BUSINESS STRATEGY

BUSINESS STRATEGY

BUSINESS STRATEGY

31/12/2013Lecturer: Dr. Willibeth C. CandolWritten by: LUU NHAT HA

Table of Contents

2INTRODUCTION

33.1 Analyze possible alternative strategies relating to substantive growth, limited growth or retrenchment.

3Substantive growth strategies

5Limited Growth Strategies

8Retrenchment

93.2 Select an appropriate future strategy for Nestle SA (Vietnam)

11Evaluation on the penetration development strategy

12Evaluation on the market development strategy

13Evaluation on the product development strategy

144.1 Compare the roles and responsibilities for strategy implementation in two different organizations (Nestle against its nearest competitor)

214.2 Identify and evaluate resource requirements to implement a new strategy for Nestle Vietnam.

21Finance

22Labor

22Material

23Technology

244.3Discuss targets and timescales for achievement in Nestle to monitor a given strategy

29CONCLUSION

30REFERENCE:

INTRODUCTION

Nestle Nutritional Foods is a leading food brand in the world with criteria bring nutritional food source for the best health and happy life for everyone. Nestls products are always towards to the best quality and to meet the demand for consumers in every age, gender, work situation.... Although Nestle is taking part in the global competitive market fiercely as well as the pressure of aptitude products, but companies need to examine the factors inside and outside as well as the current business situation with the aim of assessing the ability of these strategies through identifying the strengths and weaknesses of the company. From there, it can help Nestle understand more about how to put Nestls products into new markets, especially Vietnam, and meet the elements of the economy.3.1 Analyze possible alternative strategies relating to substantive growth, limited growth or retrenchment.

There are three types of alternative strategies can be applied to business are substantive growth, limited growth and retrenchment strategies. Nestle can learn and use appropriate strategies to maintain the best ranking in the nutritional food industry as well as support the development of Nestle in the future. Thus, before making a suitable strategy for Nestle, I will analyze more clearly on three alternative strategies for Nestle plans in the future.

Substantive growth strategies

The understanding of the importance of business growth is a necessity for businesses. Businesses need have to identify development opportunities to become a famous brand and unique as well as to ensure the sustainable development of enterprises in the future. Substantive growth can be accomplished through the acquisition of operations, mergers, self-development with the available resources. They depend on the market, technology, and financial capability. Substantive growth is implemented through the options following:

Horizontal integration: It is a merger between two companies produce and compete in the same product line, in the same market. If companies adopt this strategy, the growth rate can be achieved by extending the internal or external expansion through mergers and acquisitions of companies providing similar products, in collaboration with the link reasonable diversification. It will be a huge advantage to grow market share and reduce competition in the market by applying this strategy.

For Nestle, in 2002, Nestle merged with Dreyer Company in manufacturing ice cream in the U.S. and acquired the company Chef America, Inc. with $ 2.6 billion. In January 2006, Nestle has completely owned company, Dreyer, and since then the company became the largest ice cream producer in the world with 17.5% market share.

Source: website Nestle S.A

Vertical integration: When businesses choose to expand by acquiring or taking multiple stages in the supply. Producer will own suppliers and its distributors. It helps companies improve efficiency and reduce costs. For Nestle, to be able to bring a taste of the most delicious coffee, Nestle has provided a wide range of Grand Cru coffees, coffee machine, and personal services through the coffee shop. Since then, Nestle has been operating in the premium segment portioned coffee worldwide, serving customers in nearly 60 countries. In addition, to ensure the Nestle food gives consumers adequate nutrition, Nestle has a scientific and the Health including medical nutrition business of the company, mainly supplying products six areas to support primary health care, including aging care, critical care, diabetes, obesity, cancer and pediatric.Source: website Nestle S.A

Unrelated diversification: The company expanded its business into a new area that is not related to the brand, product or market current of company.

For Nestle, Nestle began diversifying product when starting shareholding in L'Oral in 1974. Nestl holds 26.4% stake in the company L'Oral, the leading cosmetics company in the world. Laboratoires Inneov is joint venture project about nutritional cosmetics between Nestl and L'Oral. Galderma is a joint-venture project in the field of dermatology different between Nestl and L'Oral. Other projects include Cereal Partners Worldwide (with General Mills), Beverage Partners Worldwide (Coca-Cola), and Dairy Partners Americas (with Fonterra).Source: website Nestle S.A Therefore, the substantive growth strategy will have advantages and disadvantages. Advantages

Nestle will achieve high growth rate, large-scale and better when faced with competition.

