This coursework basically is an analysis of the NESTLE MAGGI NOODLES and the various strategic issues associated with it. The analysis is done in five parts which help us in implementing our company’s future strategy. The first part basically briefs us about the external environment of the noodles industry by analysing various models like the porters five forces, pest analysis, product life cycle, Environment basics, competitive analysis key success factors, segmentation target and positioning and the major opportunities and threats facing the company from other companies. The second part talks about the company internal performance which helps us in gaining a competitive advantage in the Noodles Industry. It basically talks about the Nestlé’s activities associated with its human resource marketing and sales department, service sector, its R& D team, infrastructure set up, procurement policy and also the inbound and out bound logistics. It also analyses the company’s ratio in order to know its growth rate. The third part basically gives recommendation regarding the future strategy which the company should be adopting at SBU and corporate level by analysing the generic strategic option, expansion method matrix and the growth share matrix. The fourth part is basically our suggestions to the various changes needed regarding the implementation of different policies, structures in the company in order to overcome our main strategic issue. The last part basically talks about the advantages and disadvantages of the various models used in the entire coursework.
Maggi 2 minutes a noodle is a very famous brand of Nestle India was introduced in 1982 and is most popular instant amongst the noodle lovers as it has the highest consumption rate as compared to other noodles brands in the country and also its easy affordability has added to it success in the Indian market. At present it is offered in 6 different flavours which are, Masala, Tricky tomato, romantic capsica, and thrill in curry, chicken and Atta noodles. Besides Maggi noodles other products are also available under the MAGGI brand which have helped in increasing its popularity as well known FMCG food product.
EXTERNAL ENVIORNMENT ANALYSIS
SUCCESS KEY FACTORS
PORTERS FIVE FORCES
INDUSTRY LIFE CYCLE
1. POLITICAL ANALYSIS: Government has laid down strict restrictions regarding advertisement of junk food for children under the age of 16 as per the foodstuff act in 2007. 2. ECONOMICAL ANALYSIS: Rise in the prices of raw material like salt Maida, manufacturing costs as well as the packaging costs is a major economic crisis facing the food industry due to more demand and less supply of the agricultural commodities. 3. SOCIAL ANALYSIS: People are becoming health conscious and with the changing lifestyle there is an increase in the demand for quick and easy to cook food products.
4. TECHNOLOGICAL ANALYSIS: NESTLE makes use of leveraging superior technology in order to provide customers with high quality products. Nestle gets technology under the general licence agreement from the nestle group for satisfying innovation and reformation. Nestle makes use of gene technology in manufacturing food products like noodles.
KEY SUCCESS FACTORS:
1. Maggi was the first to be introduced in the instant noodle segment in 1982 therefore it has the first mover advantage as compared to the other brands of noodles. 2. It showed continuous changes with regard to its themes and the flavours since 1982 and has also repositioned itself as a healthy snack from 2 minute noodle. 3. Maggi is a much localized brand as it never adopted English tag line unlike its competitors so Indian people...