Strategic Business Value/Supply Chain Analysis: Nestle

Topics: Value chain, Strategic management, Supply chain Pages: 18 (4646 words) Published: August 7, 2011
Strategic Business
Value/Supply Chain

Table of Contents
Section 1 – Executive Summary3
Section 2 – Introduction 4

Section 3 – Nestlé Background 5
3.1Brief History 5
Section 4 – Literature Review – The Value Chain 6
4.1 The Value Chain
4.2 Nestle and Porter’s Value Chain6

Section 5 – Nestlé Strategies 7
5.1Creating Shared Value7
5.3International Competitive Advantage8

Section 6 – Nestlé Collaborations 10
6.1 Buy/Sell Agreements 10
6.1.1 Coco Plan Collaboration10
6.1.2Sub-Collaborations 11

Section 7 – Nestlé Value Chain 12
7.1 Nestlé as an Enterprise 12
7.1.1Enterprise Value12
7.1.2Resource and Corporate Stakeholders12
7.1.3Relationships with Customer, Suppliers and Other Stakeholders 13
7.1.4Networks, Interconnections and Subsystems 14
7.2 Dynamic Capability Building 14
7.2.1Means of Innovation and Productivity14
7.2.2Competitive Advantage in a Global Context 15
7.3 Global Business Operations – Lifecycle Framework15
7.3.1Inter-organisations Across Supply Chain and Value Networks15
7.3.2Intra-organisations Across Supply Chain and Value Networks 16
7.4 Identified Problems for Nestlé……………………………………………………………………………..16
7.4.1Overall Recommendations17

Section 8 – Conclusion 18

Section 9 – Appendices 19

Section 10 – Reference List 21
Section 1 – Executive Summary
Nestlé, a Swiss based company, operates on an international scale, providing primarily food and beverage products to consumers across the globe. This report outlines a background and brief history of Nestle as a global organisation, Nestlé’s key strategies and collaborations upheld over decades, Nestlé’s value chain at an organisational level, providing reference to a model developed by Michael Porter, and an analysis of Nestle as an enterprise.

In the first section of this report, a background of Nestlé is provided and a brief history outlined.

In the next section of this report, the concept of ‘value chain’ is defined. Porter’s value chain model analysis is briefly analysed as an accommodating depiction of Nestlé’s organisational source of competitive advantage.

Further, Nestlé’s strategies are discussed in relation to creating shared value through competitive advantage, maintaining a sustainable work environment through core operational pillars and Nestlé’s international competitive strategy based on growth drivers. This is followed by a concise overview of Nestlé’s global collaborations, specifically ‘The Coco Plan’.

A further analysis is provided which examines Nestlé’s value chain, highlighting the enterprise value of Nestle, dynamic capability building and global business operations including the lifecycle framework. This aids Nestlé to better understand the enterprise on a national and global level, the corporate stakeholders with a vested interest in the firm, the company’s relationships with external bodies and the networks developed to sustain a strong competitive advantage. Further discussion considers Nestlé’s means of innovation and productivity to reinforce the company’s competitive advantage.

Throughout this report, the reoccurring themes of sustainability, competitive advantage and global systems are conversed. This allows proposal for overall recommendation for changes to be suggested to reinforce Nestlé’s core values and culture, through acknowledging visible and less visible problems Nestle has...
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