Skip to main content
Using Space matrix identify and discuss strategies that Nestle can utilise based on Financial strength, environmental stability, competitive advantage and industry strength.
State why you selected these strategies and the benefits to the company.

ANSWER

One of the basic management tool to determine the strategies to be formulated by the company is space matrix. It involves internal as well as external analysis of company and on that basis deciding which kind of strategies to formulate.
It actually analysis 4 factors
  1. financial strength - cash flow, liquidity, leverage, ROI etc
  2. competitive advantage - market share,brand image, market niche,customers loyalty, product quality etc
  3. environment - demand elasticity, GDP, inflation, government regulations, technological advances etc
  4. industry strength - growth opportunities, entry barriers etc
Nestle space matrix value table
FACTORSVARIABLESAVERAGE RATING
Finance
( 1 to 6 best being 6 )
profit after tax ( increased by 2238.3 million compared to previous year) 6
Increased sales (including exports 7255.1 million ) 4
Increased earnings on share ( by 23.21 per share) 2
4
Competitive advantage
(-1 to -6 best being -1)
High brand loyalty -1
Quality product distributor -2
Large market share (huge product line) -3
-2
Environment
( -1 to -6 best being -1)
Technological advances -2
Fluctuating economy -3
Elasticity of demand -4
-3
Industrial strength
( 1 to 6 bert being 6)
Increased demand for healthy products 5
Less entry barriers 2
3.5
FS 个 3 Agpessive conseswative 2 CA -3 -is Deenswe 3 ESWe need to plot values on X and Y axis on space matrix in order to get which strategy to adopt we need to add points of financial strength and environmental factors to ge tvalue to be ploted on X axis and to plot value on Y we need to add value of competitive advantage and industrial strength.
Score of competitive advantage and industrial strength thst is 1.5
Add score of financial strength and environmental factors thst is 1
Here we came to know that NESTLE has to adopt AGGRESSIVE strategies which will help company to be on top and to stimulate new opportunities and to expand its market.

Comments

  1. Dereje BelayMay 9, 2019 at 1:48 PM

    https://www.chegg.com/homework-help/questions-and-answers/1-coca-cola-company-atlanta-georgia-produces-wide-range-products-delivered-worldwide-clien-q5783025

    ReplyDelete

Post a Comment

Popular posts from this blog

Question: prove by induction 2^2 + 4^2 + 6^2 + ... + (2n)^2 = (2n)(2n+1)(2n+2)/6 ANSWER we will use induction on n base case : n=1 we have, 2^2 = 2*3*4/6 = 4 which is true inductive hypothesis let it be true for n = k i.e.,  2^2 + 4^2 + ... + (2k)^2 =   [(2k)(2k+1)(2k+2)]/6 inductive case let n = k+1 then we have 2^2 + 4^2 + .... + (2k)^2 + (2(k+1))^2 =   [(2k)(2k+1)(2k+2)]/6 + (2k+2)^2 =(2k+2)*[(2k)(2k+1)/6 + (2k+2)] =(2k+2)*[ (4k^2+2k)/6 + (12k + 12)/6 ] =(2k+2)*[ (4k^2+14k+12)/6 ] = =(2k+2)*[(2k)(2k+1)/6 + (2k+2)] =(2k+2)*[ (4k^2+2k)/6 + (12k + 12)/6 ] =(2k+2)*[ (4k^2+14k+12)/6 ] = (2k+2)*[ (4k^2 + 8k + 6k + 12)/6 ] = (2k+2)*[ (4k(k + 2) +6(k+2))/6 ] = (2k+2)*[ (4k+6)(k+2)/6 ] =  (2k+2)*[ 2 (2k+3)(k+2)/6  ] =   (2k+2)*[  (2k+3)*2*(k+2)/6  ] =   (2k+2)*[  (2k+3)(2k+4)/6  ] = [(2*(k+1))(2*(k+1)+1)(2*(k+1)+2)]/6 replacing k+1 by m, we get replacing k+1 by m, we get [(2*m)(2*m+1)(2*m+2)]/6 this completes our proof b...
12 comments
Read more

IT management

FIGURE P1.1 The File Structure for Problems 1-4 1.       How many records does the file contain? How many fields are there per record? 2.       What problem would you encounter if you wanted to produce a listing by city? How would you solve this problem by altering the file structure? 3.       If you wanted to produce a listing of the file contents by last name, area code, city, state, or zip code, how would you alter the file structure? 4.       What data redundancies do you detect? How could those redundancies lead to anomalies? Figure P2.4 The DealCo relational diagram 4. Identify each relationship type and write all of the business rules. 5.       Create the basic Crow’s Foot ERD for DealCo. FIGURE P3.17 The Ch03_TransCo Database Tables     17. For each table, identify the primary key and the for...
Post a Comment
Read more
Question: Q1 a. Sketch the static characteristics of a diode. (6 marks) b. An AC voltage source V drives a transformer with centre tap second indin gs connected to two rectifiers is shown in the following diagram. The load has constant current Io. Assume that when the diode conducts the forward voltage drop is Ve d V Vmsnot. The turns ratio is N: 1:1. Sketch the current waveform through one of the diodes. (6 marks) c. Write down an equation for efficiency of a power converter in terms of output power and converter losses (2 marks) d. Given the following parameters, calculate the efficiency of the power converter. Va = 310 V ω-2π50 forward voltage drop of the diodes VF = 0.7 V Transformer turns ratio = 10: 1 : 1 load current = 10 A Assume that the transformer has no loss and converter losses come from the diodes only. Also assume the diode voltage drop does not change with current. State your assumption if there is any 6 marks) ANSWER
3 comments
Read more