Understanding Nestle Company approach towards †Free Samples

Question: Discuss About the Understanding Nestle Company Approach Towards? Answer: Company Profile of Nestle Nestle Australia is a vivacious subsidiary of Nestle. The company provides its Australian customers with products of high quality. The companys products are available from 1880, and in the year 1906 Australia became the second largest exporter of Nestle. The company is dedicated to sustainable growth and to their shareholder contentment. The company is known for its sincerity, reliability and equality from all the phases of its business. Nestle has been appreciated by every nook and corner of the society. The brand is recognized as the Most Respected Companies. It is also acknowledged as the Top wealth creator. History of Nestle The company was founded in the year 1867 in Switzerland. Its first product was an infant cereal to enhance infant nutrition. Ever since then the company has grown and become the largest diversified food company. The logo of Nestle is of a bird in a nest that defines Nestle products, practices, ethics and targets. Nestle has more than 250000 staff and its operations is in more than 500 factories in 100 countries. The company offers over 8000 products worldwide. It takes special care of being, transparent and showing respect for the different cultures of the different countries. It aims at developing the people, communities and nations at large. Operations of Nestle Nestl has been successful in building a relationship of trust and commitment in Australia. The companys practices have resulted in providing employment and occupation to millions of people. Nestle incessantly aims to better understand the altering lifestyle of the country and foresees customer needs to offer improved Taste, Nutrition, Health and wellness. The companys RD activities provide a distinctive advantage to the efforts. It aids in providing high quality, safe food products at economical prices. The most popular brand names which the company provides are NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAIDandNESTEANESTL Milk,NESTL SLIM Milk,NESTL Fresh 'n' andNESTL The various Products of Nestle company: The several brands of Nestle on account of Milk Production and Nutrition include: Everyday Dairy Whitener Nan Toddler Milk Slim Milk Nevista Pro-Heart Milk Milo Sustagen Milkmaid Fruit Yoghurt Milkmaid Milkmaid Funshakes Nido The various beverage brands are shown below: Nescafe Classic Sunrise Premium Sunrise Special Cappuccino Milo Smart Plus Ready To- Drink Iced Tea With Green Tea Nestea Iced Tea The various prepared dishes and cooking aids are as below: Maggi 2 Minute Noodles Veg Noodles Rice Noodles Mania Cuppa Mania Sauces Pizza Mazza Magic Cubes Coconut Milk Powder Healthy Soups (Team, 2009). The various chocolates and confectionery items are mentioned below: Kit-Kat Kit-Kat Chunky Munch Munch Pop Choc Milkybar Milkybar Choo Bar-One Milk Chocolate Polo Eclairs Milkybar Eclairs Vision of the company Nestle products are created by dedicated personnel striving to provide the highest quality. Innovation is prioritized by the company since the inception of the company. The company continuously offers healthy and tasty products because of its largest RD facilities capabilities and nutrition science. In the rear of every Nestle product, there is a dedicated team of scientists, nutritionists and designers. The company ensures ease, health and delight to its customers by offering reliable products, systems and services that enrich the customers life. Management Its board of directors is working under the leadership of Chairman Paul Bulcke. The everyday business activities are managed by the Executive Board. The group is divided into different zones. Zone EMENA consists of Europe, Middle East and North Africa then there is America and Asia. Nestle has joint ventures with cereal partner Worldwide and Froneri. PESTLE analysis The PESTLE analysis underneath, recognizes several parameters, which have a huge impact on industry dynamics. The social forces are the most essential, as it recounts the differences in consumer behavior. Nestle being a multinational company adapts according to the several markets driven by various cultures. Political 1. Altering guidelines regarding food standards and advertising events. 2. Government steadiness in new emerging markets 3. Altering international rules homogeneous practice yet variation of different political parameters Economic 1. Responsiveness and information about altering the price rises, financial growth rates and revenue levels. 2. Altering customer funds, an increase in the cost conscious customer. 3. Increasing worth of raw material goods with respect to the requirement of source from sustainable suppliers Social 1. Varying customer approach shift on the way to better products in line with government schemes supporting balanced diets and propagating the hazards of sweet diet 2. Altering way of life revisiting to traditional cooking and the endorsement of family time in a lifestyle of ease. 3. The necessity to become accustomed to the diverse cultural surroundings like language, spiritual converging viewpoint and family situations. 4. To being considerate of consumer behavior and make sure in having a personal approach to marketing. 5. Customers seeing the company as a group for authority in the wider external environment. Technological 1. Increase of social media, customers interrelating with other companies and doing this on several different platforms. 2. Modernization enhanced by technical growth. 