strategic management analysis - case stu

8/20/2019 Strategic Management Analysis - Case Stu

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CASE STUDY

ANALYSISThis case study was prepared for TOBB University of Economy and

Technology Faculty of Social Sciences Master of Business Administration

Program Strategic Management Course.

Nestle: Global

Strategy


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Tobb University Of Economy And Technology, Faculty Of Social Sciences, Mba Program, StrategıcManagement Course, Dr. Yavuz Ercil

1 CASE STUDY ANALYSIS

INDEX

SUMMARY ............................................................................................................................... 2

INTRODUCTION...................................................................................................................... 2

a.

General Information ............................................................................................................ 2

b.

Detailed Information ........................................................................................................... 3

c.

Validity of Information ....................................................................................................... 3

1. SYMPTOMS....................................................................................................................... 3

2. SCOPE OF ANALYSIS ..................................................................................................... 6

a. Definition of The Problem .................................................................................................. 6

b.

Critic explanations of the Main Influencers ........................................................................ 6

c.

The Scope of the Analysis ................................................................................................... 6

3.

ANALYSIS ......................................................................................................................... 6

a. Decision of which ideas, models and theories are to be beneficial ..................................... 6

Environment ............................................................................................................................... 7

Structure ..................................................................................................................................... 8

Interaction................................................................................................................................... 8

Competitiveness ......................................................................................................................... 8

b. Application of these aspects to the situation ..................................................................... 10

Five Forces Analysis ................................................................................................................ 10

SWOT Analysis ........................................................................................................................ 11

c. As new findings appear, renewed analysis of 3a and 3b: ................................................ 12

4. CONCLUSION ................................................................................................................. 12

a.

Defining contradictions in aims: ....................................................................................... 12

b.

Prioritisation of contradictions and problems, in terms of importance: ............................ 12

5. APPLICATION PLAN ..................................................................................................... 13

a. Defining selection criterion to be used in application alternatives: .................................. 13

b. Finding or exploring applicable alternatives: .................................................................... 13

c.

Review of application alternatives: ................................................................................... 14

d.

Defining application priorities: ......................................................................................... 14

e.

Choosing application steps:............................................................................................... 14

f. Benchmarks of application steps:...................................................................................... 14

Works Cited ............................................................................................................................. 15


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NESTLE: GLOBAL STRATEGY

Author : Merve Ülkü

Case : Nestle

Department : MBA Program

SUMMARY

The purpose of this report is to evaluate Nestle Company industry based on the case study and grasp

how the company develops strategic intent for their business organisations following the analysis of

external and internal business environments. The strategic management process will be analysed as

Nestle used to achieve strategic competitiveness and earn above-average returns. The strategy

formulation will be analysed which includes business-level strategy and corporate-level strategy.

It also aims to identify market place opportunities and threats in the external environment and to

decide how to use their resources, capabilities and core competencies in the firm’s internal

environment to pursue opportunities and overcome threats. In order to do this; Porter ’s Five Forces

Analysis and SWOT analysis were used.

By the end of this assignment, future strategy will be mentioned as well as my recommendations about

Nestle that will fit into strategic orientation in order to perform better in their business world. And

continue to develop and implement its learning approach as the chosen large company by using

different strategies.

INTRODUCTION

a. General Information

This case study provides a case analysis and case solution to a strategic management case study on

Swiss-based Nestle, the world's largest food and beverage company with 2010 sales exceeding

US$116,62 billion. (Rebecca M. Henderson, 2.08.2011)

Nestlé S.A. is a Swiss multinational nutritional and health-related consumer goods company

headquartered in Vevey, Switzerland. It is the largest food company in the world measured by

revenues. Nestlé’s products include baby food, bottled water, breakfast cereals, coffee, confectionary,

dairy products, ice cream, pet foods and snacks. Nestlé employ around 330,000 people in over 150

countries and have 461 factories or operations in 86 countries.

