The report aims to evaluate the strategic management of Nestlé Company by understanding their strategic intent for the business organisation. This has been done by analysing the internal and external environment of the business that can offer significant opportunity or hinder the performance by presenting threats. The analysis of strategic management is evident as it helps the country to gain competitive advantage and earn substantial returns that are above average. The report enlightens how the company utilises its resources, core competencies and capabilities to overcome the threats and pursue the opportunities. The strategic management tool that has been utilised to conduct the overall study include PEST analysis, value chain analysis, Porter’s five forces model and SWOT analysis.
The report will further assist the company in planning their future strategies in respect to the recommendations provided. Moreover, Nestlé is expected to fit within the strategic orientation with the aim to perform better in its industry. The company has typically implemented the strategies of product differentiation and cost leadership which is analysed to evaluate its effectiveness in improving the performance efficiency. The report starts with the overview of Nestlé Company, followed by the detailed analysis of its organisational structure, strategies, internal and external environment that has significant impact on their business performance. The later part of the report discusses about the strategic trajectory of Nestlé to shift its focus from the current industry and entrance to the new market. This significant approach has been evaluated by analysing the various acquisitions and merging strategies undertaken by Nestlé.