3. E-commerce as a podium for advancement. Legal 1. Altering nature of law 2. Requirement of confirming to international rules and alterations in various international markets Environmental 1. Amplified consideration headed towards corporate social responsibility 2. Environmental apprehensions from customers together with apprehension for packaging/recycling Research Methodology For this research analysis the methodologies adopted is the in depth study and analysis of the topic and gathering information from various sources like Google scholar, website, journals etc. The study is prepared by analyzing all this information available. An analysis is conducted on how the nestle company copes with its change strategies. The source of information is also newspaper and magazine articles published and by analyzing various researches and blogs written by experts. The method of research is qualitative and information is presented in qualitative terms only Kurt Lewin Change Management Model Kurt Lewin was from Germany and shifted to America in 1930 and was known as the founder of Social Psychology and highlighted the interest in the human aspect of change. His interest led to change in people, which was divided into three stages. Unfreeze- This is the important stage, which makes an organization to get ready for change. It involves getting ready and come out of the comfort zone to change. It involves feeling motivated and need to change is necessary. Transition Changing process is called the phase of transition. People are unfrozen and move towards the journey of change. This is a difficult time as people are learning a new process and techniques to learn new concepts. People need support, training and mentoring at this stage. Freezing People have changed now and the new norms have become part of their working. People have accepted change and it has become norms in part of their life (Connelly, 2016). Nestle implemented this model when they first tried to move towards Globalization. Firstly, it unfreezes its operation in 1874 and guided its employees that they need change for expansion of the Company. Nestle started purchasing local subsidiary in foreign market. As the demand of dairy product increased, they took this opportunity as positive. Transition People were guided about the policies of foreign market, how to export and prepare relevant documents for the process. Freezing was done and people were made habitual of these habits and realize that Nestle is a global brand. Another Example of change management in Nestle occurred, when they diversified their operations in pharmaceuticals and cosmetics. It faced a lot of criticism and resistance of this change from employees and activist groups. Again, Nestle unfreezes its operation and explained their employees about need to change. The transition was done to explain and guide employees to make the best product after experimentat ion by RD Department. Slowly, Freezing stage came when Nestle has become a product by WHO and has been treated as a substitute for breast milk for infants (Nestle, 2017). John Kotters Change Model John Kotter also suggests a model in change management, which has 8 steps. These steps include firstly, create a sense of urgency for change, this is done by helping others see the change as bold, inspirational move and communicate to others immediately. Secondly, build a coalition; this is done by making a strong union and a group of people who can drive change. The leader with his teams, guides and motivates people to change. Thirdly, make a strategic vision and take initiatives for change; it is important to guide people how their future will be changed by these initiatives. Fourthly, prepare a volunteer army, where large scale changes are implemented with massive people having common objectives. Fifthly, removing barriers like inefficient processes and unwanted hierarchies are important to process change. Sixth point is to celebrate and generate short term wins to energize and motivate people. Seventhly, accelerate change and improve systems until the vision is achieved. Lastly, institute change, try to make change a part of the norms and habits, initiatives are taken to make change strong enough so that it can change old habits. When Nestle first wanted to digitize their operation in early 1990s, it was difficult for them to convince its employees and staff to become paperless. They wanted to digitize their operations after the invention of the computer. People resisted for this change. With the help of this 8 step model, changes were implemented in the form of creating urgency that how computers are required for their daily operations. Teams of experts were build who trained and guided everyone. A strategic vision was made that how this change will make their work easier. Changes were implemented through massive people uniting together. Slowly, people were trained and their performance was tracked and celebrated. Today, Nestle is the leader in innovating digital ideas. They have spread IT towards their customers and has invented Nescafe Milano Laoung which serves hot and cold beverages to its employees with the help of system technology (International, 2017). Organization Development This is the field of research applied to expand the knowledge and skills of people to achieve success in organization change movement. Strategies of organizational developments are divided among four steps: Firstly, Diagnosing a problem that is coming in the way and affect the performance of the organization. An OD specialist analysis mission, goals, policies and desired result to see the need for change and it is done in the form of surveys or interviewing employees. Secondly, strategic planning and intervention are being made to solve the diagnosed problem. The organization engages itself towards action planning process and strategies to lead the change. Thirdly, Interventions and steps are being made to monitor progress and cultivate commitment. Lastly, planned change is assessed by documenting the impact and tracking progress. OD is a process for continuation of these steps to solve problems and manage the future (BrainMass Team, 2017). Nestle faced the problem of unexpected demand by customers; this was accompanied by bad weather and natural disaster. There was an inaccuracy in calculation of stock and inventory. Interventions were made by making strategies to build relationships with other suppliers. Dealer Management system software was built for managing inventory, sales, tools and integration. This helped to maintain good relation with dealers and managers. People were motivated to get familiar with this software and the performance was seen in the form of good relationship between dealers and managers (Arif, 2012). Apart from this, Nestle also started interventions to promote nutritional health of children. After thorough research, Nestle discovered that how low protein formulas in non breast children can improve the health of