Nestle Essay

1293 words - 6 pages

Nestle: Sustaining Growth in Mature Markets
Describe the characteristics of each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool.
Nestle’ recognizes that increasing globalization is leading to the development of more and more international recommendations. Although, as a general rule, these recommendations are addressed to governments they inevitably impact on business practices. [ (Brabeck-Letmathe, 2004) ]. The internet is changing the way of doing business. It concerns business-to-business relations and also the Company’s interaction with consumers. In this respect nestle’ S.A. ...view middle of the document...

Nestlé’s financial information is open to all. Nestle’ communicates openly, directly and accurately and takes advantage of appropriate communication tools to ensure that information is available simultaneously to the financial community and general public. No individual or institution is given preferential treatment [ (Brabeck-Letmathe, 2004) ].
Discuss the Vision and Mission of Nestle.
In my opinion, Nestlé’s Vision and mission statements clearly defines what the past, present, and future may hold for them. With the competitive landscape of Nestlé’s characteristics clearly defined it can be assumed that for Nestlé’s company to be so successful, nestle had to have a vision and a mission. The Nestle vision and mission are driven by superior science and technology and an understanding of the consumers nutritional and emotional needs. The Nestle research vision is to “create the future, move faster, and go beyond what consumers tell them (Werner Bauer, 2009).” Once the vision and mission of Nestle were defined, the next goal was to identify the strategy to be used. One of Brabeck’s key initiatives or official acts as CEO was to implement a dedicated component engaged in nutrition linked to performance, infants and diets [ (Raisch, S & Ferlic, F., 2009) ]
Identify and describe the fundamental principles that guide the company’s strategy.
Nestlé’s seven strategic business units are the driving forces behind the clusters and, more generally, behind product development and consumer-oriented renovation and innovation. Contrary to geographical zones that are operationally responsible for their businesses, and have clearly set annual profit targets and thus free to fully concentrate on sustainable long-term development. They develop global business strategic for their respective categories in which they describe how the product segments and should evolve over the next three to of the portfolio should be renovated. In close cooperation with the markets and R&D, the strategic business units lead Nestlé’s innovation process and ensure cooperation and communication between the company’s disparate units [ (Raisch, S & Ferlic, F., 2009) ].
Explain how Nestle establishes and manages relationships with its primary stakeholders.
Nestlé establishes and maintains a strong relationship with its corporate primary shareholders through corporate governance. Nestlé solidifies its commitment to Corporate Governance principals through several publications such as the Governance Report, Articles of Association, and Committee charters and so on. This commitment is also reflected in the daily business endeavors of Nestlé [ (Nestle', 2010) ]. Nestlé’s Corporate Governance Reports are distributed annually and cover areas like capital structure, executive board and board of directors, shareholder’s participation, information policy, change of control and defense measures, compensations, shareholdings and loans and several other practices to help ensure...

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