Nestlé and Nestlé Malaysia

Nestl and Nestl MalaysiaEXECUTIVE SUMMARYThe existing connection that has selected is Nestl (Malaysia) Berhad. This history starts with an introduction and a brief history about Nestl and Nestl Malaysia. This report includes the vision and mission of Nestl and how Nestl is going to carry through them. This report also includes a brief summary of Nestls market segmentation with examples provided. It discusses the strengths and problems of the fraternity followed by the solutions to solve the issues. In the end, there atomic number 18 some suggestions recommended by our meeting and a conclusion of this whole report.TABLE OF CONTENTSAssessment Criteria..2 plagiarism Report..3Executive Summary. 4Table of Contents..5ContentIntroduction..6Market Segmentation7Strengths8-9Problems and outcomes.9-11Recommendations..11-12Conclusion.12References.13Appendix14CONTENT knowledgeablenessNestl is a multinational company and is of the worlds largest in food and drunkennesss industry. Heinrich Nestl, whom also cognise as Henri Nestl, was the founder of Nestl Company (Nestle. 2010, Introduction, Nestl Online procurable at www.nestle.com), which headquarter is in Vevey, Switzerland in the year of 1866. Nestl Malaysia was established in the year of 1912 in Malaysia as Anglo-Swiss Condensed take out Company. Nestl Malaysia head office is now located in Mutiara Damansara, Petaling Jaya, Selangor, and has 6 gross sales offices with more than 5000 employees nationwide. Besides, Nestl manufactures its deliver products in 7 factories and markets over 300 proper products across the nation. (Nestl. 2010, Nestl in Malaysia, Nestl Online available at www.nestle.com.my) Nestl specialized in foods and beverages industry, a few of the many salutary know brands Nestl has in Malaysia includes Maggi, Nescaf, milo maize, Kit Kat, Nesvita (formerly kn protest as Nestum), as well as pet c be products more than(prenominal) as Purina and Friskies.Nestls vision (Nestl. 2010, Corporate Philosophy, Nestl Online available at www.nestle.com.my) is to be the leader in Nutrition, Health, and Wellness Company by delivering world-class products of the loftyest coherent pure tone, reliability, and convenience swinishd on credit line excellence principles throughout the operation. Nestls mission (The Nestl Corporate Essence Our roots and wings 2007, p.4) is to enhance the quality of life with good food and beverages, all(prenominal)where, so people could live a healthier life. In order to achieve their vision and mission, Nestl Nutrition interrogation Centre (Nestl. 2010, look into Development, Nestl Online available at www.nestle.co.jp) pays coarse attention to perceive the consumers nutritional and emotional needs and utilise todays world superior cognition and engineering to produce high quality products to the world.MARKET SEGMENTATION all(prenominal) consumer has different needs. Hence, it is non possible to satisfy every customer employ a same mercha ndise segmentation, which is also known as heap marketing by offering a single marketing blend to all consumers. Moreover, as a global market has become exceedingly competitive, and consumers atomic number 18 increasingly use uping which is very difficult to satisfy. Therefore, Nestl uses tar pulsate marketing for every product to their customers.For example, in consumer product, Nestl baby milk product a lot(prenominal) as Nestl Neslac Excella Gold is segmented only to infants and toddlers. However, baby does not have the capacitance or capacitance to buy the food they needful. Therefore, to market this baby milk product, Nestl does not fully foc apply on babys basic need which is hunger, solely also to the babys p arnts in terms of how the nutrition provided allow for give their children the better possible advantages in the childrens life and development.An different example is Nestl Milo, the milk beverage with chocolate and process. Don Howart, the executive direc tor of Nestl and Singapore Coffee and Beverages claimed that Milo remains popular among the young and has a 90% (The Sun. 2010, Milo with ProtoMalt to get through the day, Sun2Surf Online available at www.sun2surf.com) market share among chocolate malt drinks in Malaysia. Besides the youngsters, old people and active people are also part of the target markets of Nestl Milo drinks.However, at first, Nestls business was launched internationally and realised the fact that food products have to be interpreted into account to the local eating and social behaviour due to the casing countrys practices, cultures, and traditions. Therefore, (1) Nestl has always shown respect for diverse cultures and traditions and trying to integrate itself as much as possible into the cultures and traditions, adding also to the local environment its own machinate of honors. Therefore, (2) Nestl embraces cultural and social diversity and does not discriminate on the posterior of origin, nationality, rel igion, race, gender or age. (The Nestl Management and Leadership Principles 2006, p.9)STRENGTHSNestl is a multinational company, not to mention Nestl is also the largest industry in foods and beverages, hence Nestl has every capability to attract more consumers compare to the local companies. On account of its high market share and high fiscal power, Nestl also has greater financial capability in altering existing products in terms of packaging, the blueprint of the particular(a) product and others or creating new products, as well as to adapt or upgrade latest information system technology in manufacturing, order processing and other related fields in order to sustain their competitive advantage by delivering lower live of goods and services than their competitors in this dynamic environment.Secondly, Nestl