranges – that is – various milk items have been started by Nestle, the majority of which are truly old. An enhancement has not really been made in this classification. The same conclusion could be made about Coffee. There is a recently existing market for Coffee which is not increasing further by a huge sum. The offers of Coffee were Rs. 46,89 000 in 1999 and Rs. 392,00 000 in 1998. This gigantic distinction demonstrates that a great amount of money is, no doubt produced from this SBU. Offers of Dietetic and Infant nourishment rose to Rs. 60,935 000 from Rs. 52,655 000. The baby sustenance’s unit of Nestle is working in a developed industry. As the milk items, the newborn child nourishments have been around for quite a while without scarcely any new item line being began in this classification.

QUESTION MARKS:

Incorporated in this area are the culinary results of the association. The items, for example Maggie 2-moment Noodles and Maggie cold sauces have a low piece of the pie and a high development rate. These items particularly the cool sauces are working in a greatly aggressive business. The approximate deals were Rs. 79,919 000 in 1999 and Rs. 60,818 000 in 1998. This figure speaks to an incredible potential for development in future. Be that as it may, in contrast, the piece of the pie of the items in this class is not exceptionally high right now. An explanation

13 | P a g e

behind this is that Nestle just as of late presented frosty sauces such as "Emily sauce" and so on. However the excitement, with which the clients accepted the distinctive characters of sauces, depicts an extremely high potential for future development. The firm needs to keep tabs on separating its items in the aggressive market to addition clients.

DOGS:

Chocolate and Fruit drinks succumb to this classification and they hold a low piece of the overall industry and a low development rate. Chocolate drinks had offers of Rs.19639000 in 1999, which climbed from Rs. 19541000 in 1998. This is a considerable little expansion acknowledging the ascent in the offers of different SBU’s. Then again, the chocolate beverages are still productive so the firm does not need to stress over selling or disposing of this SBU. The offers of Fruit beverages rose to Rs.40, 620 000 in 1999 from Rs. 38,103 000 in 1998. There has been a little measure of expansion; in any case it is not a great deal contrasted with different SBU’s. Firstly, there is not a colossal market for chocolate drinks in Pakistan. Individuals generally have a tendency to purchase light squeezes like fruit or squeezed orange or Pepsi rather than chocolate drinks. Furthermore, with respect to the apples and oranges juices, there are not a ton of flavours accessible presently in this class. Settle ought to present new flavors, for example fruit, grape and so forth to catch the business that incline toward these flavors. This won't just expand the offers expansion its piece of the pie. At the minute, extra measure of cash is not being put resources into these SBUs, as they are not exceptionally gainful. Settle is currently attempting to augment benefits from this class by minimizing uses and by separating the item to assemble market share.

SWOT Analysis of NestleStrength:

Organization's name Nestlé" means the quality picture elevated requirement and quality item.

Devotion from clients is likewise the major quality for the organization. Workers are likewise dedicated because of the decentralized society of organization. Individuals trust on items because of the correct health and security measures. The quality of Nestlé sweet shop is its foreign chocolates and confections, which

strengthens its picture.

14 | P a g e

Being a multinational organization it has the competence to pull in more client than the local companies.

Organization can challenge in a globe. Organization consistently incorporating the new innovation.

Weaknesses:

There are very little edges for retailers to incline toward its deals. They have to enhance the offices like chillers. The dissemination cost is high as contrasted with the rivalry in the nearby

market. Organization publicizes its product information through advertisements.

Opportunities:

They have a chance to grow or catch the business sector by including its product offering.

They have the chance to offer snacks. They can likewise catch the business of home machines. Organization can open differentiate stores to dispense with retailers. As of late, they have made a chance for themselves by presenting chillers in themarket. Organization is attempting to open stores in colleges. They can give motivations to retailers to build bargains volume.

Threats:

Existing organizations are expanding their product offerings that can turn out to be a risk in the coming years.

Organization like Cadbury is giving more rebates to retailers as contrasted with wholesaler’s due to which retailers favor its items available to be purchased.

As contrasted with the nearby contenders, our merchant expense is extremely high. As Nestlé confectionary Products needs to support and comply with the Nestlé measures.

Matrixes EFE Matrix

EFE matrixKey external factors Weight Rating(1-

15 | P a g e

4) Weighted score

Opportunities1. They have a chance to grow or catch the business sector by including its product offering. 0.05 3 0.15

2. They have the chance to offer snacks. 0.1 4 0.4

3. They can likewise catch the business of home machines. 0.08 2 0.16

4. Organization can open differentiate stores to dispense with retailers. 0.1 3 0.3

5. As of late, they have made a chance for themselves by presenting chillers in the market. 0.07 4 0.28

6. Organization is attempting to open stores in colleges. 0.08 3 0.24

7. They can give motivations to retailers to build bargains volume. 0.08 4 0.32

Threats1. Existing organizations are expanding their product offerings that can turn out to be a risk in the coming years. 0.24 4 0.96

2. Organization like Cadbury is giving more rebates to retailers as contrasted with wholesaler’s due to which retailers favor its items available to be purchased. 0.15 2 0.3

3. As contrasted with the nearby contenders, our merchant expense is extremely high. As Nestlé confectionary Products needs to support and comply with the Nestlé measures. 0.05 3 0.15

Total 1 3.26

IFE Matrix

Key Internal Factors Weight

Rating(1-4)

