Nestlé’s corporate culture, with its stakeholders, customers, and environment, is highly efficient with high standards. Each day Nestlé strives to make its products healthier and tastier. However, this cannot be accomplished without Research & Development capability and nutrition science. Nestlé’s mission is that it should be the world’s largest nutrition and healthy food provider company. Their slogan is “Good food. Good Life,” and the mission is to provide consumers with the best-tasting, nutritious products.
Nestlé is committed to bringing continuous change to new products and existing products and the continuous improvement of its management, leadership, manufacturing, innovation, product development, and research.
Nestlé has Six Strategies, Which are as Follows:
- Give a front seat to your ideas, and put the sources behind, Health and wellness of a leadership
- Check the opportunity in trends and change
- Value your consumer
- Put your stakeholders and consumer engage
- Make sure the connection is deepened, consumers
- Right people and the right capabilities for leadership
The Strengths, Weaknesses, Opportunities, and Threats Analysis for Creative and Innovative Management of Nestlé include:
Strengths
- Leading the market,
- Loyalty in a brand,
- Different distribution channels,
- Different innovations in the brand,
- Skilled labor.
Weaknesses
- The target market is only the higher class,
- Operations complexity,
- Scandals like child labor, horse meat, etc.
Opportunities
- High credibility
- Potential to spread in small towns,
- Trends that are improving,
- Leadership to industry,
- The partnership can be increased,
- Different products and their offerings
Threats
- The biggest competitors in the market,
- Raw materials and their increasing price,
- Rivals known as Unilever, Master Food, and Kraft,
- Products that are the substitute,
- Buyers’ bargaining powers.
The PESTLE (Political, Economic, Social, Technological, Legal, Environmental) Analysis for Creative and Innovative Management of Nestlé includes:
Political
- Food standards, marketing actions, and changing regulations,
- The process of internationalization,
- New global changes.
Economic
- Must know economics, inflammation, and levels of income.
- The sudden change of budgets consumers.
- The rise in the price of goods and materials.
Social
- Step forward towards healthy products, supportive, healthy diet
- Changing lifestyle
- Knowledge of the behavior of a consumer
Technological
- Interacting with firms, social media rise
- Through technological developments, innovation is fulfilled
Legal
- Changing the nature of regulation. Change like regulations
- Changes of law from different or across the international markets
Environmental
- Increased attention directed toward corporate social responsibility
- Increased social responsibility
- of consumers regarding the environment
Assess the Risks and Benefits of Creative and Innovative Management Ideas
Management of risk can establish creative and innovative management. Risk management is an assessment and identification of resources of application to neglect unforeseen circumstances. Risk measures have their role in an organization to deal with innovative and creative management. That is why Nestlé is working to manage the risk across multi-national operations. In this case, Nestlé has introduced web-based active risk managers around the globe to share their information and be updated sufficiently. Therefore, it is necessary to examine all sub-factors in the risk process:
Technological Risk
Technical feasibility increases the risk. Advanced technology and obstacles in Research & Development are additional risks in technology innovation.
Market Risk
Market risk arises from uncertain market size and competitive industry. Market risk includes customer demands, the economy, and product competition.
Financial Risk
Lack of capital and lack of financial management of finance is the most concerning financial risk factors.
External Environment Risk
External environment risk usually arises from the political, social, economic, and technological environments. All of these factors create a gateway to the external environment.
All organizations prefer change and growth, but that change can be different. The change could happen by external forces, or if the company feels that they are not working effectively, they need to enact change. Therefore, change models are very for an organization. Models to support the implementation of creative and innovative management ideas can be applied. For organizational improvement, the Initiating, Diagnosing, Establishing, Acting, and Learning (IDEAL) model can be used for planning, initiating, and enacting improvement. Therefore, an organization that uses an IDEAL model for the process of implementation provides a space for the firms to successfully establish an improvement.
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