Mission and Vision Statement of Nestle, Capstone Project Example
Words: 3064Capstone Project
The health and wellness company deliver improved values of shareholders by preferring corporate citizen, prefer employer and prefer supplier selling preferred products to become a leading and competitive industry.
Nestle mission statement concentration is on the objective offering people of all over the world with top rated quality food in the routine life. Nestle achieved the mission because of their knowledgeable, and expert team members that anticipate the needs and wants of the consumers. Nestle team members are very skillful and have the ability to build the solutions for the consumers to improve their quality of life. Nestle main objective is to put customers first and can be established by checking their wide variety of products. Nestle designed their products in a way that can provide extraordinary value, price and quality to all customers. The purpose of implementation of mission statement in the company is to attain the high degree of differentiation of products than those of its competitors. Moreover, company, on the developmental investment spends attractive amount in the channels of distribution. Due to improved efficiency to attain high quality process and product in this business, all this became possible.
The objective of the vision statement is based on the goals to lead Nutrition Company concerning the health and wellness of consumers. The focus of Nestle vision statement is to lead team that is active and professional. The entire worker is proved to be part of the organization that has the legacy of long term profitable growth. In the term of profitable growth the vision statement also concentrate on delivering the value in the form of profitable growth to the shareholders. The company’s role in the economic, social and environmental sectors is very important in the country.
The company’s strategic goals are designed in a way to keep the focus on taking care of the consumer’s demands and catering their needs and demands with the use of its marketing techniques and resources. Their goals include meeting the consumers’ requirements by analyzing their behavior in depth while remaining the best brand and providing the highest quality products. The goals also include attaining a sufficient amount of market shares, becoming a part of the people’s daily lives, emerging as the leading FMCG Company all through the world. The company’s mission statements and vision back these strategic goals up. Nestlé’s mission statement primarily concentrates on customers and the different ways they can satisfy their needs by providing a broad range of quality products. The mission statement and core aim of the company are practically the same; therefore these objectives are supported by the goals set by the company as well. The strategic goals and vision statement are also linked; it states that the manner in which the company will be operated will ensure that the wealth and health of its consumers is bettered and its workforce stays active and motivated while other factors, such as environmental, social and economic, aren’t negatively affected. The objectives and strategic goals for the company also back this up by stating that a sufficient amount of market shares need to be attained and this can only be achieved when all the internal and external sources are handled in a good way while the company ensures the customer’s satisfied. Concentrating on the consumer’s health and wealth, the company’s vision, is the proper way to becoming a leading brand and a leader in the market.
Company’s Financial Performance
Considering the recession, current economic situation and the deteriorating macro environment of the previous years, the market’s competitiveness and the multiple brands available for consumers, Nestlé’s financial performance is very good in comparison to the previous years. The consumers’ confidence has been affected in a negative manner due to the macro-environment because the economic situation was not stable or certain. By staying aware of its objectives and goals, Nestle was able to gain profits even in an economic situation such as this. The operating performance of the company is strong and the sales have increased. While the company is controlling its operating, it has spent a considerable amount on its R&D and marketing. EBIT increase to 16.2 billion, rose to 3.2% and its margin increased to 14.8% while the sales roles to 2% which is regarded as positive. The increased sales reveal that the consumers’ needs are being met and that they are satisfied. The company’s net profit was 10.4 billion in 2009 and it rose to 34.2 billion in 2010; this is a positive sign that shows the improved performance of the company. The cash flow for operating was 13.6 billion. The EPS rose to 3.32 by 7.4% and the return on invested capital has rose to 36.1%; the stakeholders are being catered appropriately. The dividend per share has also risen by 15.6%. Although there were various challenges in the economic environment, the company’s financial performance shows that is has performed nicely by taking the steps needed in order to accomplish the company’s goals, mission statement and vision and by making proper investments in the future. Through its services and products, Nestle offers a wide variety of exceptional value propositions for its consumers because they come first and providing them with quality products is a key priority. Another aim for Nestle is to provide a wide range of products for its various consumer segments; it has achieved a high level of distinction in comparison to its competitors and, while doing so, the company has maintained a good level of investment in consumers, operations, innovations and distributions. This was accomplished by securing high quality products and by operating well. The company is also providing its consumers will quality products and pursuing its goals to achieve good financial performance and attaining the involved stakeholders’ trust at the same time.
Competitive and Marketing Analysis
Nestlé’s team is the company’s key strength. They are always concentrated on achieving internal growth. Basically, this means they are focused on achieving high volumes which are achieved by creating new products and bettering the existing ones. Nestlé’s leadership is focused on moving above and beyond what the consumers convey to them. The company has been able to achieve internal growth targets because of its management. Another important strength Nestlé has that should be kept in mind is that they are low cost operators. This allows Nestle to not only beat their competitors but also to gain a competitive edge over them.
