Question

1. Create an Internal Factor Evaluation Matrix (IFE) and a Competitive Profile Matrix (CPM) for the company Nestles Trinidad and Tobago.

2. Construct an External Factor Evaluation Matrix (EFE) for Nestles Trinidad.

Answer 1

Nestles Trinidad and Tobago is the largest food manufacturig and bevarages company in Trinidad and Tobago. they are trying to provide quality and nutritional products to the customers and also they thinks that customers are the most important asset of the company.Because of this ,they are having business in 80 countries .The main objective of the company is to provide quality products and also their vision is to be a leader in Nutrition health and wellness and also providing profitable business and confidence from all their stakeholders.Fot the company its not the size but the behaviour and the also the trust which they have gained over the years in the industry.The main tagline of the company is "Good Food,Good Life".

Internal Factor Evaluation (IFE) matrix is a strategic tool for evaluating and analysing major strength and weakness,of internal factors in the organisation.They will evaluate different functional departments and will try to find out the strength and weakness of the same and also how each areas are interrelated .

Following are the Factors which affect the IFE matrix:

Strength:

1. Product innovation: The company tries to  innovative their products according to the customer's taste and preference.Hence they are able to acheive customer satisfaction through diversified product range which nestle is having
2. Strong brand image and Brand value:The company tries to bring strong brand image and brand value of Nestle.The brand image is the customer point of view about the product and also it is the perception about the product in the Customer's mind and brand value is the financial value of the brand from the customers.It is the financial value or the profit which it receives from the brand
3. Technology Upgradation:The company tries to adapt new technology in the company to improve the product range and to innovate the products.
4. Distribution network: As the company is distributed in 80 countries hence their distribution network is very strong and diversified.
5. Excellent management team: The company is having an excellent management team including Research and development team, HR team, marketing team and all other employees work in ateam to achieve its vision and mission
6. Coordination with parent team: The company tries to have a coordination with the parent company and also they are having a great support from the parent company.

Weakness

1. Nestle does not aim equally at all products: The company is not able to concentrate on its all the product range hence when the company tries to achieve products in one product range they will have losses in another

2. Distribution cost is high and also its a complex task:As the comapny is a having a very wide range of distribution because of this it is a complex task including exporting,importing payments.And also the distributioncost is very high.

3. Compete in many markets: The company have to compete in many markets as they are having large distribution network and also they have to compete in many markets.

4. Weak in Customer care:The management is very slow in providing solutions to the customers as they are having wide range of products .And also their customer service is very slow in processing the complaints.

Competitive Profile Matrix (CPM)is a sttegy tool which will defines the comparison between the company and its competor and also try to compare the company's factors including strength weakness, opurtunitties and threats with comaprison to the rivarlaries.

The Critical Factors in comparison with Competitors:

1. Localization in globalisation:The company is trying to localizing among the world market as the company is having wide range of market and it is very easy for the company to localize their products among their customers
2. Brand Strategy: The company is having different brand categories and diversification hence the company is having a strategy in which they will try to categorise under same banner known as 'NESTLE'
3. Mergers and Acquisations:The company is having many successful M&A around the world hence it is getting into emerging and developed markets,with existing and new product categories.

External Factor evaluation is the strategic and management tools which will define the opportunities and threats the company faces and also it is the current situation of the company and it will show us the factors which have to prioritised and find out the threats.

Opportunities:

1. Trend among the customers:The trend among the customers is fast moving and also the company is having high opportunities to achieve the different target markets
2. Quality of products: As the company is having a good opportunity with the quality of products.Nowadays the customers are having much interest in quality and healthier products.As nowadays the customers are much interested in nutritional and quality products
3. Modern Technology: The company is adapting new technology due to which they are able to compete with competitors
4. Eco friendly Products: The company try to provide eco friendly products and also the company try to reduce the wastage in packing and try to make waste free products.

THREATS:

1. Competition is high for Nestle in many parts of the world where they are having same and similar products
2. Government regulations are getting more strict hence they have to abide by the laws provided by the government.Inspection are a must in the food industry due to which the company have to keep the standards.
3. Many customers are having the issue of lactose intolerance because of this people are having confusion in buying the milk related products
4. Water is a big issue as water is getting scarce and this resource a very important ingrediant in the making process.The company is having major issue with the resources.