Nestle Case Study
CASE STUDY: NESTLE
CASE STUDY: NESTLE
PELS Analysis of Indonesia, Thailand and Vietnam | | | | | | | Nestle Corporation Expansion Strategy - Geographical Location of next manufacturing Facility | | | | Country | Political | Economical | Legal | Social | TOTAL | | Factors | 0.15 | Factors | 0.40 | Factors | 0.15 | Factors | 0.30 | 1.00 | Indonesia | P o v e r t y | 2.4 | | Armed Conflicts | Economic Reforms | Education | | | Corruption | Financial Reforms | Judicial Reforms | Human Rights | | | Score | 1 | Score | 3 | Score | 3 | Score | 2 | | Thailand | 0.20 | 0.30 | 0.20 | 0.30 | 3.0 | | BriberyGovernment Restrictions South China Sea Piracy | Economic FreedomStrong in industryGrowing GDPVery Strong Currency | Civil LawNon Party State | Large Young population | | | | | | | | | Score | 1 | Score | 3 | Score | 3 | Score | 3 | | Vietnam | Corruption | Strong Industrial Sec. | No Free Speech | 2.55 | | South China Sea Piracy | Growing GDP | Civil Law | Large Urban Pop. | | | Communism | Strong Currency | Communism | | | Score | 2 | Score | 3 | Score | 3 | Score | 2 | | | | | | | | | | | |
Executive Summary:
After studying all three countries that Nestle was planning to invest in for their new facilities we came to amazing conclusions. All three countries can be a beneficial option for Nestle in different term. However Nestle should choose the country with the most affordable labor cost and lowest barriers of entry. Moreover the freedom of economy of the market they are planning to enter is an important segment to look for. According to the table we can see that Thailand and Vietnam can be the first two possibilities for Nestle in order to start new facility. After lots of considerations in terms of four Political, Economical, Legal and Social factors we can come to the conclusion that Thailand will
CASE STUDY: NESTLE
PELS Analysis of Indonesia, Thailand and Vietnam | | | | | | | Nestle Corporation Expansion Strategy - Geographical Location of next manufacturing Facility | | | | Country | Political | Economical | Legal | Social | TOTAL | | Factors | 0.15 | Factors | 0.40 | Factors | 0.15 | Factors | 0.30 | 1.00 | Indonesia | P o v e r t y | 2.4 | | Armed Conflicts | Economic Reforms | Education | | | Corruption | Financial Reforms | Judicial Reforms | Human Rights | | | Score | 1 | Score | 3 | Score | 3 | Score | 2 | | Thailand | 0.20 | 0.30 | 0.20 | 0.30 | 3.0 | | BriberyGovernment Restrictions South China Sea Piracy | Economic FreedomStrong in industryGrowing GDPVery Strong Currency | Civil LawNon Party State | Large Young population | | | | | | | | | Score | 1 | Score | 3 | Score | 3 | Score | 3 | | Vietnam | Corruption | Strong Industrial Sec. | No Free Speech | 2.55 | | South China Sea Piracy | Growing GDP | Civil Law | Large Urban Pop. | | | Communism | Strong Currency | Communism | | | Score | 2 | Score | 3 | Score | 3 | Score | 2 | | | | | | | | | | | |
Executive Summary:
After studying all three countries that Nestle was planning to invest in for their new facilities we came to amazing conclusions. All three countries can be a beneficial option for Nestle in different term. However Nestle should choose the country with the most affordable labor cost and lowest barriers of entry. Moreover the freedom of economy of the market they are planning to enter is an important segment to look for. According to the table we can see that Thailand and Vietnam can be the first two possibilities for Nestle in order to start new facility. After lots of considerations in terms of four Political, Economical, Legal and Social factors we can come to the conclusion that Thailand will