Combating Nestles External Environmental Pressures and Constraints - Case Study Example

Topic: Introduction               The nestle company is a multinational organization that deals with nutritional consumer-based goods. It is the largest worldwide health-based selling company globally and was formed prior to the first world war. It has its headquarters in Vevey in Switzerland in Europe. The company was formed as a result of a merger between the Anglo-Swiss Milk Company and the Lactee Henri Nestle Company. It has grown tremendously especially after the first world war and during the second world war.                  The company has its relative strengths vested in its brand name that is globally recognized and its advertising campaigns for the products is sells. It has technologically up-to-date know how to compete outstandingly on the global scene. The company has branches in various countries and exports its goods to foreign countries and thus has a formally firm market base and clientele around many regions and individual countries. Its main agenda is to improve public health and enhance the quality of life. It has helped to battle poverty, malnutrition, food insecurity , poor sanitation and lack of proper water for drinking just to name a few. It is hugely committed in its corporate responsibility and its corporate investment and widely spread and tactful programs designed to enhance the quality of life. The Nestle company derives its strengths in its history in the long time it has been around (Schwarz156). The company has suffered many scandals like the baby food scandal in the 1980s and many more that it has gone past and survived both as an entity and a brand name for provision of nutritional foodstuffs. The Nestle Company deals with refrigerated foodstuffs, drinks, coffee, yoghurt, cereals, water, confectionery, and baked products that range from cakes and sweet pies. It has an endless list to the diversity of the different product flavor categories in its helm that help it to provide remarkable services to its consumers globally. Strategic planning on internationalism shows how various commodities could be marketed strategically and with impeccable efficacy to enable total usage of the economic gap that needs to be filled (Leeman 199). Nestle Company assists in providing services that include mini nutritional assessing of the wellness of human body systems in regards to their individual eating habits and exposure. Since majority of their confectionery products is sugar dependent they offer excessive programs on the use of insulin. This volume examines the latest findings and concepts on insulin-dependent and non-insulin-dependent diabetes mellitus (Cowett 243). The Nestle Company has a vital philosophy of nature well eating habits in infants and little children so as to develop their resistance to diseases and other malnutrition encounters. They help with provision of complementary goods that assists in brain development, optimal growth and building natural defenses. In a world where the issue of weight is hugely overrated, the Nestle company assists people to lose weight and to maintain their required weights more so for athletes. It is the world’s number one provider of cutting-edge nutritional science that’s is more sophisticated in delivering desired results. Nestle uses the matrix structure to develop a system that can allow interaction between managers at home and those abroad. This allows individual interaction, sharing of ideas and progressive formulation of solutions to their problems. Combating Nestle’s external environmental pressures and constraints The Nestle company is a multi-million dollar company and its main constraint in the market is competition from other similarly related companies. This makes it vulnerable if the other companies can produce products which will end up servicing the same purpose but at a relatively lower cost than the Nestle products. This external pressure is well combated by the extensive advertisement of Nestle products worldwide. Every single day it is near impossible to look at the television without catching a glimpse of one or two advertisements about healthy foods and their subsequent substitutes. This enables the company to stay ahead of its competitors and to thoroughly be able to engage its customers on the benefits of using its products and the body improvements to be accompanied as a result of the consumption of its products. The Nestle Company faces major environmental pressure from disposal companies that threaten its image by suggesting the use of renewable plastic bags and wrappers as an agenda with the ultimate goal of keeping the world a better place and avowing the extreme effects of pollution that deteriorate the state of the exuberant environment. This has been addressed many times and has seen the company counter attacking by getting into partnership with recycling companies in a bid to reduce pollution. Other environmentally friendly messages have been sent to the encourage people to safely dispose the papers and wrappers so that they could be collected for recycling and be used again for making other stuff instead of disposing them anyhow and yet they are not biodegradable. The Nestle Company has had problems concerning the newly recruited workers across the different branches it owns globally. The problem is that there is external aggression about why there are violations of workers’ rights and why the issues are not addressed formally. The press might exaggerate the stories in a bid to get more viewers and this might end up destroying the public image of the colossal company that has taken so nearly a century old to build and to maintain. Being the largest food company globally, the Nestle Company has very tactful competitors that would go to any length trying to outdo them in sales and as the largest selling food brand name available. This has led to people to even be paid to fabricate stories about the conditions at factories owned by the Nestle foundation. This is just in a bid to defame it and create a bad public image about the company. Nestle has made sure that the environmental conditions of its company are very well planned and maintained to enable the workers to enjoy total job satisfaction and to be able to know how to handle people that have negative ulterior motives towards the company that they diligently work for. Nestle company faces tremendous public wrangles with unions that may be environmental oriented or just trade unions that are paid to fight and defend workers or social groups that have a common linking aspect amongst them. The aggression from unions is so much that the company only hires proactive and only union-free individual who would not bring internal pressure within the organizational structure. This has helped tremendously to combat the issue of human resource failure where there are mixed reactions among the various departments of the company. This strengthens the company progressively and ensures that the various departments work together towards a common goal that