Nestle' Malaysia Strategic Analysis: Mission, Vision, and Objectives (Term Paper Sample)

Strategic Analysis- Nestle Malaysia
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Table of Contents
TOC \o "1-3" \h Introduction3
Mission, Vision, and Objectives3
Environmental Analysis: PESTEL4
Political and Legal5
Economic5
Social5
Technological6
Industry analysis6
Capability analysis8
Proposed Strategy9
Strategy Evaluation10
Conclusion and Recommendations11
References12
Appendices13
Appendix I: External environment13
Appendix II: Five forces model of competition13
Appendix III: The Basic Value Chain14
Appendix IV: Business Level Strategy14
Introduction
It is easier to start a business than to ensure its maturity and make it successful, all of which require massive uphill struggle. While technological advancements play a significant role in the transformation of the world in a drastic speed, it becomes highly difficult to maintain a market position. Maintenance of the position in a market thus requires that one learns to formulate, evaluate and implement the most desirable decisions and objectives that would ensure consistent running of the organization.
Thus, strategic running of a business in a way that it gains the ability of lasting longer within a market is the major target of all businesses. Strategic management can be defined as a set of actions and decisions that results to the formulation of an efficient strategy for the achievement of an organization’s objectives.
Nestle Malaysia is the most recognized food and beverage company in the country. Its products include cereals, chocolate confectionery products, instant noodles, ice-cream, juices, liquid and powdered milk, instant coffee, yogurt, and culinary products among others. The company was established in Malaysia by 1912 and currently has about 5,000 employees (Xuan, 2014). The company has seven factories, one national distribution center, and six sales offices. Nestle Malaysia is among the best 5 performing companies within the Colombo Stock Exchange with regard to market capitalization.
Mission, Vision, and Objectives
Being one of the big food production companies in the globe, Nestle focuses its attention on the improvement of health, wellness and nutrition of the customers. Thus the employees are trained and motivated towards the production of quality products and creation of brands that perfectly satisfy customers' needs.
The objective of Nestle is to become the world leader within the food processing industry, and maintain the position over a long period. This implies that the company must consistently invest in research and development in order to remain innovative and have the ability of staying ahead of competition. Moreover, Nestle has to consistently attract the best workforce in Malaysia to ensure that its human resources are at a position of setting industry trends in the region.
The vision of Nestle Malaysia is to consistently meet the daily needs of the customers by consistently by marketing and selling high quality products with the ability of exceeding the expected customer value (Xuan, 2014). To achieve their vision, there are two major steps that Nestle strives to follow. The first is the ability to understand the customer demands and provide high quality products to meet their expectations, and the second is to utilize its website as well as other e-commerce platforms to ensure proper monitoring of industry trends. Nestle Malaysia is currently developing its e-business platform to ensure it perfectly utilizes the opportunity provided by the rise in the use of the Internet.
The mission of Nestle is to provide best foods to every person in the world throughout their lives and every day (Syanhirah, 2013). To enhance the quality of life of the customers and improve their well-being, Nestle focuses in the comprehension of the needs of the customers and the creation of solutions to their various requirements. Nestlé’s mission is accurately articulated and is a reflection of the business' long-term objective. It is precisely explained that throughout the life of a customer, the company will consistently provide high quality food products to ensure that the quality of life is highly enhanced. As such, the company will often formulate and implement strategies that ensure it understands the customer needs and come up with the products that perfectly offer the desired solution.
Environmental Analysis: PESTEL
PESTEL analysis refers to a framework that is used in scanning the environment to assess the external variables of the environment and identify the factors as well as risks that may shape the competitive conditions of a business. PESTEL analysis highlights the economic, political, technological, social, legal, and environmental aspects of a business.
Industry analysis
Political and Legal
The political environment in Malaysia has made it possible for the company to operate successfully and gain the desired market leadership (Gomez, 2004). Malaysia has a politically stable environment that is defined by good governance policies and a legal environment that highly support entrepreneurial activities. The political stability has ensured that businesses in the country are not disrupted, a factor that has given Nestle the opportunity to concentrate fully on its business activities without any worries related to risks posed by political insecurity. The favorable legal environment that is characterized support for investment activities has also boosted Nestle's performance in the county.
Economic
The economic environment in the country has also played a significant role in ensuring the success of the company. Malaysia is highly characterized by economic stability, a factor implying that there is little presence of economic recessions that might hinder the performance of a business (Jomo 1993). Moreover, the income of the national is consistently on the rise. This is an indication that when consistently provided with goods that meet and exceed their expected value, the customers are likely to improve the rate at which they purchase the products. The economic stability and rising income is an indication that that Nestle is likely to record a consistent rise in revenue when desirable strategies for producing and selling preferred goods are formulated and implemented.
Social
Like other countries in the globe, the citizens of Malaysia are showing a lot of concern for smart life and healthy foods (Gomez, 2004). The health concerns in the country have made a number of people gain the desire of mainly consuming products that promotes healthy lives and wellbeing. To survive in the market, Nestle has directed its research and development initiatives towards the production of food products that promotes the health and wellbeing of the consumers.
Technological
Technological forces are the major contributors of the success that Nestle enjoys in Malaysia (Jomo, 1993). The company uses the latest technology in the industry to make it products and attract customers. The policy of upgrading their technological equipment with changes in the industry has contributed to its success for a number of decades, and is expected to help in ensuring that Nestle maintains the market leadership in the country.
Industry analysis
Companies that operate in the food processing industry major in the transformation of raw agricultural ingredients into finished food products. The companies comply with the hygiene and health standards in the process of lengthening the shelf life of their finished products. The companies that operate in the industry include the meet processing companies, the food packaging companies, and cannery among others. The foods are usually sold to wholesalers and retailers who are responsible for pushing the products to the final consumers. There is an intense competition in the industry, and reliable firms like Nestle focus on efficiency in distribution and processing to ensure good performance in the industry (Savage, 2013). Usually, the most successful companies in the industry diversify their competitive strategy through spreading out of products and addition of related products to their present core business.
In a review of the economic performance, it emerges that the 2008/2009 economic meltdown had little influence on the industry (Savage, 2013). The demand for ready to serve products and convenience food keep on rising despite of the economic meltdown. However, the major challenge that the companies in the industry currently face is the rise in the prices of raw ingredients like dairy, corn, and wheat. Other factors that influence the demand for the products include concerns for dieting, allergies, obesity, and the rise in the interest of the use of high quality ingredients. The rise in the market for health products as well as organic food is a segment in the food processing industry that is currently lucrative. Recently, sales growth has been strong in organic dairy, meet, vegetables, grains, bread and fruits. Companies that are hoping to record growth in the industry are taking keen interest in these trends to ensure increased revenue.
Being the largest company in the global food processing industry, Nestle formulates and implements a lot of strategies to ensure good market performance. Currently, Nestle has more than 29 brands that independently earns revenue and contribute to the company's profitability. On a global perspective of the industry, Nestle is the most geographically diverse company, operating in a number of countries in the globe. The aim of the company is to consistently create a long-term value and adequately cater for the wants and needs of the customers through the use of a decentralized market approach. Through majority of the success of Nestle is derived from superior formulation and implementation of strategies as well as marketing, the manufactur...