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The Nestle Business

Introduction

The arena of the international market for business organizations worldwide is continuously developing and is vastly increasing when it comes to the distant places that it now reaches. Yes, with the contribution of effective globalization, businesses at present are now able to find the most implicative senses of consideration that are better able to push the company’s capability to develop further for the sake of organizational progress. The international arena of business connections never cease to indentify the most important matters of development that it needs to further support its need to expand further. This is the same matter that is practically considered by major international organizations today such as that of Nestle. Being originally located in France, this organization has spurred from a small business venture into becoming one of the most known brands around the globe. In the discussion that follows, an understanding of the different elements that makes up Nestle Company shall be tackled and analyzed as to how much they all respond to the need of the company to progress further in the field of providing products for the communities around the globe that they are supposed to serve.

 

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About the Company

The company mission and vision: Nestle as noted earlier is one of the most important names and brands in the field of international commerce at present. Basically, the company itself envisions a world that is united in reaffirming the stand of the brand that Nestle introduces. The administrational body that intends to protect the assets and the values of Nestle also intends to create certain matters that are definitely able to establish the reputation of the company in the international market. Practically, this vision is based on the mission that notes the want of the company to become known worldwide. Truthfully, these missions and visions create a more definite indication on what the organization is for and what it is all about at present.

Nestle Leadership and Management for Stakeholders: Standing to be among the leaders of the group of business organizations in the industry, Nestle administrators have been able to manage the connections of the business towards other organizations around the globe. Understandably, through this approach, they were able to note the defining image that is considerably affective in the process by which the organization connects with other business organizers in the industry. Other matters considering this issue include the items written herein:

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(a)   Facing Globalization

Globalization as mentioned earlier could either be a source of development or a great challenge to all the different business organizations trying to fit into the situation of giving into the demands of the global market. For Nestle though, this element of modern business operations provided them a better chance of developing further into business maturity. From the years of operation of the company, the administrators of the organization made sure that as globalization embraces the entirety of the business world, they are to take notice of this particular element and be able to consider the possibility of expanding their reaches worldwide in an aim of developing brand familiarity in the global market and of course increasing the sales and profit gains of the organization.

Surely, this step towards global marketing and global influence has provided Nestle the power that it needs to be able to expand its business control. In fact, as response to this particular challenge, the company decided to merge with other different organizations which provided them an edge when it comes to expanding their marketing influence among those who have practically been allured by the brands of Coca Cola and L’oreal at the same time extending their production through venturing to other genres of market concentration. They then merged with L’oreal and Coca Cola and also created connections with the product developers of the said companies that practically affected the quality o f the products that they release on their name. Hence, from plain dairy products to beverages and now cosmetic and pharmaceutical products, Nestle has naturally grown ever bigger than expected.

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(b)   Imposing New and Innovative Technology

Of course, with an expanded market to serve, the company is in need of all the particular expanded ways of developing their products for mass release and distribution. Surely, it could be noticed that somehow, the need for new and innovative technology is essential. Hence, as a result, the investment that the company needed to put forth for this development was indeed of great cost but was sure a good move for the organization as they are now able to handle mass production in several random times as needed.

(c)    Knowledge Innovation and Research

The company spends at least CHF 1.977on research and development. This investment has practically given the company a good push towards development especially on the part of product quality improvement. Surely, the investment that the company puts forth in this particular part of the business’ operation is all worth the effort on the part of the administrators of the organization.

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(d)   Strategic Flexibility in Marketing and Management

Management on the part of the Nestle administrators have been much of a crunch ever since the beginning of the era when the outsourcing came into clear distinction especially on the part of the outside braches of Nestle. In fact, there were some issues that Nestle had to deal with when it comes to matters of labor and salary payments for their employees in the developing countries. In the long run though, Nestle has cleared their name off this reputation and came off clean with regards the said accusations.

(e)   The Company Profit Pool

From the yearend report of the company’s profit and loss record, the following details have been compiled:

Overall Sales CHF 109.9 Billion
Net Profit CHF 18.04 Billion
Research and Development CHF 1.977 Billion
   Sales Breakdown:  
28% Drinks
26% Dairy
18% Ready Prepared Dishes
11% Pet Food
6% Pharmaceuticals
2% Baby Milk Products

Summary of Discussion

As obviously seen from the discussion presented herein, it could be noted that Nestle has had the chance to deal with the different challenges of globalization as it entices the entire business society in turmoil of confusion and expansive troubles when it comes to management and marketing approaches used for the sake of company progress. The international arena of business though both raises a challenge and opens up opportunities for growth noting the fact that even the small organizations could bring about the best kinds of development into their businesses so long as they handle the challenges effectively.

Yes, like Nestle, any administrational body of organizations worldwide could embrace the challenges and the opportunities that globalization itself offers. Being able to do so opens every chance of progress for the organization to keep on pressing towards development and care definitely for the expansion of the business in the international arena of commerce and trade industries. Surely, from this discussion, it has been made clear that with ample attention to detail and strong foundation of development, any business organization would  be able to surpass the pressures of globalization and make a successful entry in the field of modern business operations in a much convincing way of affecting the international market.

 

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