Management Prepare A Swot Analysis For Nestle Company - 825 Words

Management: Prepare A Swot Analysis For Nestle Company (Other (Not Listed) Sample) Content: SWOT ANALYSISName:Course:Tutor:Date: The Nestl Companys history roots back to the first European condensed milk factory, which was opened in Switzerland in 1866 by Henry Nestle. Primarily, it focused its activity on creating the early form of food for infants. As a result of increased dairy demand, in fifty years period, the company had already forty factories worldwide. Later, the company created the chocolate and confectionary side of its business. Along with it, Nestl launched Nescafe coffee and Nestea and other beverages. Continuing its expansion and acquisitions, it purchased Purina and created Nestl Purina Pet Care Company. Nestl started to work on changing its strategic purpose toward Creating Shared Value, the initiative of which was launched in 2005 by the companys desire to examine the societal value and the contribution through the organizations operations. Thus, it helped the farming, consumption and rejuvenescing the cocoa and coffee supply chains launchi ng the Nestl Cocoa Plan in 2010. The majority of 2011 the company spend by expanding its operations in China. Nestls current strategic contains outcome where peoples and the company's interests are met and where value optimization for all is maximize. These strategic actions are included into the corporate business principles of business operations and understand the needs of consumers, their human Rights, state about the rights and obligations of the Nestl employees, proclaims certain policies and attitudes toward suppliers and customers and visions of the company on the environment. Through many acquisitions in different industries, Nestl operates in such distinct lines of business as powered and liquid beverages, water, milk products and ice cream, nutrition and healthcare, prepared dishes and cooking aids, products for pet care and chocolate and confectionary. As a result of global economic business decline, Nestl nevertheless invested much money in its brands in order to ensure its chocolate and confectionary line of business to be on the top. However, main competitors have also paid more attention on their brands development. Thus, Nestls main competitors The Hershey Company, Mars, Inc and Kraft Foods have also pursued their strategies of differentiation through strong branding. However, with the intense consumer availability, well- thought work with the suppliers, Nestl currently considers itself favorably towards its position comparing to its competitors.SWOT analysis for NestleStrengthsUnrivalled products Value of brand reputationAvailabilities for research and developmentWide spread distribution channels Geographic advantageAdequacy in mergers and acquisitionsWeaknessesPoor quality suppliesInability to ensure stable eco- friendly productionOpportunitiesBigger need in healthier productsInvolvement of startups that produce products of proper qualityOpening of new joint venturesThreatsFood spoilingRapid changes in trend in healthy foodPrivate labels increaseRising prices for raw foodToday, Nestl offers a wide range of products portfolio, operating more than twenty brands, which allow the company to earn one billion annually. This create a competitive advantage for the company over its main competitors. Besides, Nestl invests much money in the research and development sphere, which involve the research for new products and development of its employees as well. Such introducing of new and redesigned products strengthens the organizations competitive advantage. In addition, Nestl operates in more than hundred countries having an extensive distribution channel across the globe. This also allowed the company to form successful partnerships by acquiring other companies. Among the weaknesses of Nestl, there is an inability to provide constant quality of food products, because of thepoor quality supplies. This does not only harm companys sales, but ruins an image of well business that is unable to manage quality of its products. Bes ides, with the increasing of need in food production, the more concern is given to the adhering to the environmental laws, which the company should improve. Thus, the working conditions of its suppliers receive a lot of criticism, which hurt the reputation and thus revenu...