Implementation, Controls, and Plans STR/581

Topics: Management, Risk management, Risk Pages: 13 (2418 words) Published: October 19, 2014
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Implementation, Controls, and Plans

STR/581

Implementation, Controls, and Plans

Nestlé is "the world's leading Nutrition, Health, and Wellness company" (Nestle, n.a.). To maintain this position Nestlé will implement a combination of strategies: product differentiation, low-cost leadership, and product development. The purpose of this paper is to discuss 1) the implementation plan, 2) required organizational change management strategies, 3) key success factors, budget, and forecasted financials (including a break-even chart) and 4) a risk management plan, including contingency plans for identified risks.

Implementation Plan

Adopting a combination of product differentiation, low-cost leadership, and product development strategies will help Nestlé maximize strengths and neutralize threats as these strategies support Nestles mission and align with their objectives. Nestlé will continue to develop healthy nutritious food and beverage alternatives for their consumers. Populations are rising and aging quickly. In 2009 39.6 million people in the United States were over the age of 65, predictions estimate there will be 72.1 million Americans in 2030 (AOA, 2010). Obesity statistics are even more alarming. In America 58 million are considered overweight, 40 million are obese, and three million are morbidly obese (Obesity, 2007). As these statistics rise, so do the number of consumers looking for healthier alternatives. Nestlé has already manufactured a line of products tailored to the aging and weight conscious and will continue to create and improve upon these products. Nestlé creates leading edge products, improving upon them when necessary, and uses their dominant market share to maintain low costs.

To implement a strategic plan successfully, Nestlé must 1) identify short-term objectives, milestones, and deadlines 2) initiate specific functional tactics, 3) Communicate policies that empower people in the organization, rewarding them effectively (Robinson & Pearce, 2011, p. 266), 4) assign task ownership to specific tasks, and 5) allocate resources.

Nestlés short-term objectives are to increase organic growth between five and six percent and to develop two new products and improve two existing products by December 31, 2011. "Short-term objectives are measurable outcomes achievable or intended to be achieved in one year or less (Robinson & Pearce, 2011, p. 268). Setting short-term objectives will help Nestlé implement their strategic plan by; breaking down long-term objectives into shorter more specific goals, highlighting issues and conflicts within the organization that must be resolved before objectives can be met, and making feedback, correction, and evaluation more relevant and acceptable because outcome of action plans or functional activities have been identified for measurement (Pearce & Robinson, 201, p. 268).

Action plans will help Nestlé achieve its short-term objectives by setting specific functional tactics, their time frame for completion, and assigning the tactics to individuals or departments to establish accountability. Functional tactics are the activities that must be completed to realize the short-term goal. The following chart shows what Nestles action plan for increased organic growth and product development may look like.

DEPARTMENT

INCREASE ORGANIC GROWTH

IMPROVE AND DEVELOP PRODUCTS

Marketing

-Increase ads by 5% before June and another 5% before September

-Provide five weekly online and newspaper coupons, rotate the coupons between the top 10 demanded products

-identify target markets and design ads directly for these groups

-identify how target market receives advertisements and them place them online, in a newspaper, in the mail or text them weekly

-advertise the new products and the improved products after rolling out in test market

-provide 10% off coupons for new/modified...

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%20Growth%20in%20all%20regions%20and%20categories,%20continued%20momentum%20for%202011
Project perfect, (2011)
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