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1.

Prior to making any major strategic decision, one needs to assess their capabilities and position
in the environment where the decision will have a significant effect. In this way, one can make
an informed decision and be better prepared for any contingencies.

SWOT stands for Strengths,


Weaknesses, Opportunities, and Threats. It enables us to analyze one's internal capabilities and
external position. Weaknesses and Strengths are considered internal capabilities, whereas
opportunities and threats determine external positions.

In this section, I will introduce you to the SWOT analysis of Nestle while discussing each
aspect in detail. Furthermore, we will examine the unique aspects of Nestle as well as its
marketing strategies. It will explain why Nestle is so successful and how it has managed to
survive for so long.

Company Overview

The group's chairman is Paul Bulcke, and its CEO is U Mark Schneider. In the year 2019, the
company generated sales of CHF 92.6 billion (Swiss francs) and achieved an internal growth
rate of 2.9%. In 2019, the company launched over 1300 new products and employed 291000
people.

In 1867, Henri Nestle created the first infant food. His company had the iconic nest logo. Nestle
arose from the merger of the company Henri had founded with Anglo-Swiss in 1905.

Product Portfolio

The company has expanded into 187 countries with a variety of products over the last 150
years. Products can be categorized into the following:

• Powdered and Liquid Beverages

• Nutrition and Health-Science

• PetCare

• Milk Products and Ice-creams

• Prepared Dishes and Cooking Aids


• Confectionary

• Water

Strengths of Nestle
The company's constant existence over the years is attributable to numerous internal factors.
The following factors make up Nestle's strengths, and I will briefly describe what they are:
• Global Presence: Nestle's presence in 187 countries helps it maintain undivided
growth. Several countries have had the brand for more than 150 years, establishing
a strong reputation in the local environment.

• Increasing cash flows: Nestle's cash flows increased by 10.9% in 2019 to CHF 11.9
billion. The group's finances are healthy, so they are able to invest more and expand
rapidly.

• Strong Supply Chain Operations: Nestle encourages innovation at the local level,
incorporates technology, and aims to increase the traceability of the raw materials
used to produce its products. This allows the group to achieve significant operational
efficiency.

• Nestle innovates faster and according to local demands by applying science across
all platforms and collaborating with local players.

• Investing in digital transformation in fields like marketing, social media, e-


commerce, manufacturing, and supply chain has helped Nestle become more data-
driven. Thus, they can personalize their customers' needs and increase their
satisfaction.

Weaknesses of Nestle
Nestle's core competencies are its strengths, but the global giant also faces a number
of weaknesses. Let's look at the weaknesses Nestle faces:

• Nestle has been criticized for incorrectly positioning and marketing its products time
and time again by consumers across the globe.
• Organizational Structure: Nestle's current organizational structure is based on its
product portfolio rather than on its geography. When it comes to decision-making,
this creates a great deal of distance and prevents agility.
• In terms of marketing costs and consequently, a high risk associated with the returns,
Nestle is heavily dependent on advertising to promote its products. Nestle's current
strategy will not sustain the company in the long run due to disruptions.
Opportunities of Nestle

Today's dynamic environment is more connected than ever before. Group members have an
abundance of opportunities to grow and thrive. Here are just a few to illustrate the point:

• Increasing Transparency: Consumers today possess more information than they ever
have. Increasing transparency will be beneficial with the growing presence of the
internet. A greater level of transparency means that consumers know where raw
materials are sourced from when they are sourced, and who sources them
• The group will be able to reduce costs, increase efficiency, and utilize labor properly
by integrating and operating sustainably. Lean operations will be made possible
through local integration and production, which will reduce long-term costs.
• Nestle can expand its business in Asia, Oceania, and Sub-Saharan Africa due to the
increasing average household income. To increase its product portfolio, and thus,
increase its presence and profits, a company can introduce new or existing products.
• Diversification of its product portfolio: Nestle has a lot of room to expand its product
portfolios outside of the food and beverage sector. Nestle can diversify by forming
strategic alliances with other companies and tapping into markets other than food
and beverage