Nestlé history begins back in 1866, when the first European condensed milk factory was opened in

Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. In Vevey, Switzerland, Nestlé

founder by Henri Nestlé, a German pharmacist, launched his Farine lactee, a combination of cow’s

milk, wheat flour and sugar, saving the life of a neighbour’s child. Nutrition has been the cornerstone

of the company ever since.

In 1905, The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George


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Page, merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and

Anglo-Swiss Milk Company. The company grew significantly during the First World War and again

following the Second World War, expanding its offerings beyond its early condensed milk and infant

formula products.

In 2011, Nestlé was listed No.1 in the Fortune Global 500 as the world’s most profitable corporation.

The Nestlé Corporate Business Principles are at the basis of the company’s culture, developed over

140 years, which reflects the ideas of fairness, honesty and long-term thinking. Nestlé believes that not

only possible to create long-term value for their shareholders if their behaviour strategies and

operations also create value for the communities where they operate, for their business partners and of

course, for their consumers.

Nestlé vision is to meet the various needs of the consumer everyday by marketing and selling foods of

a consistently high quality. Their objectives are to deliver the very best quality in everything they do,

from primary produce, choices of suppliers and transport, to recipes and packaging materials. (Nestle,

2015)

b. Detailed Information

In Nestle; responsibility for operating decisions is pushed down to local units, which typically enjoy a

high degree of autonomy with regard to decisions involving pricing, distribution, marketing, human

resources, and so on.

Running in parallel to this structure is a regional organization that divides the world into five major

geographical zones, such as Europe, North America, and Asia. The regional organizations assist in the

overall strategy development process.

The research and development operation has a special place within Nestlé, which is not surprising for

a company that was established to commercialize innovative foodstuffs. The R&D function comprises

18 different groups that operate in 11 countries throughout the world. Nestlé spends approximately 1

percent of its annual sales revenue on R&D and has 3,100 employees dedicated to the function.

Around 70 percent of the R&D budget is spent on development initiatives.

The company also has longer-term development projects that focus on developing new technological

platforms, such as non-animal protein sources or agricultural biotechnology products.c. Validity of Information

This case study was prepared by using information gathered from Nestle’s own web site, where as a

global company, Nestle is obligated to provide sheer information for its investors and other third party

users such as us. Apart from this; several reports regarding the subject matter where strategic

management decisions of Nestle were used. All of these are gathered from relevant academic web sites

and research centres; provided in the Works Cited section of the case study.

1. SYMPTOMS Upon analysing the company; it’s been observed that Nestle’s strategic management approach is


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compatible with Soccer Theories studied in our lessons.

In Soccer Theories the key aspects are as follows:

Detailed information regarding the theories and their relevance to the company; will be evaluated in

the third section of the case study.

Despite its undisputed success, Nestlé realized by the early 1990s that it faced significant challenges in

maintaining its growth rate. The large Western European and North American markets were saturated.

In several countries, population growth had stagnated and in some there had been a small decline in

food consumption. The retail environment in many Western nations had become increasingly

challenging, and the balance of power was shifting away from the large-scale manufacturers of

branded foods and beverages and toward nationwide supermarket and discount chains. Increasingly,

retailers found themselves in the unfamiliar position of playing off against each other manufacturers of branded foods, thus bargaining down prices.

In 1997, Nestlé committed to a strategic vision of becoming the leading nutrition health and wellness

(NHW) company in the world. Then CEO and Chairman Peter Brabeck felt this would help Nestlé

build real differentiation with consumers and drive higher profit margins.

