Basic Strategies Used To Respond To Uncertainty Management Essay

Basic Strategies Used To Respond To Uncertainty Management Essay Nestle is the worlds leading nutrition, health, wellness company. The headquarter of Nestle company is located in Vevey, Switzerland. That is in 1866, there was a first European condensed milk factory opened in Cham, Switzerland. The name of the company is Anglo-Swiss Condensed Milk Company which established by brothers George Page and Chatles Page. After that year, the founder of Nestlà ©, Henri Nestle, a German pharmacist, developed a combination of cows milk, wheat flour and sugar, which name as Farine Lactee. The launched of Farine Lactee had become the largest competitor of Anglo-Swiss Condensed Milk Company. In 1905, Nestlà © merged with Anglo-Swiss Condensed Milk Company after a couple of decades as fierce competitors to form the Nestlà © and Anglo-Swiss Condensed Milk Company. In 1929, the chocolate company Peter, Cailler , Kohler Chocolats Suisses S.A. joined Nestlà ©. And in 1947, Nestlà © change its name to Nestlà © Alimentana S.A after merged with Maggi, a well-known manufacturer of seasonings and soups. In 1974, Nestlà © for the first time diversified outside the food industry and they become a major shareholder in LOreal, one of the worlds leading maker of cosmetic products. And then finally, the last name change that the company would endure was in 1977, where it adopted the name Nestlà © S.A. The first product that launched by Nestlà © is Farine Lactee Nestlà ©, a combination of cows milk, wheat flour and sugar. Farine Lactee was launched by Henri Nestle in 1867 and it was supported by the public. After that, Nestlà © also launched Milo in 1934. Milo is a chocolate and malt powder which is mixed with hot or cold water to produce a beverage and it is developed by Thomas Mayne in Sdyney, Australia. After the launched of Milo, another product launched by Nestlà © that famous among the world which is Nescafe. Nescafe is a powdered coffee that was introduced in Switzerland on April 1, 1938 after being developed for seven or eight years by Max Morgenthaler and Vernon Chapman. Another product that pull Nestlà © toward success is Nestlà © Pure Life, a bottled mineral water that launched in 1998. The smart strategy of Nestlà © had bring them toward the road of success. In 2012, Nestlà © has around 8,000 brands on the market included coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food. Organizational chart Planning and Strategic Management Basic strategies used to respond to uncertainty Nestlà © is a company that mainly act as a prospector while responding to uncertainty. Prospectors focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen. Nestlà © had create many brands and many different types of products to satisfy consumers needs and wants. The table below showed the list of product of Nestlà ©. Types of Products Brand Baby foods Cerelac, Gerber, Gerber Graduates, NaturNes, Nestum Bottled water Nestlà © Pure Life, Perrier, Poland Spring, S.Pellegrino Cereals Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness, Nesquik Cereal Chocolate confectionery Aero, Butterfinger, Cailler, Crunch, Kit Kat, Orion, Smarties, Wonka Coffee Nescafà ©, Nescafà © 3 in 1, Nescafà © Cappuccino, Nescafà © Classic, Nescafà © Decaff, Nescafà © Dolce Gusto, Nescafà © Gold, Nespresso Culinary, chilled and frozen food Buitoni, Herta, Hot Pockets, Lean Cuisine, Maggi, Stouffers, Thomy Dairy Carnation, Coffee-Mate, La Laitià ¨re, Nido Drinks Juicy Juice, Milo, Nesquik, Nestea Food service Chef, Chef-Mate, Maggi, Milo, Minors, Nescafà ©, Nestea, Sjora, Lean Cuisine, Stouffers Healthcare nutrition Boost, Nutren Junior, Peptamen, Resource Ice cream Dreyers, Extrà ªme, Hà ¤agen-Dazs, Mà ¶venpick, Nestlà © Ice Cream Petcare Alpo, Bakers Complete, Beneful, Cat Chow, Chef Michaels Canine Creations, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet, Purina, Purina ONE, Pro Plan Sports Nutrition PowerBar Weight management Jenny Craig In the effort of seeking out new markets, Nestlà © had employed around 330 000 people in over 150 countries and have 461 factories or operations in 83 countries. Nestlà © also becomes one of the sponsors in many events. For example, on 27 January 2012, the International Association of Athletics Federations (IAAF) announced that Nestlà © will be the main sponsor for the further development of IAAFs Kids Athletics Program for the consecutive of 5 years starting from January 2012. This is one of the biggest grassroots development programs in the world of sports. In the year 2012, Nestlà © expect that it will be a challenging year as they will face many uncertainties in the global economy and. However, as a prospector, the company had made specific plans to overcome the uncertainties. They believe that they have good fundamentals and will be able to diversify the global uncertainties. Nestlà © aim to continue the innovation and renovation of their products as long as launching further promotion of nutritional diets and healthy lifestyles Nestlà © will remain vigilant and will take all necessary method to soften any impact on their business due to the volatile commodity prices that were expected to continue in 2012. Besides