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Nestle Business Objectives

Categories: BusinessNestle

Introduction

Nestle is not just the biggest manufacturing corporation in Switzerland, but it is jointly the biggest corporation in the world and about 153 years old. The mission statement highlights the fact that Nestle products is being provided around the globe in almost every nation. Wherever one could live, Nestle alone would deliver the most efficient and reliable food and drink item to meet one’s needs throughout the day, over the course of life. People on the move need to be prepared to indulge in good food wherever they are, irrespective of the moment of day.

They are generally reassured that well-known brands will be noticed from home. This declaration also represents the picture of Nestle’s premium quality product. Nestle has the benefit that it provides a complete variety of premium quality products, base product and meal elements to caterers, support chains and various restaurants, like leading shopper brands like Nescafe. Quality is Nestle Company’s cornerstone of achievement. Every day, individuals around the globe demonstrate their confidence in the business, by choosing the product Nestle.

This confidence emerges from a picture of quality that has been developed over a century.

Consequently, the product standard eventually enhances the quality of the lives of the consumer. Furthermore, the mission statement states that Nestle has the capacity to anticipate the wishes of the consumer and find alternatives. Nestle has proven this ability on several occasions by introducing new products that shoppers needed.

Question 1

Nestle business objectives

  • Nestle’s business objective is to manufacture and market the company’s products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.

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  • Nestle does not favour short-term profit at the expense of successful long-term business development.
  • Nestle recognizes that its consumers have a sincere and legitimate interest in the behaviour, beliefs and actions of the company behind brands in which they place their trust and that without its consumers the company would not exist. So, the needs and wants of consumers should be considered.
  • Nestle believes that, as a rule, legislation is the most effective safeguard of a responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.
  • Nestle is conscious of the fact that the success of a corporation reflects the professionalism, conduct and the responsible attitude of its management and employees. Therefore, recruitment of the right people, ongoing training and development are crucial.
  • Nestle continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

Question 2

Die SWOT analise van enige besigheid lyk as volg: eerstens is die sterk punte, dan die swak punte, die geleenthede en laastens is die bedreigings wat die besigheid in die gesig staar. In hierdie vraag is die Swot analise van Nestle gebustudeer en dit lyk as volg:

Eerstens, vir ‘n goeie sterk punt, het hulle betroubare verskaffers, wat hulle van die rou materiaal voorsien. Die besigheid se werksmag is hoogs betroubaar en bekwaam, daar word deurgaans opleidingsprogramme ingestel om te verseker dat die werknemers weet wat van hul verwag word en hoe om hul vaardighede te verbeter. Die ontwikkeling van nuwe produkte is hoogs suksesvol, wat dui op produk vernuwing. Nestle het goeie verhoudings met besighede wat hulle produkte gebruik en dit bevorder ook hierdie besigheid se sukses en so het Nestle ‘n voet in die deur by elke land oor die w?reld heen (Fern Fort University, 2019).

Die swak punte van Nestle, dui op die dele waar die besigheid nog ruimte vir verbetering toon. Hierdie punte sluit dinge in soos: beter vooruitgang in nuwe tegnologie gebruik, wat sodoende kan bydra om die besigheid nog meer uit te brei. Die bestuur van hul finansies is nie heeltemal so doeltreffend nie. Alhoewel die werksmag hoogs bekwaam en betroubaar is, is daar onderlinge wrywing tussen die werknemers. Hierdie wrywing veroorsaak dat meer interne opleiding aan werkers gegee moet word, en dit het onnodige onkostes wat vir uitbreiding gebruik kon word. ‘n Ander swak punt wat ook veel na wense oorlaat, is die bemarking van Nestle se produkte (Fern Fort University, 2019).

Vir geleenthede kan Nestle op die volgende punte fokus: die besigheid het reeds baie betroubare en lojale kli?nte, maar hulle kan vordering maak om nuwe kli?nte se guns te wen en goeie verhoudings met die te bou. Nestle kan begin fokus op die gebruik van nuwe tegnologie wat innoverendheid vir die besigheid beteken. Uitvoerkostes wat aan die afneem is, bring die prys van Nestle se produkte ook af. Hierdie is ‘n gulde geleentheid om winsgewendheid te bevorder of om die kli?nte die geleentheid te gun om mark aandele in die besigheid te bekom (Fern Fort University, 2019).