has quite an trenchant strategic marketing capability. For example, Nestl Maggi pulsation noodles has built a stable patent and is very well known in many countries especia lly in Australia and Malaysia. This is because Maggi instant noodles is easily to be differentiated from its competitors such as Cintan Instant Noodles. Moreover, Nestl has also substantial a very beardown(prenominal) brand name for Maggi instant noodles because of strong advertising, which has indoctrinated or so of the people to name the other brands of instant noodles as Maggi instant noodle instead of the brands original name.Furthermore, Nestl also has a strong Research and Development operations that helps the company to achieve cross-border synergy such as packaging its global products to local preferences. Nestl also emphasises on using todays information technology, which Nestl believe it will present a long-term opportunity for them to refine the companys operation or to increase efficiency in packaging, among any other companys operations. Besides, Nestl also has better technological capability, for instance, to renovate the existing products to be more innovative, h igher quality, and much healthier product as Nestl realised that consumer-centred intromission and renovation is the most important pillar of Nestls worldwide strategy, which would facilitate Nestl to advance from good to better. (The Nestl Corporate Essence Our roots and wings 2007, p.34) And because of Nestls commitments, more people trust on the products delivered by Nestl because of its proper health and safety measures.Besides, Nestl also has great leadership attri simplyes. The leaders such as the top executives, branch managers, and others are responsible in building arranging capability. For example, the Chairman and Chief Executive Officer of Nestl S.A., Peter Brabeck, (Castelarhost. 2005, Nestl LC1 S.W.O.T Analysis, Castelar Articles Online available at www.articles.castelarhost.com) emphasises internal growth worldwide, which means to achieve higher volumes of sales by adding value to the products, renovate existing products, and innovate new products, to keep whole tone in the industry because of rapidly ever-changing of consumer expectations.PROBLEMS AND SOLUTIONSNestl produces hundreds of products, has a global earnings of suppliers, and manifold distributions and selling channels. Hence, to anticipate and respond in this rapidly changing in market demand condition is very difficult. When forecasting a market demand, Nestl will need information to detect shifts in demand early so they could adjust for trends and send the right messages to the suppliers, shippers, and distribution centres sooner they are flood with unwanted or uncollectible goods or improvidentages. (Manhattan Associates. 2010, formulation and forecasting Anticipate and Respond to Changes in Demand, Manhattan Associates Online at www.manh.com)However, every company has its weakest links, so is Nestl. The weakest links are issues they are unable to control. (Labs. 2010, Supply chemical chain of mountains Efficiency Starts at the Top, Food Engineering Online available a t www.foodengineeringmag.com) Firstly, the most common problem is the sources of come forth of lancinate materials. This is due to a fulminant and unexpected increased in demand, which will cause extreme supply laconicages for commodities that will result in major price increases. For instance, bad live and natural disasters have always been an issue affecting incoming raw materials. Secondly, the inaccuracy of orders received in inventory. No company can ever achieve the requirement of zero defects especially in foods and beverages industry. For example, when the purchasing department of Nestl ordered 10,000 of change integrity berries yogurt from its dealer, but what the retailer received was only 8,000 of mixed berries yoghurt, or on another occasion they aptitude received defective inventories. Another example is, when Nestl tells its dealer that they needed extra orders of a particular product to be shipped right away because of unexpected increased in demand, but in f act, the supplier may already has orders from other customers. This commonly happen during special occasion such as Chinese young Year, the demand of Nestl Cornflakes cereal will increase because many people will buy this product to make cookies. This will causes Nestl to encounter a great loss because of inaccurate order of magnitude because they could not produce the veridical output needed.Therefore, in order to solve these problems, it is crucial for Nestl to engage with multiplex suppliers or dealers in that particular region, so they could bugger off inventories from multiple dealers, which will definitely decrease the risk of shortage due to incontrollable situation. Besides, Nestl should also base on their demand and purchase planning on last check of years of sales to forecast current year of demand and supply. separate than that, mutual trust and strong relationship with all the dealers are needed in order to increase the flexibility of material supply management, as well as to enhance the bargaining power of Nestl. However, if there is a surplus, Nestl may need to plan a promotion to occur their inventories, differently Nestl will encounter a great loss such as paying high material handling cost, waste of warehouses space, or inventories that are not sold became defective and may need to be disposed which no profit will earn. Therefore, when there is a whopping event organized such as Jom Heboh Carnival. Nestl will set up a booth at the carnival to sell its products, which are close to the decease date at lower price such as Maggi products, Nescaf, Milo, yoghurt drinks, Nestl ice creams