that, Nestlà © Company can also be considering as an analyzer. Analyzers let other organizations take the risks of product development and marketing and then imitate or perhaps slightly improve on what seems to work best. For example, Nestlà © was Gail Bordens most successful imitators in the production of milk. Nestlà © imitate and make changes based on the condensed milk manufactured by Bordens first canned milk factory. Nestlà © invented a powdered milk food that primarily composed of cows milk and then mixed with water. By 1868, this product was being sold in Switzerland, Germany, France and England. After five year, the product was available throughout Europe. Eventually, Pet Milk and Carnation Milk were produced and sold in United States. In the 21th century, humans wants are unlimited. Therefore, Nestlà © create new brands on the products that already exist in the market and are needed for the consumers to widen their choice. Mission and Vision Nestlà ©s mission is to provide consumers with safe and convenient high quality food products so that people can live a better life. They are friendly, caring and efficient organization and they believe that research can help them make better food so that they can provide selections for all individual taste and lifestyle preferences. We should responsible we role, that means we need to responsive to the social, environmental, economic and cultural aspirations of people anytime, whilst ensuring our shareholders a reasonable return on their investment. Our staff can succeed job satisfaction, self-development and their reasonable targets because Nestlà © are seen as a perfect place of employment with good working conditions and benefits, with an internal environment. Nestlà ©s vision is to providing customers with high quality products and services with added value at competitive prices, simultaneously ensuring the long term viability and profitability of the organization. We have to continue to struggle to get the recognition and satisfy the trust our customers and business partners place in us. Our ambition As the leading Nutrition, Health and Wellness Company we enhance lives by offering tastier and healthier food and beverage choices at all stages of life and at any time of the day, helping consumers care for themselves and their families. This is the foundation of our promise of Good Food, Good Life and puts nutrition at the heart of everything we do.It is our firm belief that, for a company to be successful over time and create value for its shareholders, it must also create value for society. We call this Creating Shared Value. Built on strong foundations of compliance and sustainable business practices, this is our way to do business and to be the trusted leader in Nutrition, Health and Wellness. SWOT analysis Grand Strategy Grand strategy is a systematic, comprehensive, long-term plan of all the company use to achieve their goals. Market, product, and organization development is the main element of this strategy. There are three types of strategy such as Growth strategies, Stability Strategy and Defensive Strategy. Growth strategy involves the expansion of a company. Stability strategy is a strategy there are no-change strategy or little change strategy. Defensive strategy is a control to reduce the probability of loss. Nestlà © is a company that apply growth strategy. Nestlà © started the business in the year of 1866 with a first European condensed milk factory and today becomes the worlds biggest food producer. The product of Nestlà © such as Milk, Beverages, Coffee, Ice-cream, Confectionery Chocolate, Junior Food and other, has make a sales of CHF 44.1 billion in 2012 from 74,660 million at 1999. There net profit increase from 8% to 9.5billion Swiss francs ($10.35 billion) that show at9 August 2012. In 2003,Nestlà © got around 328,000 people that are Nestlà ©s staff in 70 countries and have many operations or factories in the world compare to the old figure of employee in 1998 299,800 people. Besides that, Nestlà © is increasing the size of their company year by year. One of the strategies is give different promotion on day. They give a discount for customer by using coupons. For example, Nestlà © Toll House Birthday Sugar Cookies can save 55$ if we print out the coupons to buy. In addition, Nestlà © also provide the samples food for customer in a promotion time, for instance, Maggi MeeGorengget the FREE Samples of the Delicious in 2nd  July 2012 to 2nd  August 2012. These was the successful strategy of Nestlà © in now a day. Nestlà © begin the business at 1866 with the combination of cows milk, wheat flour and sugar. After 1 year, infant cereal developed for a whole new world to babies. Next, the launch of Milo, Nescafe, Nestea, Nestlà © Pure Life, and Power Bar are launches at the years after 1929. Although these are many product launches, they merger with another company as an example Maggi and Ursina-Franck. Nestlà © did the high risky of investment in the follow year such as joint venture with LOreal, General Mills, Coca-Cola and Fonterra. In conclusion, Nestlà © was trying their best at the sales of product. It has a smart plan for the uncertainly. Growth strategy will give the increasing of cash, bank payment