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Nestle's Internal Strengths & Threats

The document contains analyses of Nestle's internal strengths and weaknesses using an Internal Factor Evaluation (IFE) matrix, as well as its competitive position relative to Engro Foods using a Competitive Profile Matrix. The IFE matrix finds that Nestle has an above average internal position due to strengths like its strong brand name and high quality products. It identifies decreasing profit margins and criticism of unethical practices as weaknesses. The Competitive Profile Matrix compares critical success factors and finds that Nestle has a slightly higher weighted score than Engro Foods. An Internal-External matrix also analyzes Nestle sales divisions.

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Cynthia Walter
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917 views3 pages

Nestle's Internal Strengths & Threats

The document contains analyses of Nestle's internal strengths and weaknesses using an Internal Factor Evaluation (IFE) matrix, as well as its competitive position relative to Engro Foods using a Competitive Profile Matrix. The IFE matrix finds that Nestle has an above average internal position due to strengths like its strong brand name and high quality products. It identifies decreasing profit margins and criticism of unethical practices as weaknesses. The Competitive Profile Matrix compares critical success factors and finds that Nestle has a slightly higher weighted score than Engro Foods. An Internal-External matrix also analyzes Nestle sales divisions.

Uploaded by

Cynthia Walter
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Internal Factor Evaluation (IFE) Matrix:

Strengths
Key Internal Factor Weight Rating Score
1. Nestle has a strong brand name. 0.15 4 0.6
2. Nestle has variety of products 0.06 3 0.18
3. CSR Activities of nestle is positively 0.09 3 0.27
impacting society
4. Research and Development Network 0.11 4 0.44
5. Excellent Supply Chain management 0.07 3 0.21
6. High quality product 0.13 4 0.52
Threats

1. Decreasing Profit Margin 0.04 1 0.04


2. Criticism on unethical practices 0.05 1 0.05
3. Low marketing of Nestle Milk pack & nestle 0.12 2 0.24
pure life
4. Target market 0.10 2 0.2
5. Lower class can’t afford expensive products 0.08 1 0.08
Total 1.00 2.83

Justification:

Total weightage:

Nestle total weight score is 2.83 above average, more than 2.50 which indicates
that Nestle has a strong internal position.

 High Rating:
1. Strong brand name:

The highest rating is given to ‘Strong Brand name’ which is 3 with the weightage
of 15% it is the most important factor as Nestle is known for almost two decades
for its healthy, nutritious and quality products. It is Nestlé’s brand name that
helped Nestle Pakistan to earn trust of people and increase profit every year.

2. High Quality Products:


The second highest rating is given to ‘high quality products’ that is 4 with weight
of 13%. Nestle does not compromise on its quality. Nestle is committed to
provide healthy and safe products to its value customers. This is the reason
nestle has earn customers trust over the period of time.

 Low Rating:
1. Decreasing Profit Margin:

2. Criticism on unethical practices:

Competitive Profile Matrix:

Nestle Engro Foods


Critical success factors Weight Rating Weighte Rating Weighted
d Score Score
1. Brand image 0.16 4 0.64 3 0.48
2. Advertisement 0.11 2 0.22 4 0.88
3. Product Quality 0.12 4 0.48 3 0.36
4. Range of products 0.07 3 0.21 2 0.14
5. Customer Loyalty 0.10 3 0.3 2 0.2
6. Competitive Pricing 0.14 3 0.42 2 0.28
7. Market Share 0.15 3 0.45 2 0.3
8. Market expansion 0.06 4 0.24 1 0.06
9. Financial Position 0.09 3 0.27 2 0.18
Total 1.00 3.23 2.88

Justification:

Important Factors:
1.
2.
3.

Least important Factors:

1.
2.
3.

The Internal-External (IE) Matrix

Division Nestle Sales Sales Profits Profits EFE IFE


(2019) Percentage Percentage
1. 11999 2.4 2.83
2. 9899 2.96 2.87
3. 8888 3.03 3.16
4.
Total

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