Nestle: Production and Operations Management Analysis Report

Introduction

Nestle is a nutrition company that aims at enhancing better and quality livelihoods to people. It has varied products that mainly help in improving healthy lifestyle of the people.

Over the years, the company has used its resources and technology to find sustainable solutions to socio-economic needs of its customers.

Some of these needs include poverty eradication, better sanitation and food security. This gives the company a competitive advantage over many other companies¹.

Apart from corporate social responsibility, the company created Nestle nutrition, a business strategy meant to focus on the core nutrition business. Therefore, strengthening the leadership in this market is crucial for their success.

This market is the primary motivation for the purchase of its product based on the nutritional value. Nestle nutrition is autonomous global business unit that is meant to increase the competitive edge of the company.

The unit is charged with the profit and loss responsibility in its utmost domains, which include Infant Nutrition, Healthcare Nutrition, and Performance nutrition.

The latter is aimed at delivering superior business performance to consumers by offering science based nutritional products and services².

To enhance its competitive advantage, the company has Corporate Wellness Unit, which focuses on integrating nutritional value to food and beverage products. It encompasses communication effort, which brings the necessary expertise in consumer benefits.

Nestle Production and Services

Nutrition has been the cornerstone of Nestle Company since its inception in the year 1867. Therefore, most products and services provided by the company revolve around nutritional needs.

The company strives at providing quality products and services which will help in promoting a better and healthy wellbeing of its consumers. Nestle has gained a world reputation for its consistency in providing quality and safety products.

Many of the products generated by Nestle Company are beneficial based on the nutritional aspects. They include breakfast cereals, milk and other dairy products as well as bottled water which has diverse accrued advantages³.

Many of these products dominate in both local and global markets. The company has ventured in chocolate and confectionery industry. Some of these products have been in existence for over a century.

For example, S. Pellegrino and Nestle Moca are known in Italy and Brazil for many years. The most revered world brands include Nescafe, Nestea, Maggi, Buitoni, Purina and Nestle. Other brands, such as Milo and Nespresso, sell in many countries.

Nestle takes a holistic approach in providing nutrition to the people. This entails devising of wellness programs that facilitate the people to make their living healthy.

The services include baby’s development, Sports Nutrition and Weight management. No doubt, Nestle brand portfolio practically covers all food and beverages categories.

Nestle Operations Management

The running of the company’s business is governed by two fundamental documents, Nestle Corporate Business Principles and Nestle Management and Leadership Principles.

The two provide the code of ethics that governs the policies and strategies of the company. They outlay the tone and style of approach to the running of the business.

The company’s business strategy is to produce and market its products in a way that creates sustainable value to all stakeholders including the employees, consumers and business consortium in the areas that the company operates. The company does not favor short-term profits over long-term business orientation.

The company recognizes that consumers have a legitimate interest in the behavior and the success of the company’s business, hence it embraces cultural and social diversity.

The company is not discriminatory in management of the business on the basis of nationality, religion, race or age. The company does not involve in political issues.

The rich cultural diversity helps in building innovative ideas for generating products which would meet the needs of the society.

The company has not been left behind in environmental conservation. It has invested heavily in conservation of the environment. In a bid to save the environment, the company has endeavored in recycling of waste materials and packaging.

Nestle pioneered the Kyoto Protocol, an agreement to control carbon dioxide emissions in combating global warming⁴. The company was the first to produce biodegradable containers as an alternative to plastics for packing their food products.

Nestle Operations Strategy

Nestle is a global organization, and its international strategy should be the heart of its competitive domain. The competitive strategy of the company mainly focuses on foreign investment in dairy and other food businesses.

When operating in a more developed environment, Nestle strives to attain the economies of scale via foreign direct investment⁵. In a developing environment, Nestle Company goes the local way by utilizing the local raw materials and employing the appropriate brand.

Nestle Company strikes strategic partnership with other large companies. For example, the company entered an alliance with Coca Cola Company to produce ready-to-drink beverages, such as tea and coffee⁶.

Conclusion

This was in a bid to utilize the established bottling system and necessary expertise in beverage preparation. The Company has employed the strategy of acquiring the local companies to form an established autonomous regional manager who is aware of the local markets dynamics⁷.

Nestle company has left a significant mark in food and nutrition sector, hence becoming very competitive in the scope of business⁸.

Bibliography

Franzen, G. & Moriarty, S. The Science and Art of Branding. New York: M.E. Sharpe, 2008.

Kapferer, J.N. The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term 4^th. London, UK: Kogan Page, 2008.

Nestlé LC1. ‘Nestle’s Competetive Strategy‘. Castelar Articles, 2005. Web.

Footnotes

1. Franzen, Giep & Moriarty, Sandra.The Science and Art of Branding. New York: M.E. Sharpe, 2008.
2. Nestlé LC1. ‘Nestle’s Competetive Strategy’. Castelar Articles, 2005.
3. J.N. Kapferer. The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term 4^th. London, UK: Kogan Page, 2008.
4. J.N. Kapferer. The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term 4^th. London, UK: Kogan Page, 2008.
5. Nestlé LC1. ‘Nestle’s Competetive Strategy’. Castelar Articles, 2005.
6. Ibid.
7. Ibid.
8. G. Franzen & S. Moriarty. The Science and Art of Branding. New York: M.E. Sharpe, 2008.