1) When looking at the definition of a concentration strategy, it says when organizations try to compete in a single industry. However, Nestle has chosen to expand in related diversification strategies, so we might want to see how they just chose to compete in the Plant-based food market, which is part of several of their sbu. What was the strategy they used? Now that some of their products have been commercialized, what would you recommend their next growth strategy be and why?
2) As you look at the strategies between sbus, can you identify where you could describe where they used a vertical integration strategy? Where they used a horizontal integration strategy?
3) As mentioned Nestle is very diversified consumer-package goods company, where have they diversified into related businesses? Where have they diversified into unrelated businesses?
4) Now that we have looked at different types of corporate level strategies, some of these can be useful as we try to leverage our strengths and strengthen our weaknesses in a TOWS matrix. First identify two or three most important strengths of Nestle and the two or three most important weaknesses. Then identify the two most important opportunities facing Nestle in the consumer-packaged goods market and the two most critical threats, then develop the corporate strategies that they could use to leverage their strengths and offset their weaknesses to take advantage of the opportunities and protect from threats in the following tows matrix.
Strengths
1)
2)
3) Weaknesses
1)
2)
3)
Opportunities
1) 2) Strategy to leverage Strengths to take advantage of opportunities: Strategy to offset weaknesses to take advantage of opportunities:
Threats
1)
2) Strategy to leverage Strengths to protect from threats: Strategy to offset weaknesses to protect from threats:
Sample Solution
