Management: Prepare A Swot Analysis For Nestle Company (Other (Not Listed) Sample)

SWOT ANALYSIS
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The Nestlé Company’s 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, Nestlé launched Nescafe coffee and Nestea and other beverages. Continuing its expansion and acquisitions, it purchased Purina and created Nestlé Purina Pet Care Company. Nestlé started to work on changing its strategic purpose toward Creating Shared Value, the initiative of which was launched in 2005 by the company’s desire to examine the societal value and the contribution through the organization’s operations. Thus, it helped the farming, consumption and rejuvenescing the cocoa and coffee supply chains launching the Nestlé Cocoa Plan in 2010. The majority of 2011 the company spend by expanding its operations in China. Nestlé’s current strategic contains outcome where people’s 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 Nestlé employees, proclaims certain policies and attitudes toward suppliers and customers and visions of the company on the environment.
Through many acquisitions in different industries, Nestlé 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, Nestlé 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, Nestlé’s 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, Nestlé currently considers itself favorably towards its position comparing to its competitors.
SWOT analysis for Nestle
Strengths
Unrivalled products
Value of brand reputation
Availabilities for research and development
Wide spread distribution channels
Geographic advantage
Adequacy in mergers and acquisitions
Weaknesses
Poor quality supplies
Inability to ensure stable eco- friendly productionOpportunities
Bigger need in healthier products
Involvement of startups that produce products of proper quality
Opening of new joint venturesThreats
Food spoiling
Rapid changes in trend in healthy food
Private labels increase
Rising prices for raw food
Today, Nestlé 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, Nestlé 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, Nestlé 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 Nestlé, there is an inability to provide constant quality of food products, because of the poor quality supplies. This does not only harm company’s sales, but ruins an image of well business that is unable to manage quality of its products. Besides, 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...