ECB30103 STRATEGIC MANAGEMENT

GROUP ASSIGNMENT 1 JANUARY 2021

Prepared by:
Name No ID

Ariff Luqman bin Peter Lisut 62212220297

Rafa Abdul Afaizal bin Rahim 62212120304

Hadwan bin Noh 62212219141

Nur Aisyah binti Ibrahim 62212220074

Muhammad Khairul Shahmi bin Kamarudin 62212119589

Prepared for:

Madam Rita Salwany Yazid

Question 1: Write the vision statement for NESTLE. (5m)
Nestle company vision is to be a leading, competitive, Nutrition, Health and Wellness
Company delivering improved shareholder value by being a preferred corporate citizen,
preferred employer, preferred supplier selling preferred products. By this vision statement of
Nestle, it is reflecting for long-term strategy towards longevity and relevancy of this company in
market. Firstly, nutrition, Nestle companies have invested in nutrition -related scientific research
in every product released. As example, Nestle has recently collaborated with the University of
California San Diego Center for Microbiome Innovation (CMI) to further raise our awareness of
the effect of microbiomes on people's health and accelerate the creation of novel dietary
alternatives to improve health and well-being.

Then, in other remaining aspect, Nestle focuses on particular aspects of the company's
core business activities, where value can best be generated for both public and stakeholders. As
example, Nestle evaluates the company's performance on an annual basis and reporting as one of
the company's means of transparency towards shareholders and the parties involved. In addition,
Nestle also ensures the quality of each of their products in the market, availability guarantee,
environmentally friendly packaging and so on. As an example, Nestle conduct materiality
analysis every two years that help to identify on economic, environmental and social importance
and looking for alternatives to safer and more environmentally friendly product manufacturing
parts, as well fully utilize domestic resources effectively and efficiently.

Lastly, the findings from this Nestle company vision are the focus for long -term plans
and meet every need in every party involved in the survival of Nestle companies in the global
market.
Question 2: Analyze the vision statement for NESTLE. (10m)
Nestle vision statement is “to be a leading, competitive, Nutrition, Health and Wellness
Company delivering improved shareholder value by being a preferred corporate citizen,
preferred employer, preferred supplier selling preferred products.”

For two factors, the vision statement is fascinating. The first is that the company's vision is
dedicated in part to its owners, also known as founders. The second is a chosen company.

The first and second sections of the mission declaration are intertwined in several ways. The
corporation will capture the demand by being the favored employer and provider. They (Nestlé)
guarantee that shareholders prosper from being the industry leader. As a result, it is fair to
assume that the company's primary goal is to be successful.

Nestle is excellent at setting the tempo and leading people in the same direction, according to
this statement. This argument has the following elements.

1. Be a leading company.
2. Delivering improve values.

Nestle has mastered the craft of leadership based on the extensive knowledge starting in the early
1900s. Many such companies have been credited with nudging them in the right direction in
terms of efficiency because of the company's efforts. It accomplishes this by providing
comprehensive programs to all its clients.

Question 3: Write the mission statement for NESTLE. (5m)

The mission statement for NESTLE company is “The world’s leading nutrition, health, and
wellness company Our mission of “Good Food, Good Life” is to give consumers the best, most
nutritious choices in various food and beverage categories and dinners, from morning to night. "
Question 4: Analysis of mission statement for NESTLE using 9 components. (10m)

Based on the 9 components of the mission statement contained in chapter 5 in this

Strategic Management book, the mission statement used by this NESTLE company is related to
those components. Therefore, I have made an analysis related to the mission statement of
NESTLE company with 9 important components of the mission statement.

The first 9 components of the mission statement are the customer. The phrase “to give
consumers the best, most nutritious choices in various food and beverage categories” is a mission
statement addressed to NESTLE’s own company customers. Based on this, it can be seen that the
mission statement prioritizes their customers. The second component is products and services.
On this component part it can be seen which NESTLE company has used the component in its
mission statement on the words “the world’s leading health and wellness nutrition company”.
With this they clearly state what product categories are being carried out. Markets and
technology are also components in the mission statement but are not used by NESTLE
companies in their mission statements. Next is survival, growth, and profitability. This
component involves the living environment as well as the business. Therefore, the words "good
food, good life" can also be linked in this component which they express about life on their
mission. In fact, the word can also be linked to the philosophical component where the word also
provides encouragement and advice for everyone who reads it. Self -concept, concern for public
image and concern for employees are also components of the mission statement but cannot be
linked to the NESTLE company mission statement.

