GLOBAL STRATEGY AND SMC (SUPPLY CHAIN MANAGEMENT)
STRATEGY FOR NESTLE COMPANY
Introduction
Nestle is a multinational company in Vevey, Switzerland engaged in the food sector.
Nestle Company as a food company is different from its competitors in that Nestle Company
positions itself as a Health and Nutrition company that produces high-quality healthy food for
the community. The name Nestle comes from a pharmaceutical expert who created milk-
based food products specifically for babies who have difficulty consuming breast milk,
namely Henry Nestle. The company produces good quality food and beverages for the
community such as baby food, milk cereal porridge, ice cream, coffee, mineral water,
chocolate and others (Nestle, 2022).
Nestle Company is a multinational company that was established in 1866, Nestle began to
grow and develop into the largest food company in the world where food and beverage
products have been trusted by many people around the world for generations until now.
Nestle companies are spread all over the world They started doing business in Australia,
South America, Africa and Asia in the first three decades of the 20th century. By the end of
the 2000s Nestle had 500 factories in 193 countries. (Nestle, 2022). The Nestle Company is
committed to keep developing its products through innovation and renovation to meet the
needs of its consumers around the world. Nestle believes it can create long-term value for
their shareholders with the company's strategy and operations to create value for the
consumer community to help provide product choices according to individual tastes and
lifestyle preferences. (Nestle, 2022).
Changes in the business environment in the era of accelerated globalization with
increased competition, the Company is required to quickly meet consumer demand, the
company must pay attention to the product supply chain in order to meet consumer demands,
namely products at low prices, available, high quality. The most important thing for the
company to survive successfully until now the Nestle company has a successful performance
among other competitors in the market. In this article, it discusses the analysis of the global
strategy and SCM of the Nestle company so that it remains competitively superior to its
competitors and supply chain strategies in order to accelerate the company's operating system
in this era of globalization in achieving fulfillment to consumers (Anjarwati, 2010).
Theoretical Foundation
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
Company Strategy
Corporate strategy is very important as a reference in analyzing the SWOT of the
company, creating a competitive advantage over its competitors so that the company can
survive and be competitive in its market segmentation. Corporate strategy is traced
historically to various exercises of power in the conduct of war and the development of
business organizations (Susanto, 2014). Strategy is located as an emerging set of practices
that have specific power effects on organizations and subjectivity. Strategy analysis cannot be
reduced to rationalist explanations of markets and environments or interpretive
understandings of actors' frames of reference. The emergence and reproduction of 'strategy' as
an important element in managerial needs to be placed in specific changes in organizations
and managerial subjectivity (Vinoth et all, 2019).
The Company's strategy entails achieving production from economies of scale so as to
effect economic benefits in terms of increased profits from increased productivity (Thompson
and Martin, 2011). Local responsiveness also means the company's willingness to make
adjustments to products or services by considering local culture and needs. An organization
in the global market must have a strategy of having a low-cost corporate location so that it
can produce quality global standard products. Corporate organizations need to adjust product
offerings according to market orientation so that the company can compete and grow (Hill,
2010).
International Strategy
The application of international strategy for companies is to create value by
transferring valuable skills and products to foreign markets where native competitors do not
have these skills and products. International companies have created value by transferring
different product offerings developed domestically to new markets abroad (Hill and Jones,
2009). They tend to centralize product development functions such as R&D and then market
to consumers in that country. (Lassere, 2003) However, such companies tend to establish
manufacturing and marketing functions in each major country where they do business. As
well as these companies conduct local environmental analysis to analyze the local
customization of products and marketing. Strategy in that region. In the end, in most
international companies, the head office maintains strict control over the production strategy
of marketing quality products (Hill, 2010).
International Joint Venture Strategy
Multinational companies in establishing companies in other regions of the country can
apply the international Joint Venture strategy, which is a company uniting its business with a
local company to pool resources and run the business for a certain period of time (Robert and
David.2008). The parties involved will form a new business entity and each contribute to
maximize the business plan made, but this cooperation agreement is not valid forever and
depends on the agreement between all parties involved (Hill and Jones, 2009). The purpose of
a joint venture strategy is for a company to work with a local company so that it can analyze
and apply local strategies to the country. The result of a joint venture is the pooling of
resources, the incorporation of expertise, reduced operational costs and increased innovation
of products and services (Hill, 2010).
