Nielsen - Strategic Management Project

Course:
Strategic Management - Policy & Practice
Section: A
Group Members:
Ismail Sajid 13E00027
Khubaib Ahmed 13E00001
Mansoor Tariq 13E00099
Organization:
Nielsen
(Worlds Leading Insights Provider)
Nielsen Company Profile:
In more than 100 countries, Nielsen provides clients the most complete
understanding of consumer and media behavior.
As a global leader in measurement and information, Nielsen provides a

precise understanding of the consumer to help its clients make
decisions that can lead profitable growth. Nielsens measurement and
analytical innovations enable clients to keep pace with changing market
trends, emerging technology, and the increasingly demanding
consumer.
After nearly a century, Nielsen is more focused and skilled than ever at
providing the complete view of the consumer. Whether clients are in
media, consumer packaged goods, telecom or advertising, Nielsens
expansive data and measurement capabilities provide market context
and confidence through its long history of innovation and integrity.

- Project Page 2
Nielsen Vision Statement:
To become the worlds leading insights provider

- Project Page 3
Nielsen Mission Statement:
Nielsen is committed to facilitate firms (1), globally (3), to make

educated business decisions by utilizing its state of the art proprietary
products and services (2 & 4), as well as the companys main asset; its
employees (9). Nielsen aspires to achieve this goal by being simple in
its operations, open in terms of communication and integrated
internally (6), so that regional expertise (7) can be utilized for the
growth of its clients as well as the company itself (5).

- Project Page 4
Need for External Comparison
1) Understand key opportunities and threats
2) Develop appropriate strategies to maximize opportunities and
counter threats
3) Requires competitive intelligence in the following spheres
a) Economic
b) Social
c) Political
d) Legal
e) Technological

- Project Page 5
External Factor Evaluation Matrix (EFE)
An External Factor Evaluation (EFE) Matrix allows strategists to

summarize and evaluate external opportunities and threats that the
organization may face. It may include economic, social, cultural,
demographic, environmental, political, governmental, legal,
technological, and competitive information.
Identify external opportunities and threats

Step 1
Assign weights to each factor ranging from 0.0(not

Step2 important) to 1.0(very important)
Rate each factor from 1(response is poor) to

Step 3 4(response is superior)
Calculate weighted score for each factor

Step 4
Find total weighted score

Step 5

- Project Page 6
Nielsen - External Factor Evaluation Matrix
(EFE)
External Factor Evaluation Matrix - Nielsen

Weighted
Sr# Opportunities Weight Rating
Score
1 Changing Demographics 0.02 1 0.02
2 Evolving Categories 0.05 2 0.1
3 Increased Consumer Awareness 0.07 2 0.14
4 Technological Advancement 0.11 4 0.44

5 Third World Country - High Growth and Development Focus 0.06 2 0.12
6 Presence of Local Companies in Inaccesible Areas 0.05 2 0.1
7 New Markets 0.08 3 0.24

8 New Services 0.08 3 0.24
Weighted
Sr# Threats Weight Rating
Score
1 Devalued Currency/Inflation 0.07 3 0.21
2 Security Situation 0.14 4 0.56
3 Low Cost Competition 0.06 3 0.18

4 Informal Practices of Competition 0.04 2 0.08
5 Foreign Policy 0.03 2 0.06
6 Electricity 0.08 3 0.24
7 Political Instability 0.06 3 0.18

Total 1 2.91

- Project Page 7
The Competitive Profile Matrix (CPM)
The Competitive Profile Matrix (CPM) identifies a firms major

competitors and its particular strengths and weaknesses in relation to
the firms strategic position. In a CPM, the ratings and total weighted
scores for rival firms can be compared to the sample firm. This
comparative analysis provides important internal strategic information.
Identify key factors

Step 1
Assign weights to each factor ranging from 0.0(not important) to

Step2 1.0(very important)
Rate each factor from 1(major weakness) to 4(major strangth) for

Step 3 each firm.

