PRESENTATION ON

CORPORATE STRATEGY ON
February 13,
2020
PRESENTED BY:
Aishwarya H(18MBARB173)
Ajit Shukla(18MBARB003)
Raghavendra Jinka(18MBARB017)
K Preeti(18MBARB018)
N Aishwarya(18MBARB026)
Selvaraj MR(18MBARB045)
Sharan R Mukund(18MBARB046)
Sukanth SR(18MBARB068)
 INTRODUCTION TO AGRICULTURAL SECTOR

Began around 9000 BCE

Irrigation channels reach a new level
comprehensive agricultural program
Food Campaign
Production Programme

 Farming of domesticated species created food surpluses

 Cultivated in at least 11 regions
 About 2 billion people still depend on it
 Broadly grouped into foods, fibers, fuels and raw materials
 One-third of the world's workers are employed in agriculture
 INTRODUCTION TO DAIRY INDUSTRY

Early as 12,000 years ago

Dairy production is the seventh millennium
long-term production
Involves wide variety of milk products
Many by-products
Growth in the world(6.4% Annually over the last four years)
 INTRODUCTION

Formed in 1946, is a dairy cooperative movement in India

A brand name managed by Gujarat Co-operative Milk Marketing
Federation(GCMMF)
Jointly owned by 2.79 Million milk producers in Gujarat Spurred The White
Revolution of India, which has made India the largest producer of milk and milk
products in the world
 Overseas markets- Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore,
Hong Kong and a few South African countries
Fresh plans of flooding the markets of Japan & Sri Lanka
Dr. Verghese Kurien, former chairman of the GCMMF – the man behind the success
of Amul
Has a 15% market share in the Rs. 15,000 Cr milk category, and a 37% share in the
Rs. 900 Cr organized ice cream segment
 Liberate our farmers from economic oppression and lead
them to prosperity. The taste of India is to be a part of
everyone’s life

Dairy Cooperatives of Gujarat Turnover of

Rs. 27,000 Cr by the year 2020
Expansion of distribution network, creative marketing,
consumer education and product innovation

To ensure that the maximum share of the consumer’s rupee goes back to the milk
producers.

REVENUE: Rs.38,000 Cr
 INTRODUCTION
Nestle is a Swiss-German word which means “Little Nest”
Formed in1867, founder : Henri Nestlé
Henri was a trained pharmacist, who made an attempt to develop an alternative
source of infant nutrition
Headquarters: Switzerland
Nestlé was formed by the merger of the Anglo-Swiss milk Company
The company grew significantly during the First World War and again following the
Second World War
Nestlé has 447 factories, operates in 189 countries and employs around 339,000
people
Twenty-nine of Nestlé's products have annual sales of over CHF 1Billion( around
1.1 Billion US$)
5th largest company of the world according to its turnover
 Respected, trustworthy food, nutrition, health and
wellness company

Their Mission is to provide consumers with the

best tasting, most nutritious choices in a wide
range of food and beverage categories and eating
occasions, from morning to night

Nestlé's objective is to be the recognized leader in Nutrition, Health & Wellness, and the industry
reference for financial performance

REVENUE:CHF 9,143 Cr
SWOT Analysis Of Amul

Strength
Weakness
Exceptional
Lawsuits
Growth
Operational Cost
Large production
Portfolio
capacity
expansion

Opportunity Threats
Per capita milk Increasing
consumption Competition
International Negative media
Market coverage
SWOT Analysis of Nestle

Strength
World renowned brand Weakness
Extensive distribution Maggie controversy
system Legal and consumer
Large workforce issue
R n D Centers

Threats
Opportunity Competition in the
Expanding market market
Strategic alliance Price of the products
Buyers power
 VRIO ANALYSIS OF AMUL

VALUE
The financial resources of Amul Dairy are highly valuable
as these help in investing into external opportunities that
arise. These also help Amul Dairy in combating external
threats.
Amul Dairy’s distribution network is a valuable resource.
This helps it in reaching out to more and more customers.
Amul Dairy's employees are a valuable resource to the firm.
A significant portion of the workforce is highly trained,
and this leads to more productive output for the
organization.
Rare
The local food products are found to be not rare. These are
easily provided in the market by other competitors.
The employees of Amul Dairy are a rare resource. These
employees are highly trained and skilled, which is not the
case with employees in other firms.

Imitable
The distribution network of Amul Dairy is also very costly
to imitate by competitors. This has been developed over the
years gradually by Amul Dairy.
The financial resources of Amul Dairy are costly to imitate.
These resources have been acquired by the company
through prolonged profits over the years.
Organization
The distribution network of Amul Dairy is organized.
Amul Dairy uses this network to reach out to its
customers by ensuring that products are available on
all of its outlets.
The financial resources of Amul Dairy are organized
to capture value. These resources are used
strategically to invest in the right places; making use
of opportunities and combating threats.
 VRIO ANALYSIS OF NESTLE

VALUE
Its local food products are a valuable resource as these
are highly differentiated. This makes the perceived
value for these by customers high.
Its patents are a valuable resource as these allow the
firm to sell its products without competitive
interference.
RARE
Nestle has been world leader in the large number of
nutritional technologies like fermentation, pro-biotics,
extrusion, foam booster technology, malt extraction
etc.

The company has dedicated group of food scientists

who have successfully lot of their offerings.
IMITABLITY
Nestle has been market leader in snack with their most popular
offering maggi. Although imitability is significantly low.
It has been able to sustain market with continuous R&D and
marketing.