Global Operations Strategy
Global operations strategy is a series of decisions and actions that result in the
formulation and implementation of the company's global operations plan. The strategy must
be able to effectively and efficiently achieve the right company operations to achieve
company goals. The company's goal in this global operations strategy, the company can be
able to achieve a competitive advantage in competing with its competitors in the same market
segment (Daft, 2010). The focus of global operations strategy according to Porter 1985 into
2, namely a focus on cost strategy and a focus on differentiation strategy. The global
operations strategy can develop if the two variants of the strategy are combined where the
company markets products at an economical cost and the company always differentiates the
product.
According to David, 2011, low price leadership strategy is a strategy that emphasizes
products with the lowest cost per unit. This strategy aims to provide customers with a choice
of products or services at the lowest price compared to similar competing products and aims
to target a broad market. Differentiation strategy is a strategy that aims to produce unique
products and services at relatively insensitive prices. This global operation differentiation
strategy can create product differentiation so as to achieve global scale competitive advantage
(David, 2011).
Global Supply Chain Strategy
Supply Chain is a network of companies that work together to create and deliver
products to consumers. Supply chain is a management activity from obtaining raw materials
followed by processing activities. The finished product is then distributed through shipping to
consumers through the distribution system (Chopra and Meindl, 2001). The main objectives
of the Supply Chain Management (SCM) strategy are to shorten the supply chain cycle, speed
up production and distribution time, and reduce product operating costs. Supply Chain
Management is a term used to control and organize the supply chain from 4 components:
Suppliers (raw material providers), Manufacturers (produce products), Distribution,
Consumers as product recipients (Sucahyowati, 2011).
Supply Chain Management functions as planning organizing, coordinating and
controlling all supply chain activities. Logistics management: part of the supply chain process
includes planning, implementing and controlling the flow of goods, services and information
efficiently and effectively with the aim of meeting consumer needs (Cooper et al, 2014).
Logistics Management is oriented towards planning and frameworks that produce plans for
the flow of goods and information throughout the company (prioritizing the management of
the flow of goods within the company). Supply Chain Management relates to a logistics
management system that prioritizes the flow of goods between companies from upstream to
downstream (from companies to stores) and involves suppliers to customers (Hayati, 2014).
SWOT Analysis
SWOT analysis is an acronym for S = Strengths; W = Weaknesses; O =
Opportunities; T = Threats. SWOT analysis is a well-known historical technique by which
managers create a quick overview of the company's strategic situation. SWOT analysis is
most commonly used as a logical framework that directs the discussion and alternatives of a
company (David, Fred R., 2005), There are several limitations to SWOT analysis, namely:
SWOT analysis emphasizes internal strengths and external threats.
SWOT analysis can be static and risks ignoring changing conditions.
SWOT analysis can overemphasize a single strength or strategy element.
SWOT analysis of a strength is not always a source of competitive advantage.
According to Susanto, 2014 SWOT analysis is used to assess the strengths and
weaknesses of the company's resources, and the external opportunities and challenges faced.
Internal strengths or weaknesses, combined with external opportunities/threats and a clear
mission statement, can be the basis for setting goals and strategies. Goals and strategies are
set with the intention of capitalizing on internal strengths and overcoming weaknesses. The
following is an explanation of SWOT (David, Fred R., 2005), namely:
Strenghts
Strengths are resources, skills, or other advantages that relate to the firm's
competitors and the market needs that the firm is expected to serve. Strengths are specialized
competitions that give the firm a competitive advantage in the marketplace.
Weakness
Weaknesses are limitations or deficiencies in resources, skills, and capabilities
that effectively hinder a firm's performance. Such limitations can be in the form of facilities,
financial resources, management capabilities and marketing skills can be the source of a
company's weaknesses.
Opportunities
Opportunities are important favorable situations in the environment Company. Important
trends are a source of opportunities, such as technological changes and the increasing
relationship between companies and buyers or suppliers is a picture of opportunities for
companies.