Step 4
Find total weighted score for each firm

Step 5

- Project Page 8
Nielsen - The Competitive Profile Matrix (CPM)
CPM - Nielsen Nielsen TNS Aftab

Weighted Weighted
Sr # Critical Success Factors Weight Rating Rating
Score Score
1 High Quality Services 0.2 4 0.8 3 0.6

2 Thought Leadership 0.09 3 0.27 2 0.18
3 Technology 0.18 4 0.72 2 0.36
4 Global Expertise 0.07 3 0.21 1 0.07
5 Client Satisfaction 0.15 3 0.45 4 0.6
6 Network & Coverage 0.09 2 0.18 3 0.27
7 Cost 0.13 2 0.26 4 0.52
8 Human Resource 0.09 3 0.27 2 0.18
Total Score 1 3.16 2.78

- Project Page 9
Internal Factor Evaluation Matrix (IFE)
Internal Factor Evaluation (IFE) matrix is a strategic management tool

for auditing or evaluating major strengths and weaknesses in functional
areas of a business.
The IFE Matrix together with the EFE matrix is a strategy-formulation
tool that can be utilized to evaluate how a company is performing in
regards to identified internal strengths and weaknesses of a company
Identify internal strenghts and weaknesses

Step 1
Assign weights to each factor ranging from 0.0(not

Step2 important) to 1.0(very important)
Rate each factor from 1(major weakness) to 4(major

Step 3 strangth) for each firm.

Step 4
Find total weighted score

Step 5

- Project Page 10
Nielsen - Internal Factor Evaluation Matrix
(IFE)
Internal Factor Evaluation Matrix - Nielsen

Sr# Strengths Weight Rating Weighted Score
1 Retail Tracking Monopoly 0.12 4 0.48
2 R&D 0.12 3 0.36
3 Specialized employee training 0.07 3 0.21

5 Experience of working in global markets 0.09 3 0.27
6 Client satisfaction 0.08 4 0.32
9 Integrated information system throughout the organization 0.07 3 0.21

Sr# Weaknesses Weight Rating Weighted Score
1 Limited coverage of Tribal/No-go areas 0.06 2 0.12
2 High operational costs 0.04 2 0.08

3 High Churn ratio of employees 0.1 2 0.2
4 Less budget allocated for marketing as compared to local competition 0.07 2 0.14
5 High cost of research solutions for clients 0.08 1 0.08
Total 1 2.87

- Project Page 11
Balanced Score Card
The balanced scorecard is a strategic planning and management system

that is used extensively in businesses and different industries
worldwide to align business activities to the vision and strategy of the
organization, improve internal and external communications, and
monitor organization performance against strategic goals.
In its simplest form the Balanced Scorecard breaks performance
monitoring into four interconnected perspectives: Financial, Customer,
Internal Processes and Learning & Growth.

- Project Page 12
Nielsen Balanced Score Card
S/ Time
Primary
N Area of Objectives Measure or Target Expectat
Responsibility
o ion
Customers
1 Client Satisfaction Getting 5 testimonials from each client Q4 2013 Client Service
Client
New Business
2 Commissioning 3 new clients Q1 2013 Service/Retailer
Development
Service
Increasing brand equity by 0.5% by
Client & Global
3 Increasing Brand Equity offering innovative products to our Q4 2013
Business Services
clients
Internal Business
Processes Perspective
Global Business
Advancement towards 100% shift from PAPI to CAPI ensuring a
1 Q2 2014 Services/Client
CAPI implementation paper free working environment
Service
Reduction in turnaround An acknowledgement email should be
2 Q3 2013 Client Service
time for client queries send to the client within 30mins
Learning & Growth

Perspective
Investments in New Nielsen Global
1 Introduction of Watch Business Q4 2014
technology/products Management
Orientation/induction
Human
2 Plan for new recruits 3 day orientation for 5 new recruits Q2 2014 Resources
International training Nielsen Local
3 Sending at least 3 associates to UAE hub Q3 2014
courses for employees Management
for trainings every year
Financial
Accounts &
Making Nielsen a public limited Finance/Nielsen
1 Incorporation in KSE Q1 2015
company Global
Management
Top line Increase by 7% and bottom line Multi-
2 Revenue increase Q4 2014
increase by 3.3% Departmental
3 Payments realization Realizing all outstanding payments Q4 2013 Client Service

- Project Page 13
SWOT Analysis
SWOT analysis (alternatively SWOT Matrix) is a

structured planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in
a project or in a business venture.
A SWOT analysis can be carried out for a product, place, industry or
person. It involves specifying the objective of the business venture or
project and identifying the internal and external factors that are
favorable and unfavorable to achieving that objective.