Over the next 13 years, the NHW strategy guided strategic decisions and choices at Nestlé including

merger and acquisition choices, strategies for improving products, and packaging innovations that

helped Nestlé built credibility with the consumer in NHW, raised profit margins continued strong

growth and differentiated the firm.Brabeck launched a number of important initiatives during his twelve year tenure, including

restructuring of the R&D department to be more responsive to consumers, drive renovation and

innovation and support organic growth; launching a 60/40 preference rating system for products; and

developing GLOBE (Global Business Excellence), a comprehensive information system designed to

tie all of Nestle's businesses together under a common technology infrastructure. (Jones, 2012)

The 60/40 Strategy is a metric developed in 2003; through which Nestlé objectively measured and

then improved the nutrition of its products.9 The metric built on Nestlé’s existing 60/40 standard,

which required that consumers prefer the Nestlé product to the top competitor’s products at least 60%

Envıronment

•Statıc •PlannedActıons

Structure

•Complıcated •EmployeeBased

Interactıon

•Mutual

Competıtıvene

ss

•Dırect •Product AndMarket Share

Strategıc

Approach

•Organıc AndMechanıcal

•Busıness Strategıes

•Statıc Intense/Dynamıc Intense


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of the time in a blind taste test. (Rebecca M. Henderson, 2.08.2011)

With the introduction of GLOBE in the mid-2000s, Nestle initiated an era of capturing data by tying

all of Nestlé's entities together under a common technological platform. This led to the company

standardizing its data to manage its vast information and create and share knowledge among its

Strategic business units, manufacturers and retailers. The main idea was to use shared knowledge to

enhance the collaboration between all the different units of the company which can reduce costs and

produce value all over the organisation. A good example would be the fact that the Globe system

allowed for a synchronization of data leading to an improvement in order fulfilment between

manufacturers and retailers. This has allowed Nestlé to sustain its competitive advantage by adapting

much faster to change and delivering value to customer. Therefore, knowledge sharing has the

potential to play a big role in helping Nestlé maintain its competitive advantage. (Essays, 2015)

Besides health, nutrition and wellness, the three other platforms are "emerging markets"; "out of home

consumption" and "premiumisation of existing products" (developing exclusive, high-quality versions

of existing products and appealing to higher income customers. (Jones, 2012)

In general, the company’s strategy has been to enter emerging markets early— before competitors —

and build a substantial position by selling basic food items that appeal to the local population base,

such as infant formula, condensed milk, noodles, and tofu. By narrowing its initial market focus to just

a handful of strategic brands, Nestlé claims it can simplify life, reduce risk, and concentrate its

marketing resources and managerial effort on a limited number of key niches. The goal is to build a

commanding market position in each of these niches. By pursuing such a strategy, Nestlé has taken as

much as 85 percent of the market for instant coffee in Mexico, 66 percent of the market for powdered

milk in the Philippines, and 70 percent of the market for soups in Chile.

Nestlé purpose is to offer safe, tasty, convenient and nutritious foods to improve health and well-being

of consumers of all ages all over the world. To meet the needs and desires of today’s and tomorrow’s

consumers, Nestlé is strongly committed to Research and Development (R&D) to improve products

and develop new foods with specific health benefits. (Nestle, 2015)

Throughout the transformation of Nestlé from a food and beverage company to a food and NHW

company, nutrition was the focus of Nestlé’s R&D efforts. Nestlé’s R&D group included more than5,000 employees, and an average annual investment of close to $2 billion. The R&D operation

included the Nestlé Research Center in Switzerland, which was the world’s largest private facility for

research on food and nutrition, and Nestlé also partnered with 1,500 universities and more than

100,000 scientists across suppliers and governments to develop new nutrition technology. Nestlé’s

R&D efforts closely resembled a pharmaceutical model, with core technologies, trials, regulatory

approvals and an innovation pipeline with various projects in different phases. (Rebecca M.

Henderson, 2.08.2011)

Around 70 percent of the R&D budget is spent on development initiatives. These initiatives focus on


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developing products and processes that fulfil market needs, as identified by the SBUs, in concert with

regional and local managers.

2. SCOPE OF ANALYSIS

a. Definition of The Problem

The main symptom of Nestle’s strategic management approach is observed as its rapid adaptation tonew markets and R&D. The main goal of the company seems to be meeting the goals where growth

and performance are emphasised.

Nestle’s main rivals; such as Danone, Unilever, Cadbury, Roche and such companies, which all of

them are more or less multinational food and beverage companies or companies which have such

divisions internationally.

