Question: Develop a SWOT Matrix for Nestlé S.A.

Purpose: The most widely used strategy formulation technique among firms worldwide is the SWOT Matrix. This exercise requires development of a SWOT Matrix for Nestlé. Matching key external and internal factors in a SWOT Matrix requires good intuitive and conceptual skills. You will improve with practice in developing a SWOT Matrix.

Instructions: Recall from Exercise 7B that you already may have determined Nestlé's external opportunities/threats and internal strengths/weaknesses. This information could be used to complete this exercise. Follow the steps outlined as follows:

Step 1 On a separate sheet of paper, construct a large nine-cell diagram that will represent your SWOT Matrix. Appropriately label the cells.

Step 2 Record Nestlé's opportunities/threats and strengths/weaknesses in your diagram.

Step 3 Match key external and internal factors to generate feasible alternative strategies for Nestlé. Record SO, WO, ST, and WT strategies in appropriate cells of the SWOT Matrix. Use the proper notation to indicate the rationale for the strategies. Try to include four strategies in each of the four strategy cells.

Step 4 Compare your SWOT Matrix to other students' SWOT Matrices. Discuss any major differences.