low birth weight babies. In the long run, this formula is good for their overall well being. This intervention has drastically increased sales of powder milk for infants and is recommended by Doctors after breast milk. Total Quality Management (TQM) Quality Management is an important tool for managing change. TQM consists of three component control, quality assurance and quality improvement. TQM is done to make sure that the organization is fulfilling the quality of the product and change is implemented wherever required. Total Quality Management of changing the whole organization based on customer oriented quality by producing customer products based on customers needs. The output will be high in quality and meets the expectation of the customer. The processes include from managing and improving and shifting the motive from what to do to how to make the process better. At Nestle group, they give importance to quality. Over ten million people enjoy their products every day. It is a business which runs globally, so it has to take care of each cultures taste and is biased as per country and particular region. This is why Nestle takes care of the safety and quality of each product. Nestle has attained a world class image in terms of Quality Management System. Nestle respects each Cultures law and regulations and implements high quality total quality management system in its each process of manufacturing i.e. From raw material to production of the final product. Another example is Nestles Maggie debacle in India, which hampered their revenues. Food, Safety and Drug administration found the MSG essence of lead in their product, so Maggie came back to regain the confidence of people with launching a new improved product. Maggie cooperated with the authorities and gave all tests for their product. Tests were submitted from almost 600 batches for independen t analysis (Rathnayake, 2015). They improved their product by applying TQM and convinced people that it is safe to eat. Although, their revenues have declined, but Nestle is working hard to regain the confidence of their customers. Learning Organization A learning organization in the organization is a term given to businesses who facilitates learning and continuously works for the transformation of its processes. This concept was derived by Peter Senge as he researched and worked with his fellow members. Learning Organizations are a result of conditions faced by modern organizations and helps them to remain competitive in the market (HPO Center, 2017). Nestle is working to make itself committed towards employees by providing them excellent career opportunities. Employees are given good opportunities to grow in their careers and take benefits of competitive packages in this working environment. People are motivated to work hard to achieve their best potential at work. In learning Organization such as Nestle, opportunities are endless and their motive is to develop leadership qualities in each employee so that they take full responsibility of their work. Hence, Nestle provides many ways to do the same. Global Assignments at Nestle helps employees to gain overseas exposure and groom themselves to a perfect candidate. Apart from this, learning organizations like Nestle thinks of the solution to a problem rather than cribbing or getting upset with the hard situation which arises in daily routine and activities. Employees are being trained and groomed to follow these processes effectively (Boselie, 2008). Social Process Prospective of Managing Change Cultural Aspect: - It is important to review cultural aspects of a region while become global. All multinational companies are expanding their products and become huge in sizes economically. While expanding the operations overseas, it is important to change the product as per the countrys culture and taste. Each country has their own social class, per capita income, tastes and rituals. Companies have to change their marketing strategy as per the requirements of the country to get success. Companies who change their product as per the requirements of the host country are expected to grow faster and gain maximum benefits from that country (Bohari, 2013). Nestle also took care of cultural aspects while to become global. Their motive is that customers are first and their attitude is never to say No and go for a Can do behavior. To meet the customer requirements in Japan, Nestle changed their Nescafes product and its recipe. It was changed from Instant Coffee, to Regular Coffee Nestle also became the brand ambassador of Barista. This was done to facilitate their exposure in offices where tea and coffee is served less due to limited budgets. The customers can buy the coffee or refill Nescafe (Kurisaki, 2015). Nestle also takes care of cross cultural communication as it is link to connect with the parent company. As business is becoming globalized, it is important to maintain cross cultural communication. Nestle interacts with other countries office through written notes so that all instructions are written properly avoiding any loopholes (Magazine, 2012). On the basis of this written communication, subsidiaries will be changed as per cultural requirements. Example: In Japan, when two business people meet each other it is important for them to share Meishi business cards with each other. Hence, almost 10-12 million cards of 2 to 3 inches are exchanged everyday in Japan. Their culture is to bow each other with respect and exchange greetings with business cards (Boonstra, 2012). Psychological prospective Organizations have to look after the psychological aspects also while managing change. There is resistance to change and accept new product when a company is providing improved product. It is the responsibility of the company to motivate both of their internal and external employees to support change. In Hokkaido, the market was tested and analyzed. It was found that the population is shrinking their and maximum people are elderly. As, for this elderly market Nestle Wellness Club was built with a small membership fee and they were advised to check with a doctor and dietician. Nestle continuously works and studies the different cultural aspects of the country. They make their strategies as per the requirements of the