Date post: | 22-Jan-2018 |
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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
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