Die bedreigings wat Nestle in die gesig staar kan beskou word as die intense kompetisie wat tussen besighede voorkom. Kli?nte se koop strategie het verander deurdat hulle meer van die internet gebruik maak om goed te bestel. Hierdie gedrag bring die reeds bestaande verskaffer se besigheid in gedrang omdat die nie meer voete kry nie. Sekere lande se wette verander en dit plaas druk op die verantwoordelikhede van Nestle. Die verhoogde prys vir arbeid stel die winsgewendheid van Nestle in gedrang en hulle werksmag. Van Nestle se gesogte produkte is seisonaal, en ‘n vinnige verandering in hierdie seisoen sal ‘n groot impak op die besigheid h? (Fern Fort University, 2019).

Question 3

BCG (Boston Consulting Group) Matrix is n vierkantinge blok wat in 4 eenhede of kwadrante gedeel is, waar elke deel of kwadrant sy eie unike simbool het wat die volgende kan wees: vraagteken, ster, troeteldier of kontantkoei. Hierdie is slegs eenvouding gestel om ‘n portefeuljebestuursraamwerk te skep, wat besigheide help om besluite te maak en hoe om hulle verskillende ondernemings te prioritiseer. Deur elke simbole aan sy eie kwadrant toe te ken kan die onderneming besluit waar om sy kapitaal en hulpbronne te konsentreer om sodoende die meeste waarde te bekom en verliese te kan verminder.

Ster

Die produkte is in groeimarkte met ‘n hoe markaandeel. Dit wil se dit is alles sake eenhede wat in die toekoms beskou kan word as groei in een of ander opsig of hoe mark aandele besit word. Maatskappye wil reeds in die produkte bel? om sodoende groter mark aandeel te verkry in die toekoms. Dit sal lei tot die verkry van ‘n beter posisie in die mark weens hoe groter jou mark aandeel is, hoe meer potensiaal het jou produk. Groeivooruitsigte in die besigheid kan die produkte later moontlik die posisie van kontantkoeie bekom.

Goeie voorbeelde is Nestle’s Mineral Water en Nestle’s Nescafe Coffee in die Sterkwadrant van die BCG Matrix of Nestle. Dit kan ook wees oor groeiende gesonder lewenstyle.

Vraagteken

Die produkte is meer geneig om in ho? groeiende markte te wees, maar lae mark aandele te h?. Die produkte staan die kans om in die toekoms van die besigheid moontlik die ster kwadrant te betree of dit staan ook die kans om masjienverliese vir die beesigheid te wees. As die toepaslike probleme in die kwadrante effektief bestuur word, kan die produkte goeie groei potensiaal h? indien dit die ruimte vir ontwikkeling gegee word.

‘n Goeie voorbeel hiervan is Nestle chocolates. Alhoewel daar vele produkte is wat nog deel van die bedryf vorm maar nog in die ontwikkelings fase is nie en slegs ‘n baie klein deel van die markaandeel het en dus nog gesien kan word as ‘n ho? risiko produk.

Kontantkoeie

Die produkte word gevind in lae groeiende markte, maar die produk het ho? markaandele. Die produkte kan gesien word as markleie produkte en is geldwisselaar omdat baie klein beleggings noodig is vir die produk om sy leierskap en winsgewendheid in die mark te behou.

Met die fokus op Nestle is die beste voorbeeld ongetwyvel Nestle se Maggi noddels wat ‘n merk aandeel van 80 – 85% het, wat dus toon dat die produk ‘n baie sterk houvas het op die mark.

Troeteldier: Honde

Die produkte het ‘n lae groei of lae markaandele. Die produk het nie kans om enige groei te toon nie en moet bestuur aandagtig dink voor die produk vervaardig word. Omdat daar ‘n moontlikheid is dat die produk geen winste kan inhou nie en nie ‘n goeie bron van verdienste sal wees nie.

Met die oog op Neestle is die beste voorbeeld Nestle Milo. Nestle bel? nie in die produk nie, weens die kans baie sterk sal wees dat daar geen groei op die produk sal plaasvind nie. Die produk sal heel waarskynlik geen verdienste oplewer nie en sal dit meer wys van Nestle wees om eerder die geld te bel? in die vraagteken of ster kwadrant produkte.

Question 4

Die bemarkingsmengsel van n besigheid bestaan uit die volgende 4 punte (wat ook die 4P’s genoem word): produk, prys, plek en promosie.