and other to the Nestlà © company and Nestlà © will improve in new product or new market in the future. Competitive Strategies Nestlà © mainly focused on differentiation strategy. Nestlà © is a quality focused company. They differentiate their products with their competitors by giving them better customer satisfaction and quality with in an acceptable price limit. All their market is based on quality products and customer satisfaction. The main factor that motivates a customer is to buy their goods is the nutritional content in their products. They also focused on creating a strong brand by creating brand equity. For have a better quality on their products, Nestlà © had created Nestlà © Nutrition, which is a global business organization designed to strengthen the focus on their core nutrition business. They believe that strengthening their leadership in this market is the key element of their corporate strategy. In order to reinforce their competitive advantage in this area, Nestlà © created Nestlà © Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services. In order to produce a better quality product, Nestlà © had made an effort on research and development. Research and development is a key of competitive advantage for Nestlà ©. Without research and development, Nestlà © could not have become the leader in food and beverage industries. With 29 research, development and technology facilities worldwide, Nestlà © has the largest research and development network of any food company. Based on the research and development done by Nestlà ©, they are able to produce many products that have a high quality in nutrition, wellness, taste, health, texture or convenience. Besides that, Nestlà © also use cost-leadership strategy for minor products. Nestlà © had used a new strategy called Nestlà ©s Popularly Positioned Products (PPPs) strategy that provide consumers with high-quality, nutritious products, regardless of where they sell them and the price point at which they sell them. PPPs focuses on the specific needs of 3 billion lower-income consumers worldwide. PPPs offer these consumers the opportunity to consume high-quality food products that provide nutritional value at an affordable cost and appropriate format. With a range of locally adapted distribution methods, including street markets, mobile street vendors and door to door distributors, PPPs are a source of income for street traders and individual distributors and contribute to the creation of local jobs. Recommendation Utilizing the identified strengths and opportunities Overcome the identified strengths and opportunities Conclusion Overall achievement Firstly, on 21 May 2012, Nestlà © was in the rank of No. 18 in The Gartner Supply Chain Top 25. The Gartner Supply Chain Top 25 is about leadership. Nestlà © has created a successful supply chain segment for its popular Nespresso line. Nestlà © is also highly advanced and integrated in its raw material sourcing strategies, and has invested significantly in supply development and innovation. Moreover, on 12 April 2012, Nestlà © becomes the first food and beverage company that receives A+ rating, which is the highest standard in Global Reporting Initiative (GRI) for Creating Shared Value report. This shows that Nestlà © do take seriously their responsibility to create shared value and conduct their business in a sustainable way. Next, Nestlà © won the ACCA Malaysia Sustainability Reporting Award 2011. This was because Nestlà © use Sustainability Reporting to communicate to stakeholders regarding the progress of their Creating Shared Value strategy, which is to create value simultaneously for society and their shareholders while carrying out our business activities. On 19 May 2011, Nestlà © receives top environment award which is the 27th World Environment Center (WEC) Gold Medal award for its commitment to environmental sustainability. This shows that Nestlà © was recognized as a global company that has demonstrated an example of sustainability in business practice. Furthermore, on 7 June 2011, Nestlà © became winner of the Stockholm Industry Water Award for its leadership and performance to improve water management in its internal operations and throughout its supply chain. Nestle also has a leading role in the 2030 Water Resources Group. In July 2010, Nestlà © Malaysia was crowned as a winner of the Asia Responsible Entrepreneurship Awards 2010 (AREA). This awards show that Nestlà © was recognized as an organization that have shown a lot of efforts, perseverance and courage in corporate social responsibility initiatives. Besides that, a Global Food Industry Award was given to Nestlà © by The International Union of Food Science and Technology (IUFoST) .in 2010. Nestlà ©s dedication to food science and technology has been acknowledged by the IUFoST as long as Nestlà ©s efforts to advance global food science and technology for the benefit of everyone had been recognized by them. Last but not least, Nestlà © won the StarBiz-ICR Malaysia CR Awards in the year 2009. Nestlà © was one of the seven public-listed companies which were recognized and honoured for their outstanding Corporate Responsibility practices at the StarBiz-ICR Malaysia CR Awards 2009 presentation ceremony.