This website uses cookies to ensure you have the best experience. Learn more

Assignment 2 Diversification Strategies

3296 words - 14 pages

1.1 Brief Overview of Nestle
Over the previous 130 years Nestle Company has been able to acquire great amount of knowledge of almost all the varied markets of the world since 1866. This is the reason why Nestle has been able to gain a leading position in the global food operations as it has factories operation in 77 countries and it is selling its gamut of products in all the six continents. The best part so Nestle is that it occupies the leading market shares  along with a  broad and diversified  business portfolio in varied and many product categories which include  nutrition and baby food, coffee, dairy products, ice creams, mineral water, confectionary, chocolate and pet ...view middle of the document...

1.2Report Objectives, Scope and Limitations
The main objective of this case study is to find the ways for organic growth for Nestle in the mature markets all across the globe. Brabeck’s view of achieving growth through innovation needed significant amount of investments in the varied marketing capabilities and Research and Developments at the same time. It has been noticed that the  R&D department of Nestle acts as the key factor in the successful growth and provided a strong platform for achieving organic growth in future  (Hitt, Ireland, & Hoskisson, 2009).
The scope of Nestle can be defined through the ‘Mission’ and ‘Vision’ statement of Nestle which is:
‘Vision Statement’
“Nestlé’s vision is to bring the best and most relevant products to the people, wherever they are, whatever their needs are, throughout their lives.” (At a glance: introduction, 2010a)
The above vision of Nestle is being supported by the three-tiered mission which is entitled “Creating Shared Value”. Therefore along with compliance Nestle understands that sustainability of the planet’s resources is of vital importance (The Nestlé corporate business principles, 2010b).
The mission statement helps in analysing what Nestle stands for therefore the mission statement of Nestle states:
“Nestle is dedicated to provide the best foods to people through their day, throughout their lives, throughout the world. With our unique experience of anticipating consumer’s needs and creating solutions, Nestle contributes to your wellbeing and enhances your quality of life.”
The only limitation is that since it is a multinational company there might be some cultural as well as regional challenges which the company will have to face to implement the growth strategy framed. Moreover the expectations of the customers will also vary according to the country in which they are operating and their tastes will also vary as per the country.
1.3Define the key terms
Strategy:  An integrated and coordinated set of actions as well as commitments which has been designed for gaining a competitive advantage through exploitation of core competencies (Hitt, Ireland, & Hoskisson, 2011).
 Strategic Competitiveness: It is achieved when any organization successfully formulates and implements a strategy which is highly value-creating (Hitt, Ireland, & Hoskisson, 2011).
Competitive Advantage: It is the strategy of any firm which when implemented cannot be duplicated by competitors or they find it very costly to imitate (Hitt, Ireland, & Hoskisson, 2009).
Strategic Management processes:  They are a complete set of commitments, actions and decisions which are needed by any competition in order to attain strategic competitiveness and earn above-average returns (Hitt, Ireland, & Hoskisson, 2011).
Globalization: It is the increased amount of economic interdependence which exists between countries and their companies which is reflected through flow of goods and services, financial...

Other Papers Like Assignment 2 - Diversification Strategies

Diversification and Performance Essay

4053 words - 17 pages Diversification. J Int Money Finance, 20, 349–366. doi:10.1016/S0261-5606(01)00004-3. de Wit, I. 2010, "International Diversification Strategies for Direct Real Estate", Journal of Real Estate Finance and Economics, vol. 41, no. 4, pp. 433-457. Webb, R.B. and W. Mclntosh. Real Estate Investment Acquisition Rules For REITs: A Survey. Journal of Real Estate Research, 1986, 1:1, 77-98. Worzala, E. and V. Bajtelsmit. Real Estate Asset

Business Model Essay

4689 words - 19 pages | | | |Discussions | | | |Evaluation | | | |Assignment 2: Executing Strategies in a Global Environment: Examining the Case of

Diversification Strategies

2217 words - 9 pages Diversification Strategies Diversification strategies are used to expand firms' operations by adding markets, products, services, or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations. When the new venture is strategically related to the existing lines of business, it is called concentric diversification. Conglomerate

Business 499

1584 words - 7 pages Running head: DIVERSIFICATION STRATEGIES Week 4 Assignment 2 Dr Hassan Yemer Contemporary Business/BUS 508 Strayer University January 24, 2011 1) Compare and contrast the two businesses—core business, their size, financials, global presence, use of e-business (marketing, sales, etc.). A diversified company is one that has multiple, unrelated businesses. Unrelated businesses are those, which (1) require unique

