STRATEGY 1:

Nestle must consider doing a backward integration by buying off some of their suppliers in Lebanon. This is because of the inflation rate increasing in Lebanon and as we well know families are not able to buy their basic needs like powder milk for children. So, by doing so, Nestle will have less cost to take care of, leading to lowered prices for the consumer making it a win-win situation for Nestle and their customers. It can acquire firms like packaging suppliers and plastic suppliers.

STRATEGY 2:

The second most important strategy to be implemented by Nestle is product development by providing products cheaper than the usual products they sell to be able to reach a bigger target population such as the people who are in the middle or low class. This can also be beneficial to Nestle and consumers by manufacturing these products locally, therefore decreasing the costs and prices.

Question: Create an implementation plan that will guide the company through the execution of the selected strategy. The implementation plan should include any proposed functional adjustments as well as the use or acquisition of the companys resources.(500 words)

Key Factors Strategy 1 Strategy? Strengths Weigh t AS TAS AS TAS Social Responsibility 0.05 3 0.15 0.15 Strong Brand Image 0.1 3 0.3 4 0.4 Sales Effectiveness 0.1 4 0.4 3 0.3 Distribution Network 0.1 3 0.3 4 0.4 Price Earning Ratio 0.05 3 0.15 4 0.2 Percentage Of Export Sales 0.0S 4 0.2 4. 0.2 Use Of Marketing Channel 0.1 3 0.3 4 0.4 Product Differentiation 0.1 3 0.3 3 0.3 Weaknesses Weigh t AS TAS AS TAS Lack Of Awamess Among The Target Market 0.1 1 0.1 1 0.1 0.05 2 0.1 2 0.1 Reduction In Reverse Due To Inflation Unable to launch Expensive Brand Due To Low 0.1 2 0.2 2 0.2 Low Credit Sales 0.05 1 0.05 2 0.1 Weak Promotional Activities 0.05 1 0.05 1 0.0S TOTAL IFE 1 2.6 2.9 Opportunities Weigh t AS TAS AS TAS Weak Competition 0.15 3 3 0.45 4 4 0.6 Potential Cold Diary Market 0.15 3 0.45 3 0.45 Increase Of Consumers In Food Indusrty 0.1 3 0.3 3 0.3 Adoption of Credit Policy Of Sales 0.1 4 0.4 4 0.4 Threats Weigh t AS TAS AS TAS Legal And Ethical Issues 0.15 2 0.3 2 0.3 Changing Taste Of Consumers 0.1 1 0.1 2 0.2 0.15 A 1 0.15 2 0.3 1 1 Effect Of Seasonality Of Sales Effect Of Slowdown Sales TOTAL EFE Total QSPM Results/Strategy 0.1 1 0.1 2.25 4.85 0.1 2.65 S.SS