Nestle must formulate and implement the optimal strategy which will allow it to meet the growth and

performance goals related to the Nestle Model while at the same time achieving a sustainable

competitive advantage within the global food giant's broader vision of transitioning to a health,

nutrition and wellness company, and responding to threats and opportunities in the external

environment. (Essays, 2015)

b. Critic explanations of the Main Influencers

As mentioned above; by the early 1990s that it faced significant challenges in maintaining its growth

rate. In 1997, CEO and Chairman Peter Brabeck felt “becoming the leading nutrition health and

wellness (NHW) company in the world” would help Nestlé build real differentiation with consumers

and drive higher profit margins.

Brabeck’s initiatives as a CEO of the Company; during his 12 year duty are as follows:

Restructuring of the R&D department to be more responsive to consumers,

Drive renovation and innovation and support organic growth;

Launching a 60/40 preference rating system for products;

Developing GLOBE (Global Business Excellence),

A comprehensive information system designed to tie all of Nestle's businesses together under

a common technology infrastructure. (Jones, 2012)

c. The Scope of the Analysis

As mentioned above, the scope of analysis is to determine Nestle’s strategic approach within Soccer

Theories. The environment, structure, interactıon, competıtıveness aspects will be analysed along with

Porter’s Five Forces Analysis, and SWOT Analysis.

3. ANALYSIS

a. Decision of which ideas, models and theories are to be beneficial

An analysis of the problem and an appraisal of Nestle are provided below with the assistance of two

analytical tools within the scope of Soccer Theories mentioned above: Porter's Five Forces analysis,


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and S.W.O.T. (strengths-weaknesses-opportunities-threats) analysis.

As mentioned above, Nestle as a company; is compatible with Soccer Theories where the main aspects

of the theory is as follows:

Environment

Capacity: Nestle; as a global company is observed as having a plain environment in terms of

capacity. This means that the company, by using its limited resources awards efficiency and makesmergers when entering new markets. The competitiveness approach of Nestle is to start with niche

markets.

In general, the company’s strategy has been to enter emerging markets early— before competitors —

and build a substantial position by selling basic food items that appeal to the local population base,

such as infant formula, condensed milk, noodles, and tofu. By narrowing its initial market focus to just

a handful of strategic brands, Nestlé claims it can simplify life, reduce ri sk, and concentrate its

marketing resources and managerial effort on a limited number of key niches. The goal is to build a

commanding market position in each of these niches. By pursuing such a strategy, Nestlé has taken as

much as 85 percent of the market for instant coffee in Mexico, 66 percent of the market for powdered

milk in the Philippines, and 70 percent of the market for soups in Chile. As income levels rise, the

company progressively moves out from these niches, introducing more upscale items, such as mineral

water, chocolate, cookies and prepared foodstuffs. (Academia. Edu, 2015)

Similarity: Nestlé's environment is observed as homogeneous, although the company’s

approach towards global markets is through niche markets, the company, doesn't change the product

diversity in terms of food and beverage.

Stable / Unstable: Nestlé's environment is observed as stable; where the company has been a

relatively fast growing company since the beginning of its life. Also; it’s been observed that the

company has a bigger growth rate among its rivals.

Concentrated / Dispersed: Since Nestle uses Strategic Business Units (hereinafter SBU’s) in

accordance with the counties it works, it can be said that the company has a concentrated environment.

Consensus / Dispersed: Since the NHW strategy guided strategic decisions and choices at

Nestlé including merger and acquisition choices, strategies for improving products, and packaging

innovations raised profit margins (Rebecca M. Henderson, 2.08.2011); it is observed that the relevant

Envıronment

•Statıc •Planned Actıons

Structure

•Complıcated •Employee Based

Interactıon

•Mutual

Competıtıveness

•Dırect •Product AndMarket Share


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decisions constitute Nestlé's environment as consensus.

Turbulence: In terms of turbulence; Nestlé’s environment is observed as the company has

actual links between the SBU’s.

As a result; the environment of Nestle is observed as static intense.