Die produk verwys na dit wat vervaardig of geproduseer word deur die maatskappy om verbruiker se behoeftes te vervul en ‘n produk op die mark te plaas wat verbruiker se aanvraag is.

Die prys van die produk speel ook ‘n belangrike rol, omdat vele verbruikers koste-effektief leef. Indien ‘n ander besigheid se produk goedkoper is, is die moontlikheid groter dat die verbruiker die mededinger se produk sal koop.

Die plek of ligging waar die produk verkoop word, verwys na waar die mark vir die sekere produk die beste is of waar dit beste sal verkoop. Dit moet dus vanaf ‘n sentrale plek verkoop word waar die verbruiker dit maklik in die hande kan kry en wat die verbruiker gereeld besoek.

Promosie verwys daarna om verbruiker bewus te maak van die produk en hulle aan te moedig om die produk te koop. Hierdie bemarking kan gedoen word deur byvoorbeeld dit op die televisie te adverteer of deur mond-tot-mond bemarking.

Nescafe: Nestle maak seker dat die produk van sy eie soort is en as die verbruiker dit eenkeer gedrink het, net nie genoeg van dit kan kry nie. Dit word bereik deur die produk van top gehalte te maak en bied ook verskillende mengsels van koffie aan sodat verskillende verbruikers se behoeftes bevredig kan word. Die prys van hulle koffie word bepaal deur die prys om die produk te vervaardig en die prys van mededinger se produkte, sowel as die vraag na die produk. Nestle poog om hulle koffie goedkopper te maak, deur ‘n groter verskeidenheid koffies te produseer en dit op goedkopper of kleiner hoeveelhede te verpak wat vir sommige verbruikers meer bekostigbaar sal wees. Die produk sal verkoop word waar verbruikers ‘n aanvraag het na die produk, weens Nestle reeds ‘n groot huishoudelike naam het en verbruikers tevrede stel met die koffie se gehalte en kwaliteit. Nescafe adverteer hulle produkte deur radio, televisie, koerante, PR-aktiwiteit, koerante en die internet. Deurdat Nestle se logo vir jare lank dieselfde gebly het, het veroorsaak dat die produk bekend geword het.

Nestle Kitkat: Meeste van Nestle se produkte word deur dieselfde verbruikers gebruik en sal die bemarkingsmengsel van sy verskillende produkte dieselfde bly. Soos Nescafe se bemarkingsmengsel, so sal die bemarkingsmengsel van Nescafe en Nestle KitKat dieselfde wees.

Nestle Milo: Die produk was ontwerp in 1943, maar is 2006 het Nestle ‘n nuwe formule ontwikkel wat die milo meer gesond gemaak het en dus meer bekend. Nestle fokus dus op voortdurende inovasie en navorsing om die produk voortdurend te verbeter, asook om die produk in verskillende grotes verpakking vry te stel. Om pryse te bepaal maak hulle gebruik van etnosentriese prysstrategie, wat help om beste pryse in verskillende geografiese liggings vas te stel asook penetrasieprysstrategie om die produk te bemark en sodoende die massamark te bekom. Nestle ontwerp ook baie strategiese benaderings en praktyke om die produkte te kan stoor en te transformeer. Daar word gebruik gemaak van georganiseerde en gestruktureerde verspreiding, sowel as optimale vooraad bestuur om te verseker die produk bereik al die bestemmings. Nestle het aandag gegee aan promosie deur die volgende te doen: in 1984 Milo Olimpiese vertoning gere?l, 1980 Milo Van georganiseer, 1978 geborg vir Milo-sokker-opleidingsentrum, het deelgeneem aan Milo Van in 1970 waar hulle ook bekroon is deur Singapoer se gesondheidsbevorderingsraad, omdat vordering gemaak is in die gesondheid van die produk.

Question 5

The product market expansion grid was specified by the Ansoff’s matrix. The product market expansion grid is used for planning by a company when the company is looking to increase the sale of its product either by expanding product range or entering new markets. The product market expansion grid considers two main factors: the product and the market. The product and market can either be a current or a new product/market. There are 4 main strategies of the product market expansion grid.

Market penetration strategy

This strategy is decided when the product is a current product in an existing market. The customers are aware about the product and due to one reason or a another is not using the product.

Market development strategy

The strategy is used when the product is an existing product, but the market is new. The new market may have tough competitors, or it may happen that the new company may be received very positively

Product development strategy

This strategy is used when there is a new product which has to be introduced in an existing market. This may be done because the company’s products are not selling anymore or that the company has identified new segments which it had missed before and wants to introduce new product to increase product sales

Diversification

Is the strategy used when a company enters new markets with new products? Thus, the company has to bring new products in markets and hence the complication rises.

