BUSINESS STRATEGY

Business Strategy

Business Strategy

Answer to Q1.1

Mission

The mission statement of Nestle explains what is Nestle and why does it exist. The mission statement of Nestle says “Good Food, Good life”. By this they mean that they want the best taste for their consumers containing the most nutrition and a huge range of beverages and food for various eating occasions.

Vision

A vision statement in a business is applied to the whole business or to a single division of a business. The vision of Nestle is to be competitive, healthy, leading and nutritious company that delivers the improved shareholder value to its customers.

SMART Objectives

SMART is an acronym for Specific, Measurable, Achievable, Realistic and Time scaled. SMART is an effective way to set goals and objectives for Nestle. Companies that follow objectives with the use of SMART are more likely to achieve their goals.

Goals

A goal is a desired result that is expected by a business or a company is some type of development that is assumed. Nestle even has prioritized its goals which include trust by stakeholders, health and nutrition and financial performance that is sustainable.

Core Competencies

A management theory holds a concept that a core competency refers to a certain factor that is central to a business and is a way in which a company and its employees work. Nestlé's core competencies include innovation, consumer engagement and operational efficiencies which must be achieved.

Answer to Q 1.2

The strategic planning process is based on the strategic issues or challenges faced by Nestle. A strategic issue can be any challenge or question that significantly affects a company's mission, objectives, values, processes or any other important aspects. The fourth step in the Bryson strategic change cycle is to identify all such organizational strategic issues (Martinelli, 1999).Some of the strategic issues is now discussed.

Strategic planning continuously deflects unrest and criticism. It also leads to delayed decisions. Strategic planning also justifies decisions that are placed on hold. “We can't get into staffing issues into merger talks until we are finished with strategic planning”.

Much of the time strategic planning has turned into a ritualized process with components of an improvisational play which features a high-paid advisor. Funders dole out their most beloved specialists to grantees, bringing about experts who must be applauded to the funders and plans that the funders will like.

Funders usually drive strategic planning which means that the main aim of strategic planning is to construct a document which consists of continuous funding from the institution.

Answer to Q 1.3

The word PIMS is an acronym that means “Profit Impact of Market Strategy”. According to the Boston Consulting Group (BCG), it is a data base that produces proof in support of both counter intuitive and common sense principles for sustaining and gaining competitive advantage. Some companies might decide to use PIMS as it holds information about organisations and providers that have contracts with YPLA, LSC, EFA and SFA. PIMS is a long term study that is comprehensive and tries to explain strategic business units (SBU) and its ...