Nestlé’s health based products are one of its most important advantages because products such as those are gaining popularity all over the world, including the U.S. People are increasingly switching over to health based products because they are becoming more conscious about their health and they are starting to realize that living a long, healthy life isn’t only based on genetics and luck. By introducing with the 1c-1, Nestle can become a market leader in Germany as well. The company captured 60% of the market share within a mere two years period after launching the product in the country. Introducing and launching more health based products within Germany is another opportunity presented by the 1c-1 since they are a market leader there. This is all due to the fact that Nestlé’s product differentiation strategy works in this case. Another opportunity Nestle has is that the company can open Nestle cafes in major cities around the world to feature its wide variety of products.
When the marketing strategy is analyzed, it becomes evident that the organization is using a dynamic human resource and social policy. The people’s involvement and commitment are the basis for the management style. Nestlé has obligations to the shareholders, consumers and government which the company is fulfilling. Nestle also focuses on preserving natural resource and saving energy because of its environmental commitments. Nestle gives the shareholders’ value by achieving profitable growth in the long term. Nestlé’s products have brand plans and the company uses a corporate branding strategy. Although Nestle knows the importance of the brand, they feel it’s not enough to win the consumer’s hearts. Nestle conducted business on an international level from the very start; however, the organization’s marketing team is perceptive of the fact that the food products need to be linked closely with the country’s eating habits. The country’s culture as well as social habits is also taken into consideration by the organization’s marketing team. This is why Nestle has given all diverse traditions and cultures the respect they deserve. Thinking on a global level but acting on a local level is the approach Nestle has taken in terms of its marketing.
The innovation and renovation of the product, operational performance and the consumer’s communication build Nestlé’s strategy. The management’s performance aids in achieving Nestlé’s continuous performance. Product distinction and customer focus for wellness and health help achieve renovation as well as innovation. The communication between Nestle and it’s consumers is powerful, efficient, effective and creative. The strategy for product distinction is based on the renovation and innovation of the Nestle brand and its products. Nestlé’s product range ranges from ice cream, pet care, drink, coffee, baby food and bottled water. The cost strategy for Nestle is successful and low cost. Most Nestle products are produced in-house. Nestlé’s operational effectiveness is of a higher level and this is another reason. The Nestle Continuous Excellence program is a program in which Nestle explains and addresses the procedures and standards that improve adeptness in the production process. The consistency of the fields of management and manufacturing are also addressed by this program. Nestle has chosen to implement the product distinction strategy.
The company has developed a broad range of products for its consumers’ needs. Nestlé has become amongst the largest companies in the world due to its broad range of products, strategy and low cost strategy which works in favor of the company because its products are manufactured in-house. Programs have been developed by Nestle in these low cost strategies that improve the efficiency of the production process. The management field’s consistency has also enhanced by the low cost strategy. New products, such as chocolate and coffee, are being promoted by Nestle these days. The Popularly Positioned Products strategy is another strategy by Nestle that focuses on the wants and needs of nearly 3 billion lower income consumers from around the world. This strategy ensures that lower income consumers have access to reasonably priced high quality foods that have the proper nutritional values. The PPP versions of valuable brands include Nescafe, Nido and Maggi in Nestle. In this strategy, local manufacturing, sourcing and distribution of the product are used to lessen the costs of the products. The safety and quality requirements are the same for PPP products as well as all other Nestle products. This strategy also serves as an income source for individual as well as street traders. Countries like Europe that are considered developed also have these PPPs. The secret to Nestlé’s success lies in its distinction strategy because Nestle has a wide range of products and a broad brand portfolio. This allows Nestlé to be in a position that gives them the ability to meet the needs of all consumers, regardless of the levels of their income. The environment’s changing patterns and trends as well as solutions for the consumers are addressed by Nestle.
Through the acquisitions made by Nestlé in developed countries and emerging markets, the company is able to strengthen its footing and position in the international market. Such acquisitions include the water in China, confectionery in Turkey, culinary in Ukraine and the pet care in North America. Acquisitions are vital for the overall growth and success of Nestle. They have also helped improve the company’s strategic opportunities and increase the profile for growth. However, Nestlé’s real growth and success come from the overall organic development and geographical location of its products. Plans to make capital investments in developed countries such as Europe or emerging countries such as India exist for Nestle. The investments are made for the sole purpose of building a strong image and position for Nestle as the world’s largest food and Beverage Company within the international market. Over 19 acquisitions have been made by Nestle since 2009 and the company has plans to use the cash flows in its existing business ventures. With a period of 3 years, Nestlé will be able to increase its profits by 2% if it continues the acquisitions. Nestlé emphasizes that the opportunities need to be judged on its own merits when making the decisions in regards of acquisitions. If the emerging and developed countries are financially stable, Nestlé will go ahead with the acquisitions as well as the proper investments that will increase the short term performance. The company will also make long term investments that will help develop the brand and further establish its positions.
