Company Structure
It is the limited liability company based in Switzerland but operates globally in the manufacturing of baby foods, beverages, cereal, frozen foods, nutrition products, ice cream, confections, water and pet foods. A board of directors manages it with Peter Brabeck as the current chairperson who was promoted from being the former Chief Executive Officer. The Executive Board, who are fourteen in number, manages the day-to-day operation of the business. They are designated board members handle the business at a global level that is the company has divided the business to operate from different geographical zones.
The Mission Statement
“Good food, Good life,” is the global mission statement for Nestle Company. Nestle aims to be ranked first in the competition for manufacturing of nutritious, healthy food products, delivering increased shareholder value by being favored by a corporate citizen, employee, and supplier of all preferred food products (“Mission & Vision Our Mission Statement”, n.d.).
Company Leadership
There is a hierarchical leadership in the business management. The highest position in management ranking is the chairperson of the Board of Directors (“Mission & Vision Our Mission Statement”, n.d.). The second ranking is the chief executive officer (CEO), who is currently Peter Bulcke. The CEO reports to the Board of Directors on the performance of the company. He has the duty to ensure the company achieves the set strategic goals and objectives. The other managers are the executive managers of the executive board who are in each geographical region as per the enterprise network of branches. Every branch has its management put in place to carry out day-to-day operations of the different businesses. Each branch also has various departments with their heads.
Current Competitive Advantage
The company is competing in the food and beverage industry market by using research and development as the key competitive advantage. It has a research and development network that utilizes the modern technology in production to make quality and dynamic food products (David, & Govender, 2014). It encompasses innovation partnership at all the stage of their diet product development. The research has also helped the company to follow international standards thus their products are certified to sell in the whole world.
Current Competitive Disadvantage
Increased government regulations negatively impact the marketing operations of the Nestle Company. The passing of the law by Ottawa will make many employees of this company jobless. That fear of rendering its staff jobless in case the law on food packaging regulation is passed. The law intends to ensure all packaging material for food products is of the same size. This will force Nestle to invest in the United States where such law will not apply. The extra cost would cost the company extra charge. Hence, the profits may reduce and minimize the ranking of the business as the most performing company regarding benefits (David, & Govender, 2014).
Recommendations
The company is in a better place to dominate the food processing industry if it invests further in research and development. Many researchers have come up with good studies that can help them with more profits if they invest in such innovative projects.
The company needs to use product differentiation to increase their competition in the food manufacturing industry.
There is also an excellent opportunity to expand their market all over the world and tap the vast geographic market economies. This will enhance their profits and widen the market for their food products.
Conclusion
The company is dominating the food industry so far, and their current strategy to incorporate all research in their industry will help them acquire the best position in the world. Beyond sound nutrition and wellness of the people, the company needs to invest more in the science innovations to make new products and release them to the marketing. The marketing strategies are critical in sensitizing the public on the company product.
References
David M. Estelle and Govender K. Krishna . “Re-Branding Fast Moving Consumer Goods in an International Company in South Africa”. J Economics, 5(2): 153-164 (2014). Web. 22 April 2016. <http://www.krepublishers.com/02-Journals/JE/JE-05-0-000-14-Web/JE-05-2-000-14-Abst-PDF/JE-5-2-153-14-179-Govender-K-K/JE-5-2-153-14-179-Govender-K-K-Tx%5B3%5D.pdf>
“Mission & Vision Our Mission Statement”. nestle.co.za. nestle.co.za. N.d. Web. 22 April 20016
<http://www.nestle.co.za/aboutus/missionvision>