- Project Page 14
Nielsen - SWOT Analysis
STRENGHTS WEAKNESSES
Technological advancement Limited coverage of Tribal/No-go

Global expertise areas
Retail tracking monopoly High operational costs
R&D High churn ratio of employees
Specialized employee trainings Less budget allocated for marketing
as compared to local competition
OPPORTUNITIES THREATS
Changing Demographics Security Situation

Evolving Categories Low Cost Competition
Third World Country - High Growth Informal Practices of Competition
and Development Focus Foreign Policy
Outsourcing fieldwork to local Political Instability
companies in inaccessible areas
Increased consumer awareness

- Project Page 15
SPACE Matrix
The SPACE matrix is a management tool used to analyze a company. It

is used to determine what type of a strategy a company should
undertake. The Strategic Position & Action Evaluation matrix or short
a SPACE matrix is a strategic management tool that focuses on strategy
formulation especially as related to the competitive position of an
organization.
The SPACE matrix can be used as a basis for other analyses, such as the
SWOT analysis, BCG matrix model, industry analysis, or assessing
strategic alternatives (IE matrix).The SPACE matrix is broken down to
four quadrants where each quadrant suggests a different type or a
nature of a strategy, an example of it is given below:
Aggressive Conservative - Defensive - Competitive

- Project Page 16
Nielsen - SPACE Matrix
Financial Position (FP) Stability Position (SP)

Increasing the revenue by 5 Low cost of competition -4
6.2% as compared to 2012 Rate of inflation -4
Decrease operational cost 4 Technological know how -2
by 5% through innovation
and technology 7
Maintaining an Out of
Pocket (OOP) percentage of
33%
Average 5.3 Average -3.3
Competitive Position (CP) Industrial Position (IP)

High quality -1 Financial stability due to 5
Customer loyalty -2 huge global network
Technological know-how -1 Profit potential 5
Growth potential due to 6
increasing consumer
awareness
Average -1.3 Average 5.3
Directional Vector Coordinates:

For x-axis CP +IP i.e. -1.3+(+5.3)=4
For y-axis SP+FP i.e. -3.3+(+5.3)=2

- Project Page 17
Nielsen should go ahead with Aggressive Strategies

- Project Page 18
Boston Matrix
The growth-share matrix or BCG-matrix/Boston matrix, is a chart that
had been created by Bruce D. Henderson for the Boston Consulting
Group in 1970 to help corporations with analyzing their business units
or product lines.
Placing the products of a strategic business unit in 2 dimensions

(market growth and market share) creates 4 quadrants and
corresponding investment strategies:
- Cash Cows (low market growth, high market share)
- Stars (high, high)
- Question Marks (high, low)
- Dogs (low, low)

- Project Page 19
Nielsen - Boston Matrix
Nielsen Retail
Consumer Research
Measurement
CATI Technology
Services
Consumer Research
Online Surveys
CAPI Technology
Consumer Research
Door to Door Surveys Qualitative Research
Public and Social

Sector Household Consultants and
Surveys Sector Experts

- Project Page 20
Nielsen Organizational Chart
Country Managing
Director
Head of Head of
Head of Retail Head of Head of Head of Data
Consumer Human
Measurement Finance Facilities Acquisition (DA)
Insights Resources
Services
Manager Manager Manager Manager
BU Heads
Finance HR Facilities DA
BU Heads
Manager CI Executives Executives Executives Executives

