Nestle Food Company

Company continues to stay competitive within the global market while continually working with a falling economy; according to Barbara Kilometer of Market Watch (2009) “It’s still a good defensive stock. Its international profile, combined with presence in 25 businesses provides good resilience in a downturn.

The development of the product mix towards Nutrition and Health should have increased the group’s defensive profile. This strategy is based on a price positioning that should remain competitive. The knowledge that Barrack introduced in 1997 brought many new strategies to Nestle© the first was to force the business to become more efficient by cutting back on their investment budgets by maximizing existing assets. Maximizing capacity utilization and maximizing distribution logistics.

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Releasing his efficiency programs IMHO and Target 2004+ Barrack was able to generate savings to the Nestle© Food Company of approximately 7 billion dollars creating the foundation to expand in strong investments in internal growth (Hit, Ireland, & Hosking’s, 2009).

Nestle© is consistently maintaining a company with a strong advantage In the marketing, distribution and manufacturing of food products. They have developed a vast international brand architecture that consists of 10 worldwide corporate brands, 45 worldwide strategic product brands, 25 regional corporate brands, 100 regional reduce brands, 700 local strategic brands and approximately 7,000 local brands (Parsons 1996). Nestle©’s production line is complete with 522 factories in over 81 countries, which provide key manufacturing capabilities in every market possible.

Due to the vast geographic coverage, this provides the support for Nestle© to focus on the consumer’s needs catering from Industrialized countries to emerging market countries while transferring knowledge from one market or region to another.

Nestle© has held quality as high if not higher than their customer expectations of their reduces. They base the quality of their products from a large percentage of what their consumers are looking for in a product using quality as a cornerstone of their company. “This confidence is based on our quality Image and a reputation for high standards that has been built up for many years” (Nestle©, 2004).

Discuss the volts Ana Nilsson AT Nestle. Nestles volts Ana Nilsson statement Don InTer Tanat they aim to provide the food and nutritional products that are demanded by consumers. They go one step further by stating that they embrace research heavily to make better food so that people live a better life” (Nestle©, 2010).

By taking such a position, Nestle© can position itself to deliver a wide range of consumable products thus entering multiple markets from chocolates and flavored beverages to baby formula and drinking water.

This ideology allows their products to appeal to a wide variety of individuals with different tastes and lifestyle preferences (Nestle©, 2010). Nestle© also places a core concept of collaboration within their mission. This fosters to companies ideology to work closely with their supply and distribution chains. From raw material suppliers to transportation through distribution, they work with external partners and stakeholders to facilitate a better product and more efficient processes.

Identify and describe the fundamental principles that guide the company’s strategy.

Nestle© defines six separate fundamental principles that guide their global operations. The company does not compromise any of these principles within any of their markets and considers them to be core to the overall operation of the company’s business units. Each of these principles will be briefly discussed. The iris business objective held globally and throughout the entire organization relates to sustainable value. Value is viewed as a long-term objective rather than a short term gain.

The company considers value to its shareholders, employees, consumers, business partners, as well as the economies of the nations that it operates in. In a somewhat similar context, the company’s second business principle also involves long term rather than short term gains. While the company acknowledges that annual profits are critical to the success of the organization, they are not willing to sacrifice the long term success of the company and future business developments in favor of turning larger short term profits. By doing this, the company ensures that they are not only profitable but also sustainable in the future.

Nestle© also places a great deal of emphasis on the fact that the consumer is the ultimate factor in their success.

As such, they fundamentally believe that consumers are interested in the corporate behavior and beliefs as well as the overall actions of the company. This principle undoubtedly influences the company’s involvement in social causes. Unlike any companies, Nestle© embraces the fundamental principle of legislation to regulate their industry. They believe in this to ensure a safeguard is in place for responsible business practices.

At the same time, they understand that legislation sets minimum standards for conduct and quality and as such embrace voluntary standards for business conduct to ensure the highest degree of corporate responsibility and performance.

Nestle© also places foundational influence in the fact that the success of the company is dependent upon a positive image of its management and employees. This principle leads the company to not only recruit and retain quality employees but also ensure that they are provided the developmental tools to maintain and improve their individual performance and professional image.

Nestle©’s final foundational principle is one that recognizes the vast global operations that the company is involved in. The company recognizes that because of this vast globalization they are faced with a responsibility to comply with many diverse, and in some cases conflicting, laws and interpretations of ethical practices. I nee company Is committee to not only recognize tense Territories out to also ensure that they follow and respect these diverse laws and customs in each and every market that they operate in.

(2004) Explain how Nestle establishes and manages relationships with its primary stakeholders.

As already introduced through their mission and vision, Nestle© places a very high degree of emphasis on collaboration with stakeholders. From this perspective, stakeholders are placed within the context of their supply chain and distribution processes. This is encompassing of raw material suppliers as well as retailers and marketers. By elaborating with the stakeholders involved in these processes, Nestle© is able to provide a high quality product that produces success for not only the company but also those stakeholders for mutual gain.

Nestle© has also entered into stakeholder partnerships with multiple organizations to foster social responsibility. This includes the Red Cross for drinking water quality, International Cocoa Initiative to ensure that suppliers to not exploit child labor, World Health Organization initiatives to support healthy products and nutritional information, sustainable consumption initiatives, ND sustainable agricultural initiatives. These relationships provide strong connections to other companies, create situations to garner support from various entities, and create a positive image of their product to consumers (Nestle©, 2010).

Nestle© has also embraced the concept of extensively utilizing the internet to communicate with its stakeholders. This includes providing information to consumers, engaging in forums for social causes related to their industry, and operating multiple e-commerce streams to coordinate business to business interactions with their supply and distribution chains. Discuss the leadership tasks that are fundamental to Nestle©’s success.

Nestle©’s leadership must remain abreast of developments over a very large geographic area.

Because the company operates globally, they must remain aware of their fundamental business principles to ensure that they stay ahead of changes that could have a significant impact on their operations from either legal or cultural perspectives. Nestle© attempts to do this by creating production and marketing facilities in each region that it operates in. This allows it to utilize personnel and raw materials from that market thus ensuring elevate awareness to the local business and cultural climate.

The company also maintains a solid structural awareness to comply with regional requirements and sensitivities by keeping a dynamic management structure.

This management structure is adapted as required to ensure that executive leadership remains focused on significant strategic global issues. Management is then operated within zones that permit managerial control and various geographic levels as required by the current market (Nestle©, 2004). The development and adaptation to this management model is a critical task for executives.

As demonstrated by their diversification of product offerings, it is clear that they are aware that consumer demands evolve based on, in part nutritional information. As a result of this, it is critical that the corporate leadership continue to invest resources heavily into market research to determine consumption trends.

The decision to take market research and then invest heavily in research and development has also proved to be a critical success factor. The success of the heavy investment in market research and product R&D can be well demonstrated by the Nestle© Purlieu product.