For this project, your task is to analyse the chosen organisation/industry. You must identify, with examples, whether your chosen firm is a leader, niche player or follower in its industry/market and once you have done this you must analyse, at an in-depth level, the organisation's environment and what are its competitive strategies now and what options it may have for the long run. Within this you are to:
• Critically discuss the way in which strategic planning can benefit your chosen organisation.
• Critically discuss the role of environmental analysis (internal & external – macro/micro), as part of the strategic planning process.
• Undertake an environmental analysis (internal & external – macro/micro) using different tools discussed on the module, which will be used to inform the rest of the report.
• Prepare an evaluation report, of your findings, via a SWOT (from Section 1) - you should highlight what the analysis reveals about your chosen organisation.
• Finally, make recommendations on the future direction of the firm, for the medium-long term of the organisation (3-5 years).
You are also asked to provide an Executive Summary (c200 words maximum, not included in the word count) which should briefly encapsulate your whole assignment. Total marks for assignment: 100 You will need to support your answers throughout with robust research & examples/benchmarks/best practice from a wide range industries or companies.
Advantages of strategic planning for Nestle
In this report, Nestle is taken into consideration for conducting the overall analysis. It is seen that there are more than 2000 brands offered to the customers globally. The report will take into consideration the advantages of strategic planning in Nestle (Nestle, 2016). There are many products that are launched by the company but also introduced by the competitors like Maggi and yippee (Pandey and Puntambekar, 2016).
It is analyzed that planning plays a great role in conducting the activities of the organization smoothly. If there is no proper planning in the organization than it can be difficult for the organization to conduct the activities of the organization in a proper manner. It also helps to achieve overall goals and objectives of the company. The activities that are conducted in the organization can be managed if proper planning is there in the organization (Grant, 2016). There are various benefits that can be achieved through strategic planning. One of the benefits that can be achieved by the organization through strategic planning is establishing goals. Planning process helps the organization to increase the overall performance of the workers (Boxall et al., 2016).
If there is proper strategic planning than it can be easy for the company to reduce duplication of work and increase the productivity of the workers. The company can attain success if goals and standards are given by the company (Suarez et al., 2016). The image can also be maintained if planning takes place in the organization in a proper manner. It is seen that goal setting assist to compare the results with the outcome. Proper goals and objectives are set by taking into consideration strategic planning. It can help the company to accomplish the given targets (Chowhan, 2016).
Strategic planning can also help the company to overview the strength and weakness which are concerned with the competitors. It is evaluated that management of the company analyze the areas where the competitors are vulnerable and according to that strategies are made so that organization can achieve success (Bettis et al., 2016). Strategic planning helps the organization to create a competitive advantage by evaluating the overall weakness of the competitors.
It is analyzed that strategic planning helps to minimize the overall risks that are prevailing in the company. Planning helps the employees to accept changes that are made in the organization. Risks that take place in the Nestle Company can be minimized by considering proper strategic planning (Elshaer and Augustyn, 2016). If proper planning is there then it can be easy for the organization to implement the strategies. Strategic planning also helps to promote cooperation and it can be easy for Nestle to achieve large market share (Bryson, 2018). If a large market share is achieved by the organization then overall profits can be enhanced. It is essential for the company to communicate the strategies with the employees so that they can conduct the activities accordingly (Hill et al., 2014).
Internal analysis through SWOT analysis
Strategic planning helps the organization to manage the resources. There are limited resources in the organization. The planning process gives information to the top management so that the decisions that are made can be implemented in such a manner that productivity and profitability can be enhanced (Mir and Pinnington, 2014).
In the process of strategic planning, it is seen that internal analysis has a major role in conducting the operations of the organization. Internal analysis of the organization is concerned with the competencies of the organization. To conduct the internal analysis of Nestle Company the focus will be given on SWOT analysis in which strength, weakness, opportunities, and threats of the company will be discussed. Internal analysis is essential as it helps to collect the information and also helps to make strategies so that organization can sustain the competitive market.