helps in avoiding wrangles and problems that might lead to lawsuits against the company and eventually create a bad troubled outlook of the company’s internal affairs. Nestle has an environmental issue concerning the use of products obtained from countries that are involved with excessive use of child labor. In West Africa where Nestle acquires majority of its cocoa products in raw form, the majority of the laborers are children under the recommended age of working and whose parents force to work in these cocoa fields and give the money to them. This has even changed the role of parenthood which has been completely reversed. The pressure from human rights activists cannot be applied to these parents but to the Nestle Company and other chocolate companies that are the main importers of the cocoa from West Africa. This has made the company to place codes in place such that it will not buy cocoa that has been groan and harvested by child laborers or by individuals under the normal working age requirement. This has seen to it that the children actually get a chance to attend school and make something meaningful out of their troubled lives and grow up to even hold better positions in the growing of the same products required by the Nestle Company. Nestle company faces a lot of impairment in terms of the inventory it possesses and manpower as it is very large and colossal. It has major different divisions of its own along various lines in many countries and this needs different levels of administration, advertisement and managerial skills that could only be applicable in the very geographic areas that the company division stands. This has led to massive investment in its choice of manpower and thorough employee motivational schemes. The Nestle Company has grown with the incorporation of cutting-edge technology such as advanced refrigeration of its products in massive quantities prior to selling and updated data handling and office structures. This keeps both the competitive aspect in check and the leading role as largest food company globally one step ahead of its many competitors (Hitt 387). The Nestle Company faces geographical pressure from companies that have that actually existed in the food sector in certain new domain those they wish to start investing in. This has helped them to be competitive since they have huge market clout but still these companies have experience with the social stratification of the people in the areas that they have been established long before the Nestle company decided to invest in the same countries. For instance, the company has now new establishment in Pakistan and other Asian countries that have long been ignored as not being potential targets for new thriving businesses. This is difficult in the sense that the already existing companies have major information about the type of diet and beverage choices that the people of that particular area indulge in. However, the Nestle Company carries out extensive research before engaging on any major undertaking which makes it have a superior hand in dealing with enlarging any market gap and acquisition of new customers. This gives it the upper hand since it will be more than capable in coming up with new ideas as it has the technical knowhow on how to go about dealing with ne market structures. The Nestle Company has been accused of pollution of air apart from the normal hullabaloo about the plastic wrappers as seen earlier. This has gone to the extent of involving other multi-national companies to be dragged to such scandals and the most dyed image goes to the largest among them and there lies the Nestle Company among others. The company has invested heavily in the acquisition of renewable sources of energy that do not have many harmful effects on the environment. This includes the use of solar panels in countries with ample sunshine during the major part of the year and using coal in places such as Iceland and the polar caps. The best inclusion in the renewable resources is basically electric power and mechanical engine powered resources that are easier to handle than burning material that is prone to generate a lot of umbers and other major nuclear energy clean source. The problem of using nuclear energy is that it ends up releasing non-biodegradable radioactive materials if there so happens to even be a minor leakage from these major companies. This could end up messing the lives of thousands of people who live and consequently depend on the Nestle net of work and products. That is the major reason why they have adopted to simply use the renewable sources of energy that have a positive effect on the environment. The Nestle Company also has had environmental pressure for using of products that end up destroying the very environment that its customers depend on for healthier traits of lifestyle. It has been accused of palm oil use that leads to the destruction of rain forests and the main complaint is that it does not make any viable sense to destroy forests in the bid to manufacture products that are intended to make lives easier and much healthier. On the contrary, these ingredients must be acquired from the environment but deforestation is simply not one of them. The one union forcing and pushing for its demands is the largest organization Greenpeace that has also been involved in matters concerning the global meltdown at the North and South caps that leads to global warming. The Nestle Company comes up with a staunch stand that it shall not be involved or engaged with the high grade companies associated with deforestation in any way. It has excluded them and has even joined organizations such as the Forest fund to help assist the salvation of the forests from producers who have no will not to destroy the trees in their bid to obtain palm oil. Conclusion Nestle Company is very responsible and has grown to be respected by other companies as an example of a well-organized Company as it will go the extra mile and pressure its very suppliers and major distributors to act accordingly and to be very cautious about the environment at large (Gleditsch 515). It has forced them to act environmentally friendly even if its business. This has made it to grow and still maintain its influence whether it faces additional external environmental pressures and constraints. The company has maintained its concrete ground and has not fallen short of the main business goal of any enterprise out there; to make a profit. The Nestle Company makes high profit because it produces what consumers want and greatly need (William 216). Works Cited Schwarz, F., The Secrets of Food, Trust and Globalization: Data, Trends, and implications New York: Swatcer Publishers. 2003 Leeman, J., Export Planning 10_Step Approach New Jersey: Pearson Education publisher. 2010 Hitt, A., Strategic Management: Competitiveness and Globalization: Cases Boston: Cengage Learning publisher. 2008 Gleditsch, P., Conflict and the Environment New York: Springer publisher location. 1997 William, M., Business Boston: Cengage Learning publisher. 2011 Read More