Environmental Scanning of NESTLE

1. Economic Trends
(such as recession, inflation, employment, monetary policies)
Now in Pakistan inflation rate is almost 15.3%, so if any increase in inflation rate then increase
in prices of Nestle products which eventually affects the Nestle Pakistan. So inflation rate affect
mostly everyone in the industry so as nestle but nestle by the great decision making able to retain
55% of market share in Milk & Nestle Pure life. Economy growth rate accelerate is 7% and plus
which eventually affect the Nestle productivity & sales.
2. Competitive and Market Trends
(such as market/customer trends, entry/exit of competitors, new products from
competitors)
With the increase in the competitors there will be a increase in the number of related products
which eventually harm the Nestles market. Due to which the consumers demand pattern
fluctuate. So the current company that is operating in the market has a Low threat for the new
entrance. New entry can raise the threat of competition. But however the Nestle is big
organization being it competitor is not an easy task. There is some barrier for stop the new
entrance.

3. Political Trends
(such as legislation and regulation/deregulation)
Nestles 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 thats 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.

4. Technological Trends
(such as introduction of new production/distribution technologies, rate of product
obsolescence, trends in availability of supplies and raw materials)
Nestle focusing concentric and conglomerate diversification because in present era it is not
possible for any organization to exist in market for long run by providing just one product. So
Nestle are diversifying according to changing demand of customers and trends and is focusing on
product innovation by introducing new products with help of technological factors. Now by the
help of technology Nestle maintain the efficient scale of production which normally called
economies of scale Nestle has also established own web site which can be visited any one for
most recent news innovation and activities being taken in the organization. With the
technological change adoption the whole organization can be increased.
5. Social Trends
(such as demographic trends, mobility, education, evolving values)
Social trends had great impact on Nestle. Nestle develop effective strategies in order to met
different lifestyle consumer behavior. 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 always take social and cultural factors under
consideration in order to achieve their strategic objectives
6. Geographic Trends
(such as opening/closing of new markets, factors affecting current plant/office facilities
location decisions)
Nestle is international organization, being an multinational is always great as it is always backed
up by the parent company but however Nestle is doing best in this region because of the static
demand & less portfolio. Nestle management is key success factor of the company they are
highly committed & they do not compromise on their tasks. Quality & sustainability is another
factor that is giving nestle an edge against its competitors.