Weighted score

Strengths1. Organization's name Nestlé" means the quality picture elevated requirement and quality item. 0.06 3 0.18

2. Devotion from clients is likewise the major quality for the organization. 0.1 4 0.4

3. Workers are likewise dedicated because of the decentralized society of organization. 0.09 3 0.27

4. Individuals trust on items because of the correct health and security measures. 0.11 1 0.11

5. The quality of Nestlé sweet shop is its foreign chocolates and confections, which strengthens its picture. 0.08 4 0.32

6. Being a multinational organization it has the competence to pull in more client 0.08 3

16 | P a g e

than the local companies. 0.24

7. Organization can challenge in a globe. 0.08 1 0.08

8. Organization consistently incorporating the new innovation.

Weaknesses

1. There are very little edges for retailers to incline toward its deals. 0.15 3 0.45

2. They have to enhance the offices like chillers. 0.15 3 0.45

3. The dissemination cost is high as contrasted with the rivalry in the nearby market. 0.05 1 0.05

4. Organization publicizes its product information through advertisements. 0.05 1 0.05

Total 1 2.6

IFE Matrix

Competitive profile Matrix

Critical Success Factor WeightKraft Nestle

Rating Score Rating Score

1. Advertising 0.25 3 0.75 4 1

2. Financial Position 0.1 3 0.3 4 0.4

3. Global Expansion 0.25 3 0.75 4 1

4. Market Share 0.1 3 0.3 3 0.3

17 | P a g e

5. Product Diversity 0.15 4 0.6 4 0.6

6. Consumer Demands 0.15 4 0.6 3 0.45

Total 1 3.3 3.75

DESCRIPTION:

Competitive profile matrix is a vital strategic management tool to compare the firm with the major companies of the industry. Competitive profile matrix displays the well-defined picture to the firm about their strong points and weak points relative to their competitors. The primary competitors to Nestle are Kraft, so we used those two companies in this matrix

In this industry we felt that Kraft has an above average effort in their advertising field. But felt that Nestle does a little more in their efforts. We see more different types of advertising by Nestle, whether its newspaper ads or commercials. Also their advertising is more eyes catching and appealing to the public eye. Financial position, we rated this based upon their net sales. Nestle is the leader in the food diversified industry so it is obvious that their response is a 4 because they are leading the pack. Kraft wasn’t too far behind so they are above average because they are ahead majority of everyone else in this industry.. The next factor we found important was global expansion.. They aren’t focused about going global at this time. Nestlé’s headquarter in Switzerland; they are based off international and global expansion. Many of their products are in undeveloped countries. The next factor we focused on was market share. We found this important because companies need to be able convert sales targets into market share because this will exhibit whether forecasts are to be attained by growing with the market or by capturing share from competitors.

We felt as if using that information that all three companies displayed either average of slightly above average in this area. For product diversity Kraft does an exceptional job, they have over 20 brands that cover the board of products. Kraft however doesn’t have any bottled water, but they have a powder portfolio for water that leads the industry. The final factor is consumer demands, which refers to how much of something that a consumer desires. A company needs to know the consumer demand so they know how much of a product to make. Each of these companies, I feel are above average in this area. Kraft continues to expand and be innovative with their products. An example is currently they have just launched their new product Mio that is a water flavoring substance. Nestle is also great in this area, especially when

18 | P a g e

it comes to their baby nutrition products. They continue to make these products that babies need to survive and bring them to developing countries.

Space Matrix

Financial strength

Conservative Aggressive

Market penetration Market penetration

Product development Diversification

19 | P a g e

Market development Strategic posture

Diversification

C.A I.S

Defensive Competitive

Liquidation backward , forward , horizontal integration

Retrenchment

Environmental stability

Grand Strategy Matrix:

Excellent strategic position Concentration on current market Take risks when necessary

CONCLUSIONNestle is a market leader due to different reasons:

Its price is high against its competitors but it matches its quality with its competitors. Nestle is using its brand name to promote its products & it’s very popular as compared

to its competitors. Its packaging is good. We can easily find Nestle from any retailer shop. Due to its advertisement, Nestle attracts more customers & has very prosperous future

if it continues to promote its products and bring all the possible innovational aspects using different product line strategies.

It has always maintained the quality of its products.

20 | P a g e

Despite of all the facts, there’s need to maintain the condition of office and enhance the security.

Behavior of employees is not professional and every department should treat equally.

Suggestions Nestle Milk Pack should concentrate on all age groups (by showing its benefits) instead of

concentrating just on child growth. They should try to create strong brand loyalty among customers. They should keep in mind the competing environment while designing their strategies. They should concentrate on customer retention. They should improve their customer services. They should try to exploit the loopholes of their competitor’s products. They should try to cater the mind of the customer by creating some attractive jingle like Haleeb:

Chai banaye khoob haleeb….. Long term agreements to be signed with governmental departments.

References www.google.com/nestle

http://www.slideshare.net/hemanthcrpatna/nestle-internship-report

http://www.nestle.com/171A46C4-F6AE-46E9-B077-AC271CE51589/FinalDownload/

DownloadId-FF3EC8BBF44B3D43A387525FF18AA1F9/171A46C4-F6AE-46E9-B077-

AC271CE51589/asset-library/documents/library/documents/

corporate_social_responsibility/nestle-csv-full-report-2012-en.pdf

http://kninn.blogspot.com/2010/06/nestle-bcg-matrix.html

21 | P a g e

22 | P a g e