PowerPoint Presentation

BUSSINESS STRATEGYNESTLE COMPANY IN PAKISTAN

Name of student: Bui Huyen MyClass: 11IPB

STRATEGIC CONTEXTS AND TERMINOLOGY1.1A. MISSIONSDefinition of Mission: A mission statement is a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?" The mission statement articulates the company's purpose both for those in the organization and for the public.(Sbinfocanada)Mission of Nestle: Nestls mission is to provide the best food to people throughout the world.Explain: The Nestle mission means "Good Food, Good Life. It is to provide the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.Nestl is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers needs and creating solutions, Nestl contributes to your well-being and enhances your quality of life.

3B. VISIONS

Definition of visions: An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action.(Source: business dictionary)Vision of Nestl: To be the leader in nutrition Health and wellness, and Nutrition Company in the world.The visions of Nestl: NestlPakistansubscribesfullytothis vision. In particular, we envision to: Lead a dynamic motivated and professional workforce proud ofits heritage and bullish about the future. Delivershareholdervaluethroughprofitablelong-termgrowth, while continuing to play a significant and responsible role in the social, economic and environmental sectors of the country.Objective of Vision and Mission:-To ensure unanimity of purpose within the organization- To provide a basis, or standard, for allocating organizational resources- To establish a general tone or organizational climate- To serve as a focal point for individuals to identify with the organizations purposeand direction, and to deter those who cannot from participating further in the organizations activities- To facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization4C. OBJECTIVES and GOALSDefinition of Goals: Business goals and objectives are part of the planning process. They are describe what a company expects to accomplish throughout the year. Business owners usually outline their goals and objectives in their business plans.The goals & objectives are:To be the best & quality brand in PakistanTo meet the needs & requirements of the consumersTo capture the desired marketshareTo dwell in to the life of people & consumersTo be the number one nutritious company of PakistanTobetheleadingFMCGcompanyaroundtheworldaswellasin PakistanTo be the socially responsible company & be helpful in bad times.

Nestle aims to be proactive innovation and renovation culture, which is the key to Nestl's success in the marketplace.Nestle aims to have fully integrated systems with suppliers & retailers so that every single market can be tapped & focused.

5D. CORE COMPETENCIESA core competency is a company's unique characteristic or capability that provides it a competitive advantage in the marketplace, allows it to deliver value to its customers, and contributes to its continued growth.(Source: http://searchcio.techtarget.com )

The core competency of Nestl is nutrition and it generally focus on health and wellness, their main consideration is good food and good life to all consumer.Core of Nestle business-They not only focus on the enjoyment and social pleasure of eating together, but also more in terms of personal health and nutrition.-Nestle is committed to provide their customer. Consistent quality, safety as well as value for money and convenience-Great taste is the fundamental of their products and consumer appreciation of good food-Priority on nutrition, health and wellness6ISSUES INVOLVED IN STRATEGIC1.2BENEFIT AND PITFALLStrategic management offers the following benefits:

Allows for identification, prioritization, and exploitation of opportunities.Provides an objective view of management problems.It minimizes the effects of adverse conditions and changes.

Some pitfalls to watch for and avoid in strategic planning are these: Using strategic planning to gain control over decisions, resources Doing strategic planning only to satisfy accreditation or regulatory requirements Too hastily moving from mission development to strategy formulation

BENEFITSIt allows major decisions to better support established objectives.It allows more effective allocation of time and resources to identified opportunities.It allows fewer resources and less time to be devoted to correcting erroneous or ad hoc decisions.It creates a framework for internal communication among personnel.It helps integrate the behavior of individuals into a total effort.It provides a basis for clarifying individual responsibilities.It encourages forward thinking.PITFALLFailing to use plans as a standard for measuring performance Delegating planning to a planner rather than involving all managers Failing to involve key employees in all phases of planning Failing to create a collaborative climate supportive of change Viewing planning as unnecessary or unimportant

8PROCESS STRATEGIC- MANAGEMENT MODEL

Figure 1The strategic-management process can best be studied and applied using a model.The framework illustrated in Figure 1 is a widely. This model does not guarantee success, but it does represent a clear and practical approach for formulating, implementing, and evaluating strategies.9COMPREHENDEDIssues of strategic planning: Strategic planning issues are directly impact on overall businesspolicies.Issues of strategic impact on business policies:Impact on managersTargetsWhen to planWho should be involvedRole of planning

Impact on managers: Strategic planning issues are directly impact on Managers activities.Targets: Targets are another step of strategic planning. It is always plays a important part of strategic planning issues.When to plan: Plan is mainly set when organization is issues a new business development product or services. New investment are involved in different sectors than they need to develop these strategic plan.Who should be involved: Strategic plan are involved both internal and external stakeholders. Stakeholders are the main operators in overall business procedure.Role of planning: Strategic plan need to play a role which is plays a big part for organization growth.

10STRATEGIC FORMULATIONStrategy Formulation includes planning and decision-making involved in developing organizations strategic goals and plans.

11STRATEGIC FORMULATIONThe process of strategy formulation basically involves six main steps.

Setting Organizations objectivesEvaluating the Organizational EnvironmentSetting Quantitative TargetsAiming in context with the divisional plansPerformance AnalysisChoice of StrategySetting Organizations objectives - The key component of any strategy statement is to set the long-term objectives of the organization.Evaluating the Organizational Environment - This includes a review of the organizations competitive position.Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values for some of the organizational objectives.Aiming in context with the divisional plans- identified and accordingly strategic planning is done for each sub-unit. Performance Analysis - Performance analysis includes discovering and analyzing the gap between the planned or desired performance.Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually chosen after considering organizational goals, organizational strengths, potential and limitations as well as the external opportunities.12Levels of strategies

Figure 2: Levels of Strategies with Persons Most ResponsibleIn large firms, there are actually four levels of strategies: corporate, divisional, functional, and operationalHowever, in small firms, there are actually three levels of strategies: company, functional, and operational

13Explain Nestl difference planning techniquesThe strategy-formulation framework consists of five techniques that can be used in any sequence:

Strengths-Weaknesses-Opportunities-Threats (SWOT) MatrixStrategic Position and Action Evaluation (SPACE) MatrixBoston Consulting Group (BCG) MatrixInternal-External (IE) MatrixGrand Strategy Matrix

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important matching tool that helps managers develop four types of strategies: SO Strategies, WO Strategies, ST Strategies, and WT Strategies.The axes of the SPACE Matrix represent two internal dimensions (financial position [FP] and competitive position [CP]) and two external dimensions (stability position [SP] and industry position [IP]).The Boston Consulting Group (BCG) Matrix and the Internal-External (IE) Matrix are designed specifically to enhance a multidivisional firms efforts to formulate strategies.All organizations can be positioned in one of the Grand Strategy Matrix for strategy quadrants. A firms divisions likewise could be positioned.

14SWOT Matrix

15Boston Consulting Group (BCG) Matrix for Nestle

Question Marks: Magi 2-minute Noodles currently require lots of investment in order to capitalize on the growing culinary segment, which may not offer the highest return on investment in Nestles brand portfolio.Stars SBUs (strategic business units) with a high share of a high growth market. Nestles wide range of mineral water has benefited from the combination of healthier lifestyle trends and emerging markets. Dogs SBUs in this category have a low market share in a low growth market.Cash Cows perhaps the most important SBU, Cash Cows have a high share of a low growth market.16