Question 6

The three elements that are explained is cultural environment, economic environment and technological environment. Each element will be discussed within the Malaysian culture as example.

Cultural environment

Cultural environment are institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors.

The public currently have an increasing interest in free products, which are made from natural ingredients (For example, gluten free products). Nestle are well aware of this demand from consumers and can be noticed in a handful of their products, for example Magi soups in Germany and China, and Indonesia that has different textures and flavors to meet the local taste.

Another example is within the Malaysian culture, which are having light meals at a continuous interval and the young youth who likes to have quality nutrition food. Nestle provide these demands and has a great market within the Malaysian culture.

Economic environment

The economic environment is factors that affect consumer buying power and spending patterns.

Food is an everyday demand from consumers and will always be high. Aspects that can change is food eating patterns and this can vary from country to country. Nestl? has already adapted to these changing patterns and the effects of price change. An example is Nestl? has opened up factories in different countries with different cultures, that differs in packaging, taste or price.

The Malaysian culture has a high living standard that originates from the disposable income, which gives Nestl? bigger and better business opportunities.

Technological Environment

Technological environment is the forces that create new technologies, creating new product and market opportunities.

Food industries has adjusted to better technologies in order to distribute fresher, healthier or a bigger variety of products to its consumers. In order to develop products of Nestle, the quality of raw materials needs to be improved, which can be difficult for the opportunities that the company has. Technology has also enabled packaging to develop which increased effectiveness and minimized costs.

Malaysia is a very rich county in terms of technology and educated people. The products offered by the Nestle company, does not have that big of an impact on this country. Therefore, nestle will have a bigger benefit in countries that are dependent on dairy products, as well as non-vegan markets.

Question 7

The basis of this segmentation can be divided based on of these customer characteristics.

a) Geographic Area: Nature which depends on the weather – for example, Nescafe ice: A Coffee which may be consumes with ice

b) Demographic Area: Nestle segmented market area for its main product based on the generation. For the products Cereal, Lactogen and Nida

c) Psychographic Area: Lifestyle and personality – for example, Nescafe 3 in 1. All things are mixed sugar, milk and coffee.

d) Behavioral Area: Make different products for different kind of people – for example, they make available Cereal for those customers who want age that is less than a year.

Nestle also used a few different kinds of differentiation to attract customers such as:

  • Product differentiation: Nestle brings many products for different target customers.
  • Channel differentiation: Nestle reaches their products to the customer through their experience market salesman and transportation.
  • Image differentiation: Nestle logo is totally different from other competitors that are greatly choices by its users.
  • People differentiation: The people has a large number of manpower’s that are highly educated and trained.
  • Service differentiation: Another advantage for the Nestle company is better service for its respective customers. They provide 24/7 hot line services.

Reference list

  1. Assignment Point. 2018. Marketing Environment of Nestle – Assignment Point. Date of access: 8 Aug. 2019.
  2. Fern Fort University. (2019). Nestle SWOT Analysis Matrix [step by step] Weighted SWOT. Date of access: 17 Aug. 2019.
  3. Heart of Codes. 27 July. 2018. BCG Matrix of Nestle | BCG Matrix Analysis of NESTLE. Date of access: 16 Aug. 2019.
  4. Kotler, K. & Armstrong, G. 2016. Principles of Marketing. 2nd Edition. Pearson Holdings Southern Africa (Pty) Ltd.
  5. MBA Skool-Study.Learn.Share. 2019. Nescafe Marketing Mix (4Ps) Strategy. Date of access: 7 Aug. 2019.
  6. Moose, m. & Reeves, M. 2019. What Is the Growth Share Matrix? Date of access: 10 Aug. 2019.
  7. Paperap. 2 Feb. 2018. Nestle: Macro Environment and Micro Environment Analysis. Date of access: 16 Aug. 2019.
  8. Studylib.net. 2019. Marketing mix – Nestle Milo The report will contain in depth. Date of access: 5 Aug. 2019.
  9. The Marketing Mix. 2018. Marketing Mix Definition – 4Ps & 7Ps of the Marketing Mix. Date of access: 9 Aug. 2019.

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Nestle Business Objectives. (2019, Dec 14). Retrieved from http://studymoose.com/nestle-business-objectives-essay

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