Evaluation of Business Operations

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Nestle organizational assessment

Nestle is globally known to be one of the largest multinational company that specializes in beverages and food. Nestlé Company has had a very successful business strategies and product expansion. Nestle company has achieved the industry leadership through embracing research and development activities and networks. Through the development and research, Nestle Company has been able to offer safe, high quality and healthier beverages and food categories.

Nestle vision

Since the time Nestle Company was incepted, it has been aware that beverages and food choices can have a great impact on the quality of life of its consumers. Therefore, the company is very much committed to ensure that the products they manufacture are healthier and tastier. They are also committed to ensure that they offer various products to the worldwide consumers. The backbone of Nestle product portfolio is the unmatched research and development capability, innovation and nutrition science and also the high food quality. Nestlé Company, therefore, employs a team of high qualified nutritionists, engineers, scientists, designers, consumer care personnel and regulatory specialists. The goal of this team of talented personnel is to nearn the trust of the consumers by ensuring creation and delivery of products that are safe and of high quality. As a result of solid trust from the stakeholders and financial health, Nestle Company is able to achieve its goal of being the global leader in health, wellness and nutrition (Lee, 2014).

Nestle mission

The main objective of Nestle Company is to become the leader in health, wellness and nutrition while promoting protection of the environment they operate their business in and common value in the provision of nutrition. Nestlé Company believes that its behavior and size is the main contributor to its leadership within the nutrition and food industry. The company acknowledges that trust from the consumers is built and developed over time via continuous promise. The conduct and the mission of Nestle Company is entrenched in the term, Good Food, Good life. This term gives the summary of the company ambitions. Nestle company is very committed to encouraging its staff to offer high-performance level in order to support the company goals.

Objectives

The objectives of Nestle Company are to become a leader in wellness, health, and nutrition and also to be trusted by the company stakeholders. Also the company objective is to become the reference for performance in finance within the food industry. The company seeks to promote leadership and achieve trust simply by satisfying all the consumer expectations. The company believes in the creation of sustainable values that are long-term. The company also aims at creating operations and strategies that create value for the community in which the company operates.

Another objective of Nestle Company is to create an alignment of the staff behind a set of strategic significances that help accelerate the company growth. Such objectives as described above require the staff to have a combination of inspirations that are long-term in order to build short-term and future entrepreneurial actions (Riyashad Ahmed, 2014).

Policies and strategic plan

The business objective of Nestle Company is manufacture and then markets its product in a manner that ensures the creation of values that the company can sustain for a long-term for the employees, business partners, consumers and shareholders (Wall, 2004). The company recognizes that the costumers have a legitimate and sincere interest in their beliefs, behavior and actions behind the company brand that they have their trust in and the company believes that without consumers it does not exist. Nestlé Company believes that legislation helps to safeguard responsible conduct even though in most cases guidance is needed to ensure high standards of service delivery are achieved. The company is conscious of the fact that success of the organization is a clear reflection of the professionalism.

External environment

The strategic analysis of any organization starts with the analysis of the external environment. The aim is to identify the possible threats and opportunities to the entire industry. PEST analysis is used to investigate external environment in economic, political, technological and socio-cultural aspects (Nestec Ltd, 2013).

(a) Political

Issues related to politics are of major concerns to international organizations that operate globally. Bureaucratic regulations, political stability, and policies related to taxation play an important role in the operation of global businesses. With the existence of political stability in a given country, Nestle Company can generate steady sales in the targeted markets. Another aspect is the government regulations, and laws in certifying safe and natural raw materials, fraud or bribery, public financial disclosure have great influence in each phase of Nestlé’s strategic planning and organizational life.

(b) Economical

Nestle company has greatly benefited from rapid development in economy and improvement in the environment of investment in countries that are developing. Nestle company takes into considerations the purchasing power and the consumer’s income before entering into any new market. While operating globally, Nestle Company has adjusted itself for the variation in the price sensitivities and consumer’s demand.

(c) technological

Nestle company has the largest R&D network that enables the company to produce healthy and nutritious food. The advanced technology used in Nestle also creates more opportunities for current improvement in products, new product lines, and new marketing strategies.

(d) Social-cultural

The success of Nestle Company in African countries is attributed to the respect they give to the socio-culture in Africa. In accordance with the storage conditions and consumption habits of the local communities, Nestle company has introduced small packages of bouillon cube which people in developing countries can have easily for an individual meal.

Internal environment

The effective performance in R&D, growth and learning serves as Nestlé’s foundation to achieve an excellent internal environment in business processes.it is these business processes that help the company to achieve customer satisfaction, service, and product diversity. This helps the company to achieve its financial goals and help enhance its value to the stakeholders. Some of the internal business environments include:

(a) strong brand recognition

The company enhances brand recognition by communicating continuously to the consumers, launching marketing campaigns and promotions. The company also strives to improve its public relations.

(b) Organizational localization, differentiation, and decentralization- the decentralization structure of Nestle Company helps each business unit to be the decision-maker in its business operation. Nestlé’s product can satisfy the needs of consumers and are diverse, and this helps to prevent the competitors from entering their market.

(c) Large investment in innovation and R&D- approximately 98% of the sales of Nestle Company are from the markets in foreign countries. Nestlé has achieved all this success through continuous research, development, and innovation.

(d) Strong financial performances- Nestle company has indicated a strong financial performance in 2013 and 2014, and this made the most profitable. Strong, healthy and stable financial performance will ensure that Nestle company development in the future.

SWOT analysis

Nestle BCG matrix strategy

Nestlé’s current BCG matrix for brand selection is given below.

Question marks

High growth in the market and low market share, don’t know exactly what to do with the emerging opportunities: decide if to improve investment. Magi 2-minute noodles require more investment to capitalize on growth in a culinary segment that may not provide high returns (Blatchford, 2014).

Stars

Nestlé’s mineral water has recently benefited very much from a combination of emerging markets and healthier trends. These products need high investments so that the bottled water is differentiated from the other competitors in the established markets.

Dogs

In these business units, the products have low market share. Such products such weight loss brands. Sports nutrition and performance brands are examples of Dogs in Nestle

Cash cow