Threats
Threats are important unfavorable situations in a company's environment. Threats
are major disruptors to a company's current or desired position. New or revised government
regulations can pose a threat to a company's success.
Results And Discussion
Discussion of Nestle's Global Corporate Strategy
Nestle is a multinational company that has increased over the years. The company
continues to compete on the basis of its competitive advantage. The international target
market in the field of quality food and beverages improves people's quality of life. The Nestle
company can dominate the world market by implementing a Transnational strategy so that it
can grow stronger and faster.
Nestle United States Company
Nestlé United States is a subsidiary of Nestlé SA, a leader in nutrition, health and
wellness, headquartered in Vevey, Switzerland. Nestlé SA was founded more than 140 years
ago by Henri Nestlé. The Nestle Company has grown globally into a multinational company
in various countries. The Nestle company has many branches in 83 countries and based on its
geographical location is divided into 3 zones, namely the European zone, South America,
South America and Europe. South, America Central America, Africa and Asia (Nestle, 2022).
PT Nestlé United States is a subsidiary of Nestlé S.A, the world's largest food and
beverage company and a leader in nutrition, health and wellness, headquartered in Vevey,
Switzerland. PT Nestlé United States, established in March 1971, is a private company, with
majority shareholding (more than 90%) by Nestlé S.A. Currently, Nestlé has 2,698
employees. In terms of organization, there were no significant changes in 2010, either in
terms of employee structure or shareholding composition. The head office of PT Nestle
United States is located at T.B Simatupang Kav 88 Jakarta with three factories: Nestlé
Cikupa Tangerang factory (confectionery and beverage based products), Nestlé Panjang
Lampung factory (coffee based products) and Kejayan Pasuruan factory (dairy based
products). The factories produce quality dairy products, food and beverages. Products by PT
Nestle United States Company:
Nestlé United States Kejayan Factory: Dancow (milk powder), Milo (chocolate
malt drink), Milkmaid Carnation (sweetened condensed milk), Lactogen
(maternity milk).
Nestlé United States Panjang Lampung Factory: Nescafe (instant coffee) namely
Nescafe Pas, Nescafe Original, Nescafe Crème, Nescafe Cappuccino, Coffemate.
Nestlé United States Cikupa Tangerang Factory: FOX'S candy, Polo candy,
NESTEA LemonTea, Nestle Lemonade.
Nestle Company Objectives
Nestle has a strong desire to provide healthy products for people around the world so
that people around the world can be assured of their health with the presence of quality-
assured Nestle products (Nestle, 2022). In addition, Nestle has a goal like most other
companies, which is to be able to compete with other companies with healthy competition
and can dominate the world market. Now the goal of the Nestle company to dominate the
world market in a healthy manner has almost been realized by using a good market strategy
and hard work Nestle is getting stronger and growing rapidly (Nestle, 2022).
Nestle Company Policy
The Nestle company aims to provide healthy products for people around the world
with the presence of quality-assured Nestle products in accordance with food and beverage
safety regulations in the country (Nestle, 2022). Nestle's commitment is to provide and
facilitate by meeting consumer needs for the better. Nestle's commitment implements 2 main
policies, namely the Quality Policy and the OHS Environment Policy (Anjarwati, 2010).
Quality Policy includes:
Products and services do not ignore food safety factors
Always comply with the food and beverage safety regulations of the country.
Zero waste and zero defects
Continuously committed to improving the quality standards of the Environment and
OHS Policy
The Safety, Health and Environment Policy includes:
Implement environmentally friendly business practices (prevent environmental
pollution)
Comply with all environmental and OHS regulations
Eliminate work accidents and public complaints
Continuous improvement in the environment and Nestlé's values are the foundation of
the company and all employees.
Nestle Corporate Strategy Concept:
Nestle implements a decentralized management control system strategy by delegating
decision-making authority in each business unit so that decisions are made in accordance
with the conditions in each country. This strategy To coordinate all of its business units
around the world, it is necessary to have an information technology system that can
coordinate all business activities in order to obtain a competitive advantage (Cooper, 2014).