Manager
RMS
Executives
Executives

- Project Page 21
Nielsen Objectives
Long Term Objectives: Short Term Objectives:
1. Maintain its position as the global 1. Develop and perfect local market
market leader in marketing analysis tools in retail auditing to
insights and consumer create market benchmarking and
understanding expand subscribers
2. Expand its presence across the 2. Exhibit growth in local markets for
globe to create complete world 2013-2014 while maintaining
presence profitability
3. Innovate and design products 3. Implement the Client Business
with greater regional and local Partner (CBP) structure across all
relevance to accurately predict channels and markets to build
heterogeneous markets integrated working relations with
clients and strengthen partnership

- Project Page 22
Nielsen Organizational Culture
Nielsens culture is driven by its core values: simple, open, integrated

and innovative. The company believes in diversity, and incorporating
ideas from all perspectives with an open mind so that the best insights
and solutions can be provided to its customers. Nielsen implements
these values by creating an environment conducive to productivity and
learning.
The company takes pride in being called an academy company. Nielsen

grooms and develops future leaders through constant learning
engagements such as training and development sessions and mentoring
modules.
The importance of diversity is understood at the global, regional and

local levels as it build greater understanding of markets and consumers.
Enriching the company with employees of diverse backgrounds and
following the principle of diversity in building partnership with clients
and suppliers ensures that horizons remain open and inclusive.

- Project Page 23
Marketing Mix
Marketing Mix is a combination of marketing tools that a company
uses to satisfy their target customers, and achieving organizational
goals. McCarthy classified all these marketing tools under four broad
categories:
Product
Price
Place
Promotion
These four elements are the basic components of a marketing plan and
are collectively called 4 Ps of marketing.

- Project Page 24
Nielsen - Marketing Mix
PRODUCT PRICE
Product variation Competitive pricing
Product differentiation Penetration pricing
Product innovation Cost plus pricing
New product Value based pricing

development
Product quality
PLACE PROMOTION
Nationwide coverage Corporate identity
Online surveys Brand management

- Project Page 25
Strategy Evaluation Framework
Strategy Evaluation Should:

Initiate managerial questioning of expectations and assumptions
Trigger a review of objectives & values
Stimulate creativity in generating alternative strategies and
formulating criteria for evaluation
Be performed on a continuing basis, rather than at the end of
specified periods of time or just after problems occur.

- Project Page 26
Nielsen Revised External Factor Evaluation Matrix (EFE)
Revised External Factor Evaluation Matrix - Nielsen

Sr Weigh Ratin Weighte
Opportunities
# t g d Score
1 Changing Demographics 0.02 2 0.04

2 Evolving Categories 0.03 2 0.06
3 Increased Consumer Awareness 0.09 3 0.27
5 Third World Country - High Growth and Development Focus 0.08 3 0.24
6 Presence of Local Companies in Inaccessible Areas 0.05 2 0.1
7 New Markets 0.08 3 0.24
8 New Services 0.08 3 0.24
Sr Weigh Ratin Weighte

Threats
# t g d Score
1 Devalued Currency/Inflation 0.07 3 0.21

2 Security Situation 0.12 3 0.36
3 Low Cost Competition 0.06 3 0.18
4 Informal Practices of Competition 0.04 2 0.08
5 Foreign Policy 0.03 2 0.06
6 Electricity 0.08 3 0.24
7 Political Instability 0.06 3 0.18
Total 1 2.94

- Project Page 27
Nielsen Revised Internal Factor Evaluation Matrix (IFE)
Revised Internal Factor Evaluation Matrix - Nielsen

Sr# Strengths Weight Rating Weighted Score
1 Retail Tracking Monopoly 0.12 4 0.48
2 R&D 0.12 3 0.36
3 Specialized employee training 0.07 3 0.21
5 Experience of working in global markets 0.09 3 0.27
6 Client satisfaction 0.08 4 0.32
9 Integrated information system throughout the organization 0.07 3 0.21
Sr# Weaknesses Weight Rating Weighted Score