It is evaluated that internal analysis helps to evaluate the strength and competency of the company. Nestle takes into consideration latest technology so that activities can be conducted smoothly. When latest technology is used it is seen that strategic planning is necessary as it helps to take correct decisions related to work. Internal analysis helps the company to accomplish overall goals and objectives of the organization (Tandon and Sethi, 2017).
The company can also maintain good image if there is proper strategic planning in the company. The planning process adopted by the company helps to enhance the image of the company in the market. It is also evaluated that planning helps the organization to consider latest technologies so that productivity level can be increased. If the organization does not take into consideration latest technology than productivity level is difficult to be enhanced. If weakness of the organization is evaluated then it can be simple to conduct proper strategic planning so that weakness can be minimized (Truong et al., 2017). The internal analysis also helps to enhance the overall strength and it can only be done by proper planning.
Also, if organization need to enter the market than it is important to conduct proper internal analysis so that success can be achieved. Strategic planning helps to analyze each and every step of the organization. The organization should have proper knowledge of the change that takes place in technology, economy, and operations of the competitors.
External analysis has a major role in the planning process. This strategy is taken into consideration to review the overall strategies that are concerned with the organization. It is analyzed that by conducting proper analysis the organization can compete in the competitive environment. The managers get help to manage the strategies so that activities of the organization can be conducted easily. If strategic planning is there then it can be easy for the workers to conduct the activities according to the strategies that are implemented in the organization. It is analyzed that if a strategic analysis is done properly then the organization can evaluate the competitors in the market (Micheletti and Stolle, 2015).
External analysis for global competition
It is evaluated that Nestle is conducting the activities by taking into consideration various changes in the policies and procedures. The activities are conducted in a diversified community so that operations can be conducted smoothly. There are various products that are offered by the company but there are many reasons due to which the products are not supplied in many countries. It is seen that the company takes into consideration various political changes in developing countries so that activities can be conducted smoothly (Al-Haddad and Kotnour, 2015). The organization has shown stability in many economies like in India and China. Also, due to government instability, the organization has to face the risks of distributing the products.
Nestle has given emphasis on research and development so that new and attractive products can be offered to the customers. The company tries to focus on innovative products so that large share can be grabbed. Due to economic changes in many countries the organization has to face the problem in supplying its products to the consumers (Lütkenhaus and de Freitas, 2016). It is evaluated that customers also have the information of the changes that are related to inflation and economic growth. Economic policies should be considered so that target market can be achieved. It is essential for the organization to take correct decisions so that price, inflation rate, and buying power can be set to attract the target market towards the products and services. Nestle emphasizes on encouraging the economic worth of the farmers so that satisfaction level of the consumers can be enhanced (Porter and Kramer, 2019).
Nestle takes into consideration social perspective. The emphasis is given on the taste and preference of the customers. Taste and preference are considered so that appropriate product can be offered to the right target market. The activities of the organization are influenced by focusing on the beliefs and thoughts of the consumers. In the present scenario, it is seen that individuals try to maintain health and purchase those products that are good for their health. By analyzing the overall behavior of the customers the company can easily enhance the image in the market. Nestle tries to maintain the quality of the products and for this, the products are produced locally (Rezaeegiglo et al., 2014). It is also seen that satisfaction level can be enhanced when the focus is given on maintaining the quality.
Nestle's focus on technology, quality, and customer satisfaction
Latest technology should be taken into consideration by every organization, as it helps to offer many opportunities that are prevailing in the market. Technology helps in developing the new product at low cost and in a proper manner. Nestle focuses on latest technology so that appropriate information can be collected and also products can be promoted through it. Social Media is one of the techniques that have minimized the gap between the customers and company. Nestle also focus on the technology so that demand for the products can be maintained in a proper manner (Veth et al., 2017).
Labor is one of the major problems for Nestle Company. The organization has to face problem-related to labor in which many rules and regulations are implied. Like fixed wages and provision of law is considered. It is evaluated that organization has to consider the laws in each and every activity of the company. At the time of promoting the product, the company focuses on considering the laws so that activities can be conducted smoothly. Foreign trade regulations are taken into consideration by Nestle so that distribution of products can take place properly. Nestle also focuses on changes that are made on an international level so that products that are introduced can be completed effectively. Global regulations are also followed by Nestle so that growth can be achieved in the market (Wheelen et al., 2017).
