Reflection Statement: Nestle - Assignment Example

Reflective ment Ans The Nestle case study provided me a good opportunity to apply marketing and motivation theories. I was able to apply Ansoff’s product/market grid (Ansoff, 1957) in assessing Nestle’s market strategy as one of diversification, with existing products being tailored to meet the needs of new markets. I was also able to apply financial models such as the Shareholder Value Analysis developed by Rapoport (1986), to assess the value provided by the Company for its shareholders on a long term basis Since the total shareholder value provides a measure of the value of the business over its lifetime(Bender and Ward, 2002), it was applicable in arriving at an assessment of whether or not Nestle’s marketing strategy of diversification was effective and is likely to continue to be effective in the future. In arriving at the decision to opt for the Shareholder Value Analysis model developed by Rapoport (1986), I also considered other financial models studied in this module such as financial ratios (Atrill and McLaney, 2006), which I applied in question no: 4, to determine whether Nestle’s strategy in the emerging markets has been effective in the short term I was able to apply the productivity ratios in this respect, mainly taking into account the profitability of the Company over a more recent period from 2003 to 2008, especially in view of the recession which has impacted adversely upon many businesses. The learning that I was able to acquire from the module helped me in making the decision about which financial models would be relevant in each context and helped me to understand how an atmosphere of doom and gloom that has been generated by the recessionary trends is not necessarily an indication that the profits of all Companies are being reduced on a blanket basis. The questions that were put in the case study about Nestle’s marketing strategy and how effective it was, helped me to apply the knowledge that I had acquired through this module on strategic decision making and the factors that propel it. The case study provided me an opportunity to apply what I had learnt in theory in terms of how it actually is playing out in an actual business. The answers to the questions that were posed to me in the case study could not be answered merely by spitting out formal theoretical knowledge that I was provided during the module. Rather, I was required to think about the theories and learn from actual practice (Kolb, 1984), i.e, analyze them in the real life context of the Nestle Company and how it was impacting upon the Company’s profitability through the analysis of financial information that was available on Nestle. The initial phase of learning thus provided me with the foundation of knowledge required to deal with business problems, but the case study required me to pass through another stage of reconceptualizing, deconstructing the theoretical knowledge and applying it in the context of a real Company through the process of analysis. Ans 2: I found the case study a valuable exercise in fine tuning my ability for critical analysis and in improving my understanding of the elements that could impact upon formulation and maintenance of business strategy in actual practice. The case study helped me to sharpen my critical thinking skills (Schoen, 1987) and move towards a more indepth and comprehensive understanding (Marton and Saljo, 1984) of the concepts that I was taught in the module. I believe that this knowledge and the ability to apply it will be very helpful to me in the future as well, when I commence my career in business, because it would help me to think critically about problems and formulation of strategy to respond to changing circumstances in the business environment. I feel that the valuable knowledge that I have gained through the study and analysis of the Nestle case has also provided me with insight that I should be able to apply throughout my business career by constantly reformulating and reconstructing the theoretical knowledge in coordination with its practical application, to arrive at the best solutions to develop strategic initiatives. The case study exercise was also very useful in that it helped me to develop autonomy in reflecting upon business issues and problems. Unlike the module where I was able to rely upon textbooks and guidance from my tutor, the case study required me to independently apply that knowledge, by determining the relevance of the information that was provided to me as well as decision making about how it was to be applied. Thus, it has helped me develop critical thinking skills which I believe would stand me in good stead throughout a lifetime. Ans 3: In answering the questions related to the Nestle case study, one of the difficulties I experienced was in resolving my preconceptions about a recessionary environment and its impact on profitability. Based upon my analysis of Nestle’s financial data, I discovered that the dividends paid by the Company had increased despite the recession, which forced me to confront the fact that detrimental external changes in the environment may not necessarily prove to be a liability for a business if it has a well designed, well thought out business strategy in place. I was forced to revise many similar preconceptions that I had entered the course with and came to the realization that strategy is a dynamic, ongoing process which would require flexibility and ingenuity on my part to handle successfully. I also had to rethink many ideas I had previously; for instance it was surprise to discover how well Nestle’s decentralized form of management had been producing dividends for the Company, yet the Company leadership was visionary enough to see the need for provision of an overall global strategy and objectives for the Company, which is also serving Nestle well in the post-Enron era where corporate social responsibility has become very important for businesses. Bibliography Ansoff, I. H, 1957. “Strategies for diversification”, Harvard Business Review, 35(2): 113-124. Atrill, Peter and McLaney, Eddie, 2006. “Accounting and Finance for non specialists”, Pearson Education. Bender, Ruth and Ward, Keith, 2002. “Corporate Financial Strategy”, Butterworth Heinemann. Kolb, D.A., 1984. “Experiential learning: experience as a source of learning and development”, Englewood Cliffs: Prentice Hall Marton, F and Saljo, R,1984. “Approaches to learning” IN Marton, F. Hounsell, D and Enwhistle, n (edn) “The experiences of learning”, Edinburgh: Scottish Academic Press. Rapaport, A (1986), Creating Shareholder Value: The New Standard for Business Performance, New York: The Free Press Schoen, D, 1987. “Educating the reflective practitioner: Towards a new design for teaching and learning in the professions”, San Francisco: Jossey Bass Read More