1 Limited coverage of Tribal/No-go areas 0.06 2 0.12
2 High operational costs 0.04 2 0.08
3 High Churn ratio of employees 0.1 2 0.2
4 Less budget allocated for marketing as compared to local competition 0.07 2 0.14
5 High cost of research solutions for clients 0.08 1 0.08
Total 1 2.87

- Project Page 28
Final Evaluation
Comparing the revised EFE and IFE scores with the original ones
established at the start of the strategy formulation process reveals that
Nielsen is on track with respect to its strategies and objectives.
There is an increase of 0.03 in the overall EFE score, showing that

Nielsen is dealing positively with the threats and capitalizing on the
opportunities in order to achieve its goals. The IFE score remains
constant which illustrates that Nielsen has held on to its strengths but
the weaknesses remain the same.
Hence, after comparing the revised and original EFE and IFE we come to
the conclusion that Nielsen is performing good as per the devised
strategies and should continue with the same strategies in order to
achieve its goals.

- Project Page 29
APPENDIX
Sources:
www.nielsen.com
Magazines Barrons, Forbes, Washington Post
Consultants Boston Consulting Group, Deloitte
Strategic Management Concepts and Cases Fred R. David

- Project Page 30

Nielsen - Strategic Management Project

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Course:

Strategic Management - Policy & Practice

As a global leader in measurement and information, Nielsen provides a

Strategic Management - Policy & Practice

To become the worlds leading insights provider

Strategic Management - Policy & Practice

Nielsen is committed to facilitate firms (1), globally (3), to make

Strategic Management - Policy & Practice

Strategic Management - Policy & Practice

An External Factor Evaluation (EFE) Matrix allows strategists to

Identify external opportunities and threats

Assign weights to each factor ranging from 0.0(not

Rate each factor from 1(response is poor) to

Calculate weighted score for each factor

Find total weighted score

Strategic Management - Policy & Practice

External Factor Evaluation Matrix - Nielsen

3 Increased Consumer Awareness 0.07 2 0.14

4 Technological Advancement 0.11 4 0.44

6 Presence of Local Companies in Inaccesible Areas 0.05 2 0.1

7 New Markets 0.08 3 0.24

3 Low Cost Competition 0.06 3 0.18

5 Foreign Policy 0.03 2 0.06

6 Electricity 0.08 3 0.24

7 Political Instability 0.06 3 0.18

Strategic Management - Policy & Practice

The Competitive Profile Matrix (CPM) identifies a firms major

Identify key factors

Assign weights to each factor ranging from 0.0(not important) to

Rate each factor from 1(major weakness) to 4(major strangth) for

Calculate weighted score for each factor

Find total weighted score for each firm

Strategic Management - Policy & Practice

CPM - Nielsen Nielsen TNS Aftab

1 High Quality Services 0.2 4 0.8 3 0.6

Strategic Management - Policy & Practice

Internal Factor Evaluation (IFE) matrix is a strategic management tool

Identify internal strenghts and weaknesses

Assign weights to each factor ranging from 0.0(not

Rate each factor from 1(major weakness) to 4(major

Calculate weighted score for each factor

Find total weighted score

Strategic Management - Policy & Practice

Internal Factor Evaluation Matrix - Nielsen

1 Retail Tracking Monopoly 0.12 4 0.48

2 R&D 0.12 3 0.36

3 Specialized employee training 0.07 3 0.21

6 Client satisfaction 0.08 4 0.32

9 Integrated information system throughout the organization 0.07 3 0.21

2 High operational costs 0.04 2 0.08

5 High cost of research solutions for clients 0.08 1 0.08

Strategic Management - Policy & Practice

The balanced scorecard is a strategic planning and management system

Strategic Management - Policy & Practice

Learning & Growth

Strategic Management - Policy & Practice

SWOT analysis (alternatively SWOT Matrix) is a

Strategic Management - Policy & Practice

Technological advancement Limited coverage of Tribal/No-go

Changing Demographics Security Situation

Strategic Management - Policy & Practice

The SPACE matrix is a management tool used to analyze a company. It

Aggressive Conservative - Defensive - Competitive

Strategic Management - Policy & Practice