PESTLE and SWOT analyses by Afzaal Jutt

1. GC University Lahore
Name:
Muhammad Afzaal
Roll No:
1134
Class & Section
B
Assignment :
PESTLE & SWAT ANALYSIS
Submitted To:
Miss Nosheen Rasool

2. SWOT ANALYSIS (Nestle)
1: Strengths
The biggest strength of nestle is it includes team focused and good policy.
Nestle looks on collective and oriented employees to work hard. And
second thing is Nestle has a big brand name because of their high level of
market share and the trust of the people from all over the world. Nestle is
trying all the time to achieve bigger volumes by renovating existing
products and innovating new products. Because of low cost operators by
which Nestle not only compete with others but also taking ahead.
This essay is an example of a student's work
2: Weaknesses
One of the major weaknesses of Nestle is Nestle Baby Milk because those babies
who fed on baby milk are become sick. And so many babies were died because of
nestle baby milk and then people boycott to buy nestle.
Weaknesses are internal factors. For example, a weakness could be the lake of new
product.
3: Opportunities
Opportunities are external factors, for example developing a distribution channel
such as Internet; change in the lifestyle of consumer is possible to increase the
demand for company’s products.

3. 4: Threats
A threat could be a new competitor in an existing market or a technological change
that makes existing products possible out of date.
PESTLE ANALYSIS (Nestle)
The main theme of PEST analysis is to measure market potential and situation, by
indicating growth or decline. PEST analysis can be used for marketing and
business development assessment and decision-making, and the PEST analysis
encourages proactive thinking, rather than relying on habitual or instinctive
reactions.
1: Political analysis:
Nestle’s baby milk can be affected by political change in several different ways i.e.
political change can influence public priorities and funding arrangements. Nestle
has to operate within the framework of laws set by Parliament, and that’s why it
depends on political considerations.
Government plays vital role by imposing the law and regulation on the companies.
Government set standard laws for companies that has to met otherwise they have to
pay fines.
Nestle is trying to met all the standard laws which are set by the government. For
example Health and Safety Act, Disability Act but unfortunately Nestle break the
law. Government laws and regulation in accounting standards, taxation

4. requirements, including tax rate changes, new tax laws and revised tax law
interpretations are highly influenced on Nestle business.
2: Economical Environment:
Nestle needs to have enough information about the country inflation rate,
economic growth rate, and national per person capital income, in which they are
willing to start their business. Economic condition varies from country to country.
Before starting the baby milk has focus on the above factors. These are the factors
that Nestle has to consider before setting corporate objectives.
3: Social analysis
Social or cultural environment had great impact on Nestle. The main focus of
social/ cultural includes the Social change involves changing attitudes and
lifestyles. The social and cultural environment is constantly changing. Different
countries had different culture (language, religious beliefs, food, family, clothing
and their lifestyle). Every country has different consumer taste and lifestyle and
Nestle has to develop effective strategies in order to met different lifestyle
consumer behaviour. Company is totally dependent on the consumer lifestyle and
their attitude. Product or services cannot be successful until company has enough
information about the consumer lifestyle. Nestle has to take social and cultural
factors under consideration in order to achieve their strategic objectives.
4: Technological:
Technological change has the most rapid, persistent and profound effect. It creates
opportunities for new products and product improvements and of course new

5. marketing techniques- the Internet, e-commerce. Technology creates opportunities
for new product or product improvements and new techniques of marketing such
as internet and e-commerce.Nestle uses technology by taking orders via telephone
and online by internet. Moreover, Nestle uses technology in various business
activities such as record of their customers and employees.
5: Legal
The legal factors are related to the legal environment of an organisation and impact
its demand and cost. For an example, Nestle was provided health and safety law
for their members. Nestle will pay the compensation for their members via their
free legal help scheme with personal injury specialists Thompsons Solicitors.
6: Environment
Any large organisation has an environmental impact. For an example, Nestle
respects the environment and is committed to environmentally sound business
practices throughout the world, thus taking into account the need to preserve
natural resources and save energy.