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Operational Strategy in Nestle

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Operational Strategy in Nestle
The University of Nottingham The School Business Studies

OPERATIONAL STRATEGY OF NESTLE BEVERAGES IN PAKISTAN

Submitted by: Saad Ahmad Khan

The dissertation submitted in partial fulfilment of the requirements for the completion of MSc Operations Management

July 2007

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Table of Contents
Topic 1) Introduction What is strategy? Rationale Research objectives Research questions Company background and products of focus Structure of the Report 2) 3) Methodology Literature review Manufacturing strategy Logistics strategy and Distribution Strategy Warehousing strategy Sales strategy Corporate strategy 3) 4) Existing Products in the Beverages Sector Existing operations strategy Manufacturing strategy Logistics strategy and distribution strategy Warehousing strategy Sales strategy Corporate strategy Page No# 5 5 7 8 8 9 11 12 14 15 23 30 36 42 47 48 48 50 54 58 60

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5) 6) 7) 8) 9) 10) 11) 12) 13)

Competition in the beverages sector Competitor strategy Discussion and recommendations Conclusion Bibliography Appendix 1 Appendix 2 Appendix 3 Appendix 4 (Complete product list) (Warehouse Sheikhupura) (Warehouse Kabirwala) (Warehouse Lahore)

62 65 69 79 81 85 91 92 93

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Introduction What is strategy?
Strategy from a traditional point of view can be divided into four main points Plan: It’s usually a top down traditional approach. It is developed consciously and implemented. It is derived through a rational and analytical process Ploy: It is a subset of plan involving a bit of game play. Usually it’s a manoeuvre threatening action with little intention of implementation. Position: This is the relationship of company with its environment. This usually includes strengths, weaknesses, Opportunities and threats Pattern: It’s usually a stream of actions which shows a consistency of behaviour and can be intended or unintended. Protective: is usually internally determined and involves culture, ideology, characteristics shared by members of company.

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