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assignement no 2 Name Adil Salim Roll No BX Subject Strategic Management Course Code Semester th Assignment No Strategic Management Case Study Analysis of Nestle Tutor Syeda Atia Rahat Strategic Management Case Study Analysis of Nestle CTopic Introduction

Name Adil Salim Roll No BX Subject Strategic Management Course Code Semester th Assignment No Strategic Management Case Study Analysis of Nestle Tutor Syeda Atia Rahat Strategic Management Case Study Analysis of Nestle CTopic Introduction Task Environmental and Competitive analysis Political Economical Socio-Cultural factors Technological factors Description of Industry Structure Issues problems facing the industry Industry Prospect and overall attractiveness Attractiveness Unattractiveness Analysis of Competitive forces PORTER ? s ?ve forces analysis Threat of new Entrants Bargain Power of Customers Competitive Rivalry Bargain power of suppliers Threat of Substitute Competitor analysis Task Strategic performance Indicators Internal analysis drawing on relevant models SWOT analysis of Nestlé Company Competitive strength versus Key rivals Strategic Issues Task Strategic plan and Action recommendation Basic strategic direction Di ?erentiation strategy by Nestlé Cost-Leadership strategy Economic analysis Ratio and Liquidity Analysis Nestlé ? s strategic trajectory Major functional support strategy Information technology and Control system Eminent failure Recommendation Short-term action recommendation Long term action recommendation Reference List Strategic Management Case Study Analysis of Nestle Page No CIntroduction Nestlé Company was founded by Henry Nestlé who was a Swiss Pharmacist who was focused on producing the ?rst milk food for infants The production of milk food was aimed at combating the problem of infant mortality as a result of malnutrition Soon the product became popular in Europe which in turn has created a legacy of shared value embedded within their corporate business principles and values Boyd With its e ?cient and humble beginning the company is dedicated to grow its business as the leading nutrition health and wellness company Headquartered in Switzerland Nestlé operates in more than countries having around factories and employs around people globally Experience of Nestlé over the years makes it imperative that it takes decades to build a real competitive advantage Nestlé ? s powerful establishment in the industry is a result of its inimitable strength of strong R D product value chain e ?cient entrepreneurship wide geographical coverage signi ?cant corporate values and great people working together Task Environmental and Competitive analysis The strategic analysis of an organization usually starts with the evaluation of its external environment PESTLE analysis is one of the main tools for conducting micro-environmental analysis that will investigate on the political economic social and technological aspects of the environment in which the ?rm is operating The main purpose of this tool is to identify the possible threats and opportunities o ?ered by the whole industry Political In reference to the political aspects the bureaucratic regulations political stability and taxation policies play an essential role in international business operations Moreover Nestlé generates steady sales in its targeted market in presence of political stability The strict governmental laws in certifying the use of safe and natural raw materials public ?nancial disclosure and regulations on fraud and bribery has signi ?cant in uence on each phase of Nestlé ? s strategic planning and organizational performance In respect to the Chinese market Nestlé ? has been facilitating a lower corporate tax with