Managerial Economics

Managerial economics2006Managerial economics Page : 1Question 1 - Economic theories delectation by Nestle to be combativeNestles is an International Food alcoholism Company . In a global agonistical purlieu where the grocery place twist is infirm or oligopolisti domiciliated the market place destine is energising and changing in impairment of economic , favorable , governmental and in environmental wrong Nestles has adopted strategies of knowledgeability , personify lead and diversification by alliances , joint ventures and mergers to disembowel economies of case and synergy and to like risks as well as apply effective selling strategies anticipating and reacting to competitor moves to continuously reminder and pitch strategy to increase containable growth andProfitability in its numeral product lines ( Nestle , hypertext transfer protocol /www .ir .nestle .com /Nestle_Overview /Operational_ cognitive process /Operational_ Performance_Improvement /Operational Performance Improvement .htmThe Nestle in developing its strategies it has used racy theory to react competitorsActions , rest competitors actions so that it can maximize payoffs in a sustainable manner . In accessory it withal uses product conception because the food market is imperfect and dynamic it is vital to divergentiate products where it has competitive advantage to maximize profits on a sustainable basis . on that point fore it uses imperfect market output and pricing and advertizement strategies to maintain and grow sustain ably so that it can maintain and grow its market sh atomic number 18 and market position in its core product lines and in new product lines . It also uses the theory of economies of scale to lower its cost structure and correct its productive capacity (mbs .edu , Managerial Economics on -line(a) http /www .mbs .

edu / kinfolk /jgans /meconManagerial economics Page : 2Question 2- Nestles risks and strategies to consider risk in a global market placeThe risks Nestles baptistrys be as followsEconomic and market risksNestle has to face economic risks in terms of cost , economic cycles barriers to door like tariffs and quotas , stability and doubtfulness economic shocks like vegetable oil price shocks , uncertainty emerging growth potential , capital fluctuations and interest rates risks by diversification in to contrasting geographical areas and channel products in markets where it can earn sustainable profits and product differentiation and pricing policies and strategic marketing methods For example Nestles h ave different product mix in different countries and uses different marketing and pricing policies depending on the genius and intensity of competition in price and other non-price competitive means by select and brandingwhich maintain market look at and grow on a sustainable basis as well as a strategy of continuous proceeds in cost control and innovate new products , which has a potential to add rank to the firm on a sustainable basis . As well it uses alliances , joint ventures and mergers to innovate in to markets and choose methods , which are viable for the characteristics of these markets in terms of competition , business coating , government regulation , well-grounded constrains and environmental concerns and social accountability within a realm (Nestles web site Sustainability http /www .nestle .com /Our_Responsibility /Sustainability /Sustainability .h tmManagerial economics Page : 3Question 2- Nestles risks and strategies to manage risk in a...If you want to ge t a adequate essay, order it on our website: OrderEssay.net

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