Rewards that motivate employees
Nestle believes that their employees are important and vital for the success of their company, therefore, they take good care of their employees by providing satisfactory payment structure and reward system. To improve the motivation of their employees, Nestle provide training programs and engage them in activities to improve their skills. Nestle also has job security. Moreover, within the organization, porter’s model is being crafted very well. Nestle provided basic needs to their employees by providing excellent pay structure and their wellness. The company provides them good benefits like sick pay and 20 day holidays per year, which has played great role in their motivation. Motivation, hardworking and performance can be improved by offering medical allowances to their high level employees. Nestle also provide yearly bonuses to the employees that have higher level of performance or meet their goals.
Company has given cell phones to some of the employees as it is their need as well as some employees are given a car and fuel adjustment in salary. Nestle is one of the efficient and creative company by believing in continues excellence and professional way of communication with them. They send employees overseas for training that can help them to increase their innovative skills. Since Nestle has 30% of women employee so they have child care rooms for working mothers. Their pension plan is very efficient as well. This can attract female workers who are very intelligent and innovative. To take care of their employees’ entertainment, Nestle has gym facility and also staff shops at several locations and have flexible timings. The company believes in long term performance not short term. To increase productivity and efficiency, they should allow part time jobs.
One other way to motivate employees often to include them in setting show specifications.
The actual developing performance specifications can be may take place chances are they more prone to talk about the hinderness which may hinder their efforts, so control can deal wth the obstacles prior to them getting in the manner. They even teach more willing to understand the standards with all the causes of them, so you will not will need to work fully engorged to communicate them.
Employees who are involved with developing performance standards tend to accept those specifications and become prepared to meet them. Also they want to see to it that everyone knows that is responsible for each job activity. When employees understand their parts in commitment to the people of people, this minimizes confusion and provides them a better sense of the way they might work for their fellow employees to get to know their individual objectives.
After specifying assignments for normal operations, think about the most probable irregular scenarios and outline any shifts in tasks that may be important. If , most notably, you expect you to definitely back up somebody else any sort of accident a big rise in orders to fill, plan for ones situation and discuss specifics with employees when , who, how. If you some employees to get their jobs away for now that assist away in receiving when several shipments pop up at once, prepare reserve plan. Keep in mind; you are not going to learn how to prepare for exactly what could affect your normal operations. But by defining certain shifts in obligations in advance, you’ll be able to assist the workers Learn How to best react to unexpected scenarios. One of many issues that can undermine worker determination is not being aware of what may possibly expect with them. Considering they understand what they have to do in a variety of scenarios, they shall be just about guaranteed to learn to react some other scenarios.
As a leader Determine Awards
To make sure that company is intact with all human rights and labor policies, Nestle also approached the human rights programs to make sure that the human rights policies and procedures are fully incorporated into their corporate system. Nestle also face the challenges of child labor in the areas where cocoa produce. To handle this kind of situation they increase the access to education in those areas. This technique builds the Nestle base and displays the culture and fairness of the values in this business. The main part of this strategy is to be honest to the people and respect the environment. Nestle tries their best to provide different training programs to all employees in this developing and emerging market. Nestle objective by offering all those training programs is to make sure that their employees live up to the expectation of the company. External auditors monitor all the Nestlé’s compliances. Nestle maintain high standards, open dialogue options with labors and reputation in the part of employee relations. It can be clear about the Nestlé’s business ethics by the situation that this is first company that promised to use palm oil from the vital resources and make dedication to finish tropical reinforces. In the improved environmental performance, the Nestle efforts have been recognized and the company scored 2nd in the carbon disclosure project. Nestle Products are very tastier and better for the value chain consisting marketing and manufacturing. All this is done by life cycle approach.
Ghulam Shabir Hafiz, “Getting to know Nestle”, retrieved from: http://www.scribd.com/ghafiz/d/33531776-Nestle-pCSR
Annual report 2010 Nestle, retrieved from: http://www.nestle.com/Common/NestleDocuments/Documents/Library/Documents/Annual_Reports/2010-Annual-Report-EN.pdf
Boyle, M. (2008). Meet Google’s Willy Wonka. Retrieved from online database.
Entrereneur Magazine. (n.d.). Flood of Fun-Hungry. Retrieved from online database.
Nestlé. (2009). Good Food, Good Life. Retrieved on July 12, 2009.
Slideshare. (2009). Nestlé 2008 Q3 Earnings. Retrieved from online database.
Dermot Doherty, “Nestle May Aim to Rebuild in Chinese Baby Food With Pfizer Unit”, retrieved from http://www.bloomberg.com/news/2011-08-08/nestle-may-aim-to-rebuild-in-chinese-baby-food-with-pfizer-unit.html
Carola Tinkle, Andrea Restrepo, Christine Lee and Jason Schron and Jesse C.Vaughan “Behind the scene: Nestle” Retreived from http://www.slideshare.net/jsmar16/nyu-stern-nestle-powerpoint-presentation http://www.nestle.com/Common/NestleDocuments/Documents/R_and_D/News/PPP-fact-sheet.pdf
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