http://sbinfocanada.about.com/od/businessplanning/g/missionstatemen.

htm
http://www.businessdictionary.com/definition/vision-statement.html
http://www.ukessays.co.uk/essays/marketing/nestle-company.php
http://searchcio.techtarget.com/definition/core-competency
http://smallbusiness.chron.com/definition-business-objectives-goals-24983.html
http://managementstudyguide.com/strategy-formulation-process.htm
http://www.pakistantoday.com.pk/2013/06/17/business/pakistan-fifth-largest-milk-pruducer-despite-lowyield/
http://manifestedmarketing.com/2013/10/04/nestle-bcg-matrix-and-brand-divestment/
http://www.lawteacher.net/commercial-law/essays/hm-treasury-s-anti-money-laundering-policy.php
http://www.investopedia.com/terms/p/porter.asp
http://epaper.chinadailyasia.com/asia-weekly/article-2106.html
http://www.sbp.org.pk/reports/annual/arFY12/complete.pdf
http://www.thejaps.org.pk/docs/Supplementary/02/24.pdf
http://www.thejaps.org.pk/docs/Supplementary/02/24.pdf
http://tribune.com.pk/story/701021/moneymaker-milk-could-become-the-countrys-white-gold/
http://www.photius.com/rankings/geography/population_density_persons_per_sq_km_2012_0.html
http://www.bloomberg.com/news/2012-11-20/pakistan-stocks-best-as-violence-ignored-riskless-return.html
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H. Rowe, R. Mason, and K. Dickel, Strategic Management and Business Policy: A
Methodological Approach (Reading, MA: Addison-Wesley Publishing Co. Inc., 1982): 155.

Business Ethics/ Social Responsibility/ Environmental Sustainability Issues

Perform
External Establish
Develop
Audit
Vision
and Long-Term
Objectives
Mission
Perform
Statements
Internal Strategy
Audit

Formulation

Generate,
Evaluate, and
Select
Strategies

Implement
StrategiesManagement
Issues

Implement
StrategiesMarketing, Finance,
Accounting, R&D
Strategyand MIS issues

Global/ International Issues

Implementation

Measure and
Evaluate
Performance

Strategy
Evaluation

Comp
any
Levelowner
Functional
or LevelFinance, marketing,
R&D,
presid
manufacturing,
ent
information systems, and
human resource
managers
Operational Level- plant managers,
sales managers, production and
department managers

SMALL COMPANY

SWOT MATRIX

1.
2.
3.
4.

STRENGTHS-S
Socially Responsible Company
Nestl products enjoy strong brand image
Sales force as a major physical resource strength
Quality product distribution networks in country

WEA
1. Lack of aw
market
2. Nestle milk
because of l

OPPORTUNITIES- O
ew and weak competitors in the market
isposable income increased by 2.9% (2011-2012)
onsumer expenditure on food has increased by 26%
verage pace the past three years.
opulation density increased by 3.2% (per sq.km)
2011-2012)
opulation density (Persons per sq km 2012)
64.6
redit policy can be adopted to increase sales
otential in cold dairy market
ll companies contribute only 6% to processed milk
market
akistan is the third largest milk producing country in
he world with annual turnover of 20 billion litres,
ccording to 2012 official estimates.
THREATS-T
ngro and Haleeb as major competitors
Market segment growth could attract new entrants
aste of the consumer has already developed
egal & ethical issues
conomic slowdown can reduce demand
ffect of seasonality upon sales
trong advertisement by major competitors
he current growth in population and increasing
emand for food has created the need to produce
more milk.

5. Net Profit after tax margin increased from 7.2%

(2011) to 7.4% (2012).
6. Total sales grew by 22% to PKR 79.1 billion.
(2012)
7. Price earnings ratio increased from 34.9 (2011)
to 36.6 (2012)
8. Export sales have reached PKR 6.0 billion
(2011: 5.3 billion) recording a healthy growth of
15%.
OS- STRATEGIES

3. Revenue
decreased
4. Low credit
to retailers
5. Weak
pr
through we
6. Cannot lau
due to low i

More market penetration through effective sales

force (S3+S1)
Develop and promote cold dairy products
(S2+O7+O9+O3)
Create awareness and promote green marketing
concept among the people (S1+O4+O5)

OW- S

TS-STRATEGIES

Strong logistics to help counter the competitors

through market development
( S4+T2)
Related diversification to help in more global
expansion (S8+T3)

Developme
to target
(W6+O2+O
Increase
confectiona
more credi
increase t
(W3+W4+O

TW- ST

Strong adv
to commu
Nestl pro
customers b
(W1+W2+T
Increase p
more web
the industry

PKR Million
Sales
Gross Profit Margin
Operating Profit Margin
Net Profit after tax margin
Net profit after tax
Net Profit after tax

2012
79,088
27.2%
13.9%
7.4%
5,865
129.32

2011
64,824
25.8%
13.0%
7.2%
4,668
102.94

Change
+22.0%
+1.4%
+0.9%
+0.2%
+25.6%
+25.6%

Table: Summary Financial Performance for Nestle Pakistan in 2012

FINANCIAL POSITION (Appendix )

Nestl Pakistan net sales increased by 22% in 2012 as compared to 2011
Net Profit after tax margin increased from 7.2% (2011) to 7.4% (2012).
Earnings per share increased by 25.6% in 2012 as compared to 2011
Operating Profit Ratio in 2012 was 14% as compare to 2011 was 13%
Market Value Per Share increases by 4,733 (2012)
Average financial strength
INDUSTRY POSITION
Increase in consumer food industry
All companies contribute only 3-6% to processed milk market
Market segment growth has attracted new entrants to increase profit potential
Due to ease of entry in market, Engro food, Haleeb are properly utilizing their sources
Average financial strength

3
5
3
5
4
4

5
4
5
4
4.5

COMPETITIVE POSITION
Nestle enjoy strong customer loyalty
-2
Quality product distribution networks in country
-1
Nestle extended product life cycle is being ensured due to quality brand extension strategy
-2
Nestle product are market leaders in many product categories
-2
Average competitive advantage
-1.75
ENVIRONMENTAL POSITION
Economic slowdown can reduce the demand
Fluctuating rate of inflation in the country
Price range of competing products
Average Environmental Stability

-2
-2
-1
-1.75