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. has an Internet Privacy Policy which is available on the Corporate Website. This policy aims to protect the privacy of the users; it covers, for instance, the accessing, deleting or correcting of information, the security of information, and relates also to tracking technologies [ (Brabeck-Letmathe, 2004) ]. Nestlé’s broad known of their products and laws that are required in order to design different product are impeccable. Needless to say one company has to know about water, using raw materials, nutrition for not only infants but everyone including animals.
Nestlé’s knowledge of human rights gives them a strong understanding of strategic flexibility. Nestle’ recognizes that governments are ultimately responsible for the establishment of a legal framework for protecting human rights within their markets. Nestle’ expects each market to respect and follow the local laws and regulations concerning human rights’ practices [ (Brabeck-Letmathe, 2004) ]. Nestle not only has a high quality for their consumers but also for their competitors Nestle supports free enterprise and therefore competes fairly and recognizes other companies’ equal rights to do so. The company supports the development of competition laws to protect this principle [ (Brabeck-Letmathe, 2004) ]. 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 the success of the program [ (Nestle', 2010) ]. The Nestlé Corporate Governance program has obviously yielded much success for the corporation but the success can be attributed to the various leadership tasks that are fundamental to Nestlé’s success.
Discuss the leadership tasks that are fundamental to Nestlé’s success.
Peter Brabeck-Letmathe took over as the CEO of Nestle’ in June 1997, one of his first actions was t make it the company’s top priority to achieve real internal growth [ (Raisch, S & Ferlic, F., 2009) ]. His successor faces the task of maintaining the successful company’s momentum. Further efforts will be required to boost the health and nutrition sales in the face of tough competition. Relentless renovation and innovation are essential to retaining and improving the firm’s position [ (Raisch, S & Ferlic, F., 2009) ]. Today, Nestle’ is the leading Nutrition, Health and Wellness Company globally and has a commanding portfolio of products that spans every possible age group covering many evolutionary states worldwide. Products like, Ortega taco shells, Stouffer’s and Lean Cuisine frozen meals, Perrier and Polar Spring wastes, Gerber baby foods, Juicy Juice beverages, Jenny Craig diet centers, Nescafe’ coffees, and Butterfinger candy bars proves Nestle’ has a global stable of blockbuster brands. At least 29 nestle’ products produce annual sales exceeding one billion Swiss francs (CHF) each. (One franc is equivalent to approximately 96 U.S. cents.) Every second, 4,000 people around the world are drinking a Nescafe; coffee, according to the Nestle’ [ (Frey, 2008) ].
With Nestle being a world leader in the food business, highly competent leaders must manage positive control of global resources. The nestle Code of Business Conduct recommends the principles and values committed worldwide by Nestle’. Nestle’ employees have universally upheld and thrived upon this standard of commitment in their every day duties ever since, and Nestlé’s character remains one of the majority essential assets today [ (Nestle', 2010) ]. Although nestle’ believes there is no “cookbook” or recipes for any and all associated problems, scenarios or situations, the framework of the code is designed to provide guidance for the situation, which can be measured to any activity [ (Nestle', 2010) ].
After researching and absorbing all this information about this company. I did not realize all that the Nestle’ Company had to offer me as an individual. I did not know just how broad the products that this company produced from day to day. Now, I see this company and similar companies in a entirely different light. I asked my son about the Nestle Company he could only tell me about the “Hot Chocolate” that he receives in the winter and the Nestle’ water that my sister offers him when he visits her home. All I can say on this subject is Wow and I am looking forward to the new information that this company has to offer.
References

Brabeck-Letmathe, P. (2004). The Nestle' Corporation Business Principles. Vevey, Switzerland: Nestle' S.A, Public Affairs.

Frey, G. (2008). Nestle': the sweet tast of success. Retrieved April 22, 2010, from http://onlinebarrons.com/article/SB120977477488764201.html#articleTabs_panel_article%3D1

Nestle'. (2010, February 3). Nutrition, health and Wellness. Retrieved April 22, 2010, from http://www.nestle.com/NutritionHealthAndWellness/Introduction:

Raisch, S & Ferlic, F. (2009). Nestle': sustaining growth inmature markets. Strategic Managemnt Cases and Globalization , 261-266.

Werner Bauer, I. (2009). Nestle' research strategy. Retrieved April 22, 2010, from http://www.nestle.com/Resource.axd?Id=2F5E7F14-48D0-4C76-9086-CD3C9227207A