A good business strategy must have these three things called focus, divergence, and a compelling tagline. It will also make a survey of the existing competitive firms in the market and how to face that competition. A well-planned business management strategy is one which will enable the company to know its strength, opportunities and also its weaknesses and threats so that the company can work upon its weaknesses and overcome the threats in future and be equipped with a sound risk management method.
The training simulations will be used by the company in various genres, and they will mainly be focused on customer satisfaction, increasing business awareness and management skills. The first and foremost thing that will be undertaken by the company is to improve the quality of products and bring a wide variety of diversification in the products related to the texture, color, ingredients, taste and also the price of the products. The simulation will be basically about the strategy series that is the strategic management issues, which will mainly deal with the development of a proper market strategy for increasing the overall sales of the company.
This always is one of the major threats that remain in a company. Moreover, if the market is dealing with a very narrow and restricted resource then it will naturally become very difficult for the company to work on its loopholes and overcome them. Though Nestle is a large and well know firm but the area of operation of this firm is itself too huge and viable too. So, there has been the entry of many new firms in this market but they have not been able to give tough competition to Nestle in terms of market share. Hence, this goodwill that Nestle has been enjoying for years increases the threat of entry of new competitive firms even further.
Since this firm mainly deals in food and beverage, there is a huge range of substitutes available in the market and there is always a high chance that the buyers can switch over to another alternative, here it really becomes immensely essential for the company to keep a huge innovation in its products to retain the attention of the customers.
As far as the supplier relationship is concerned, Nestle always maintains a good relationship with all the suppliers, since they know that in dairy and agricultural products, maintaining the quality is of utmost importance.
Nestle always tries its level best to satisfy the needs and demands of their customers. However, the customers always have the option of switching over to other alternatives, as they are available in plenty but Nestle has been successful in satisfying all the demands of the customers so far. Since Nestle always has been able to maintain the highest amount of market shares, the rival firms are always in search of opportunities to give a tough competition, companies like Kraft Foods and Groupe Danone are some of the notable rival firms.
It can affect this company a great deal because it has its branches located in many regions of the country and hence is subjected to many rules and regulations which make it very essential for the company to look after government factors like taxation, excise duties etc.
The emergence of Nestle in Australia has given a strong boost to the local economy as it has increased the employment opportunities a great deal. Nestle is one of the biggest employers in Australia and has opened around thirty full time job opportunities and has turned the site into the company’s production hub.(Desai, 2016). Nestle is also working immensely to support the farmers by producing products with the locally available materials. Apart from this, the GDP of Australia is getting a great boost due to the expansion of business, as the Nestle products are sold far across in the local Aussie supermarkets as well as on a global basis.
So far, Nestle has understood the social factor well and has also been able to cater to the changing needs of the customers since they know that the customer demand changes according to the changing social scenario. They have been successful in maintaining the trust factor with their customers. (Sioen et al., 2017)
Technology opens an y new doors and this company knows how to make good use of the opportunities. Nestle uses the modern scientific methods in order to maintain databases with the help of software and also by taking help from social media and the internet it has been able to bridge the gap between itself and its customers, this, in turn, helps them to global standards.
Nestle is subjected to certain legal rules like maintaining health and safety rules for the employees and also to maintain the proper level of hygiene in their products. As Nestle is accused of being involved in child labor, it must put a thorough check on the recruitment of labor and avoid child labor on highest priority as it is strictly forbidden by law.
Nestle is facing a problem as most of the senior employees are getting retired and this makes the company carry on their recruitment process over a long duration of time. This, in turn, is a very long and complicated process and finding the right person at the right time is also a tough job.
The new employees that are recruited are usually young and suffer from lack of proper experience, as a result of which, the production gets hampered both in terms of quality and quantity (Lee & Vachon,2016).
Nestle is accused of violating the child labor act, a large number of children are forced to work as laborers in the cocoa production because of poverty and a lack of schools.
