Topics: Supply chain management, Supply chain, Chocolate Pages: 10 (1972 words) Published: September 18, 2014

TLGS501 Individual Assignment


SID 20147271
Name Wu Ye

Question 1 Nestlé’s Business Operations
Nestlé, as the most famous food and beverage company, is established in Vevey, Switzerland. With the global development, Nestlé employs over 330,000 employees, creates more than 2000 brands worldwide and operates business in approximately 86 countries. Thus, there are many contracts between Nestlé and manufacturers, some of whom provides exclusive services for the company. Currently, Nestlé starts with the concept that forms a nutrition, health and wellness company and the mission that good food, good life via its brands and acquisitions (Nestlé website, 2014).

The Nestlé brand portfolio refers to a series of food and beverage including milk and dairy products, nutrition with different functions such as infant, healthcare, performance and weight, ice cream, coffee and beverages, chocolate, confectionery, pet care, bottle water, etc. Some of these brands are significantly famous around the whole world such as KitKat, Nescafe, Boost, Thomy, Maggi, Nestle Ice Cream, etc, which become leader positions among the same industry (Nestlé website, 2014). Because of its excellent performance, in the year 2013, sales of Nestlé achieved the amount of 92, 158 million of CHF and trading operating profits obtained 14,047 million of CHF which occupied 15.2% of sales (Nestlé website, 2014).

Nestlé operates as a decentralized group of companies. In other words, Nestlé develops and depends on organizational learning in the group. Headquarters provide leadership, management guidance and advice to branches around different regions and local segments. Thus, the managerial capability of central units reflects the whole competence of marketing and operational business which helps branches to perfect their management as well as improving their business performance (Knolmayer et al., 2009)

Nestlé applies several strategies to boost the company’s business operation. First, the company strengthens its competitive advantages such as unmatched product and brand portfolio, research and development capability and geographical presence, culture. These advantages have inherent connections between each other and are beneficial to establish the company's value chain (Nestlé website, 2014). In addition, there are four areas (nutrition, health and wellness; emerging markets and popularly positioned products; out-of-home; premiumisation) as growth drivers, which stimulate Nestlé to provide best products and services for customers (Nestlé website, 2014). Moreover, four operational pillars namely innovation & renovation; wherever, whenever, however; consumer engagement and operational efficiency, promote the company to develop products, renew quality, perfect operational performance, strength the relationship between Nestlé, consumers and stakeholders and improve competitive capability (Nestlé website, 2014)

Therefore, Nestlé strives to better existing operations and innovate creative business management, in order to form a long-term sustainable value for consumers and stakeholders, in terms of perspectives of technology, R&D, finance, etc.

Question 2 Supply Chain
Supply chain, as the heard of entire Nestlé business, plays a significant role in business operation, which is greatly related to Nestlé’s success. The supply chain refers to the sequence of business activities and processes for transforming raw materials into goods and services for customers (Business Case Study, 2013). Because of several brands Nestlé operates, there are different supply chains for business operation. Taken cocoa as an example, the supply chain is extremely complex and diversified to be analyzed, which shows how cocoa becomes delicious chocolates for customers. There are four stages to reflect the whole process. The first stage is related to cocoa beans growth. Many farmers...
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