Challenges faced by Nestle

Strategic Planning refers to the process which has been adopted by various leaders of the organization so as to analyze the vision for future. This analysis further helps in understanding the goals and the objectives of various organizations like Nestle. Strategic planning generally forces different organizations to gain a general idea about various facts (Hammer 2015). These facts generally include the ways in which the resources will be needed for the purpose of overcoming the various opportunities and the issues. Strategic management system helps in limiting or avoiding the organization’s in spending more time during the management of various crisis.

This report mainly discusses about the various challenges and issues that are being faced by Nestle. The report mainly compares and contrast the various issues which are faced by the strategic information system planners (Peppard and Ward 2016). The report also discusses about the accounting information system. Accounting Information System mainly refers to the method that is mainly designed for the purpose of processing of the data by making use of a software. These things included in the Accounting management system can also be done manually. Many of the tasks becomes very much easy when the accounting information system is used. This also acts in the software domain making the process of data compiling very much easy and this might include the data related to finance, tax and payroll (Amit and Zott 2012). After this discussion the report also discusses about the topic “IS strategy can help the organization in achievement of the competitive advantage”, which has been broadly evaluated in this report.

Nestle is a Swiss based company which is associated with the production of food and drinking products. Nestle has its headquarter in Vevey, Vaud, Switzerland. It is one of the largest food manufacturing company in the world. Business management is done on a daily basis by an executive board. The designated board members are responsible for the management of a diverge portion of the business. Nestle was established in the year of 1975 which initially evolved to nestle professional in the year of 2008. Nestle is having different partners who are associated with different types of food servicing operations in and out the whole management. Various nestle food and beverages are present in the market and this includes thigs like the Maggi, nestle Milkmaid, nestle everyday and many more items.

Strategic planning has been proven itself to be one of the most important aspect for small as well as large business. This helps in ensuring the employees that they are involved in various types of activities. This involvement of the employees in the planning can greatly help the organization in achieving certain goals. This will also help the organization in achieving certain missions, vision, core strategies and also the values. Manufacturing companies like Nestle will be greatly helped by application of this strategic planning. A number of issues are addressed by the strategic planners. So there is an essential need for them to stay alert along with being prepared for the purpose of handling the issues anytime. They also need to prepare a list of methods for the purpose of addressing the issues (Deschamps and Nelson 2014). The key challenge that is faced by the planners is during the choosing of the right person for the various processes or during the construction of the plan. A feeling of fear often rises in the mind of experienced peoples when they hear the word strategic. This planning process mainly helps in avoiding or minimizing the issues that are faced by organizations like Nestle. The benefits that can be obtained very easily are also explained by the planners. The primary focus of the strategic planners mainly involves the providing of a brief overview of certain activities that can help in achieving success at a larger scale. The most challenging portion of the strategic planning is the involvement of the people associated with the organization like Nestle (Dias 2012). Number of issues or problems of the people belonging to various backgrounds or perspective are addressed by the strategic planners. The consensus is considered to be little bit challenging. Besides this there are also several tools which can be used for the purpose of running different processes and this ranges from the brainstorming to the nominal ranking of the organization’s like Nestle. But besides all this the biggest challenge is faced during the execution phase (Babatunde and Adebisi 2012). This phase consists of putting the plan into the right place of the organization. The main effort should be regarding the development phase which is generally used for various purposes.  It is known to the effective strategic planners that the ultimate goal of this strategies can be achieved by completing certain goals, objectives and strategies.

IS strategy and competitive advantage

Business strategy is mainly imposed for the purpose of achieving a competitive advantage. These strategies are required by the business so as to check that this resources are used in an efficient way. Competitive advantage mainly refers to the profits that an organization makes, which is more than the profit that is estimated by the organization. Business world consists of various types of strategies and this can range from managing of the employees to the management of knowledge (Dauda and Ismaila 2013). A Manufacturing company Like Nestle can easily gain an advantage of cost by the method of producing various products at a lower cost than the other similar products present in the market. These strategies mainly focus on the various type of products, the delivery system that the company is having or any type of methods of marketing that is used by the organizations. The above discussion helps in stating the fact that IS strategy can be very much helpful in obtaining a competitive advantage by Nestle. Besides this there are some other advantages which can be obtained by making use of the competitive advantage and this includes the better understanding of the industry, stronger plan for action, ease of communication goals. It also includes the improving of the chances for success that is associated with the organization.  For the purpose of managing the competitive advantage in an efficient way there is an essential need of clearing out all the ideas about the industries which is to be considered (Amrollahi Ghapanchi & Talaei-Khoei 2014). The executives or the managers will be greatly favored while having a general idea about the organization like Nestle. This will be ultimately helping in having all the business related information’s which will be initially leading to the success of the organization. Competitive advantage is mainly used by various organizations as a method or technique for implementation of competitive strategies.  This can be very much beneficial for Nestle as it provides guidelines or access to the organization towards the way in which the organization is proceeding or towards the expected way in which the organization will be proceeding. The chances of success are increased for various organizations by proper use of competitive advantage.