Organization
The distribution network of Nestle is organized. Nestle uses this
network to reach out to its customers by ensuring that products are
available on all of its outlets.
The patents are a source of unused competitive advantage. There
exists a temporary competitive advantage for employees. There
exists a competitive parity for local food products.
 Mckinsey’s 7-S Framework of AMUL
1. Shared values : Amul are bonded by the common values of co-operativeness and
helping the farmers of thr country.
2. Structure : BOD<M.D<G.M<A.G.M<OFFICERS<SECTION HEAD<STAFF
3. Strategy : a) Developing demand, b)the distribution network, c) Umbrella brand
4. Skills : Amul are the modern example of the skilled professional people managing the ag.
Outputs.
5. Staff : The professionals from the field of management to that of engineers, scientist and
continues it till the last milk delivery person.
6. Style : The core strategy of amul has been to provide the milk essentials at a best price, for
which they have adopted the best cost strategy.
7. Systems : various systems like recruitment, selection, performance appraisal and others.
 Mckinsey’s 7-S Framework of NESTLE
1. Shared values : Nestlé does not favor short-term profit at the expense of
successful long-term business development.
To create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners.
2. Structure : It has it’s operations divided worldwide on the basis of 3 zones of
continents.
3. Strategy : a)Operational efficiency, b) Innovation and renovation,
c) Whenever, wherever, however, d)Consumer communication.
4. Skills : All production plants and Laboratories are equipped with the latest equipment
5. Staff : 508 factories , 80 countries, 260 operating companies, One basic research centre, 17
technological development groups , in excess of 2,30,000 employees.
6. Style : Nestle follows an Autocratic form of Management style.
7. Systems : various systems like recruitment, selection, performance appraisal and others.
 PORTER’S 5 FORCE MODEL

THREATS OF NEW ENTRANTS BARGAINING POWER OF BUYERS

 Required high capital investment and  Presence of multiple competitors,

difficult to achieve economies of Dudhwallas.
scale.  Home delivery and freshness of local
 Access to very complex and well dairy products make this more complex.
established distribution channel
customer Loyalty.

RIVALRY AMONG
COMPETITORS

 Large number of competitors.

 Local Dudhwallas

THREATS OF SUBSTITUTIONS BARGAINING POWER OF

SUPPLIER
Although many drinking substitutes to
milk are available , the dairy industry Mainly the suppliers are local milk
enjoys high profitability in case of other producers ; their bargaining power is low .
dairy products.
PESTLE Analysis
PORTER’S 5 FORCE MODEL

THREATS OF NEW ENTRANTS(Low) BARGAINING POWER OF BUYERS(High)

The food processing industry is very large Although a lot of substitute products and
and competitive; it is not uncommon for competitors Nestle customers have very
firms within the industry to do quite well. influential choices but still the quality that has
maintained by Nestle has made it very successful
among the users

RIVALRY AMONG COMPETITORS

Nestle has a very strong position in the
food processing but few major rivals do
exist in the industry like Kraft Foods and
Group Danone

THREATS OF SUBSTITUTIONS( High) BARGAINING POWER OF SUPPLIER(High)

In recent years, Nestle has focused on the
health and wellness aspects of its products to
maintain its competitive edge and customer
loyalty in the market.
Nestle as always focused over strong and sturdy
business relations to make the ongoing quality
stronger. Additionally, Nestle also presents helpful
guidance to its suppliers on how to work more
proficiently to decrease redundant expenses.
PESTEL Analysis
 Industry Life Cycle
1. Industry is in
infancy stage
2. Focused 1. Requires significant
strategy at amount of capital
this stage to 2. Growing demand
stress 1. Rate of
creates sales growth demand
product
slowed from
Growth Almost inevitable in
stage an industry. If product
2. Low- Innovation has not
cost/low kept pace with other
price competing
strategy to products/service
increase
volume of
sales
Blue Ocean Strategy Red Ocean Strategy

Compete in
New market
existing
Creation market

Make
Beat
competition competition
irrelevant

Capture more
Create new of Existing
demand Demand
 Amul Innovation
In 1970, per capita of milk consumption in India was 111 gm
and today it is 350 gm, it is growing at the rate if 2% per
annum
Modernise dairy farming using milking machines instead of
hand milking
Cow to consume programmes introduced by the company to
modernize dairy farming
Amul creates a digital account for a farmer
Opened more than 26 lakh digital accounts for farmers in the
last month
One would earn Rs. 40,000 per month through commercial
dairy farming which is more than urban India
 Dynamic Growth Strategy
Amul Strategy that includes a packaging revamp, expanding
production capacity and extending distribution network to
reach out to smaller towns and villages across the country
Increase of 15% in sales in our small packs for milk powder
available at R5 and also R10. Also, the demand for Amul
Butter packs(20gm at R50) has increased by 15%
Amul currently leads with around 40% of the market and
faces stiff competition by selling its milk powder brand
Govardhan at R10
Amul have increased the price of Amul Milk by 3-5%
 Nestle Innovation
The Package of Nestle can be re-usable for the customers
Product with less sugar compared to other brands
Focus on what amount of nutrition required for targeted
customers
Appointed teams to directly interact with customers
Quick product development
 Dynamic Growth Strategy

Our Nutrition, Health and Wellness Strategy

Investing in high-growth categories and regions
Fixing underperforming businesses
Innovating products and business models
Embracing Digital Opportunities
Reducing costs