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Assurance of Learning Exercise 1D

Strategic Planning at Nestle

For the past years, Nestle has become one of the leading corporations operating all over
abroad. Last March 2013, it has been rank as the 3
global food and beverage manufacturers in
the Access to Nutrition Index. On the same year, it has topped as number 1 in leadership for
industry group in the Dow Jones Sustainability Index 2013 and has achieved the maximum score
in the CDP Climate Performance Leadership performance. All of these are achieve through a
thorough strategic planning of the organization.
Innovation. Nestle is an entity that embraces total quality management. It continues to
improve previous accomplishments and develops them into something even better. In the
organizations annual report in 2013, it has added ten new commitments in nutrition, water,
rural development sustainability and compliance. It has also renovated 7,789 products for
nutrition and health considerations. Plus, it has changed nutritional policies to drive the further
reduction of salt, sugars, saturated fats, and trans fats in their products. Today, nestle has been
providing 167 billion servings of fortified products worldwide. It is said the needs and wants of
the market changes over time. Through TQM, an organization can adapt to the ever changing
tastes. It does not only cater the preferences of today but also bears in mind the prospecting
inclinations of tomorrow.
People Orientation. The report also reflects the organizations orientation towards its
people. In the letter of executives to the stakeholders it is expressed that, our people are our
strength and competitive advantage, and we would like to thank everyone at Nestl for their
great efforts in contributing to another year of progress for the Group. Wherever you are in the
world, whatever challenges you have been facing, your commitment has been unwavering.
Recognition for your efforts is one of the greatest sources of motivation. It can encourage
people to work even better and to enhance their performances. This proves the managerial
maxim, if we take care of our people, they will take care of our organization.
Corporate governance. Nestle engages with society on the basis of strong principles of
governance and compliance that provide the framework of how they do business. For the
executives of the entity, good governance helps maintain trust with employees, investors,
governments, NGOs, customers, consumers and other stakeholders. Without good governance
and compliance we cannot reach our goal of doing business sustainably and way that creates
shared value for society. Our leaders are the ones that guide us to our common goal. Through
efficient and effective leaders, strategic plans do not remain as plans but they are immortalized
through strategic actions.
Risk Management. The organization also has this Enterprise Risk Management Framework
(ERM). It is designed to identify, communicate, and mitigate risks in order to minimize their potential
impact on the Group. In dealing with business, one of the things that we are certain to deal is
uncertainty. Risk is inevitable but it can be alleviated. It is important that an organization would include
risk management as one of the components of their strategic plan since it can have a great impact
towards the implementation of the entire strategic plan.
Market Segmentation. Nestle operates in lots of countries all over the world. With lots of
production, manufacturing and activities going on all at once, Nestle decided to narrow down the list
through different Segmentations: Zone Europe, Zone Americas, Zone Asia, Oceania and Africa, Nestle
Waters, Nestle Nutrition, others. Operation can be different depending on a certain country. Tropical
countries like the Philippines might need higher degree of preservation in dairy products of Nestle.
Formulas for products of another country might be different from another country because of the
availability of production resources. In strategic planning, market segmentation is a must since you will
know the applicable course of action that should be implemented in a particular location.
There are more factors that contribute to the strategic plan of Nestle. Truly, Nestle has deserved
to be on the top. To sum it all up, a strategic plan should comprise of different factors. These factors all
contribute to the betterment of the organization. It should be able to address to current and future
issues of the entity. The more variables that the plan can touch the better because it can introduce new
opportunities and can represent risk. With that, we can plan on how to battle the risk and how to
develop the opportunities. A strategic plan is in fact helpful in an organization. Without it, we would be
blindly battling with our day-to-day operations without guarantee of direction. Our strategic plan is our
game plan, it is our ticket to achieve our goals.

Holy Angel University
Sto. Rosario, Angeles City
A.Y. 2014-2015

Strategic Management
Case Study no. 1

Submitted by:

Alarcon, Brian
Asistin, Jennifer
Cortez, Jil Yhanne
Ocampo, Patricia Anne
Salta, Rosheena
(Group 5)

Submitted to:
Mrs. Carmelita Lao