Strategic Choices by Nestle (Chocolate & Confectionery division)
Strategic Management
Assignment two
On
Strategic Choices made by Nestle (Chocolate & Confectionery Division)
Introduction
The strategic Choices made by Nestlé’s Chocolate & Confectionaries division are discussed on the basis of the cost leadership strategy, differentiation strategies and Focus strategies used in the Generic strategies and in the corporate level strategic directions used by the Nestle Head office in Switzerland in the strategic tie ups with speciality chocolate makers initiated by the company to gain market majority market share in the Chocolate and Confectionery Industry and to provide innovative and various exotic varieties of Chocolates to the consumers. It is also assumed what kind of corporate parent is Nestle.
Business Level Strategies - Generic Strategies
Cost - leadership
The most important segment of strategy is competitive advantage which is developed through a pattern of resource development and scope decisions (Amit, 1986). Nestlé’s chocolate and confectionery unit has been recognized as the lowest cost producer in the chocolate and confectionery industry without compromising quality and customer focus (Cotton, 2010). To achieve optimum cost leadership in the confectionery industry, it is important for Nestle to keep in mind factors such as cultural environment, behaviour and communication issues in the planning stage (Schiff & Schiff, 2009). Nestle invested in the Chocolate and Confectionery industry in 1992 and 2007, they became the world leader in the Chocolate and sugar confectionery industry (Walter, 2008). Nestle also battled against frequent input price rises and challenging ingredient markets like Germany, Italy, and France, maintaining optimum costs in raw material and packaging materials have been achievable despite market being volatile (Market watch, 2005). To cut down costs, its factory in Switzerland has been equipped with automatic chocolate box filler (Food, Engineering & Ingredients, 2000). Nestlé’s
Assignment two
On
Strategic Choices made by Nestle (Chocolate & Confectionery Division)
Introduction
The strategic Choices made by Nestlé’s Chocolate & Confectionaries division are discussed on the basis of the cost leadership strategy, differentiation strategies and Focus strategies used in the Generic strategies and in the corporate level strategic directions used by the Nestle Head office in Switzerland in the strategic tie ups with speciality chocolate makers initiated by the company to gain market majority market share in the Chocolate and Confectionery Industry and to provide innovative and various exotic varieties of Chocolates to the consumers. It is also assumed what kind of corporate parent is Nestle.
Business Level Strategies - Generic Strategies
Cost - leadership
The most important segment of strategy is competitive advantage which is developed through a pattern of resource development and scope decisions (Amit, 1986). Nestlé’s chocolate and confectionery unit has been recognized as the lowest cost producer in the chocolate and confectionery industry without compromising quality and customer focus (Cotton, 2010). To achieve optimum cost leadership in the confectionery industry, it is important for Nestle to keep in mind factors such as cultural environment, behaviour and communication issues in the planning stage (Schiff & Schiff, 2009). Nestle invested in the Chocolate and Confectionery industry in 1992 and 2007, they became the world leader in the Chocolate and sugar confectionery industry (Walter, 2008). Nestle also battled against frequent input price rises and challenging ingredient markets like Germany, Italy, and France, maintaining optimum costs in raw material and packaging materials have been achievable despite market being volatile (Market watch, 2005). To cut down costs, its factory in Switzerland has been equipped with automatic chocolate box filler (Food, Engineering & Ingredients, 2000). Nestlé’s