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
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