and so on. People often buy the products in big quantity because of the lower price than the market price. As a result, Nestl could clear their inventories rather fast and save some space in the warehouses. which is a win-win situation.Thirdly, even though Nestl has a logistics department but it doesnt deal with tape drive logistics. Nestl outsourced it s supply chain transport to the third-party logistics (3PL) as Nestl tries to cut their supply chain costs and to concentrate more on their in-plant operations. Although Nestl doesnt have a merchant vessels logistics department, but they do have a delivery team to stand by with the third-party logistics in routing protocol. Nestl is using a Dynamic Source Routing (DSR), which is a dewy-eyed and efficient routing protocol designed specifically for use in multi-hop radiocommunication ad hoc networks of mobile nodes. The protocol is composed of the two main mechanisms of itinerary Discovery and Route Maintenance, which work together to allow nodes to discover and prolong routes on-demand to arbitrary destinations in the ad hoc network. (Maltz. 2003, The Dynamic Source Routing Protocol CMU Online available at www.cs.cmu.edu) Therefore, the delivery team is there to help Nestl and the 3PL that DSR is working as per company direction as well as DSR performance.Next, it is the poor l eague relationship between dealerships and consumers. Dealers need these capabilities because they, in close partnership with manufacturers Nestl, are a connecting hub of services for the consumers, and other stakeholders. However, Nestl solved this problem by using the Dealer Management Systems (DMS) as well as their dealers. DMS is a software program solutions that provide tools for managing sales, services, parts and inventory management, business management, integration, and core architecture. DMS help manufacturers and dealers construct integrated marketing campaigns to offer inventory to target markets. This will integrate innovations into traditional in-store sales and service processes and offer technologies for non-traditional merchandising, sales, and service strategies through selection channels for consumer engagement via Web, by phone, or in-vehicle. (Microsoft Corporation. 2008, Microsoft Offers the Dealer Management Solution Microsoft Online available at www.micro soft.com/automotive)RECOMMENDATIONSAfter the reviews stated above, those were not the only solutions that are available. MDZ has come up with a few recommended suggestions that may work or solve the problems that were encountered by Nestl. Instead of just finding or having multiple suppliers, Nestl could acquire the inventories from the other outlets from the other region. Because some regions have different demographics, for instance, race. somewhat areas have higher percentage of Malays such as Kuantan, Pahang, and some may have higher percentage of Chinese such as Ipoh, Perak. The Chinese New Year (CNY) example stated above, in Kuantan area, there might be less demand during CNY, so to prevent shortage, Nestl could just acquire the inventories from Kuantan. However, if there is a surplus, and unable to clear the inventories at a short time, Nestl could consider donation for short-run purpose, this could help to clear the old stocks, as well as to help the donation receivers and build better blessing and name of Nestl.Secondly, Nestl is a multinational company it definitely has the capability in owning a transportation logistics department. Because of the hundreds variety of Nestls products, 7 manufacturers in Malaysia, as well as thousands of customers such as retailers, wholesalers, distributors and so on, Nestl could handle its own transportation service. Nestl could gain the whole power in such as mode selections, routing, and others. They could do almost anything such as consolidating different slip of products but to the same outlet. Besides, they could save every penny they use in transportation cost compare to third-party logistics (3PL) because 3PL charges according to the quantity, inventory storage space, value added processes such as special handling, and more. It may benefit in the short run, but definitely not in the long run, as Nestl centred in the long-term business and strives to achieve effectiveness and efficiency.Lastly, Nestl could u se both manual of arms and automation system in managing sales, services, and others. This is because one cannot trust wholly to a machine, as it may not be documenting the steps in its own processor. Because some steps cant be automated and may needful operator intervention to prevent the escapement processing steps, even though adapting sophisticated technologies could help saving cost as labour cost is reduced, but if there are still problems occur, it will affect the business such as loss of customers because of the mistake. Therefore, Nestl must update the system software regularly and full utilisation of available technology as well as the manual operators, which will effectively increase the efficiency and dependability of the supply chain systems.CONCLUSIONNestl exerts great efforts to achieve its visions to be the leader in Nutrition, Health, and Wellness Company by producing better quality of products to the consumers. Nestl also occupy about the consumers needs from ti me to time and satisfy the consumers as much as possible. Nestls strengths such as high financial capability, effective strategic marketing capability, strong research and development, as well as great leaderships have helped them through the obstacles. Above all, Nestl focuses on its missions and ensures consistency by making the right decisions to manage and build its business to deliver the check of Good Food, Good Life all over the world.