The paper "Business Strategy in a Global Environment - Nestle Australia Ltd " is a perfect example of a marketing case study. Nestle Australia Ltd encompasses a section of the broader regional Oceania business belonging to Nestle Global. In the year 2010, Nestle Australia Ltd generated annual sales of more than two thousand five hundred billion Australian dollars, it has established eleven factories in Australia with an estimated 3620 product lines with a sum of Full-Time Equivalent (FTE) employees of 4216 (Nestle, 2011). According to Nestle (2011), the main brands produced and marketed in Australia are Wonka, Nesquik, Nestlé Peters Ice Creams, Nescafé , Uncle Tobys, Nestlé Carnation, Kit Kat, International Roast, Milo, Maggi, Country Cup, Aero, Smarties, Soothers, Allens and Sunshine.
(IBISWorld, 2010) reports that Nestle Australia Ltd is rated among the top one hundred companies out of two thousand companies in Australia. This forms the basis of this report which seeks to succinctly analyze Nestle Australia Ltd’ s strategy formation process Analysis tools such as SWOT analysis, PESTEL analysis, and Porter’ s five forces model will be used to assess the present position of Nestle. Strategy development According to Nestle (2011), Nestle Australia Ltd has established itself as a food, nutrition, and health and wellness business and therefore its core business has been founded on its mission statement which is ‘ Good Food, Good Life. ’ Kowitt (2010) notes that despite the recorded success, the company has not been spared by the shifting economic, financial, political, social and technological changes occurring in most places globally, which form the principal threat from the external environment.
In modern business environments which are characterized by market volatility and shifting political, social, ecological, economical, technological, legal and financial forces, developing and implementing effective strategies is crucial (Henry, 2008). Effective strategies are key components to ensuring organizations are not only able to counter existing and emerging competition and take advantage of emerging business opportunities but also, helpfully exploit its core competencies and capabilities and thus, effectively and efficiently meet the changing needs, expectations, tastes, and preferences of the modern, global consumer (Beer & Eisenstat, 1996).
Henry (2008) notes that as more and more companies are becoming learning organizations, strategies have also become cyclical and more flexible in order to accommodate changes. At a business level, a strategy of an organization is the alignment between its internal capabilities and its external correlations and it helps the organization in establishing how it relates and reacts to its external environment which comprises of the organization’ s competitors, suppliers, customers and investors among others.
Mintzberg (1994) defines strategy as the direction and the scope of a firm over its long term, which attains an advantage in a dynamic environment through its acquisition and allocation of resources and competences with the view of meeting the needs, expectations and preferences of its end users. Beer & Eisenstat (1996) indicates that developing an effective strategy entails an organization understanding how it should compete, understanding its competitive advantages and more importantly knowing how it can innovate, where, and why it needs to add value based on what its customer’ s needs are.
In Nestle Australia Ltd, the Board of directors is charged with the responsibility of overseeing strategy development processes (Nestle, 2011). Developing effective strategies that align well with its mission to offer global consumers foods that are safe, of superior quality and offer optimal nutrient that sufficiently meets all the personal tastes and lifestyle preferences has been the main goal at Nestle Australia Ltd (Nestle, 2012).
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