The purpose of this assignment is to prepare a situation analysis of an identified problem of any one organisation. Outline the problem that this project addresses (150 – 200 words). · what is the...

Running Head: Strategic Analysis
Situational Analysis
Situational Analysis
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Contents
Outline the problem that this project addresses    3
What is the key problem that you aim to address?    3
What are the key sub-questions that will help you to address this key problem?    3
Background to the need or opportunity    4
Outline the relevant contextual information about the organization and its environmental context that helps to clarify the source of/reason for this problem    4
SWOT analysis    6
Strengths in the SWOT analysis of Nestle    6
Weaknesses in the SWOT analysis of Nestle    7
Opportunities in the SWOT analysis of Nestle    8
Research    9
Outline a formative research strategy that will inform the design of your strategic plan    9
Outline any ethical considerations that must be considered with regard to this problem    11
Conclusion    12
References    13
Outline the problem that this project addresses
What is the key problem that you aim to address?
· To what extent Nestle faced competition from its competitors?
· What primary challenges Nestle is facing today in its current business environment?
· How organized and unorganized sectors give competition to Nestle?
· How much-increasing prices of a raw material, as well as fuels, moreover increasing packaging or manufacturing costs?
What are the key sub-questions that will help you to address this key problem?
Nestle corporation is design good product features, brand name, new distributing ways and pricing the product. By reading this report, readers can clearly understand the marketing concepts and how to apply them to new products. Dealing with brands in the food processing industry involves converting finished foods from raw materials and keeping them shelf life and maintaining health and hygiene standards. Industry companies like Nestle face fierce competition (Abdullah Saif, 2015). The company has chosen a diversified competitive strategy by promoting and adding new products similar to existing products. One of the main challenges facing the company is the rise in the price of raw materials, the health factors that influence food choices, allergens, and increased interest in quality raw materials. Nestlé stands out from the fierce competition of three brands - Hershey, Cadbury, and Unilever.
Background to the need or opportunity
Outline the relevant contextual information about the organization and its environmental context that helps to clarify the source of/reason for this problem
S.A. Nestlé is a world's largest health, nutrition, and wellness industry headquartered in Switzerland. It is a world's largest food as well as Beverage industry, with revenues of 88.785 billion Swiss francs or 89.772 billion dollars in 2015 alone. A Nestlé sells 2,000 different products in seven food & beverage categories (Bromiley, Rau & McShane, 2014). Company's main brands or products are: liquid beverages and powdered; ice cream; dairy products, candy moreover pet care product. It has many major customer brands, for example, Nescafé, Nestle, Nestea, Purina, Vittel and KitKat including several other well-known brands. With excellent management experience, Nestlé can improve financial reporting like everyone else. The company's EIS or executive information system collects information from its subsidiaries and provides all financial, operational and strategic information to top management (Flanigan, 2016).
As a result, it helps companies make predictions, sensitive analyses, simulations, and optimizations, and then integrate financial practices to achieve better revenue generation. A recent criticism is about the industry’s uncontrolled water use in California, which is hurting the state. A California has experienced water shortage in the past several years as well as has imposed many limitations on the businesses moreover resident to decrease water utilize. On another hand, Nestlé drains from aquifers in the reserved areas, is not subject to state law, and do not have to restrict the amount of water used (Hitt, 2011). [6] Nestlé could not solve the requirements and problems of the California community, however, raise more questions moreover caused many criticisms. Negative publicity has led to a decline in product reputation, a decline in customer’s confidence as well as a decline in sales. The businesses competitors are rarely criticized by Nestlé. Nestlé is the biggest food business that sells 10,000 different foods every day.
In 2014, a Nestlé destroyed and recalled 37,000 tons of contaminating Maggi noodles in India. This has caused sales losses and brand reputation damage for hundreds of millions of people. Recently, the business had to recall a variety of prepared dishes in the United States, which might contain pieces of a glass (Johnsen, 2015). The industry recalls several products or brands most every month. This negative publicity has seriously affected Nestlé’s company.
Sometimes people have to analyze how the company's current business strategy works to assess these needs and start researching and analyzing its strategy. Initially, in such research, information about the company's competition methods was first collected. An example of a competitive approach might be whether a company is striving to achieve low-cost leadership technology, is struggling to differentiate itself from competitors or competitors, or focus on specific niches or specific consumer...