country. In India, Nestle supports WHO and encourages mothers to go for breast feeding. This strategy is not for short benefits, but for long term benefits. As motherhood is a special feeling in India and keeping in mind its emotional aspects, they support mothers who cannot breast feed and can give Nestls milk product to their infants (Jost, 2015). The logo of the Company comprises of the nest with a mother bird protecting her young ones. This represents that Nestle cares and inspires to provide nutrition to its internal and external stakeholders. This emotional pict ure depicts care, security, nourishment and a sense of family that is vital in life. Conclusion The company Nestle first product was an infant cereal to enhance infant nutrition. Ever since then the company has grown and became the largest diversified food company, all thanks to its adoption in different cultures and applying the change techniques from time to time. The company continuously offers healthy and tasty products because of its largest RD facilities capabilities and nutrition science. Nestle implemented a change model of Kurt Levin when they purchased local subsidiary in foreign market and when the demand picked up the company guided the employees about the policies of the foreign market. The next model that is discussed is the John Kotters Change Model which showed its success as by applying this change model to digitize the companys operations. A strategic vision was made that how this change will make their work easier. Changes were implemented through massive people uniting together. Slowly, people were trained and their performance was tracked and celebrated. Th e success of this change model can be known from the fact that the company today is a leader in innovating digital ideas. Organizational development too helped the company by making its people motivated to get familiar with this software and the performance was seen in the form of good relationship between dealers and managers as discussed in the study. From its TQM activities, it can be concluded that Nestle respects each Cultures law and regulations and implements high quality total quality management system in its each process of manufacturing i.e. from raw material to production of the final product. Nestle is a perfect example of the learning organization as employees are given good opportunities to grow in their careers and take benefits of competitive packages in this working environment. People are motivated to work hard to achieve their best potential at work. In the context of social process perspective of managing change there are two aspects cultural and Physiological pe rspective, Nestle in the case of cultural perspective takes care of cross cultural communication as it is link to connect with the parent company and in case of Physiological perspective, Nestle continuously works and studies the different cultural aspects of the country. They make their strategies as per the requirements of the country. There is always a resistance to change while accept ting new product when a company is providing improved product. Therefore, it is the responsibility of the company to motivate both of their internal and external employees to support change. And all the above mentioned change theories have proved to be successful. Recommendations Nestle has faced a lot of changes in its internal and external environment. It has successfully managed and handles changing situations. However, the below points will help them additionally to manage change successfully. Engaging Employees: - It is important to listen to employees carefully. This will not only give advice to an organization, but will also help to understand about the feedback of the employees. Keeping employees in the loop and making them important is vital for organizational change. Feedback is important at each step of change, asking them about is the change working, how is it making the situation better will help them keeping engaged into the process of change. This feedback can be read and utilized for any alterations if required and will also make employees feel that they are important. All employees are different and each needs to be taken care by the Manager during the changing process (HR Management, 2016). Implement Changes in Steps: - The change should be implemented in different stages. The change should be planned and implemented in various stages. Management should support the changing process and make sure everything moves according to the plan (Marker, 2011). Communication: - Communication is the key in change management. Employers needs to address and tell each and everything about change implemented. Using a mix of formal and informal communication, all change related news should be communicated in one or other form. All communication sources like emails, meetings, messages, intranet, should be used to deliver the messages wherever required. Using different mediums will help to communicate change for achieving its goals and objectives (Lawrence, 1969). References Arif. (2012, December 05). Management Of Change : A study of problem and Challenges in Nestle. Retrieved from https://www.slideshare.net/arif587/management-of-change-a-study-of-problem-and-challenges-in-nestle Bohari, M. (2013). Cross Cultural Management in Nestl. 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Retrieved from https://hbr.org/1969/01/how-to-deal-with-resistance-to-change Magazine, T. F. (2012, February). The Cultural Perspective and Societal Change. Retrieved from https://www.fountainmagazine.com/Issue/detail/The-Cultural-Perspective-and-Societal-Change Marker, A. (2011). 10 Strategies You Can Use to Overcome Resistance to Change. Boise State University. Retrieved from https://opwl.boisestate.edu/wp-content/uploads/news-A_Marker_Handling_Resistance_to_Change_v4b.pdf Nestle. (2017). Frozen foods to pharmaceuticals. Retrieved from https://www.nestle.com: https://www.nestle.com/aboutus/history/1960-1980 Rathnayake, K. (2015, November 02). Application of Total Quality Management at Nestle. Retrieved from https://prezi.com/j3v1dkjlxprc/application-of-total-quality-management-at-nestle/ Team, N. I. (2009). Nestle: official website. Retrieved from https://companies-profiles.blogspot.in/2009/08/nestle-india.html.