Structure

In terms of structure; Nestle is observed as a complicated company; where decisions are made through

CEO’s and applied to the global market in accordance with their management structure.

The management structure/ organisational structure of the company is as follows:

Source: http://www.nestle.com/csv/what-is-csv/governance

InteractionThe interaction of Nestle is consistent with Soccer Theories; where it is described as mutual. Since the

company has a relatively centralised decision making structure; the interactions between the SBU’s

are mutually applied to the markets.

Competitiveness

Since Nestle is a global/multinational company, the main problem of Nestle; as mentioned above; is its

competitiveness along with its growth rate. The company’s CEO and his decisions/initiatives

regarding the subject matter have greatly influenced the problem.

Competitiveness is evaluated in 10 different aspects:

Structural size of rivals / the number of rivals: As it was mentioned in our classes; if the

structural sizes of the rivals and /or the number of rivals are bigger than average; then that particular

company can be analysed by Sailboat Theories. In this case; in order to decide whether Nestle is

compatible to Soccer Theories, the size of Nestle and its rivals should be compared.

Market share of the company: If the market share of the organisation is smaller than the

market share of its rivals; then the company should be analysed in accordance with Soccer Theories,

since the competitiveness of the rivals is less effective to the company.

Growth rate of the sector: If the growth rate is higher; then the company is directly affected;


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making it fit more into the Soccer Theories.

Fixed cost increase rate: If the fixed cost increase rate is higher, then the effect of

competitiveness is affecting the company more indirect way.

Similarity of products: If the similarity level of the products between Nestlé’s products and its

rivals’ products is high; then the competitiveness of its rivals will affect the company directly. Since;

as it is seen in the table below, in this case; Nestle doesn’t fit into this explanation. So; it can be said

that Nestle is not directly affected by the similarity of its products.

Dependency of products: If the dependency of the products is high; then the competitiveness

of Nestlé’s rivals is indirectly affecting Nestle.

Cost of changing customers: If the cost of changing customers is high; then the

competitiveness of Nestlé’s rivals is indirectly affecting Nestle.

Diversity of customers: If the diversity of customers is high; then the competitiveness of

Nestlé’s rivals is indirectly affecting Nestle.

Production capacity: If the production capacity is high; then the competitiveness of Nestlé’s

rivals is indirectly affecting Nestle

Output costs: If the output costs are high; then the competitiveness of Nestlé’s rivals is

indirectly affecting Nestle.

All of these explanations are supported by the table below:

Source: http://www.moneycontrol.com/competition/nestleindia/comparison/NI

http://www.moneycontrol.com/competition/nestleindia/comparison/NIhttp://www.moneycontrol.com/competition/nestleindia/comparison/NIhttp://www.moneycontrol.com/competition/nestleindia/comparison/NIhttp://www.moneycontrol.com/competition/nestleindia/comparison/NI


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b. Application of these aspects to the situation

As it was stated above; for the application of the analysis Porter’s Five Forces Analyses and Swot

Analysis will be used.

Five Forces Analysis

Porter Five Forces Analysis is a framework to analyse level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five

forces that determine the competitive intensity and therefore attractiveness of an Industry.

Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is

one in which the combination of these five forces acts to drive down overall profitability. A very

unattractive industry would be one approaching "pure competition", in which available profits for all

firms are driven to normal profit. This analysis is associated with its principal innovator Michael E.

Porter of Harvard University. (Wikipedia, 2015)

Threat of New Entrants (Low-Medium)

Even though food and beverage is in many ways analogous to a commodity business, barriers to entry

as a result of supply-side economies of scale, demand side benefits of scale, capital requirements,

incumbency advantages and unequal access to distribution channels keep the threat of new entrants

relatively low. Power of Suppliers (Medium)

Porter notes that "powerful suppliers capture more of the value for themselves by charging higher

prices, limiting quality or services, or shifting costs to industry participants". For most major firms in

the food and beverage industry, the power of suppliers is medium to medium high. For Nestle, the

power of suppliers is quite low as a result of extensive vertical integration by Nestle.

