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Business Analysis On Nestle Malaysia

4032 words - 17 pages

BUSINESS ANALYSIS
ON
“NESTLE MALAYSIA BERHAD”

Introduction

[Nestle Logo (Famouslogos.us, 2012)]
Nestle is a Swiss-based brand founded in 1866 by Henri Nestlé, a German pharmacist. Henri was a very enthusiastic person to globalise his company and advocates pragmatism, flexibility, learning initiatives, respect towards foreign cultures and many other key attitudes and values to stake a corporate culture that lasts until today. (Nestle, 2012)
In 1912, Nestle was ...view middle of the document...

Lately in 2012, Consumer Price Index (CPI) in Malaysia has increased 1.7% from year 2012, which was under forecast by the Ministry of Finance (MoF). It was forecasted that the unemployment rate will remain at 3.0% for 2013 and the following year. The inflation rate is also expected to increase to 2.5% in 2014. (MIER, 2013)
Although the inflation rate in Malaysia is increasing in a moderate pace, the purchasing power in the country is still increasing. Besides, the low unemployment rate in Malaysia illustrates that in average, all citizens have great buying power for consumer goods either manufactured locally, or imported goods.

1.0.3 Social, cultural & demographic forces

(Trading Economics, 2012)
According to Malaysian International Tourism Exchange (MITE), Malaysia has a population of 28.86 million, with the distribution of more than 50% Malays, 25% Chineses, and 10% Indians. The remaining population comprises of indigenous groups, aboriginals and non-citizens in Malaysia. (Ping Technologies Sdn. Bhd., 2013)

[Ethnic Composition (Department of Statistic, 2011)]
In the globalised 21st century, the urban consumers are usually chasing time across earnings. An instant and simple but healthy and nutritious product is what they need for daily-life. Besides, the marital status of each individual also carry weight when comes to a decision of buying food and beverages (F&B). Married consumers may buy cereals and drinks for their family, while the single individuals may try on a nutritious diet for health and some other reasons.

[Urbanisation (Department of Statistic, 201t1)]

[Matital Status (Department of Statistic, 201t1)]

1.0.4 Technological forces
Internet had become a very useful and powerful platform for advertising and promoting brands. Nestle has it’s very global site and Malaysia site for information about the firm and its products. Meanwhile, Nestle also advertises its products through television channels and through social community websites. It is an instant way to introduce the brand to the worldwide market. (adbrands.net, 2013)

1.0.5 Environmental & natural forces
“Earth mother is sick”, a very reknown slogan encouraging everyone to reduce wastage. Nestle had revised the material they used for production to improve food security, raise environmental standards and also save costs for natural resources. Nestle also collaborate with companies such as Tetra Pak Sdn. Bhd. to promote a recycling habit among consumers. (The Tech Insider, 2012)

1.0.6 Competitive Force
Nestle continuously renovate their product innovatively to meet consumers’ needs and demands to fight after competitors. It has been an advantage to compare with firms without halal licensed in the Malaysian market. (The Edge Communications Sdn. Bhd., 2009)
Drumstick, MatKool and Cremeria are supplement brands to Nestle which having high competition with Unilever’s Wall’s and Magnum in Malaysia. Both firms compete aggressively to pursue...

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