Boston Consulting Group (BCG) Matrix of Nestle

High Medium Low

1.0 .50 0.0
High Stars Question Marks
+20 (Nestle Pure Life Water Product) (Nestle Health Science Product)
 Continue investing to  Invest in marketing and (R&D)
maintain or strengthen its to increase market share
position  Move the product into the stars
 Increase production capacity category
 Expand into new markets or  Consider strategic partnerships
regions or acquisitions to strengthen the
 Improve marketing to company's position in the health
maintain market share. and wellness industry.
Mediu Cash Cows Dogs
m (KitKat Product) (Power Bar Product)
0  Continue to maximize profits I. Consider phasing out the product
by reducing costs, improving or selling it to a competitor.
efficiency
 Increasing marketing efforts
to maintain market share
 Introducing new variations
or flavors to maintain
customer interest.

Low
-20

The possible strategies listed are just suggestions and would need to be evaluated by Nestles
management team based on the company's goals, resources, and market condition.
 1. Internal Factors Evaluation Matrix

Factors Weight Rating Weighted Score

Strengths

Strong Global Presence 0.12 4 0.48

Strong Brand Portfolio 0.14 4 0.56

Diverse Product Line 0.15 3 0.45

Strong Financial Performance 0.14 4 0.56

Strong Supply Chain 0.15 3 0.45

Weaknesses

Dependence on Developed Markets 0.06 2 0.12

Product Recalls 0.06 2 0.12

Legal Issues 0.06 1 0.06

High Debt to Equity Ratio 0.06 2 0.12

Low Innovation and Creativity 0.06 2 0.12

Total 1.00 2.56

2. External Factors Evaluation Matrix

Factors Weight Rating Weighted Score

Opportunities

Growing Demand for Healthier Products 0.11 4 0.44

Increasing Popularity of Organic Foods 0.12 3 0.36

Emerging Markets 0.10 4 0.40

Strategic Acquisitions 0.08 3 0.24

Technological Advances 0.06 2 0.12

Threats

Intense Competition 0.13 2 0.26

Fluctuating Currency Exchange Rates 0.09 1 0.09

Changing Consumer Preferences 0.12 2 0.24

Government Regulations 0.10 3 0.30

Natural Disasters 0.09 1 0.09

Total 1.00 2.54

EFES
core4 Strong Average Weak
.0
I. II. III. High
EFE Grow And Build
2.54 IV. V. VI. Medium
Hold and Maintain
VII. VIII. IX. Low
Harvest Or Divest

1.0 4.0 IFE 2.56 1.0 IFE Score

Quantitative Strategic Planning Matrix (QSPM) for Nestle

Factors Weight AS TAS AS TAS

Strengths
Strong Global Presence 0.12 3 0.36 4 0.48

Strong Brand Portfolio 0.14 3 0.42 4 0.56

Diverse Product Line 0.15 4 0.60 3 0.45

Strong Financial Performance 0.14 4 0.56 3 0.42

Strong Supply Chain 0.15 4 0.60 3 0.45

Weaknesses
Dependence on Developed Markets 0.06 2 0.12 4 0.24

Product Recalls 0.06 3 0.18 3 0.18

Legal Issues 0.06 3 0.18 3 0.18

High Debt to Equity Ratio 0.06 2 0.12 4 0.24

Low Innovation and Creativity 0.06 2 0.12 4 0.24

Opportunities
 Growing Demand for Healthier Products 0.11 4 0.44 3 0.33

Increasing Popularity of Organic Foods 0.12 4 0.48 3 0.36

Emerging Markets 0.10 3 0.30 4 0.40

Strategic Acquisitions 0.08 3 0.24 3 0.24

Technological Advances 0.06 2 0.12 4 0.24

Threats
Intense Competition 0.13 2 0.26 4 0.52

Fluctuating Currency Exchange Rates 0.09 2 0.18 3 0.27

Changing Consumer Preferences 0.12 2 0.24 3 0.36

Government Regulations 0.10 3 0.30 4 0.40

Natural Disasters 0.09 1 0.09 4 0.36

Total 1.00 4.32 7.48

In this QSPM analysis, we first list the factors, their respective weights, and then assess
their attractiveness scores (AS) and total attractiveness scores (TAS) based on the
external