Strategy is a course of action, specifying the resources required, to achieve an objective and a goal. It’s the organization’s plan as to how it is going to create value. Some of the levels of strategy in an organization are: corporate, the general direction of the whole organization; business, how the organization tackles particular markets; and operational/ functional, that means that there are specific strategies for different departments of a business.
To achieve the objectives and goals, an organization needs a strategic plan, which will define the direction of all other plans. This must be a comprehensive long- term plan, based upon a clear mission or purpose for the organization and developed and controlled by the top management. Strategic planning is the managerial process of developing and maintaining a strategic fit between the organization’s objectives and resources and its changing market opportunities.
Business strategy is how an organization approaches a particular product market area. It can involve fundamental decisions such as whether to segment the market and specialize in particularly profitable areas, or to compete by offering a wider range of products. Sometimes it can also involve pulling out of a particular market.
Strategic Planning Process
Nestle is the world's leading Nutrition, Health and Wellness company. It was founded by Henri Nestle in Vevey, Switzerland, where its headquarters is located till today. Nestle employs around 2800 people and have factories or operations in almost everywhere in the world. Nestle sales for 2010 were almost CHF 110bn.
Nestlé’s mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.
Nestles’ Vision is that research can help better food to be made, so that people live a better life. Good Food is the primary source of Good Health throughout life. Nestle strives to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestlé products bring consumers the vital ingredients of taste and pleasure. As consumers continue to make choices regarding foods and beverages they consume, Nestlé helps to provide selections for all individual taste and lifestyle preferences. Research is a key part of heritage at Nestlé and an essential element of the future.
Nestlé’s objectives are to be recognized as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry. Leadership is about size, behavior and trust, which is only earned over a long period of time by consistently delivering promises. These objectives and behaviors are encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up the corporate ambition. To accelerate the achievement of their objectives, Nestle has some strategic priorities mentioned bellow: Hard to copy and a geographic advantage puts Nestle in a position that makes it hard for other brands match their products and achieve same values. It is in constant growth products that are more nutritive and better for health and wellness, and Nestle keeps on development exciting healthy products. Nestlé must excel at innovations, renovations, consumer communications, and operational efficiency. These are operational pillars that guide the development, renewal and quality of products, operational performance, interactive relationships with consumers and other stakeholders and differentiation from competitors. The company seeks to achieve leadership and earn trust by satisfying the expectations of consumers, whose daily choices drive the performance of shareholders, communities and of society as a whole....
Bibliography: 1. Business essentials “Business Strategy” Great Britain, BPP Learning, 2007.
2. Johnson G, Scholes K & Whittington R. “Exploring Corporate Strategy”, Person Education, 2008
3. Nestle official website - http://www.nestle.com
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