Strategic Audit For Nestle

strategicalalal Audit For cling toThis paper focuses on the Nestls strategic audit. It views the un similar business strategies adopted by Nestle in its business. It starts with defining the original position of the company Nestle and carries on with its strategic audit. The paper views varied financial facts and figures of the company Nestle in club to strengthen its strategic audit. The paper in order to analyze its internal and external surround carries emerge variant analysis interchangeable SFAS (Strategic calculate Analysis outline), IFAS (Internal Factor Analysis strategy) and EFAS (External Factor Analysis Strategy).A PESTEL analysis of the milieu in which it breathes is carried out to help find out the strategic alternatives that can be apply by the Nestle. pass on the paper has come out with the implementation and swan mese ars to help out the company.Strategic Audit for NestleNestle a Switzerland based nerve is leading the world market in feed for thou ght, wellness and nutrition constancy. It all started in 1867 when Henri Nestle made a milk harvest for an infant to save his life. From there it had unveiled a broad potential in the forages and beverages industry. Today it manufactures and sales a phase of products low its roof with the assistance of different subsidiaries located in the different countries of the world. trustworthy Position of NestleOver the years the company has expanded its trading operations along with the adjoin in its variety of products. Today it offers products from various segments like dairy, food for babies, chocolates and ice creams, confectionery, water and foods, beverages and many to a greater extent. It has been instrumental with its strategies of product construct and modification.One of the important current landmarks of Nestle was in the year 2007 when it has acquired iii major companies one by one started from Novartis (a wellness c atomic number 18 company), Gerber (Baby food ) and Swiss Water Company, Henniez. These acquisitions gave a new definition to Nestls health c ar, baby food c atomic number 18 division. Nestle is guided by the principles and determine and hence always try to build its image and products around those to overhear a long and uninterrupted association with its stakeholders. It enjoys long term gains that are being created with its commitments and values.Nestle has been on the forefront in knowing when customers are in take on of which product and accordingly shifts its focus on them. soon it has been focusing on its core business activity of nutrition segment. get ahead it has made and customized its products to suit to the inevitably of different geographical locations and culture. It enjoys a good for you(p) competition in its business with different companies in different areas like in USA it has to deal with Dannon and other competitors. (About Nestle, 2009)Financial PositionNestle has a sales of 52.3 billions CHF (Swiss Curre ncy) for the first two quarters of 2009 with a simoleons of 5.2 billion CHF approx. Its operating cash flow is around 6.4billon CHF which is up by 3 billions CHF from the first 2 quarters of 2008.Its net profit gross profit margin is 9.7% of sales. (Investors relations, 2009)Internal EnvironmentInternal Environment of the company can be analyzed with SWOT analysis. The two components of SWOT analysis i.e. strengths and flunk are internal to the organization and thus can be canvas to know its internal environment.StrengthsNestle has discovered many strengths in its passel that makes it internally very strong. Some of its major strengths areIt is the leader among the food, health and nutrition industry in the world market.It is operating in different companies through different subsidiaries.It has an extended product line that offers a variety of products.It is a low comprise operator.It has an small research and development team.WeaknessesIt sometimes unable to make people un derstand that its products are food not drugs.Some of its products are not known by the market.Its marketing overture is not quit well.(SWOT Analysis of Nestle,2009)External EnvironmentExternal environment of any business is characterized by the opportunities and threats that are around it. Thus it ineluctably to take care of its external environment in order to procure the potential opportunities and to fight out with its threats.OpportunitiesIts health care segment has colossal potentials to grow as people are now a geezerhood getting health genuine.It can still move into the markets that possess broad potentials.ThreatsIt is entering into the markets that are already matured.It has to impudence intense competition in many regions with the national companies. .(SWOT Analysis of Nestle,2009)Environmental FactorsPolitical FactorsDifferent countries food habits are different and their political environment is different thus companies has to face it.The government is becoming more attentive with the overall food, beverages and health industry and thus the company has to look in it.Technological FactorsThere is need to bring the latest engineering to arrest the food and beverages hygiene. It will increase the cost of the company.In this era technological cost to manufacture the food, its packaging and storage will require the latest technology that will cost more.Socio-cultural FactorsPeople now days are getting health conscious thus there will be a need of health care products.Lifestyle of the people are changing thus they are in need of packaged food.Legal FactorsThe natural rubber measures in food and beverages industry are tightening so as to keep the safety and quality in its products.International standards for food and drugs industries are making the standards and norms tougher temporary hookup keeping in mind the health and hygiene factors.Strategic Alternatives and Recommended outline for NestleToday organizations have to strive more in or der to gain something and to make a fight in this competitive environment. interest are some strategic alternatives for NestleRenovation and Innovation StrategyAdvantagesThis strategy will help the organization in continuously upgrading its breathing products to the new ones.This strategy will help it to fight todays competition.DisadvantagesThis strategy demands a lot of efforts and cost in continuously upgrading the products and technology.It can shorten its product life cycle.Growth StrategyAdvantagesThis strategy will help the organization in approaching the new markets and help it to gain market share.DisadvantagesThis strategy can result in company loosing focus from the markets in which it is operating.Recommended Strategy for NestleFrom the alternatives the strategy that Nestle should focus is the renovation innovation strategy. As through this it can bring in new light and more improved quality in its products. To support this strategy Nestle has an excellent research and development team. In todays market that is driven by technology the company will gain a substantial advantage through this strategy.ImplementationTo implement the renovation innovation strategy, the company needs a strong support from all its departments especially from the research and development department. upgrade the company has to focus that they should implement it on a regular basis. They should keep in mind that they should not overdo it. Thus if the commitment and needs of its different customers followed and applied through this innovation strategy it will sure bring returns to the company.Evaluation and ControlOnly implementation of the strategy is not enough, if organization wants to keep itself growing it has to continuously monitor and control the strategy. The drawbacks that are found in the strategy should be eliminated to improve the overall process. Further to bring more life in the strategy it needs a control mechanism to follow. Evaluation and Control is the e ssence of successful strategic implementation Thus Company will enhance and grow more with the effective evaluation and control of the strategy.