Report on Nestle for Balanced Scorecard- myassignmenthelp.com

Question: Write about theReport on Nestle for Balanced Scorecard. Answer: Introduction The following report includes the background of Nestle Company along with its vision and mission. The internal and external factors that affect Nestle Company have also been included in the report. The report also explains the long-term goals along with the range of alternative strategies utilized by Nestle. Moreover, discussion has been made regarding the annual policies and objectives of Nestle. The report further specifies the required resources for Nestle and balanced scorecard evaluation measures. Background of Nestle Nestle is one of the leading companies in the food and beverage industry which delivers its services in 191 countries. The headquarters of Nestle is situated in Vevey, Switzerland. In the Middle East, 18 factories are owned and controlled by Nestle that are responsible for making supplies to their respective areas and providing employment opportunities to nearly 11,000 people. Indirect employment is also offered by such factories to various people. In the year 1997, the formation of Nestle entity took place in the Middle East. The investment of nearly US $400 million has been made by Nestle in the Middle East for growth and innovation. Vision of Nestle Nestles vision is to become a competitive and leading company in nutrition, health and wellness that provides value to their shareholders by playing the role of a favored employer, a favored corporate resident and a favored supplier that vendors favored products. Mission of Nestle Nestles mission to provide quality food to their customers all across the world each and every day. The focus of Nestle is towards the enhancement of the quality of life by way of fulfilling the requirements of their customers and finding solutions of their problems. Values of Nestle Nestles values are reflected in their business conduct when the principles of fairness, honesty and concern for people are followed by them in their operations. Non-negotiable standards have been set by Nestle by the way it conducts its business and are applicable for everyone who works with them. Internal factors of Nestle Strengths Distribution System- the diversified products of Nestle have attained success both in urban and rural market. Famous- Due to the individual branding of its products, Nestle has been capable of spreading awareness regarding its products among their customers and has succeeded in become the largest food company across the globe. The adoption of this strategy was due to the reason that in case when one brand gets affected like Maggi, the sales of other brand such as Nescafe does not gets affected. Weaknesses Issues- The global brand Nestle also faces legal and consumer issues and fall under a variety of controversies such as the use of child labor, boycott of baby formula by Nestle, price fixation of chocolates which ultimately results in the negative image of Nestle. Various Brand- A single group controls a variety of brands under Nestle which leads to difficulty in managing the individual brands and has the possibility of creating conflict. External Factors of Nestle Political The expansion of the business of Nestle in different countries requires it to abide by their respective rules and regulations. Problems are faced by Nestle whenever any changes are made in the regulations regarding food and beverage. Market analysis should be done by Nestle from time to time. Economic- The revenue of the business is affected by the changes in budget of customers, their purchasing power and the prices of raw materials. Social- Problems are created for Nestle as a result of changes in the lifestyle of the customers. Therefore, flexible strategies should be adopted so that it can be changed in order to meet the changing demands of the customers. Effective advertisements can be utilized that focuses on societys welfare and ultimately result in clearing the image of Nestle. Long-term Objectives of Nestle The targets of sustainability and development are set by Nestle which is the largest food company if the world. Nestle further focuses on the reduction of emissions of greenhouse gases in every ton of their products by 35% by the year 2020. Moreover, steps are being taken for the reduction of water usage by 40% in its range of products which includes Nescafe, Purina pet food and Perrier. Nestle further aims to provide better quality of lives to 50 million children, making every possible effort for minimizing effect caused to the environment due to their processes and recovering 30 million livings in society that are associated with the operations of business. The fulfillment of the social commitments is the ultimate focus of Nestle. For example, Nestle aims to reduce the use of sugar by 5% in their products by the year 2020. The achievement of this target in Europe only will mean the reduction of 18000 tons of sugar in their operations. Alternative strategies Nestles business level strategy is cost leadership combined with less cost operators and a wide range of products. Its strategic leadership helps in making its business efficient in order to create a network of regional manufacturing, integrate the business of international level and to bring a reduction in marketing expenditures. The future aim of Nestle include the development of a research and development network by way of refining its current products and producing sustenance for tomorrow. Annual Objectives of Nestle The business objectives and marketing objectives are aligned with each other. The objective of Nestle is to attain the position of best branded and largest manufacturer of food all across the globe along with assuring the highest quality in its products. The attainment of compatibility is also aimed by Nestle with the global volunteer standards on global management system. It also focuses on trust building with government authorities, customers and business partners. Policies of Nestle Policy of Nestle is to make sure that the board members, employees and external shareholders, who are in possession of any price sensitive or confidential information, do not disclose it and be aware regarding the law imposed on the disclosure of such information. It is the responsibility of all the shareholders to safeguard the confidential information. Resources of Nestle The resources of Nestle are classified into tangible, intangible, financial and human resources. Human Resources- The employees and staff are the main reason behind the success and growth of Nestle. The productivity and well-being of Nestle is influenced by its staff members. Culture- The satisfaction of stakeholders and encouraging innovation comprise the culture of Nestle. For the purpose of business decision making, the use of balanced scorecard is made for managing the performance. It is the method with the help of which progress of organizational goal is monitored. Conclusion Nestle is one of the leading manufacturer and seller of food and beverages products having its operations in 191 countries. Its vision is to attain the position of worlds leading company that provides quality products to its consumers. Internal factor analysis of Nestle provides that the strengths of Nestle include its fame and range of products. Moreover, its weaknesses include its handling of products rangeunder single group.