1. 2. Activity: Below is the list of strengths, weaknesses, opportunities, and threats of Nestle but it does not tell management what can be done by these. List down the Strengths-Opportunities (SO) strategies that involve using strengths to take advantage of opportunities, Strengths-Threats (ST) strategies that involve using strengths to fight threats, Weakness-Opportunities (WO) strategies that involve converting weaknesses to strengths by using opportunities and lastly Weakness-Threats (WT) strategies involve overcoming weaknesses to avoid threats. are Internet users increasing around the world. E-commerce is also growing with the increase in internet usage. Social media users are increasing worldwide. 3. Household income is increasing and so is the consumer spending. Inflation in the economy is expected to remain low. Opportunities 5. 4. Growth in environmentally friendly products and services. Government is offering subsidies on these. Interest rates are low, which provides an investment opportunity for large projects. Threats 1. There is a threat of new entrants coming into the market. 1. Strengths Nestle has a strong distribution network with a large number of outlets. 2. It has a low-cost structure, which provides it with an advantage over the competition. 3. It has a strong financial position with positive profits reported in the past few years. It also has a strong asset base. 4. It has a skilled labour force that is highly qualified, innovative and diversified. 5. It has a strong presence on social media. O Strategies (to fill-out) ST Strategies (to fill-out Weaknesses 1. A high proportion of property in use by Nestle is on rent, and rental charges need to be paid. 2. Low amounts of spending on research and development as compared to the competition. It has a high employee turnover rate, with low employee motivation and working morale. 4. It has liquidity problems with low quick ratio; the level of current assets is less than current liabilities. It also faces cash flow problems. 3. WO Strategies (to fill-out) WT Strategies (to fill-out)
1. 2. Activity: Below is the list of strengths, weaknesses, opportunities, and threats of Nestle but it does not tell management what can be done by these. List down the Strengths-Opportunities (SO) strategies that involve using strengths to take advantage of opportunities, Strengths-Threats (ST) strategies that involve using strengths to fight threats, Weakness-Opportunities (WO) strategies that involve converting weaknesses to strengths by using opportunities and lastly Weakness-Threats (WT) strategies involve overcoming weaknesses to avoid threats. are Internet users increasing around the world. E-commerce is also growing with the increase in internet usage. Social media users are increasing worldwide. 3. Household income is increasing and so is the consumer spending. Inflation in the economy is expected to remain low. Opportunities 5. 4. Growth in environmentally friendly products and services. Government is offering subsidies on these. Interest rates are low, which provides an investment opportunity for large projects. Threats 1. There is a threat of new entrants coming into the market. 1. Strengths Nestle has a strong distribution network with a large number of outlets. 2. It has a low-cost structure, which provides it with an advantage over the competition. 3. It has a strong financial position with positive profits reported in the past few years. It also has a strong asset base. 4. It has a skilled labour force that is highly qualified, innovative and diversified. 5. It has a strong presence on social media. O Strategies (to fill-out) ST Strategies (to fill-out Weaknesses 1. A high proportion of property in use by Nestle is on rent, and rental charges need to be paid. 2. Low amounts of spending on research and development as compared to the competition. It has a high employee turnover rate, with low employee motivation and working morale. 4. It has liquidity problems with low quick ratio; the level of current assets is less than current liabilities. It also faces cash flow problems. 3. WO Strategies (to fill-out) WT Strategies (to fill-out)
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Transcribed Image Text:2. The exchange rate has
been devalued.
Fuel price has risen in
3.
4
5.
recent years making
inputs expensive.
Competition within the
industry is increasing.
More substitute products
are now available.
Transcribed Image Text:Activity: Below is the list of strengths, weaknesses, opportunities, and threats of Nestle but it does not tell
management what can be done by these. List down the Strengths-Opportunities (SO) strategies that
involve using strengths to take advantage of opportunities, Strengths-Threats (ST) strategies that involve
using strengths to fight threats, Weakness-Opportunities (WO) strategies that involve converting
weaknesses to strengths by using opportunities and lastly Weakness-Threats (WT) strategies involve
overcoming weaknesses to avoid threats.
Blank
5.
Opportunities
are
1. Internet users
increasing around the
world. E-commerce is also
growing with the increase
in internet usage.
2. Social media users are
increasing worldwide.
3. Household income is
increasing and so is the
consumer
spending.
Inflation in the economy is
expected to remain low.
4. Growth
in
environmentally friendly
products and services.
Government is offering
subsidies on these.
an
Interest rates are low,
which
provides
investment opportunity.
for large projects.
Threats
1. There is a threat of new
entrants coming into the
market.
Strengths
1. Nestle has a strong distribution
network with a large number of
outlets.
2.
3. It has a strong financial position
with positive profits reported in
the past few years. It also has a
strong asset base.
It has a skilled labour force that is
highly qualified, innovative and
diversified.
It has a strong presence on social
media.
SO Strategies (to fill-out)
4.
It has a low-cost structure, which
provides it with an advantage over
the competition.
5.
ST Strategies (to fill-out)
Weaknesses
1. A high proportion of property in use
by Nestle is on rent, and rental
charges need to be paid.
2. Low amounts of spending on research
and development as compared to the
competition.
It has a high employee turnover rate,
with low employee motivation and
working morale.
4. It has liquidity problems with low
quick ratio; the level of current assets.
is less than current liabilities. It also
faces cash flow problems.
3.
WO Strategies (to fill-out)
WT Strategies (to fill-out)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON