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Political Factors:

1. Regulatory Environment:

Nestlé has operations in a number of nations, each with its own regulations and
policies. The adjustments to regulations related to labelling, advertising, and food
safety may have a major impact on how the business operates.

2. Trade Policies:

Tariffs along with other international trade regulations may have an impact on
Nestlé's cost structure and supply chain. The company's ability to access important
markets may be affected by changes in trade agreements or conflicts between
countries

3. Political Stability:

Business continuity depends on political stability in the nations where Nestlé handles
business. Supply chains and operations can be interrupted by instability or
geopolitical tensions.

4. Taxation Policies:

The financial results of Nestlé may be impacted by shifts of tax regulations on a


national and international level. The financial performance of the company can be
impacted by tax rates and incentives.

5. Social and Environmental Policies

It is essential that Nestlé maintains social and environmental responsibility.


Corporate social responsibility is becoming increasingly essential to governments
and consumers, and non-compliance can have impact on operations and reputation.
Technological Factors:

1. Innovation in Product Development:

The ability of Nestlé to innovate in product development is influenced by


advancements in technology. This includes the creation of fresh formulas,
manufacturing procedures, and packaging developments.

2. Supply Chain Technology:

The innovations in supply chain technology, like blockchain and IoT (Internet of
Things) devices, might enhance transparency, traceability, and efficiency in Nestlé's
supply chain.

3. Digital Marketing and E-commerce:

Nestlé's distribution channels and marketing strategies may be influenced by the


growth of e-commerce and digital marketing. The business must adjust to
transforms in how customers behave when making purchases online and using
digital platforms.

4. Data Analytics and Consumer Insights:

In the food and beverage industry, it is vital to utilize artificial intelligence and big
data analytics to collect consumer insights. Nestlé might use technology to gain
insights into consumer preferences and adjust its products and marketing strategies
accordingly.

5. Sustainability Technologies:

As a component of its commitment to sustainability, Nestlé may implement eco-


friendly technologies into its waste management, packaging, and production
processes. Sustainable advances in technology can improve the business's
environmental policies.

6. Automation in Manufacturing:

In the manufacturing industry, automation and robotics can lower costs and increase
efficiency. To remain competitive and uphold operational excellence, Nestlé might have to
make investments in and implement these technologies.
7. Cybersecurity:

With regard to its global reach and extensive digital operations, Nestlé is required to
take cybersecurity risks seriously. It is crucial to protect financial data, intellectual
property, and customer information from cyber threats.

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