Threats to Nestle

Due to its ever-changing environment, the same dynamic environment also poses numerous
threats. Emerging technologies, continuous innovation, and disruptions drive the change. To
grow continuously, Nestle has to focus on these parameters:

• Climate Impact: Many Nestle products' raw materials are affected by the changing
climate. Examples include coffee, wheat, and dairy.
• The failure to align with a product-run group of such diversity is exceptionally high
among investments. There is a greater risk of losing brand presence and a potential
amount of money for the group.
• In the past, Nestle has suffered a great deal of damage to its reputation and consumer
trust for non-compliance with food safety standards.
• Nestle's product portfolio competes with numerous multi-national and local companies.
Nestle is always at risk of losing its existing consumer base with the advent of new
technology and disruptions in the industry.

Nestle group's ever-growing product portfolio and global presence are a result of its focus
on its strengths and alignment with opportunities. While focusing on threats, Nestle has to
work on its weaknesses to stay ahead of any changes in the environment.
I've discussed what is the SWOT analysis of Nestle and also offered answers to these
questions: Why is Nestle so successful? What are its weaknesses? What are its strengths?
What is Nestle's current market position?

It is a robust yet straightforward tool that can be applied to numerous scenarios, industries,
and decisions to analyze and prepare for robust decision making.

2.
Recent advances in management theories have led to a number of innovative methods of
management. Just in time (JIT) and Lean production is two of these innovative theories. JIT focuses on
continuous improvement and eliminating unused resources from the system. The goal of JIT is actually
to keep only those items in a company's inventory that are required at that point in time and get rid
of the rest. Toyota motor company popularized JIT after FORD motor company introduced it. A lean
production system, on the other hand, advocates 'less is more, which aims to eliminate activities that
do not add any value.
Toyota adopted JIT and lean manufacturing techniques to make production
processes highly efficient and sustainable, thereby reducing industry wastage and pilferage during a
time when everyone in the west was building mega factories with huge assembly lines to fulfill their
main objective of mass production. To achieve this goal, Toyota incorporated different disciplines such
as statistics, industrial engineering, production management, and behavioral science. The same
machines would be modified to perform various tasks rather than creating massive assembly lines.
This made the whole process more sustainable by reducing material and process waste. The overall
system was made much more efficient by using lean manufacturing techniques. As JIT is concerned
with minimizing the use of raw materials and unnecessary stocking of inventory, with proper waste
elimination, Lean manufacturing focuses on eliminating any problems and inefficiencies in any
manufacturing or operational process.
MG motors can adopt both philosophies to help improve their manufacturing and operations process
both at the micro-level and at the macro level. The JIT process works on a micro-level and only allows
the company to have the things it needs at any given stage of the manufacturing process and no waste
is generated, whereas Lean manufacturing focuses on establishing policies that will enable the most
efficient way of manufacturing and driving operations. As MG Motors adopts these two management
approaches, their manufacturing processes will be more efficient as there is nothing to create clutter.
As a result, MG motors may be producing batches based not on demand but on a standard number
and the capacities of the manufacturing plant. With lean manufacturing and JIT techniques, they can
produce only what is needed on the market. By doing so, they can really save the company resources
and should be able to finish their orders on time.

Let's use Apple as an example to better understand this. Apple uses JIT with a twist,
leveraging its suppliers to achieve their JIT objectives. The company obtains its components
from 150 key suppliers around the world. Thus, they are able to outsource almost all of their
production and, in turn, don't need to maintain their own production facilities, thereby
making their organization leaner and more efficient. Moreover, the company has a single
central warehouse in the United States, so most of its stocks there are held in retail stores,
adding to its JIT strategy. Additionally, they are now involved in drop shipping (delivering
products directly from manufactures to consumers), reducing their warehousing cost and
retail space.

