General EnvironmentNestlé Pakistan Company Limited

Unilever Company Pakistan Limited

General EnvironmentThe General Environment Covers All The

External Activities Of A company As Well As It Focuses On The Competitor .

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis .

General Environment Industry Environment Threat of new entrants Power of suppliers Power of buyers Product substitutes Intensity of rivalry Competitor Environment Economic Political/Legal Technological Global  Demographic Socio-cultural.

General Environment Influences the industry and firms inside the industry Firms can not directly control these but collect information and formulate strategies.

Six Segments1. Demographic2. Economic3. Political/legal4. Socio- cultural5. Technological6. Global

1-Demographic Elements:Population size Age Structure Geographic

distribution Environmental Changes Social Changes

 Double income, consumerism, superior- higher education for kids, working women, less time for household work, health consciousness, healthy food, vacations.

Subway, Pizza Hut, Five Star hotels, Apollo Executive Health Check, SIUT

Demographical ChangesPeople live longer - Old age requirements,

homes, security, superior health services, self reliant, gadgets, entertainment to keep busy meaningfully, to learn new hobbies without physical demands, will remain active and healthy- find a product or service, psychological demand - sense of belongingness- counseling, spending of time

Medical insurance

2-Economic Elements:Inflation rateInterest ratesTrade deficit or surplusPersonal savings rateBusiness savings ratesGross domestic productBudget deficit or surplus

3-Political/Legal ElementsLawsTaxationMonopoliesPolitical pluralismPolitical philosophyJudicial System

4- Socio - Cultural ElementsWomen in WorkWork force diversityCultural valuesAttitude towards life and quality of life and

productsEducationMaterialist aspects

5-Technological ElementsProduct InnovationR & D spendingQuick diffusion of technologyApplications of knowledgeFocus of private and government-supported

R&D expendituresNew communication technologiesProduct Obsolescence

6-Global ElementsFor-exTreatiesWTOUNTrade Barriers

Nestlé Pakistan

Environmental Sustainability Vision for NestléFollowing Nestlé’s global commitment,

Nestlé Pakistan encourage environment-friendly business activities. Endeavoring to achieve the least possible environmental impact throughout its operational stages by complying with environment laws and regulations.

Mission for SocietyThe success of our business is only possible if

the society is prosperous. To achieve prosperity, Nestlé follows principles of ‘improved environmental performance’ and ‘safety and health of employees’. This is assured throughout the value chain, from farm to fork.

Ambition for EnvironmentNestlé is working towards increased environmental

sustainability by following eco-friendly practices, starting from the stage of operational planning. Trying to increase production while minimizing resource consumption, waste and emissions. Factories of Nestlé Pakistan are in full conformance with the requirements of ISO 9001, 14001, OHSAS 18001, FSSC 22000 & NQMS. All industrial units in Pakistan are fitted with testing and monitoring equipment and services for waste and air emissions.

Solar and Bio-Gas EnergyPakistan is experiencing an energy crisis; there is short

fall due to almost a 50% reduction in power generation capacity of dams. Nestlé Pakistan has taken a number of measures to find alternative energy resources for its operations.

Solar Energy (Electricity Generation and Water Heaters)Nestlé Pakistan has a huge set up of Milk Collection across Punjab and Sind. Collected milk is chilled at chillers installed in the field. The shortfall of energy, frequent interruptions and cutting off of power supply can affect the quality of the milk so backup generators have been provided at each milk collection centre.

Competitors

Nestlé Vs. UnileverHistory Nestlé and Unilever had completely different

starts. – Nestlé (1866): one man’s idea! – Unilever (1930): Merger between two existing companies active in two different fields, but with same raw materials • Both companies grew through numerous acquisitions (Nestlé under his brand as family brand, Unilever with individual brands)

70s Nestle acquires first non-food companies • 80s Unilever: sleeping giant, Nestlé Internal adjustments and diversifications . 90s new markets in Eastern Europe and China. End of 90s / 2000: Unilever: total restructuring: path to growth, radical brand cutting, Nestlé towards Health and Wellness .Today both multinational companies operating worldwide

Company / Competitive Fact sheetNestlé Unilever

Position in the world

The world largest food manufacturer

Supplier of consumer goods in food (nr. 5), home and personal care markets

Presence In ca 200 countries world wide Headquarters in Vevey, Switzerland

In ca 160 countries world wide Headquarters: For food Unilever Plc – UK-London For home and personal care Unilever NV – The Netherlands - Rotterdam

Workforce

253.000 employees 234.000 employees

Activities • Food - Beverages • Pet care • Pharmaceuticals

• Food – Hot Beverages • Home Care • Personal care

Nestlé UnileverDivisions Beverages, milk products,

nutrition and ice-cream, prepared dishes, cooking aids, chocolate, confectionary, biscuits, pet care, food services, Alcon and pharmaceutical and cosmetics joint ventures;

Food and home (culinary products, frozen foods, Ice-cream, Tea-based beverages, Spreads and cooking products, household care, Laundry) Personal care (Deodorants, hair care, personal w ash, oral care and fragrances)

Mission/ Vision

The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. : Goo d Food – Good Life!

Unilever's mission is to add vitality to life. We meet the everyday needs for nutrition, h hygiene, and personal care with brands that help people feel good, look good and get more out o f life.

Strategy Adapt products to local tastes • “target 2004+”: Low manufacturing costs • “Globe” – technological platform for the group / E-marketing • Become a food, n nutrition, health and wellness company

• Global brand s that meet local needs • Completion o f Path to Growth strategy (sales growth of 3-5 % ) • Vitality at the core of mission • Make greater use of corporate brand

Nestle Strategy

Unilever strategy

Unilever SWOT AnalysisStrengthsStrong corporate cultureGovernment and NGO relationsSupply chainWeaknessesBrandingDistance to the consumer

OpportunitiesResponding to the global issues -sustainable

initiativesBrand equity Consumer safetyThreatsPrice-war/ retailers powerPrivate Label Competition EU approval procedureWeather

Nestlé SWOT AnalysisStrengthsCorporate BrandFragmented SuppliersSize of OperationsCash GenerationWeaknessesFor-ex impactCommodity based Potential conflict between health & wellness

image and selling sweets

OpportunitiesFunctional Foods in Ready MealsJoint Ventures in Strategic AreasAsian MarketThreatsCorporate BrandPrivate Label CompetitionEnergy and distribution costs

Sources

Here below are some of the sources which I have used during this assessment of General Environment of both the companies:

I. www.nestle.comII. www.unilever.comIII. www.economist.comIV. www.google.com

By: Tarique Jan SoomroAssignment Topic: General Environment with

respect to the Multi National Company(MNC). And its competitor

Department: Business AdministrationClass: BBA-II (B) 3rd SemesterRoll No: 14-381Teacher/Instructor: Sir Asif Channa