The Accounting Information System can act as a tool of improving the efficiency and the effectiveness of the cost. This system is also considered to be very much faster and easier during the processing of the data (Majaro 2013). This system is generally used by the financial department for the purpose of maintaining the finance section.

Accounting Information System

There are mainly four strategies that can be used for the purpose of innovation and this are namely “Porter’s Matrix”, “Anoff Matrix”, “Strategy for Compilation of rules” and “Blue Ocean Strategy”. The most suited method for the purpose of adapting the strategies is by the use of the competitive advantage. This is very much helpful for Nestle in managing the cost over any other competitors in the market (Bidgoli 2016). Nestle needs to perform a non-stop research for the purpose of successfully implementing of the strategies along with reducing the cost for various parts or aspects included in the program. A high value of resistance will be provided to Nestle when it will be entering a market of competition. Nestle can adopt this strategy very easily so as to produce various products at a higher rate. This high rate of production will be greatly helping in attracting mora md more customers due to various reasons like low price and many more. The implementation of new technologies for the purpose of production can help in better designing along with the higher rate of production and low price of the products.

Implementation of this strategies can be done for the purpose of achieving a competitive advantage. The marketing strategy can be adopted by Nestle for the purpose of increasing the sale of the products (Thompson Dr 2013). There is also an easy definition for diversification strategy that is it is the state in which the various kind of business corporations starts developing of the new products in the market. There are mainly three types of diversification which are probably to be used for Nestle and this are namely “concentric diversification”, “conglomerate diversification” and “horizontal diversification”.

The Blue Ocean strategy model is mainly used for the purpose of overcoming the various types of competition in the market or the barriers and issues. Mainly four kind of actions are included in this strategy and this are namely the creation, increasing, decreasing and the elimination (Topa 2014). This strategy is mainly considered as a new model which can be used for the purpose of development of various kinds of business activities.

Nestle is considered to be world biggest food and beverage organization which have more than two thousand brands ranging from global to locally known. Nestle is present in almost 191 countries of the globe. The ultimate goal of Nestle is to improve the quality of life of various people and providing healthier future for upcoming generation. The organization aims in shaping the world so that it can easily provide better or healthier kind of life to the people (Gennari and Cassano 2014). The strategy of this organization aims in providing benefit to large number of people through various kinds of food and beverage products which is generally provided by it.  

Innovation Strategies

Implementation of outsourcing can help the organization in various kinds of parameters like decreasing of cost. IT (Information technology) can be easily considered to be an important method for outsourcing. The outsourcing option of Nestle will help it decreasing the cost and cutting down cost which is not for import. So the organization can easily focus on various kinds of nucleus kinds of procedures or methods (Kruschwitz 2013). Outsourcing of IT system at Nestle can be considered to be better because nestle is a food organization and is less functional in comparison to organization which is in direct contact with IT system. Only IT system is not considered to be competitive advantage for any type of food organization. So outsourcing of IT at Nestle can help in various kinds of core business products like food production. IT provides proper infrastructure which can be used for management of information. It will help in reduction of complexity of supply chain.

Nestle makes use of OmPrompt EDI services which can be easily used for processing of various kinds of orders, invoices and documents of delivery. It will also result in improvement of supply chain management. After the implementation of OmPrompt system it is very accurate in tracking of orders without any kinds of mistake (Mitra 2012). Nestle has increased the number of customer satisfaction with reduction in the number of cost of reverse logistic. RFID is a popular kinds of technology which can be used for driving various kinds of supply management. It is a kind of automated system which can be used for reduction of number of employees and tasks like picking and delivery of various kinds of goods. With the help of this technology Nestle can easily keep a track of their vehicle and can help in better management of warehouse so that it can easily reduce the time for launching of various kinds of products and improvisation of customer satisfaction. This technology can also help in improvisation of security, tracking of various kinds of problems, saving of cost and energy (Mitra and Neale 2014). This RFID tag can be easily install in various kinds of ice cream products and readers in various kinds of trucks for analyzing the fact whether the retailer freezer is too warm or too cold. With the help of this technology Nestle can easily track whether the refrigerator is not working and can ultimately prevent it from any kind of spoiling of food which may result in revenue lose and various stocks of an organization. Various expert around the globe can help Nestle in supporting of strategy and minimizing various kinds of task.

Nestle’s goals and values

An ERP is nothing but a kind of information system which has the ability for centralizing and unifying various kinds of data which can be collected from various departments of business which helps in flow of proper information (Haki and Legner 2013). Various kinds of managers can easily have real time information which ultimately helps in process or method of decision making. There are many kinds of advantages of implementation of ERP system in Nestle.

Improving the process of Decision-Making: ERP system generally helps in the creation of database which can be used for higher quality which can be easily displayed on the screen in real time streaming and improvisation of the method of decision making.

Proper planning of future scenes: With the help of better information system Nestle can easily estimate any kind of future scenes which can occur within this organization.