MG motors can reduce their wastage and pilferage while increasing their efficiency many
folds, if they combine all these examples under JIT and Lean manufacturing theory. For
example,

• Additionally, they can outsource production to a number of different vendors, thereby


increasing productivity and reducing costs.
• In addition, drop shipping can also be an option for them if it is feasible for them.
• If the company manufactures its own products, keep the inventory very lean and order
things only when they are needed. Don’t stock
• Manufacturing uses all equipment optimally and to the fullest extent possible. It does
not produce in fixed batches, but only as needed.
• Eliminate all waste materials or processes from the system as soon as possible.

The above-mentioned JIT and lean manufacturing principles and examples can help MG motors greatly
if implemented so as to increase their efficiency, decrease process wastage and make the company
more sustainable.

3a
Since the COVID-19 pandemic hit the world several years ago, the world has been struggling to keep
up. As of January 2020, the virus's carnage began in India, and since then, the entire Indian population
has been threatened. Many people have died as a result of the virus. To combat the spread and break
the chain, the government of India had to impose a total lockdown on the entire country. Lockdowns
resulted in huge losses for all the businesses since all economic activities ceased and everyone was
confined to their homes. As a result, some businesses were negatively impacted due to lockdowns.
These include aviation, retail, dining, tourism, and hotels. Lemon Tree is also among the hotels whose
business was negatively affected. The following factors played a major role:
Political forces: The Indian government imposed a total lockdown on March 24th for 21 days and then
extended it until 30th June. Throughout this period, hotels were forced to close with no source of
income. The government still kept many restrictions on public movement after the lockdown ended.
Consequently, people only traveled when it was absolutely necessary, so the hotels were still
struggling. Following a lockdown, the government imposed certain guidelines to reduce the capacity
of hotel dining and other places to ensure social distancing. The government also required certain
sanitization activities. Although this resulted in higher costs for the hotel, it also reduced its revenue.
Social forces: Travel was a major factor in the rapid spread of the virus. The fact that people were
made to quarantine themselves if they traveled was seen as one of the main causes of COVID. As a
result, traveling has become stigmatized by a large portion of society. Fewer travelers meant less
revenue for hotels. A lot of hotel staff was also laid off during this time as there wasn't enough revenue
to pay their employees. People who worked with Lemon tree felt stressed and insecure as a result of
this.
Economic forces: The whole pandemic period was almost devoid of economic activity and exchanges
globally. Health care and IT were the only industries that thrived during this time. Sectors such as
tourism and hotels were hit the hardest, as there was no travel and thus no revenue. During this time,
hotels served as quarantine centers or rented rooms to hospitals at lower rates so their medical staff
could stay there. Hotel activities were hit so hard that even a unicorn-like OYO was brought down and
it had to lay off many employees. Likewise, the government failed to provide any major stimulus to
hotels in the form of any package, which made it more difficult for hotels like the Lemon Tree to
recover.

3b
Modern management utilizes contingency planning to solve problems by analyzing their situation and
environment. To put it another way, there cannot be a single set of rules that can solve the problem.
In a contingency approach, each solution is independent of the others and depends solely on the
problem it is solving and its attributes. To solve losses incurred by lemon trees during the pandemic,
or to improve business growth, similar approaches can be used:

• The fear of traveling still affects many people, who hence stay at home and avoid
traveling. In contrast, in India, weddings are going full steam as it's wedding season and
weddings kept getting postponed in pandemics due to government regulations. Hotels have
banquets and dining is a major part of their revenue. Promote the hotel as a wedding venue.
Through banquet halls, food, and guests staying at the hotel, the hotel will generate
revenue.
• Adopt a safety-first attitude. Give people the impression that Lemon tree cares about the
safety of its guests and that it follows all COVID protocols and sanitization standards. The
customers will flow in once they believe it.
• Adopt a JIT strategy in order to keep an eye on inventory and reduce unnecessary costs.
• Change the perspective and advertise local tourism for a while to draw customers in.
• Actively seek corporate contracts to host their seminars, off-sites, and trade shows on the
hotel's premises.
• The world is on a digital platform during the pandemic. By providing free cancellations and
special offers, you can attract more customers to your website, even an app.
• Reducing costs through the use of technology and automation.

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