Power of buyers (low)

For Nestle and most other buyers in the industry, the power of suppliers has been kept quite low

because of the fact that buyers are numerous and cannot credibly threaten to integrate forward and

IndustryRivalry

Threat Of NewEntrants

Bargaining PowerOf Suppliers

Threat OfSubstitues

Bargaining PowerOf Buyers


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assume their business.

Threat of Substitute Products (High)

It would be difficult to name or think of a food or beverage product which did not have a near or

identical substitute.

Rivalry of existing competitors (Medium High to High)

Porter notes that the intensity of rivalry is greatest when competitors are numerous or roughly equal in

size and power, industry growth is slow; exit barriers are high and firms cannot read each other's

signals very well. Many of these conditions have been met, thus the intensity of rivalry would be

assessed as fairly intense. (Jones, 2012)

SWOT Analysis


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c. As new findings appear, renewed analysis of 3a and 3b:

Upon the analysis made above; it’s been understood that even though a company becomes one of the

biggest in its sector; there is always room for change. This change could not only be in terms of

management, it’s also crucial for decision making and policy application throughout the world.

4. CONCLUSION

a. Defining contradictions in aims:

Nestlé’s objectives are to be recognised as the world leader in Nutrition, Health and Wellness, trusted

by all its stakeholders, and to be the reference for financial performance in its industry. They believe

that leadership is not just about size, it is also about their behaviour. They recognise trust is earned

only over a long periods of time by consistently delivering on their promises. These objectives and

behaviour are encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up their

corporate ambition.

In order to reinforce their competitive advantage, Nestlé created Nutrition as an autonomous global

business unit within the organisation, and charge it with the operational and profit and loss

responsibility for the claim-based business performance by offering consumers trusted, science based

nutrition products and services.

Nestlé’s long-term goal remained to be the world’s leading NHW company. Bulcke looked to refine

that mission and find even better margins. “Nutrition, health and wellness has been our basic agenda

over the last few years. Now we are looking at deeper, scientific solutions to personalized nutritional

problems and answers to chronic diseases.” (Rebecca M. Henderson, 2.08.2011)

b. Prioritisation of contradictions and problems, in terms of importance:

Nestlé strategic leadership is to force the business to become more efficient, to create a regional

manufacturing network, integrate the company’s business on a global scale and to reduce marketing


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expenditures by exploiting the synergies between brands. Their strategy to develop R&D network by

improving existing products and creating tomorrow’s nourishments, two third of company’s R&D

activities are dedicated to renovating existing products, the remaining third is reserved for radical

product innovations, improve on operational level and a number of organisational changes.

The theory based frameworks and models might be very useful but the application in practice might be

achieved very hard. It will also depend on the execution skills of the companies and the organisational

culture. Nestlé Company is an international company which came to the stage it is today by gaining

superior competitive advantage over its rivals. The focus product differentiation strategy has been very

successful although it may not work for other firms. The company is able to create and deliver value

not only by offering distinguished products but also gaining effectiveness and efficiency by

reengineering its business processes.

5. APPLICATION PLAN

a.

Defining selection criterion to be used in application alternatives:

Since Nestle is more close to the Soccer Theories; it can be stated that the company can use some

more energy and time to develop its strengths and reduce the weaknesses which were mentioned in

SWOT Analysis above. Even though the company has a priority where the CEO states “…looking at

deeper, scientific solutions to personalized nutritional problems and answers to chronic diseases”,

losing focus on the local markets and niche markets; may cause redundancy on the work load and

resulting in declining efficiency.

Nestle may spare funds to research nutritional problems and chronical diseases, but the funds will

come from their sales. Also; according to the article published in 2012 in Naturalsociety.com;

Nestle has been using genetically modified organisms in their products. Please see:

http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/

These kinds of news, bring up the question of trust and contradicts with the Company motto “Good

Food, Good Life”

The fact that local markets are more in touch with their residents; hence foreseeing the possible

changes in the market, and increasing their competitive advantages.

