Nestle was established by Henri Nestle in the year 1866 as a food and beverage company. Nestle has become one of the largest food and beverage company in the world and has maintained its goodwill since ages. The company strives to provide superior quality food and beverages to its customers, which is safe and has proper nutrition. This has made the organization the best branded manufacturer of food and beverages. The company has always strived to develop sustainably and provide benefits to all the stakeholders associated with the organization.
Nestle aims at providing better quality food and beverages to its customers. It has been successful in achieving its objectives and has become one of the most trusted worldwide brands. It aims at ensuring that its products create value for the employees, shareholders, customers, business partners and the other stakeholders involved. Nestle emphasizes upon abiding all the local laws of the countries in which it operates. It aims at becoming more decentralized within its current framework. The company also aims at ensuring team work within the organization and fostering a positive organizational culture wherein there is proper flow of communication.
The slide 4 mentions knowledge management and e- commerce practices in Nestle.
Knowledge management refers to procedure wherein knowledge and information is created, shared, used and managed within an organization. It enables the organizations to achieve its objectives by ensuring the best utilization of knowledge. Several organizations including Nestle nowadays use knowledge management as a part of their information technology, business strategies and human resource management. It enables the organizations to improve their performance, gain competitive advantage over the others, and improve the business operations. Knowledge management has enabled Nestle to gain competitive advantage and improve its performance which has ultimately resulted in profitable business along with customer loyalty.
Slide 5 shows the operating model used by Nestle. This model includes the integrated management system of Nestle, leadership development and goal alignment. It shows the implementation of the systems in the supply chain of the organization that ensures total performance management from procurement of raw materials to providing the products to the ultimate consumers.
Also mentions the critical issues faced by Nestle. The following are the critical issues:
Nestle is a huge organization that operates globally and provides employment to more than 2,50,000 individuals across 80 countries. This makes it difficult for the organization to manage its business operations and to control all the activities. The decentralized strategy used by the organization creates a major issue for the organization as the organization lacks proper control on the business processes. The absence of a proper computer system increases the problems faced by the organization. Several issues have prevented the organization to create its strong presence in e- commerce. The changes in the systems and technologies tend to reduce the motivation level among the employees as they do not feel comfortable in working with the new system or technology. This often results in resistance and conflicts among the organizational members and might also lead to an increase in the rate of employee turnover.
Mentions the GLOBE system used by Nestle and its advantages.
The GLOBE system implemented and followed by Nestle has enabled the organization to increase its overall efficiency on a global scale. The system is based upon the basic principles of good practice, management and standardization of data and the information systems. The system helps Nestle to enhance knowledge management practices and standardize its products. It has enabled Nestle to create its global presence and maintain its brand position.
states the ERP system used in Nestle and explains its advantages.
Nestle has been using SAP as its ERP system since the year 2000 and has been spending huge amounts for maintaining and updating the system. SAP has enabled the organization to properly track the customer orders, which was earlier a difficult task. The system has enabled the organization to maintain proper stock levels without facing the situation of overstocking and under stocking. The use of SAP has helped Nestle in sharing data among its subsidiaries, which has increased the efficiency of the organization.
Mentions the management issues faced by Nestle as a result of implementation of a new ERP system.
The major management issues faced by Nestle involved employee resistance. The organizational employees viewed the implementation of an ERP system as a mere software project instead of a business re- organization process. The stakeholders also failed in realizing the feasibility of the implementation of an ERP system. Improper amount of training provided to the employees in relation with the new system made them feel uncomfortable with the new system, which ultimately resulted in resistance to change among the employees.
Implementation strategy (Recommendation)
Involves the recommendations on how an organization can successfully implement an ERP system within the organization.
It is necessary for the organizations to provide proper knowledge and information related to the changes in the systems and technologies in order to prepare the employees for the change and avoid resistance. It is necessary to provide proper training to the employees so that they can work efficiently along with the change.
Management information system in Nestle
The slide 10 mentions the use of management information system within Nestle and its importance.
Proper management information system has enabled Nestle to minimize costs and maximize its efficiency. Nestle has its Load control center, which enables the organization to manage its business processes along with the costs.
Marketing information system
Mentions the use of marketing information system by Nestle and the subsystems involved.
The internal accounting system in Nestle is responsible for order shipping billing and the analytical system performs horizontal accounting. On the other hand, the marketing research system improves the timeliness of the sales reports and the marketing intelligence system is a user oriented system that helps the organization in improving overall efficiency of the organization.
Also mentions the use of e- commerce platform by Nestle and its advantages.
Nestle has utilized e- commerce platforms to increase its brand awareness and reach a larger number of customers. Nestle has successfully implemented SAP in its departmental activities, which has in turn increased its efficiency.
Incorporating internet strategies in Nestle
Mentions the various internet strategies used by Nestle in order to improve its business operations.
Advantages of knowledge management and E- commerce
Mentions the advantages of knowledge management and e- commerce on the Nestle.
Proper knowledge management and the use of e- commerce has enabled Nestle to eliminate repetitive tasks, which has ultimately led to the improvement in the productivity. Nestle has also been able to save costs by implementing proper ERP system within the organization as it eliminates the manual mistakes. This has also improved the flexibility of the business operations and has helped the organization in obtaining timely and valuable information.
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