Assurance of Learning Exercise 1DStrategic Planning at
Nestle
For the past years, Nestle has become one of the leading
corporations operating all over abroad. Last March 2013, it has
been rank as the 3rd global food and beverage manufacturers in the
Access to Nutrition Index. On the same year, it has topped as
number 1 in leadership for industry group in the Dow Jones
Sustainability Index 2013 and has achieved the maximum score in the
CDP Climate Performance Leadership performance. All of these are
achieve through a thorough strategic planning of the organization.
Innovation. Nestle is an entity that embraces total quality
management. It continues to improve previous accomplishments and
develops them into something even better. In the organizations
annual report in 2013, it has added ten new commitments in
nutrition, water, rural development sustainability and compliance.
It has also renovated 7,789 products for nutrition and health
considerations. Plus, it has changed nutritional policies to drive
the further reduction of salt, sugars, saturated fats, and trans
fats in their products. Today, nestle has been providing 167
billion servings of fortified products worldwide. It is said the
needs and wants of the market changes over time. Through TQM, an
organization can adapt to the ever changing tastes. It does not
only cater the preferences of today but also bears in mind the
prospecting inclinations of tomorrow. People Orientation. The
report also reflects the organizations orientation towards its
people. In the letter of executives to the stakeholders it is
expressed that, our people are our strength and competitive
advantage, and we would like to thank everyone at Nestl for their
great efforts in contributing to another year of progress for the
Group. Wherever you are in the world, whatever challenges you have
been facing, your commitment has been unwavering. Recognition for
your efforts is one of the greatest sources of motivation. It can
encourage people to work even better and to enhance their
performances. This proves the managerial maxim, if we take care of
our people, they will take care of our organization. Corporate
governance. Nestle engages with society on the basis of strong
principles of governance and compliance that provide the framework
of how they do business. For the executives of the entity, good
governance helps maintain trust with employees, investors,
governments, NGOs, customers, consumers and other stakeholders.
Without good governance and compliance we cannot reach our goal of
doing business sustainably and way that creates shared value for
society. Our leaders are the ones that guide us to our common goal.
Through efficient and effective leaders, strategic plans do not
remain as plans but they are immortalized through strategic
actions.Risk Management. The organization also has this Enterprise
Risk Management Framework (ERM). It is designed to identify,
communicate, and mitigate risks in order to minimize their
potential impact on the Group. In dealing with business, one of the
things that we are certain to deal is uncertainty. Risk is
inevitable but it can be alleviated. It is important that an
organization would include risk management as one of the components
of their strategic plan since it can have a great impact towards
the implementation of the entire strategic plan.Market
Segmentation. Nestle operates in lots of countries all over the
world. With lots of production, manufacturing and activities going
on all at once, Nestle decided to narrow down the list through
different Segmentations: Zone Europe, Zone Americas, Zone Asia,
Oceania and Africa, Nestle Waters, Nestle Nutrition, others.
Operation can be different depending on a certain country. Tropical
countries like the Philippines might need higher degree of
preservation in dairy products of Nestle. Formulas for products of
another country might be different from another country because of
the availability of production resources. In strategic planning,
market segmentation is a must since you will know the applicable
course of action that should be implemented in a particular
location. There are more factors that contribute to the strategic
plan of Nestle. Truly, Nestle has deserved to be on the top. To sum
it all up, a strategic plan should comprise of different factors.
These factors all contribute to the betterment of the organization.
It should be able to address to current and future issues of the
entity. The more variables that the plan can touch the better
because it can introduce new opportunities and can represent risk.
With that, we can plan on how to battle the risk and how to develop
the opportunities. A strategic plan is in fact helpful in an
organization. Without it, we would be blindly battling with our
day-to-day operations without guarantee of direction. Our strategic
plan is our game plan, it is our ticket to achieve our goals.
Holy Angel UniversitySto. Rosario, Angeles CityA.Y.
2014-2015
Strategic Management Case Study no. 1
Submitted by:
Alarcon, BrianAsistin, JenniferCortez, Jil YhanneOcampo,
Patricia AnneSalta, Rosheena(Group 5)
Submitted to:Mrs. Carmelita Lao