In the recent scenario, it is evaluated that the organization focuses on making the environment clean. It is essential for the organization to take into consideration rules and regulations so that activities can be conducted in a proper way. In each county the rules and policies are different so it is important to maintain proper acceptance in the overall market. The company emphasis on social contribution so that issues related to packaging and recycling can be solved easily.
This section represents the SWOT analysis of the Nestle Company. SWOT analysis takes into consideration the resources of the organization so that competitive advantage can be developed. In the present scenario, there are threats and opportunities that are faced by the company and also it has impacted the activities of the company.
It is evaluated that Nestle is one of the largest company in the market. It emphasizes on individual branding that assists the organization to create awareness in the food brands. Nestle has a large workforce that helps to conduct the operations of the activities in a proper manner. It is analyzed that the organization has a good distribution channel system that helps to give products to the customers on time. The organization penetrated in urban as well as in rural markets. The company has taken into consideration door to door services so that product can be acceptable by the customers globally.
Adherence to regulations on labor and the environment
It is evaluated that company has to face problem in managing the brands under the same group. There are many legal and consumer problems that are analyzed in the market. Also, there are many issues related to quality that has taken place. It is essential for the organization to maintain a proper quality of the products and also to reduce the price so that large market share can be grabbed. By having large market it can be easy for the company to conduct the activities smoothly.
It is analyzed that in this sector the buyers are high and loyalty is low of competitors. One of the major threats to the organization is concerned with the use of latest technologies. It is essential for every organization to take into consideration latest technologies so that operations can be conducted smoothly. There are various substitutes that are available in the market for the products that are given in the market by the organization. The competition level is very high as every company is focusing on achieving large market share globally. So, it is important to consider latest technologies so that products can be produced in less time and in a cost-effective way. For example: Amul and Cadbury are the competitors of Nestle.
To achieve large market share the company has the opportunity to conduct the activities in the international market. The emphasis should be given on maintaining proper distribution channel so that products can be reached to the customers in a proper manner and this also impact the overall sales of the company. It is analyzed that there are many new businesses that are looking to merge with the large companies so that activities can be conducted on the large scale. So, it is seen that Nestle has the opportunity to acquire new startups so that market share can be enhanced effectively. It is important to enhance the market share as it helps to achieve overall profits of the organization.
By evaluating the SWOT analysis it is analyzed that the organization is one of the famous brands in the market. For Nestle, it can be easy to increase the market share in the international market as the goodwill is maintained by the organization. By having a good image in the market, it is seen that organization can easily achieve large market share by increasing the satisfaction level of the customers. Distribution channel also plays a great role in conducting the routine activities of the company. It is analyzed that company has a good distribution channel and the products are available in the market easily which helps to achieve overall success in an effective manner. There are many controversies that are analyzed in the company and it is related to boycott of baby formula and also the discussion is made on the quality of the product. It is also seen that company possess weakness also which is related to the fixed cost.
So, it is important to focus on reducing the high cost so that large market share and goodwill can be achieved effectively. It is important to minimize the risks that arise in the company so that growth can be easily achieved. It is seen that company faces risk due the latest technologies. It is important for the organization to give emphasis on considering latest technologies so that productivity and profitability can be enhanced effectively. It will also give impact on the enhancing the satisfaction level of the customers.
By analyzing the four segments it is evaluated that the company should emphasis on producing innovative products in the market so that customers can be attracted towards the products and services offered. It will also help to achieve competitive advantage and large market. Resources should also be managed properly so that in next 3 to 5 years company can achieve profits in a proper manner. Nestle should emphasize on enhancing the quality of the products so that image can be maintained in the market.
It is evaluated in this report, that promotional methods are important to be considered by the organization as it helps to promote the products in the market. Nestle should try to reduce the weakness so that sales can be maximized. If company gives emphasis on providing quality products then it can be easy to survive in the competitive environment. Therefore, by introducing innovative products will help the company to grow globally.
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