Nestle Business Objectives PDF

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Summary

Set out in the company’s mission statement, objectives define the specific steps and strategies a company will take and implement to achieve its goals. Objectives are the stated, measurable targets of how to achieve business goals. Nestlé’s objectives are summarized in the phrase “Good Food, Good Li...

Description

Set out in the company’s mission statement, objectives define the specific steps and strategies a company will take and implement to achieve its goals. Objectives are the stated, measurable targets of how to achieve business goals. Nestlé’s objectives are summarized in the phrase “Good Food, Good Life”. “Our objective is to be the leader in Nutrition Health and Wellness, and the industry reference for financial performance, trusted by all stakeholders”. - Nestlé. (Via: nestle-esar.com). In order to ensure efforts are not futile, implemented objectives must be effective. Their outcomes must contribute directly to the achievement of the business’ overall goals. Effective business objectives meet the following criteria:  Specific : Stated objectives must be specific and clearly stated.  Measurable : The business must be able to put a value to the objective. There must be a way or ways to measure the degree to which a goal or objective is reached.  Attainable : Objectives should be challenging and ambitious, but must also be realistic and attainable.  Results-Oriented : The results of chosen objectives must contribute to what the organization is intending to achieve.

 Time specific :

Objectives must have deadlines as to when they are to be attained. e.g. by the end of the year. The objectives of Nestlé meet each of these criteria, where applicable.

Objectives of Nestlé: 1. To create long term value for the company’s shareholders through the way the company’s products are manufactured and marketed. Figure 1: Nestlé’s Value Creation Model.

Source:seekingalpha.com. “The long-term value creation model is based on the balanced pursuit of resource efficient top and bottom line growth as well as improved capital efficiency” Nestlé.(via nestle.com). Creating shared value is a clear and specific objective. This objective is made measurable and attainable through Nestlé’s “Creating Value Model” (figure 1). The objectives outlined in the model enable the company to measure it’s progress towards it’s goal of creating shared value, while providing direction and momentum. The objectives themselves, are carefully selected so that the results from their achievement contribute directly to the company’s goal of creating shared value. In addition, the

element of time specificity if presented through the statement of the year by which each objective should have been achieved, that is, according to the model, the year 2020. 2. To not favor short-term profit at the expense of successful longterm business development. 3. Consumer satisfaction. Customer satisfaction, a specific objective, attainable through excellent service provision and building consumer relationships, Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the company as they place their trust in it, and any violation of this trust would turn consumers away, and without it’s consumers, Nestle would not exist. Measurable through feedback, gauging consumers’ satisfaction with the quality of service they are receiving. In order to be a world leader in health and wellness, Nestlé must build a loyal customer base, by consistently satisfying their needs and wants in order to retain them and develop brand loyalty. “We are seeking to achieve leadership and earn that trust by satisfying the expectations of consumers, whose daily choices drive our performance”.- Nestlé.(via nestle-esar.com). 4. To ensure that the highest standards are met and maintained throughout the organization. A specific objective, creating alignment and generating understanding for the organization as a whole. Achieved by hiring personnel suited to the job and measured through periodic performance audits combined with employee supervision. High standards at each level throughout the organization, from management to first-line workers, contributes largely to the success of the company and draws it closer to its goals.

5. The recruitment of the right people and the institution of efficient and effective ongoing training and development programs. Specific and attained through up-to-mark recruitment by the department of human resources and measurable through employee supervision, management can determine whether or not employees are performing to the level required of them. The performance of the organization’s staff are of great significance as efficiency and effectiveness in operations are trademarks of all successful corporations. 6. To follow and respect all applicable local laws in each of its markets.

Figure 1: Nestlé’s Roadmap.

Source: Nestlé-caribbean.com.

The Nestlé Roadmap is an outline of Nestle’s strategy to “Good food, Good life”. It is made up of three components; operational pillars, growth drivers and competitive advantages. These three components are intended to provide direction, understanding and momentum for the organization as a whole, behind a clear and cohesive set of strategic priorities that will accelerate the achievement of the organization’s objectives, and thus, drawing the company closer to achieving it’s goals....