STRATEGIC MANAGEMENT

Assignment: Strategic Management



Introduction3

Task 1: Nestlé's mission & CSR initiatives3

A glimpse of Nestlé's Social Responsibility Initiatives4

Task 2: Nestlé's approach to Strategic Management5

The Essentials of Business Success6

Analysis of the Environmental Factors7

PEST Analysis9

The case of Customer Bonding11

Product: Differentiation & Low Cost11

Total Customer Solution12

Task 3: Recommendations13

References15

Assignment: Strategic Management

Introduction

Today, the business world is far more competitive than ever before. The economic globalisation has reshaped the values of business principles and associated strategies. Business professionals have evolved their principles practices to meet the present day requirements. Globalisation has posed new challenges to the business sustainability. In this regard, Corporate Social Responsibility is a prominent part of today's businesses. Moreover, a company's mission scope sets a guideline for its leadership and management strategies.

In this regard, it is essential to understand how organisations incorporate strategic management in order to re-instate its objectives. For that matter, the report explores strategic management and Corporate Social Responsibility principles in Nestle. The report uses relevant literature support & techniques for appraising Nestlé's strategies.

Task 1: Nestlé's mission & CSR initiatives

Nestle is Swiss multi-national firm which has demonstrated sustained growth in the last 150 years. Nestle deals with food, and nutrition items like cereals, milk, baby food, coffee, chocolates, powdered milk, water, snacks and many other dairy products. It supplies quality products to 130 countries around the globe. The firm has employed approximately 250,000 people. Nestle manufactures 10,000 different products.

The organisation's mission has evolved over a period of time. Nestle achieved its mission of becoming the world's leading nutrition, health and wellness company. The firm strives to maintain its standing by incorporating CSR principles pertaining to strategic management. Nestle is the largest food company with global sales in excess of $85 billion in the year 2011 (Charles & Gareth, 2010, p. 482). Nestle explains its objectives in its vision statement. The company reflects its vision of being the leading & competitive food company. For that matter, the firm focuses shareholders' values for business sustainability. Business analysts claim that the success of Nestle is due to it's “stakeholders' centred” business principles. One can see its reflection in their mission statement where they aim to be the preferred employer and supplier of food products. Upon analysing the mission statement, we observe that the firm has set long term goals based on effective stakeholders' management. For that matter, the firm has identified the value of CSR as central to its mission. Moreover, the leadership acknowledges the value of Corporate Social Responsibility for extending its competitive edge.

A glimpse of Nestlé's Social Responsibility Initiatives

The company aims to become a good corporate citizen. For that matter, Nestle adopts the approach of “creating shared values” in its CSR principles (Nestle, 2005, p.5). This is a unique approach to addressing CSR context. Nestle helps its farmers achieve higher outputs by utilising fewer natural resources. This way the firm takes on its responsibilities pertaining to environment. For instance, the company provided nutritional supplements for cows in Colombian farms in order to increase their milk ...