Duplication at a minimum level: Companies which do not have ERP system or solution can easily see the operation in various kinds of departments so at end they end up in creation of duplicate records and reports for the same thing. Ultimately this thing ultimately results loss of resource in an organization (Akeel and Wynn 2015). To overcome this issue, nestle has implemented ERP system so that they can easily reduce the various kinds of duplication of data in Nestle.  

ERP system can act as modulator: ERP system are generally formed by various kinds of modules which the organization needs all the time. By this method organization like Nestle can easily implement module which is needed all the time. ERP system can be considered to be effective for Nestle as it will grow in the near or coming future.

Adaptation of needs of the organization: The needs of organizations are different therefore the provider of ERP system must perform an analysis on the various kinds of needs of an organization (Fisher and Krumwiede 2012). With the help of analysis one can easily judge or ensure that the application works as per need of the organization that is Nestle. Care must be taken that ERP solution must fit into the needs of Nestle.

Better control and traceability: ERP system in Nestle will help in better tracking of products within the organization. It generally keeps track of products starting from entry of raw materials to delivery of various kinds of products to consumers.

Integration with other partners in the same chain: The new idea or concept of ERP system that is second helps in exceeding the limitation of an organization with addition of other members in the same value chain (Gandini Gennari and Cassano 2014). It ultimately focusses on the fact that the organization can easily become a strategic partner which ultimately results in gain of competitive advantage. It will help in design and development of large number of products. ERP will help Nestle to have better quality of information and it also help in adjustment of purchase order of various kinds of products and needs of purchase within an organization.

Internal control may refer to various kinds of process by which various kinds of organization maintains an environment which prohibits any kind of fraudulent activity by an employee or management (Sarpong and O’Regan 2014). The ultimate goal of internal testing is that it generally focusses detail value or method of testing. The quality management system of Nestle is considered to be platform which is generally used for providing guarantee of various kinds of food items. The internal quality management system of Nestle is verified by large number of international bodies. Nestle provides good manufacturing techniques or practices for ensuring quality and safety of various kinds of food items (Haux et al. 2013). There are mainly five type of internal control that is integrity of management, personnel type of component, separation of duties, maintenance or tracking of various kinds of records, safeguarding.  

Management of Integrity: Management integrity can be defined as the moral character of person which mainly aims in overlooking in various kinds of aspects of an organization like Nestle in case. Management integrity is generally provided to various kinds of employee by the help of handbooks and manuals. Library of management generally indicates focus on communication of various kinds of integrity and also provides training to the employees. Policies of enforcement is generally considered to be as a kind of successful type of internal control.

Competent Personnel: The ability of an organization for recruiting and retaining of personal focus or address on the fact management should record all type of accounting based or depended transaction (Galliers and Leidner 2014). The retention of various kinds of employee focus on the fact comparability increases from year to year. This will ultimately check the assessment of various kinds of risk of misstatement in entry statements.

Separation of various kinds of Duties: Internal Control can reduce the various kinds of risk of mistakes and unknown action. An effective type of internal control separates various kinds of actions like authoritative, accounting and custodial type of function.

Maintenance of various kinds of records: Maintenance of various kinds of records mainly checks various kinds of business transaction. Record management generally involves various kinds of stages like storing, recording and destroying of electronic records (Laudon and Laudon 2016). Maintenance of record emphasizes on the fact good record of management programs which help in reduction of operation cost, improvement of efficiency and reduction of risk.

Safeguard: It mainly checks the unauthorized type of person from accessing any kind of valuable asset of an organization like Nestle. It can be of physical type like lock on doors, computer software password. Regardless of various kinds of methods safeguard are considered to be an important feature for the internal control system of an organization like Nestle. Various kinds of business owners need protection of cash and inventory goods (Arvidsson Holmström and Lyytinen 2014). However various kinds of items like blank check, letterhead of an organization, stamp of signature needs to be safeguard in Nestle which are generally ignored or overlooked.

Conclusion:

The report helps in understanding the implementation of various strategic planning in the processes used by Nestle. This plan is generally used for the purpose of analysing or checking the goals and objectives of this organisation. The report discusses about the various aspects of the strategic information system. The report also helps in understanding the various challenges and the problems that are faced by the strategic planners during the development of plans regarding the strategic information system. The IS strategies can greatly help Nestle in gaining a competitive advantage. The basic structure of Nestle can be easily understood by understanding the various strategies. The report also discusses about the choice that can be taken by Nestle for the purpose of development in the future. A general idea is provided by this report regarding the fact how Nestle is capable of developing an internal strategy of control for the purpose of avoiding the risk along with the minimization of the damages that can affect the organization. The report also discusses about the internal control that is present right now in Nestle. the choice has also been made regarding the strategic option. In this report outsourcing has been chosen as the strategic option. The report also consists of the evaluation regarding the information system which can add value to the business of Nestle by making use of various IT or IS. There is a presence of good internal control even in the complex world of business. This internal control has been briefly explained in the report. Nestle is a globally established business associated with the manufacturing of food products. This company has claimed itself to be a business which is providing branded food and beverages al almost every part of the world. Along with food products the company is also associated with the providing of solutions which can greatly help the operators understand the various conditions and requirements of the customers.

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