A SWOT analysis is one of the basic managerial planning tools. Follow the steps

Question

A SWOT analysis is one of the basic managerial planning tools. Follow the steps below to demonstrate your ability to perform a SWOT analysis. 1. Select a business at which you work or are a frequent customer, and describe it briefly 2. From a customer perspective, what do you perceive as the strengths and weaknesses of this business? Use headings and make one list for the strengths, and another list for the weaknesses. 3. What do you perceive as potential opportunities and threats for this business? Use headings and make one list for the threats, and another list for opportunities. Draw upon the library, web, and other sources to support your analysis. If you use a quote or information from an outside source, be sure to put the name and author of the source in parentheses right after it.

Explanation / Answer

1.
Company selected for the discussion is Nestle. It is a well-known and reputed organization, producing different types of baby food, and other FMCG products. The company has its presence in more than 95 nations across all the continents. It makes the company to have a huge global market share, but it also creates a challenge to strive for quality to hold the market.
2.
Strengths of the company are as follows:
A.   A strong brand name driven by quality and dedicated workforce in all the countries
B.   A dedicated R&D function that always produces new and innovative products and upgrades upon existing products
C.   Use of proprietary technology in producing foods
D.   Well established distribution network with diversified vendor and supplier management
E.   One of the best community development practices
Weaknesses of the company are as follows:
A.   Higher prices of the product adds to its disadvantage
B.   Dependence upon the retail chains in developed market such as Walmart in the USA, can play as weakness to the company
C.   The brand perceived as the brand of premium segment, can influence common people to opt for the other companies
D.   Some of the brands earn huge revenue such as Milkmaid and Nescafe, but some of the brands earn very less. It makes the company to be dependent upon the few products for revenue.

3.
Opportunities are as follows:
A.   Emergence of new online channels to sell the products
B.   Use of third party network such as Amazon to reach the new audience
C.   Growing income of people due to the globalization drive creates opportunity to attract more people
Threats are as follows:
A.   The company relies on Walmart in the USA, but the Walmart also promotes in-house products and it creates threats to the company.
B.   Stringent regulatory environment causes the company to rethink about the quality. A recent case of Maggi in India can be taken up for the consideration.
C.   Emergence of domestic players such as Patanjali in India are denting the market share of Nestle.

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