Nestle' Case Study
Background
The dairy products at Nestlé are a big driving force for the growth of the company 's sales. With the health kick of the many individuals around the world, it pushes the innovator and renovators of Nestlé to reach new height in finding better and healthier products for their consumers. More recent, dairy division became a big potion of the company 's earnings, so it would be best for Nestlé to focus a big portion of their core competences and resources on the fast growing dairy division. Which leads us into the most recent yogurt produced by Nestlé 's, which is the LC1.
I. OPPORTUNITY AND THREAT ANALYSIS
Comparing Nestlé with the environment concerning which it would determine the opportunity and threats in the future of the company by Likert Ratings Scale
Figure 1 Pest Analysis
I. Economic Factor Rate Weight RxW Comments
1.Economic Growth 3 0.2 0.6 Expected increasing in economic growth. However, it is not direct effect with the food product especially LC1yogurt.
2.Inflation 2 0.2 0.4 Increasing trend due to increasing in economic growth. It didn 't apply asNestlé 's major problem
3.Interest Rate 2 0.1 0.2
4.Oil Price 3 0.1 0.3 Increasing in oil price would be related on the logistic cost.
5.Disposable Income 3 0.4 1.2 As economic grows, disposable income are expected to increase which is droved the expense on functional food products.
Total 1 2.7
II. Political Factor Rate Weight RxW Comments
1.Government Regulation 3 0.4 1.2 Deregulation to create free market force to open for tense competition.
2.Gevernment / Political Stability 3 0.2 0.6 Political Stability in EU market would be support FDI confidence.
3.Attitude Toward Private Ownership 5 0.4 2 The feeling of acceptable goods is directly affected the distribution channel for product.
Total 1 3.8
III. Social Factor Rate Weight RxW Comments
1.Consumer expectation 3 0.4 1.2 Increasing in Competitors, offerings map closely to
The dairy products at Nestlé are a big driving force for the growth of the company 's sales. With the health kick of the many individuals around the world, it pushes the innovator and renovators of Nestlé to reach new height in finding better and healthier products for their consumers. More recent, dairy division became a big potion of the company 's earnings, so it would be best for Nestlé to focus a big portion of their core competences and resources on the fast growing dairy division. Which leads us into the most recent yogurt produced by Nestlé 's, which is the LC1.
I. OPPORTUNITY AND THREAT ANALYSIS
Comparing Nestlé with the environment concerning which it would determine the opportunity and threats in the future of the company by Likert Ratings Scale
Figure 1 Pest Analysis
I. Economic Factor Rate Weight RxW Comments
1.Economic Growth 3 0.2 0.6 Expected increasing in economic growth. However, it is not direct effect with the food product especially LC1yogurt.
2.Inflation 2 0.2 0.4 Increasing trend due to increasing in economic growth. It didn 't apply asNestlé 's major problem
3.Interest Rate 2 0.1 0.2
4.Oil Price 3 0.1 0.3 Increasing in oil price would be related on the logistic cost.
5.Disposable Income 3 0.4 1.2 As economic grows, disposable income are expected to increase which is droved the expense on functional food products.
Total 1 2.7
II. Political Factor Rate Weight RxW Comments
1.Government Regulation 3 0.4 1.2 Deregulation to create free market force to open for tense competition.
2.Gevernment / Political Stability 3 0.2 0.6 Political Stability in EU market would be support FDI confidence.
3.Attitude Toward Private Ownership 5 0.4 2 The feeling of acceptable goods is directly affected the distribution channel for product.
Total 1 3.8
III. Social Factor Rate Weight RxW Comments
1.Consumer expectation 3 0.4 1.2 Increasing in Competitors, offerings map closely to