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    Nestle's Business Strategies


    With regard to the attached article, I need some help answering the following questions.

    1) What kinds of business-level strategy is Nestle pursuing here? Explain.

    2) What kinds of competencies do its CEO and managers possess that allows it to pursue these strategies and how do we know this?

    3) In what ways may its strategies allow it to outperform its rivals such as Kraft and General Mills? Explain.

    Any opinion, detail, or reference to other sources will greatly help for my expanding on this for a project.

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    Solution Preview

    Kindly rate 5/5 for my notes and quotes:

    Nestlé's cost management is its major area of strategy triumph, I feel. The article reveals how Bulcke employed a clever (but risky in my opinion!) technique to leverage commodity prices and seek stability in his "...a strategy that doesn't depend on commodity prices falling. In order to reduce operational costs, he increased prices and debuted higher-margin, upscale products, where "...which raw material costs account for a smaller portion of the retail price."

    In addition, they also minimize the impact of commodity prices by creating premium products.

    I also see a major benefit in their ability to diversify their products beyond chocolate and coffee since "...Nestlé in Europe is rolling out ...

    Solution Summary

    Specific evidence is given from the article to demonstrate the business-level strategy from Nestle. An attached article is assessed.