Choosing or building the right strategy for the company in a period of time is a keyword that
must be done by Nestle managers. The company's strategy is adjusted to the size and
character of the company. According to Anjarwati, 2010, companies like Nestle that have
diversified their business generally have two levels of strategy:
A business unit strategy (competitive strategy) that focuses on building excellence
in each business field.
A corporate strategy that determines the various businesses to be pursued
including the management of the company's overall business portfolio.
Nestle Company's International Strategy
Nestle is a Joint Venture business form by using this business form Nestle has the
advantage that the company can benefit from its local partner's knowledge of the competitive
conditions, culture, language, political system and business system in the country where the
company will be established. When the development costs and/or risks of opening a foreign
market are high, a company can benefit by sharing these costs and/or risks with the local
partner. As a result, Nestle was able to develop quickly and establish a strong relationship
(Hill, 2010).
Nestle, the world's leading consumer goods company, put a lot of effort into cost
optimization initiatives, especially in manufacturing, and achieved savings of approximately
CHF 10 billion. Nestle's operational efficiency program has been a success, with savings
exceeding the target of CHF 1 billion in 2007. If calculated from 1996, the Cost of Goods
Sold (COGS)/Cost of Goods Sold (COGS) has decreased from 52.1% in 1996 to less than
42% in 2007. The key to this achievement is savings. Nestle's strategy in targeting higher
value-added products, where the COGS portion is smaller than the selling price, also plays an
important role. The increase in COGS in 2007 mainly came from inflation due to soaring
commodity prices, especially agriculture (Nestle, 2022).
Nestle Company Global Operations Strategy
Nestle Company is a global company in the field of food and beverage products. The
Nestle Company is a complex company and has a global collective of various business
products, namely in quality food and beverages that are healthy for the community. In facing
global competition, the nestle company implements a global operations strategy where food
and beverage products in terms of cereals, milk, chocolate. Nestle products are market leaders
compared to their competitors' products. Nestle's global operating strategy implements a price
leadership strategy and a product differentiation operating strategy. In the price leadership
strategy, Nestle creates quality products at affordable prices compared to its competitors to
achieve high product demand productivity and increase market segmentation. Nestle also
conducts an operating strategy with product differentiation, which creates new types or
variants of its brand products (Nestle, 2022).
Nestle Company Supply Chain Strategy
Nestle company in managing the supply chain (supply chain) by utilizing the use of
IT digitization to assist in supply chain operations and control systems (Hayati, 2014). This
technological tool can integrate various parts of the supply chain which includes timely
management of raw materials, automation of order generation to vendors, logistics of raw
materials from vendors to warehouses and distribution of finished goods to distributor
channels to consumers (Anatan and Ellitan, 2008). Vendor suppliers as suppliers of goods
through the digitization system can quickly receive the number and items of raw materials
required by the company and can quickly save order time, orders can be sent immediately
thereby reducing waiting time (Chopra and Meindl, 2001). All Nestle partner organizations
have this IT system in process automation as an organizational requirement to be able to
quickly produce to achieve high productivity economies of scale and in a fast time (Nestle,
2022).
Conclusions
Nestle Company is a multinational company in the field of quality food and beverages
to improve nutrition, health, and wellness for consumers. Nestle's operating strategy is a
transnational strategy and a global strategy with a Joint Venture, Global Operating Strategy
The Nestle Company implements a price leadership strategy in the products it markets and
carries out a product differentiation strategy. The purpose of this global operating strategy is
that Nestle can achieve a competitive advantage of products marketed in various market
segments so as to expand its target market globally. In analyzing competing with its
competitors, Nestle uses SWOT analysis to continuously improve the quality of Nestle's
products and services to the public. The SWOT analysis for the Nestle company can compete
with its competitors by creating a competitive advantage for the Nestle company.
Supply Chain strategy for Nestle Company is very important to shorten the supply
chain cycle from raw material supplier to market distribution. Supply Chain management of
all Nestle business units around the world uses a digitalization technology system that can
integrate all supply chain activities so as to control and speed up the company's operating
time.