There is often the issue of unexpected demands by the customers which become tough to meet with and often the natural reasons like unfavorable climatic conditions can also prove to be a major obstacle Blumenthal, (Hoffnagle et al., 2014). There is often the problem of inaccuracy in receiving the correct orders (Rinoj, 2014).
There is often the charge on Nestle of having sold unethical products, unethical marketing of infant formula etc, which often leads to the boycott of the products (Maier, 2015). A good example can be the recent case of Nestle two minutes Maggie noodles which was accused of containing some harmful chemical components and it led to a long duration of ban on several Nestle products including Maggie.
The first and foremost strategy that will be used by Nestle for expanding their business in Australia is by inspiring healthy lives, thus staying true to their belief of good food and good life. They will help and inspire people to live healthy lives. Nestle will be conducting many health awareness programs and seminars to educate and aware the parents so that they can give their children the best in life. Nestle healthy Kids Program will be conducted that helps to know the right value of nutrients and also encourages physical activities.
Apart from this, Nestle will be constantly working in building a strong connection with the best Research and development networks in the industry, so that they can make their products healthiest and tastiest and safest at the same time. (Perera et al., 2014).
Staying true to its objective of generating large scale employment, Nestle will be opening up many new branches in different parts of Australia, and will encourage many new families to come and settle in close proximity of their new store locations, so that they can be appointed as full time workers. Nestle has opened about thirty full time vacancies in Australia and thus provided a steady source of work and income for many families. They are also planning to employ more number of people in the recent years.
In the coming years, Nestle will be aiming at generating more employment opportunities for the local farmers. This will in turn help in satisfying two fold purposes, one will be that of getting fresh and healthy milk for their production purposes which will help them in adding the special health and nutrition value to their products, and on the other hand, they will also be contributing towards improving the condition of the local farmers.
The Nestlé Milk District Model involves:
Boosting up the economy as a whole can be satisfied by expanding the business both on a local as well as on a global level and this will be done by increasing the production both in terms of quantity and quality. All the existing plants will undergo up gradation in order to support the growing demand. Milk will be transported in tankers so that it remains fresh and does not lose its nutritious values and can be stored for a longer period of time. Apart from this, large scale employment opportunities will also be opened in the near future. Nestle will be opening up their branches in different parts of the world and will also be exporting their products far across the globe to give a boost to the existing economic condition of Australia.
Nestle will be setting up many new plants in and around Australia and will also make necessary modifications to the already existing firms so that they can increase their production and meet with the increasing demands of the consumers. All the existing plants will undergo up gradation in order to support the growing demand. Milk will be transported in tankers so that it remains fresh and does not lose its nutritious values and can be stored for a longer period of time. Apart from this, it will also aim at bringing a huge innovation in their products in order to meet the changing taste and preference pattern of the customers. It has the plan of releasing a range of several flavored milk like Lite milk, chocolate flavored milk and full cream milk.
Nestle will make sure that it is successful in providing fresh, healthy, tasty and safe food to all their customers, since their targeted customers include people of all age they will have to take extra precautions while producing their products so that it meets with all the health standards as well. The new variety of flavored milk called Lite Milk that it is about to launch will be low in cholesterol and also in excessive sugar and cocoa content so that it can be consumed by the elder generation of people.
Nestle will be opening up many new store outlets in and around Australia. It will also make necessary modifications and up gradations in the existing firms. It will also adopt much new scientific and technological knowledge to increase both the quality and quantity of their products to meet the increasing demands of people. This in turn will also increase the total output, which will increase the export quantities thus giving a boost and increasing the GDP and the national income of Australia.
Functional strategies mainly include
Conclusion
Any business firm must be able to plan and evaluate all its strategies, goals and objectives in a proper manner. The strategies after being planned have to be properly implemented and executed. The most important factor that has contributed to the Success of Nestle is its policy of maintaining a proper brand image. A proper strategic business plan is perhaps the most important aspect of a successful business setup. A well-planned business management plan will have the implementation process of all the major goals and objectives of the company led straight and vividly in the plan.
Reference list
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