Topic: Strategy Formulation

1. Construct a TOWS Matrix using the SWOT Analysis below. Formulate strategies from the combination of the factors identified in the SWOT table. A maximum of three strategies per type (S-O, S-T, W-O and WT).

2. After preparing the matrix, discuss the strategies you have formulated.

Strengths	Weaknesses
1. Nestle's low-cost structure allows it to manufacture at a low cost and sell at a low cost, making its prices affordable to its customers.	1. Operating inefficiency is a result of having too many brands in too many food categories.
2. Nestle has a diverse product portfolio. Product portfolio with a wide range of options. Nestle has a strong presence in a variety of food categories and markets.	2. Employee morale is poor as a result of the company's growing culture and politics in recent years.
3. Nestle has a significant asset base, which helps it to be more financially stable.	3. In recent years, competition has increased and competent individuals have left the organization, perhaps resulting in a talent scarcity in the coming years.
4. Brand recognition: Nestle is a well- known brand that has been on the market for many years. As a result, its brand is well-known.	4. Since the last two years, Nestle has not performed market research in the market it serves. As a result, it is making judgments based on data that is two years old, even though client demands may have changed.
5. Its goods have retained their quality throughout time, and consumers continue to see them as excellent value for the money they spend.	5. The decision-making is highly centralized. This slows down processes and diminishes efficiency. It also limits innovation.
Opportunities	Threats
1. Technological advancements: technology has various advantages in many fields. Automated manufacturing processes can save money. Technology boosts customer data collection and marketing activities.	1. As the number of suppliers has decreased, so has the bargaining power of suppliers. Nestle's input costs may rise as a result.
2. Following the recession, typical family income and consumer expenditure have risen. This will increase Nestle's target market by attracting new clients.	2. Increasing industrial rivalry has pushed down prices. Nestle may lose market share if it does not modify its prices.
3. Globally, more people are using the internet. Nestle may use the internet to communicate with its consumers and so enhance its online presence.	3. The availability of substitute products is expanding, posing a challenge to the business as a whole.
4. The e-commerce business has seen a new trend and increased sales. This implies many individuals are now shopping online. Nestle may make money by selling products through internet marketplaces.	4. The currency rate fluctuates, affecting companies like Nestle that sell globally yet source locally.

5. Consumers are becoming more health concerned, and this market sector is rising. Nestle can profit by producing healthy products for customers.	5. Consumer preferences shift, putting pressure on businesses to adapt their offerings to match changing consumer demands.