Nestle UK

Task One: Strategic Planning Process

Company Name: Nestle UK

Description

Nestle UK is the subsidiary of Nestle SA, and among the largest food and beverages organizations in the world. At present, they are the major players in UK and Ireland markets and currently employing 7,000 employees in 16 of their facilities in both countries. Their major brands in the UK includes KitKat, Nescafe, Go Cat, Shreddies and Smarties, Buxton, and are producing 300 million pound worth of export for 50 countries across the globe (Gray, 2012).

Vision

To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen preferred employer preferred supplier selling preferred products.

Mission

Positively influence the social environment in which we operate as responsible corporate citizens, with due regard for those environmental standards and societal aspirations which improve quality of life.”

Goals

To o be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products.

Core Competency

Largest food producer in the world, presence around the globe, die hard customer loyalty.

Three major strategic planning issues

The cost of doing business in UK is relatively high as compare to other western countries. The comparatively high energy cost, strict labor regulations, and a high tax rate results in high manufacturing cost, and makes the UK a less attractive place to invest in.

The emerging health concerns (Obesity, Junk food) in the UK, are limiting the opportunities for Nestle UK, since majority of its products are sugar based.

Competition from developing countries such as India and China, and economic down turn at the local level is restraining their ability to compete in current local market scenario. The low manufacturing costs in these countries are prompting them to open their manufacturing facilities far away from their home, which increase their transportation cost and makes them the importer of their own manufactured goods (Gray, 2012).

Planning Technique (BCG)

Product name

SBTU

Market growth rate

Relative market share

Mineral Water

Star

86

89

Milk

Cash Cow

56

66

Noodles

Question Mark

76

44

Chocolates/Juices

Dogs

41

39

Task Two: Formulation of a new Strategy

2.1- SWOT

Strengths

Strong Brand name

Largest food supplier in the UK

Food and drink industry is growing at the rapid speed.

Multiple products offering for every age and social group.

Positive feedback from customers

Exports estimated around 300 million in 50 countries.

Weaknesses

High taxes, energy and manufacturing cost

Competition from developing markets

Downturn in national economy

Public Relations ( the inability of Nestle to respond quickly to Horsemeat crises).

Blamed for unethical marketing in developing countries for its baby food products.

Opportunities

Company is investing 300 million in next three year on existing facilities.

Opportunity to advertise in a better way.

Scarcity of food and water in the world

Rising health concerns.

Consistent increase in market share fort eh past 5 years (Gray, 2012).

Threats

Losing market share due to competition from abroad

Growing health concerns

Unpredictable market conditions

Climate change which has a negative impact on food production around the globe.

Rising health and fraud issues (Horsemeat scandal)

2.2- PESTEL Analysis

PESTEL

Example of PESTEL Factors for my chosen organization

Political

The government and Food and Drink Federation (FDF) are planning ...