Nestlé Corporate Level Strategy Corporate level strategy is essentially what makes the whole company greater than the sum of its business units. The separation of strategic str ategic and tactical decision making as argue by Chandler (1962 1991! is the most e"cient corporate organi#ation as it allows the corporate centre to focus on the destiny of the corporation and allow business units to focus on within business unit operations. $int#berg puts forward %ve formal de%nitions of strategy& strategy& plan ploy pattern position and perspective. 'lanning is concern with the development of mission or vision of what the company would aim to achieve. The organi#ation must have a vision of what they want the company to be at a point in future. The pattern has to do with how the strategy unfolds and becomes concrete. f strategy as plan refers to deliberate) intended strategy that may or may not be reali#ed) then strategy as pattern suggests unplanned) emergent strategic patterns or consistencies that are reali#ed despite) or in the absence) of intentions ($int#berg and *aters) *aters) 19+, in -rae# 22) p. /,6!. 0n integrated organi#ation strategy is based on overall orientation towards growth and stability. stability. n the case of estl) the overall orientation is to be the world3s largest and best branded food manufacturer with the highest 4uality standard. 0 company may also focus portfolio corporate strategy) which is a strategy focus on the market that the %rm competes in through product line and business units. n fact this is the basic underpinning strategy that drives estl orientation of producing the world healthiest product. The core principle of estl is helping consumers to have a balanced healthier diet. 5or %rms to sell se ll successfully to foreign customers re4uires culturally sensitive adaptations to product services) services) marketing and advertising (7ugman and Collinson 29) p. 182!. n the face of an unpredictable) highly volatile and competitive marketplace) a capacity for innovative) divergent strategic thinking at multiple organi#ational levels is seen as central to creating and sustaining competitive advantages (iedtka 199+ in -rae# 22) p. /,6!. estl uses both planning scenario and strategic business models. estl utrition) an autonomous unit within estl) is responsible for the claim: based business of infant and healthcare utrition. This is one of the strategic units of estl created in order to maintain the company competitiveness. This unit aims at delivering superior business performance by developing and o;ering consumable nutritious products. The unit in particular would strengthen estl leadership in this market hence a key element of the company corporate strategy .$ichael 'orter (19<9! came up with four competitive strategies for business. The %rst strategy is to be the cost leader which means having the lower cost either across the industry or within the industry segment. 0n e=ample of across the industry cost leader strategy of est estl l is its its abil abilit ity y to mak make its its enti entire re prod produc uctt avai availa labl ble e and and a;or a;orda dabl ble e to consumers regardless of countries. ncome disparities e=ist among countries) so est estl l prod produc uce e and and repa repack ckag age e prod produc ucts ts in line line with with consu consume mers rs capa capaci citi ties es to
purchase if di;erent countries. The cost leader within the industry segment would be estl making its product to be the cheapest in the entire industry. Business Level Strategy:
Business Level Strategy Wide range of products (over 20 categories: coffee milk mineral !ater pet foods cereals"# $estl% $utrition& Strengthening their leadership in this market is the key element of their corporate strategy. 'eliver superior business performance b y offering consumers trusted science based nutrition products and services. Strives to closely align $estl%s scientific and )*' e+pertise !ith consumer benefits. ,ddressing current customer concerns as !ell as anticipating future consumer trends.
