Question

QUESTIONS 2:
There is the need for an organization to continually appraise and reappraise its business
environment.
Required:
(a) Using PESTLE as a tool, identify a company in Ghana and conduct analysis on the
company's business environment. Your analysis should reflect how the organization can
strategize to achieve a competitive advantage.
(b) Using Three Cycles Analysis technique, identify a company and examine the customers’
needs, company offerings, and competitor’s offerings. Articulate what the company’s
competitive advantage is and how it differs from those of competitors.

Answer 1

Answer 1:

Let us take into consideration Nestle being the company operating in Ghana:

Pestle analysis:

Political factors:

Labour policies of Ghana have significantly impacted labour recruitment in Ghana as it was supportive to the businesses, mobility reducing supply chain efficiency in the Ghana food industry. Nestle has plans to relocate production of some brands like Blue Riband chocolate wafer bars, to Ghana , resulting into setting up of the plant in Ghana and recruiting around 300 jobs.

Social factors:

Consumer-focus on less salty snacks and sugar-free drinks in Ghana has been affecting sales of the company.

Environmental factors

Transition to a low carbon and resource- efficient future is underway putting food & beverage firms like Nestle under pressure to increase use of recycled plastic in their bottles.

Economic factors:

Foreign-exchange swings in 2016 resulted in a foreign exchange impact of —1.6% on Nestle group revenues. Post Ghana declaration of policies for the businesses, low economic growth in Ghana plus rise in price inflation against a backdrop of stagnant wage growth was not good news for the company.

Technological factors:

Digital disruption rightly been termed as the "fourth industrial revolution" offers opportunities as well as threats.

Legal factors:

New "sugar tax" levy introduced by Ghana government aims to reduce content in sugary by 2020. New rules banning advertising of high-fat, salt and sugar (HFSS) food or drink products to children under 16 introduced in the Ghana.

Answer 2:

Customer’s needs:

Customer in Ghana wanted the product that is less salty in nature and hence, Nestle has customised its product so that it would suit to the people of the Ghana market.

Company offerings:

Company offers the products as per the need of the customer. Since, the customers of Ghana prefers less fatty and salty products, Nestle has started producing the products that has less fatty substance and less salt.

Competitor’s offerings:

Competitor offers the customers with the similar kind of products but since, they are not as big as Nestle, they are not able to mass customise the product and hence they charge slightly higher as compared to Nestle.

The company’s competitive advantage is that, Nestle offers the customised product as per the need of the customers of various age group at the least possible price range whereas competitor provides the product that is not mass customised, hence thay charge little higher prices for the similar products.