Competitive forces and strategic issues shaping Nespresso’s business environment in today’s environment

Description

1. Provide an in-depth external analysis of the competitive forces and strategic issues shaping Nespresso’s business environment in today’s environment. • Approximately 700 words excluding use of supplementary appendices  • You should select and use any (in your own opinion) relevant strategic models from the course. Explain why you selected these models and apply them to make your analysis. These may include including macroframeworks, scenario analysis Porter’s 5 forces an d i n d u s t r y theory, including disruption analysis and customer analysis/segmentation. Please avoid listing and descriptive content. Give your own judgements instead:It must contain structured critical evaluation with your own judgement and opinion. • Use additional information sources, e.g. company web site, company reports, Internet search, etc. to gather further information and not just the case material, which is not including the latest developments, such as the alliance of Nespresso and Starbucks. 2. Undertake an internal strategic audit of the issues that the Nespresso business faces using appropriate organisational & strategic models to complete your critical assessment. Select several relevant models from the course, such as “purpose, mission and vision analysis”, “strategic capability analysis”, organization analysis”,“culture analysis”, “financial analysis”. Explain why you choose to use each model. Include in this your analysis and judgement of the strategic change s at different levels in the Nestlé coffee business in the past years, initiated by the CEO, including the deal with Starbucks. Assess critically a l l t hose changes and their impact on company performance ( financial and non -financial), not just as described in the case but also based in your own research an developements untill now. U s e t h e c o n c e p t o f “ the exponential organization” to assess the potential for Nespresso to survive and succeed in digital transformation. Advisory notes: • Approximately 800 words excluding use of supplementary appendices. • Your strategic audit should concentrate on the internal aspects of N e s p r e s s o a n d t h e N e s t l é c o f f e e b u s i n e s s as an organisation. You should s e l e c t a n d use any (including your motivation to use these) relevant strategic models from the course. Also explicitly include your judgement of pasts trategic choices by the CEO and how these fit or do not fit into your analysis • Assess whether, in your opinion, the alliance/deal with Starbucks as from 2018 is necessary / desirable to realize the strategy and how it helps in the strategic objectives of the coffee business overall and Nespresso specifically • Include a financial analysis and evaluation of the results of the strategy in the period 2010-2019. Evaluate whether the strategy delivered as promised on financial targets. • Aspire to being critical. Do not outline any theories in an explicit fashion. Simply apply them to the context of the case. • Use additional information sources, e.g. company web site, company reports, Internet search, Annual reports, press releases, etc. to gather further information. 3. Based on sections 1-2, you are required to summarise the strategic options that you judge to be appropriate to Nestlé’s Coffee business interceptor Nespresso now (2019) and make definitive strategy recommendations for the CEO of Nestlé’s coffee business on how Nespresso should develop to sustain its future position in the its industry. Make your own assessment using tools for strategic choices as explained in the course, such as “strategic choices models” (portfolio analysis, TOWS matrix etc), “strategic direction models” (such as Treacy & Wiersema or others) and elaborate on the ways to implement these strategic choices (organic growth, innovation, M&A or any other strategy). You should financially substantiate the feasibility of your recommendations with a summarized, small, but clear business case/forecast. Advisory notes: • Approximately 500 words. No supplementary appendices should be used in this section. It is not appropriate. • Give a sound strategic reasoning behind your selected option or combination of options on the long term. Explain why this is a good choice linked to your preceding analysis and judgement. Use one or more of the models as discussed in the lectures on “strategic decision making” in the course. • You should financially substantiate the feasibility of your recommendations with a summarized business case/forecast.