Strategic Audit a CORPORATION1 Essay

Pages: 7 (2492 words)  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

Members of the Executive Board are eligible to receive Long-Term Incentives in the form of Stock Options Nestle Corporate Governance Report 38()

The corporation allowing the board members to own shares in the company through whichever means may set in conflict of interest in management. The board of directors may take up selfish ends to seek maximization of profits so that dividends can be increased at the expense of long-term strategies. They can also opt to pay higher dividends at the expense of lower re-investment of profits which may compromise on the growth of the cooperation.

Strategy Alternative and Recommendations

Nestle holds a diversified competitive edge compared to most of competitors in the food industry. In policy on adoption and implementation of a successful environment strategy and has yet to take the lead in the corporate competition in term of green operations. Being a prominent corporation with networks all round the globe there is a failure to linking the company's business and environmental strategies Larsson and Finkelstein 23()

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To be able to competitively participate in the food industry Nestle need to reconsider allowing decision concerning board members participating in trading in stock of the company. They would have a bigger bearing on the performance of the company is the board members consider perusing their own interest as opposed to the interest of the corporation. Strategy should be considered to employ contracted board members with a vision to enforce the company's missing on strategy. The board members in country branch representatives should also be considered as the lead informers to guide the corporation in embracing and teaching as well as incorporation the culture of the country in the region Barney J.B. And Hesely W.S 47()

Essay on Strategic Audit a CORPORATION1 I. Assignment

In regards to market performance of its commodity, the corporation needs to consider keeping the original taste in as much as they innovative in products. This will in essence ensure customer loyalty and need to maintain the well-known products. Advertisements in the new markets need to be deep so that knowledge of existence of the product is felt. In their corporate social responsibility, the corporation should embrace contribution to the community and society at large Myers H. 56.

This will intentionally reduce negative attitude of foreign operation and also increase the products performance on top of increasing its sustainability. Pricing and place strategy of marketing should be kept in line with the corporations strategy and vision. The products should not lock out others or serve the need of a few.

Revision of strategy in line with recommendations given above will help Nestle to root down their performance in world over. Using the TOWS matrix, Nestle should be able to further evaluate aspects that will propel it further to growth. TOWS Matrix looks at the Threats, opportunities (both in the external and internal environment), Weaknesses and strengths, TOWS matrix is more of situational analysis which is systematic and this affords it an advantage Barney J.B. And Hesely W.S 36()

At Nestle the threat is growth in competition in the food industry. Further to this there is the threat of environmental concerns owing to overexploitation of the natural resources. Failure to ensure environmental protection will lead to unsustainable source markets for raw material. Nestle needs to consider having a follow-up mechanism additional to the policy to controls put to farmers and other producers Larsson and Finkelstein 76.

As long as they wish to have sustainable operations policy and safe guard measures should just not be on paper but also in action. The claim of having a corporate social responsibility should not stop at creating policy to protect the environment and farmers' incomes. Further actions to enforce the policy should be followed up.

The growth targeting new developing markets should be more aggressive. The potential in these upcoming and growing economies is enormous in driving demand. As an entry strategy and a measure for future growth, Nestle should consider having introductory prices. The use of price strategy is commendable in these markets since cost of leaving is low. As these economies grow their will be a shared value with that of the corporation (Good food Healthy life). This culture will ensure strong performance of their products in the market.

Ventures in the developing countries need to be assessed by first looking at the organization's weaknesses both internally and externally. The corporation needs to assess what capacity in terms of performance and management. Venturing into foreign countries Also need to be evaluated in terms of the corporation's adaptability to the cultures and values held. The corporation should assess whether it needs to hire leaders from the countries they wish to venture in or go with their own leaders. The culture training and adaptability needs to be coached thoroughly for sustainability of operation in foreign countries. The corporation thus needs to consider getting managers and leaders who will foster growth oriented to the culture and values held in the operation country.

Analysis of the strengths at Nestle will have to be guided by past performance and prospects of the capacity held Myers H. 26.

The leaders at Nestle will need to assess how best they can tap the strengths of their employees, suppliers, service providers and clients in order to ensure sustainability of all their operations. The consideration of strengths just with the corporation will leave out some perspectives that are important for the organization.

Works Sited

Barney J.B., and Hesely W.S. Strategic Management and Competitive Advantage Concepts and Cases Second Eds. upper saddle river: pearson prentice-hall, 2008. Print.

Larsson, Rikard, and Sydney Finkelstein. "Integrating Strategic, Organizational, and Human Resource Perspectives on Mergers and Acquisitions: A Case Survey of Synergy Realization." Organization Science 10.1 (1999): 1-26. Print.

Myers H. Trends in the Food Retail Sector across Europe,. Oxford London,: Oxford Institute of Retail Management, 2004. Print.

Nestle. Nestle Corporate Governance Report Print.

-. The World's Leading Nutrition, Health and Wellness Company. Nestle… [END OF PREVIEW] . . . READ MORE

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