SWOT Analysis: Current Strategic Position Of Nestle

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Register to read the introduction… Strong cultural values stemming from the firms integrated approach to business and commitment to their stakeholders (Schein, 2012, p.3). 2. Current strategic position of Nestlé supported by three key areas of business ‘quality leadership, customer satisfaction and sustainability’ (Business Green, 2013, p. 1). 3. Nestlé have a strong commitment to corporate social responsibility with reference being made to ‘long term commitment never being sacrificed for short-term performance’ (CSR Wire, 2014, p. 1). 4. Diversified and varied brand portfolio. 5. Global recognition driven by the number of strong brands within the firm’s portfolio. 6. The reputation of Nestlé’s brand is estimated to be valued at $7billion (Nestlé, 2014b, p.1). 7. Nestlé has a place in the heart of consumers due to its longstanding history. 8. Development of trust and loyalty highlighting the capability development of the firm. 9. Strong teamwork within the firm promoting good levels of job satisfaction and employee commitment. | Weakness 1. A number of Nestlé’s products have faced criticism as a result of their nutritional value. Increased emphasis has been placed on healthy eating through government initiatives and Nestlé would benefit from reviewing a number of their products to support their mission of ‘good food and good life’ in a changing social environment i.e. rising levels of child obesity. 2. The past of Nestlé is tainted in parts by negative …show more content…
Notably, one of the core strengths of Nestlé is the strong brand image they have which inspires trust in consumers. Nestlé are able to build on this reputation to extend their brand categories. Further, recent efforts to follow corporate social responsibility strategies have heightened the firms approach to sustainability, which is aligned to current expectations from the consumer market for firms to take a greater responsibility towards the wider macro environment. Moving on to a critical analysis of the weaknesses of the company, one of the core weaknesses of Nestlé is the content of some of their products, which marks a move away from healthy eating initiatives. For example, Nestlé produce a number of confectionary goods including sweets and chocolate bars. Nestlé will in the future have to work with the UK government to ensure that a clear marketing message is put across for such treats to only be enjoyed alongside a balanced diet. Overall, however, Nestlé’s strengths overshadow their weaknesses and many of the weaknesses are being tackled by strategic actions. Recognition of the firm’s opportunities and threats leads to a discussion of the value of internationalisation and in particular the opportunities present within emerging economies. Further, the development of capabilities and thus …show more content…
Table two below presents a PESTLE analysis for the industry Nestlé are present within and this information is then used to form a critical discussion for the future strategic options available to the firm.
Table Two: PESTLE

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