In a nutshell, it can be said that this NESTLE company does not fulfil all the components
of this mission statement, but it is still acceptable because 5 out of 9 components in this mission
statement are used by NESTLE companies on their company mission statement.
Question 5: Identify who are the (i) primary stakeholders & (ii) Secondary stakeholders for
AIRBUS (10 m)

(i) Primary stakeholders

Shareholders: The Groups will generate value by developing a sustainably profitable

portfolio of aeronautics and space businesses.

Customers: Airbus Groups is a provider of choice, offering superior value for money
product and services.

Employers: Airbus Groups engage its employees as partners who share its goals and rise
to the challenge.

Suppliers: Airbus Group treats its suppliers as partners based on mutual interests.

Society: Airbus Group plays a key role in society and towards local communities.

(ii) Secondary stakeholders for AIRBUS

Competitors: Get informed about new development of competitors and acting

accordingly.

End-user passengers: Main customers for airline companies, seek safely and comfort
from the manufacturer.

Government Regulatory Bodies: Acting as per the regulations. Approve and provide
certificate per the tests.

Media: High coverage as it is a new generation mega project. Always kept informed
about the status.
Question 6: Analyze AIRBUS using SWOT analysis. (10m)

Airbus, one of the leading manufacturers of commercial aircrafts is headquartered at

Toulouse France. It has produced a large, modern, and efficient range of airliners with capacity
ranging from 100 to 500 seats. The company employees around 55000 people globally. It is
known for its focus on innovation and has sold more than 16300 aircrafts to more than 400
customers globally. Its design and production facilities and their subsidiaries are coated across
the globe throughout several nations.

The SWOT analysis of Airbus are, starting with the strength of the airbus that is, Airbus
group is an established company with a history of forty years. Airbus has supplied more than
16300 aircrafts with 55000 working staff. They are one of the leading aircraft manufacturers,
commercial aircrafts as their specialization. Airbus has established Airbus BIzlab which is their
research and development team, which played a crucial role in the advancement of the air
transportation industry. The manufacturing and design facilities of Airbus are in Germany,
France, UK and Spain. Also, as subsidiaries in the US, India, China, Japan and in the Middle
East. Airbus has designed various models with high fuel efficiency with improved seating.

Furthermore, the weaknesses of Airbus Group SE are, they are production and operating
costs at Airbus are very high which is a major drawback. Airbus faced issues with its key
programs, for example, vA350s planes are troubled with difficulties which were due to the cabin
items. In a year Airbus had supplied only 8 of (A320) Neos out of 30. They even faced
difficulties in their helicopters when one of their super puma helicopters crashed. Airbus also has
the declining popularity of A380s. At the time, Airbus launched the A380s, it expected its super
jumbo jet was going to be a super hit. It also achieved some success in the short run but in the
long run failed to be as successful as Airbus had expected. Several airlines cancelled their orders
for the A380s. Production of A 380s is expected to be reduced to one per month.

Next, we move on to the opportunities for Airbus Group SE. In the 21 st century there is
more demand for air travel, which results in high manifold over the coming years. There is a
need to focus on technological innovation. Although Airbus has delivered some great models,
but technological innovation reduces the competitive pressure. The other opportunity is they
have better economic conditions. The recession is past, and the world economy has grown
stronger since the recession. The condition of employment has grown better worldwide which
has led to increased expenditure on tour and travel. The rise of the middle class is another factor
driving growth in airlines business.

Finally, the threats, although Airbus owns a huge market share, but Boeing is its one of
the biggest competitors. Boeing also accounts for good fuel efficient and variety of models
whose functioning is hard to equal. There are numerous passenger safety and other issues which
put a lot of pressure on Airbus when manufacturing aircrafts. Airbus has also monetary issues as
they use 3rdparties to make deals abroad which will create pressure and might become a
challenge.

To be concluded, Airbus Group SE specializes in providing aeronautics, defense and

electronics solutions, and space related services. It manufactures commercial aircraft, passenger
aircraft, corporate jets, and freighter aircraft. Based on the case study, these are the SWOT
analysis of the Airbus Group SE company.