Another contradiction is that the increasing cost of raw materials may end up increasing their product

price; resulting in customers changing their decisions towards local rivals. Although increase in

“wealth” in poorer countries may help their sales, the increase in prices may cause local rivals to be

chosen against Nestlé’s products in such countries. For example; in Pakistan; where Nestle sells its

“Pure Life” the population without access to safe drinking water cannot afford to buy it. All of which

raises Human rights questions and obvious contradiction to Nestle’s aid in United Nations. (Roseman,

2005)

b. Finding or exploring applicable alternatives:

Nestle should explain the R&D funds and their expenses and aims to the customers and other

http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/


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stakeholders. My personal opinion is that the company will not do this no matter what; and this will

cause lots of hostile debate against the company worldwide.

c. Review of application alternatives:

On the topic of using GMO’s in their products; it’s seen that the company has removed the products

from its markets located in South Africa but not from the USA. However, the company’s corporate

head of sustainable agriculture, Hans Jöhr stated that as a company; “We have a very simple way of

looking at GM: listen to what the consumer wants. If they don’t want it in products, you don’t put it in

them.” Please see: http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/

On the topic of local markets and their advantages of “feeling” the change, Nestle has an advantage,

for it uses immense technological infrastructure to gather necessary information from such markets.

d. Defining application priorities:

In my opinion the first priority on Nestle is to decide whether to increase efficiency or to reduce costs.

On one hand there is the resolve to improve efficiency in the factory and, on the other hand, there is

the resolve to reduce cost. Maintenance is crucial to doing a good job in the best conditions but it has a

cost, and there is pressure to reduce this cost.

Second priority is Nestlé’s production of ‘Pure Life’ and the related extraction of groundwater are

obviously exceeding the renewable volume and can therefore be considered as not sustainable.

Although this finding is in contradiction with Nestlé’s own Corporate Business Principles, it only

raises certain human rights concerns while not automatically constituting a violation as such. In order

to judge these human rights concerns, one has to identify a direct impact of Nestlé’s ‘Pure Life’

production and distribution on peoples’ human rights, like the right to water, health, food or freedom

from discrimination. (Roseman, 2005)

e. Choosing application steps:

The steps of applications are thought to be as such:

Defining the expenses regarding the R&D fundings.

Defining the food additives and/or GMO’s used in products

Answering to the obvious breaches of human rights and sustainability approach questions.

f.

Benchmarks of application steps:

Unfortunately; the application steps mentioned above, have such benchmarks; where the company

needs to officially answer and define the relevant situations via newspapers, internet or through

television. These steps shall be regarded as successful insofar the explanations are made.

http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/http://naturalsociety.com/corporate-giant-nestle-contradicts-gmo-stance/


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Works CitedAcademia. Edu. (2015, March 23). Academia. Edu. Nestle: Global Strategy:

https://www.academia.edu/5366973/Nestl%C3%A9_Global_Strategy_INTRODUCTION adresindenalınmıştır

Essays, U. (2015, March). UK Essays. Strategic Analysis Of Nestle Company Management Essay.:http://www.ukessays.com/essays/management/strategic-analysis-of-nestle-company-management-

essay.php?cref=1 adresinden alınmıştır Jones, S. (2012, May 15). Articles Base. Strategic Management at Nestle:

http://www.articlesbase.com/management-articles/strategic-management-at-nestle-5907881.htmladresinden alınmıştır

Nestle. (2015). The World’s Leading Nutrition Health and Wellness Company Management Report 2008. Nestle.Rebecca M. Henderson, R. J. (2.08.2011). Nestle SA: Nutrition, Health adnd Wellness Strategy. Harvard

Business School .Roseman, N. (2005). ActionAid Pakistan. Swiss Coalition of Development Organisations.Wikipedia. (2015). Porter Five Forces Analysis. Porter Five Forces Analysis:

https://en.wikipedia.org/wiki/Porter_five_forces_analysis adresinden alınmıştır

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