COURSE: STRATEGIC MANAGEMENT

ASSIGNMENT # 01

SUBMITTED TO:
DR. MUNIR HUSSAIN

SUBMITTED BY:
BADAR (SP13-BB-0002)
SHAHZER SHABBIR (SP13-BB-0051)
DATE: 3/ NOV/2016

ABOUT NESTLE PAKISTAN LTD

Nestl Pakistan Ltd is a subsidiary of Nestl S.A, - a company of Swiss origin
headquartered in Vevey, Switzerland. It is a food processing company, registered
on the Karachi and Lahore stock exchanges and operating in Pakistan since 1988
under a joint venture with Milk Pak ltd and took over management in 1992. For ten
years in a row, the company has won a place among the top 25 companies of the
Karachi Stock Exchange. Headquartered in Lahore, the Company operates four
production facilities. Two of its factories in Sheikhupura and Kabirwala are multi
product factories. One factory in Islamabad and one in Karachi produce bottled
water. The factory in Kabirwala is the largest milk intake plant in the Nestl world.
Through its effective marketing and a vast sales and distribution network
throughout the country, it ensures that its products are made available to
consumers whenever, wherever and however. Nestl Pakistan operates in many
ways but people, products and brands are the main flag bearers of the Companys
image. Nestl Pakistan now operates the biggest milk collection system in Pakistan,
Currently; Nestl Pakistan collects milk from an estimated 190,000 farmers spread
over 146,000 sq Kms in the province of Punjab and Sindh. Nestl believes in
creating shared value and is committed to the communities it works and lives with.
In Pakistan, the company is working closely with the communities in areas related
to Nutrition, Water and Rural Development and continues to enhance the quality of
life of people throughout its value chain.Till date (in 22 years) Nestl Pakistan
has invested over 50 Billion PKR and had an annual turnover of Rs 51
Billion PKR in 2010.

Product Line Of Nestle Pakistan

Ambient Dairy.(NESTLE BUNYAD, MILO, MILK PAK CREAM, EVERY

DAY,NIDO,NESVITA,ACTICOL)

Chilled Dairy.(NESTLE YOUGRT, RIWAYATI MAZZA YOUGRT, ACTI PLUS

YOUGRT, MILK PAK YOUGRT, ZEERA RITA. PODINA RAITA)

Juices.

Bottled Water.(NESTLE PURE LIFE)

Baby Food.(NESTLE CERELAC)

Breakfast
Cereals.(NESTLE
CEREAL,NESTLE CORN FLAKES)

KOKO

KRUNCH,

Coffee.(NESCAFE, NESCAFE GOLD, NESCAFE 3 IN 1)

Confectionery.(NESTLE KITKAT)

Culinary & Food.(NESTLE MAGGI NOODLES)

NESTLE

MILO

Strategy ofNESTLEPAKISTAN
The companys strategy is guided by Nestls Corporate Business Principles
which are in line with internationally accepted best practices and ethical
performance culture. Nestls existing products grow through innovation and
renovation while maintaining a balance in geographic activities and product
lines. Long-term potential is never sacrificed for short-term performance.
The Companys priority is to bring the best and most relevant products to
people, wherever they are, whatever their needs are, and for all age groups .

Competitors Of NESTLE PAKISTAN

Engro Foods

Haleeb Foods

Shezan

Unilever

Proctor and Gamble

SWOT ANALYSIS OF NESTLE PAKISTAN

STRENGTHS

OPPORTUNITIES

Brand image

Demand for healthier food product

Strong financial group

Product innovation

Major share holder in food

industry of Pakistan

Economical growth

Technological advancement

Strong suppliers

Increase in product line

Water pollution

Change in lifestyle

Increase in disposable income

Product line

Skilled labor

Strong research and development

capabilities

WEAKNESSES

THREATS

Low advertising

Competitors

Lack of feedback

Law and order situation

Lack of focus on products

Government policies

Lack of distribution

Competitive price

Technological advancement

Alliances

Inflation

EFE MATRIX (External Factor Evaluation) Of NESTLE

PAKISTAN
FACTORS

WEIGHT

RANK/RATE

WEIGHTED
SCORE

0.06

0.24

0.08

0.32

0.04

0.16

0.1

0.4

0.06

0.18

0.08
0.1

4
4

0.32
0.4

0.04

0.08

0.04

0.12

0.1
0.08

4
3

0.4
0.24

0.04

0.08

0.03

0.06

0.06
0.05

4
4

0.24
0.2

0.04
1

0.16
3.6

OPPORTUNITI
ES
Demand for
healthier food
Product
innovation
Economical
Growth
Technological
advancement
Increase in
product line
Water pollution
Change in
lifestyle
Increase in
disposable
income
Consumption
pattern

THREATS
Competitors
Law and order
situation
Government
policies
Technological
advancement
Alliances
Competitive
price
Inflation

TOTAL

Nestle external strategy is good they have grab most of the opportunity and
overcome most of the threats. If this strategy is implemented then Nestle may have
competitive advantage.

IFE MATRIX (Internal Factor Evaluation) Of NESTLE

PAKISTAN
FACTORS

WEIGHT

RANK/RATE

WEIGHTED
SCORE

0.1
0.1

4
4

0.4
0.4

0.06

0.18

0.08
0.02
0.08
0.02

3
3
2
3

0.24
0.06
0.16
0.06

0.02

0.08

Quality product
WEAKNESSES

0.02

0.04

Lack of advertising
Lack of feedback
Lack of distribution

0.3
0.1
0.1

2
1
1

0.6
0.1
0.1

TOTAL

STRENGTHS
Brand image
Strong financial
group
Major share holder
in food industry of
Pakistan
Strong suppliers
Product line
Skilled labor
Strong research
and development
capabilities
Multinational
Company

2.41

Nestle internal strategy is average but have to improve their internal strategy.

CPM
NESTLE PAKISTAN

ENGRO FOODS

FACTORS

WEIGHT

RATE

WEIGHTE
D SCORE

WEIGHT

Brand name
Strong
financial
group
Quality and
healthy food
Strong
supply
Product line
R&D
Skilled labor
Multinationa
l company
Advertiseme
nt
Focus on
products
Customer
feedback

0.1
0.1

4
4

0.4
0.4

4
3

WEIGHTE
D SCORE
0.4
0.3

0.1

0.4

0.3

0.04

0.12

0.16

0.04
0.08
0.04
0.1

3
4
2
4

0.12
0.32
0.08
0.4

3
3
3
2

0.12
0.24
0.12
0.2

0.2

0.4

0.8

0.1

0.2

0.4

0.1

0.2

0.3

TOTAL

3.04

3.34

In competitive profile matrix our internal strategy is good but weaker than their
competitor. Nestle have to improve their internal strategy for competitive
advantage and for future success.