Business Diversifications of Boeing and Ford Motors

1459 words - 6 pages diversification strategies as the following; Concentric diversification, where the new business produces products that are technically similar to the company's current product but that appeal to a new consumer group; Horizontal diversification, where the new business produces products that are totally unrelated to the company's current product but that appeal to the same consumer group; Conglomerate diversification, where the new business produces products

Startegic Management

917 words - 4 pages hostile takeover. STAGE 2: Strategy Implementation: “Strategy implementation requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed”. Strategy implementation includes developing a strategy-supportive culture, creating an effective organizational structure, redirecting market efforts, preparing budgets, developing and utilizing information system

Agricultural Risk

988 words - 4 pages weather so strongly impacts their livelihoods, farm households and their communities are motivated to develop and improve strategies to cope with and manage weather risks. Risk management strategies available to households can be grouped into three categories. 1. Households and communities employ risk management strategies that include crop and labor (on and off farm) diversification, risk-pooling arrangements among peers or family members

De, Liberate and Emerging Strategies

625 words - 3 pages ). TYPES OF STRATEGY 1. Branding 2. Diversification and specialization 3. Acquisitions and mergers

Introduction to Marketing

638 words - 3 pages * Product 5: rear seat inflatable seat belts * Product 6: a new skin care product that takes years off your appearance * Product 7: a great new soft drink * Product 8: a new healthy snack food for adults or kids 2. Checklist for the Module 1 Homework Assignment. Your paper must include the following sections: a. Identify if this is a new product for a brand new company or if it is a new product for an existing company. Discuss the

Strategy Implementation At Art Corporation

3954 words - 16 pages ASSIGNMENT CORPORATE STRATEGY - MBL93DU DETAILS Kudzai Lister Pasipanodya 2 Newcastle Road Workington Harare Zimbabwe +263773205843 ASSIGNMENT DETAILS Submitted By | Kudzai Lister Pasipanodya | Student Number | 78043824 | Date Submitted : | 29/05/2015 | Module Code | MBL93D-U | Assignment Number | Assignment 1 | Lecturer Name | Dr F du Toit | PERCENTAGE OBTAINED: __________________________ LECTURER

Project Manager

2336 words - 10 pages MANAGEMENT OF MUTUAL FUND.................................................................................................................7 6) MUTUAL FUNDS IN EGYPT, PERFORMANCE .......................................................................................................7 DrAhmedBahaa-ESLSCA-FM-45A-Yasser Hassan El Sayed - Mutual Funds Assignment Page |2 1) What is a mutual fund? 1.1. What it is? A mutual fund is a type of

Related Essays

Eed 435 Uop Course Homework Aid Entire Course A+

867 words - 4 pages EED 435 UOP Course Homework Aid Entire Course A+ EED 435 Entire Course A+ EED 435 Week 1 Arts Standards Scavenger Hunt. EED 435 Week 1 Individual Assignment Co-Planning Arts Integration Scenario. EED 435 Week 2 Assignment Visual Arts Integration Strategies Template. EED 435 Week 2 Individual Assignment Co-Planning Arts Integration Scenario Paper. EED 435 Week 2 Visual Art Lesson Plan Template. EED 435 Week 3 Assignment Drama

Testing The Waters Essay

586 words - 3 pages Corporation Five ways to grow the market and create value Controversy: The Essence of Strategy Class 2. September 18 Topics: Framework for growth strategies Cultivating new capabilities; organizational challenges Assignment: Delta Air Lines (A) and (B) Misunderstanding the Nature of Company Performance: The Halo Effect and Other Business Delusions Class 3. September 25 Topics: Synergy; core competence; related

P&G Strategy Essay

1318 words - 6 pages & Gamble in Singapore over the last ten years. The main position in this essay is that diversification can be considered as one of the main strategies used to assist Procter & Gamble build up business competitive advantage. This essay will use theoretical evidence from literature review to analysis the impact of diversification on Procter & Gamble in different time period. The analyses of Procter & Gamble will be carried out in 3

Busines S Essay

427 words - 2 pages ). How do these link to the overall aims? * For both businesses describe the marketing techniques they have used and could have used to market their products (P1). You will need to cover the MAJORITY of the 4 bullets points below. * growth strategies (diversification, product development, market penetration or market development, Ansoff’s Matrix) * survival strategies * branding (importance in influencing buyer behaviour