environmental variables of strategic management

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Group

membersAASIF ALI

MASHAL

FAISAL

ZUBAIR HUSNAIN

FATIMA

Nestle is the world's leading nutrition, health and wellness company today

It was founded in 1866 by Henri Nestlé.

It has employed around 250,000people and has factories or operations in almost every country in the world .

Nestle is the world's leading nutrition, health and wellness company today.

Being the world's leading bottled water company is based on a firm economic model:

strong brands

global presence

innovation capacity

environmental stewardship

passionate people

9/22/2014

9/22/2014 IJAZ

In Nestle Internal environment ensures

Employees are on side with the goals of an organization.

They have direct impact on product quality, dependability and overall productivity.

They are internal market, which impact every department within an organization

Internal Environment

A satisfied internal market will be better able to satisfy external market. Nestle under the supervision of top management runs the departments of finance, operations, accounting, sales and marketing, research and development to achieve

Suppliers provide the resources like labor and material resources to produce goods and services. They add to customer overall value delivery system. Labor supplies include handling of •Quantity of labor•Quality of labor•Labor strikes•Labor relations Material supplies deals with the

Suppliers

Quality of material

Price of material

Stability of material inputs

Delivery delays

Nestle efficiently handles the quality, quantity, price and stability of both material and labor supplies. Management maps out the strategies for labor strikes, supply shortages and delays to avoid increasing the cost of production, which can badly affect sales in short run and customer satisfaction

Nestle deals with the reseller customers who buy the product Pure Life to resell at a reasonable profit.

Customers

It includes the firms that help the company to promote, sell and distribute its goods to final buyers.

The physical distribution firms determine the ways to store and ship goods to reach their destination.

Marketing service agencies including marketing research firms, advertising agencies and media firm share also hired to target and promote product to right market.

Financial intermediaries like banks

Marketing Intermediaries

At Nestlé have a well-established Employee relations policy that provides the frame of reference for collective relationships with trade unions and employee representatives.

Nestlé has built a culture based on the values of trust, mutual respect and dialogue.

Nestlé management and employees work daily to create and maintain positive individual and collective relationships, and are expected to do so as a core part of their job.

Labour relations

Limiting working time

Minimum notice period

Working conditions

Total Rewards Policy

Delivering a living wage Collective bargaining and freedom of association

Fostering positive relations with Trade Unions

Zero tolerance for discrimination

Grievances about labour practices

Labour relations

Nestle is having hard time in Pakistan. First it was Aquafina by Pepsi that

snatched its market share of mineral water then it was Olper’s by Engro Foods siding the Nestle Milk Pak and becoming the market leader of the category.

And this time it’s also a launch by EngroFoods that is giving competition to Nestle.

Competitors of nestle

PESTLE analysis is a powerful tools to visualize your external surroundings, which enables you to understand the external factors such as

Political,

Economic,

Social,

Technological,

Legal & environmental affecting

EXTERNAL (PESTLE)

Today people are more health conscious so Nestle products by identifying this need of the people they are also producing health conscious products with more elements of pure & quality,

which create the market for Nestle & trend of its products in the market.

Social Forces & Cultural Health Consciousness

About the environmental concerns of Nestle products are the symbol of good health & nutrition no matter which product is under consideration.

Nestle also consider a lot about the environmental factors because they are very much socially responsible towards nature & humans.

Environmental concerns

Quality of work life is very safer & environment friendly company of the world as every MNC is maintaining the same standards abroad with a slight cultural changes.

Work life quality

Nestle focusing on diversification because in present era it is not possible for any organization to exist in market for long run by providing just one product. So Nestle are diversifying according to changing demand of customers and trends.

Technological forces New Products

Nestle wants to diversify its portfolio with the change or need of market needs.

1) Product innovation

2) Productivity improvement through automation

3) Spending on R&D

QUESTIONS