Nestle improve and enhance product quality thanks to the application of modern technology production.

Besides, from the buy and hold shares of other companies in the same industry, It helped Nestle to expand market share and increase market efficiency.

The use of diversification, Nestle can enhance brand, engage and try to produce brand new products. Disadvantages

It can cause high risks and affect the current market share.

It requires a lot of time and cost for machinery, equipment, materials and staff salaries for more.

When inflation and the crisis is happening and growing, Nestle does not necessarily engage in new markets or new areas.

Limited Growth StrategiesLimited growth options: include market penetration, market development, and product development. Market penetration: is a strategy to grow the same product of the company in the same market. The only way to gain more market share with the same product in the same market is to attract competitors customers and get more loyal customers by marketing strategies, advertising strategies, promotions, open more selling points to increase sales.(Source: businessdictionary.com). Therefore, Nestle to invest in advertising through media such as newspapers, television, Internet.... It often helps the company maintain or increase market share, dominance safety, increase the use of existing customers and market restructuring. For Nestle Vietnam, Nestle Vietnam implementing market entry strategies through specific marketing strategies as:

Advertising: TV programs and newspapers advert of Nescafe, Nestea, Bear milk, Milo ... -

Sponsorship of television programs, music programs, sports tournaments. Organizing workshops about public health nutrition; nutrition advice for growing children. (Bear milk, cereal). Organizing activities to introduce product outdoors: product introductions trial to schools or supermarkets (sour milk, pasteurized milk, Milo, Maggi, Nescafe...). Implementation of promotion program like gift Milo, Nestea...Advantages:

The great population of Asia (especially is Viet Nam) somehow provides a huge amount of potential customers for Nestle.

This strategy will help Nestle sustain and increase the market share of present products.

Creating competitive advantages (different high technologies, etc.) to challenge potential competitors.

Disadvantages:

Nestle faced with competitors like Starbucks and PepsiCo, Inc. ... in Vietnam market.

It takes time to adapt Nestle, access to customers and find out consumer demand in new markets.

If the world economy is crisis, not boost sales or promotions not attract customers in new markets ( lead to a loss for Nestle.

In addition, Nestle may be obsolete by the use of promotional measures more is focused on production of new products.

Market Development: is the name given to a growth strategy where the business sells existing products into new markets. Is the process by which the firm seeks new markets for its current products? There are many possible approaches: new geographical areas, different package sizes, new distribution channels, differential pricing policies, new market segments. (Source: Business Environment course book, p161) For Nestle Vietnam, The Companys products have been launched two markets of Vietnam is two big cities such as Hanoi and Ho Chi Minh City. Through strategic market development, the company has gradually built distribution systems and retail systems on the entire Vietnam. In 1998, Nestle Vietnam only nine distributors including six distributors in Ho Chi Minh City and Hanoi, currently has 120 distributors across the provinces and cities in the country.Advantages:

New geographical area, the Asian market is booming and this market brings enormous revenue for Nestle.

It requires Nestle to spend the finance resource that is not too large.

Nestle has a larger market and more customers, increase sales, and promote the development of the company in the future.Disadvantages:

When Nestle implement market development strategies, they takes time to have the strategy performed because Nestle need to have the permission of each government in their new market shares before investing. Moreover, they have to research new markets and a lot of risk in the marker.

Nestle have to understand and meet the needs of customers in new markets.

Spending more money on research and provide new products to compete with rivals in new markets.

Nestls profits may go down due to the negative change of currency exchange rates and political situation Product Development: offering new products to existing markets and increasing the product's features such as improved design and packed to launch product to the market. Example: Ever since commercial operation in 1997, Nestle Vietnam market constantly making new products like these Milo, Nescafe, Maggi sauce, Maggi Number powder, yogurt ...Most of the new products in recent years of the company. It is products manufactured according to Vietnam from the origin products of Nestle worldwide. Research Center and development of Nestle launched the new products to serve to affiliates of Nestle worldwide. And based on the results of this research and the information market, the product development department of Nestle Vietnam adjustments from the original recipe of products to suit the tastes, habits, preferences of consumers in Vietnam.... Frequent changes related to packaging, packaging, creating new flavors and ingredients. It is suitable for the living conditions of the people of Vietnam

Advantage

Nestle always make new and improved products to create differentiate and attract customers in the current market. It helps Nestle gain much market share

Nestle has many advantages with strong financial resources to support R&D department

Nestle has many advantages over the competition.Disadvantage:

Nestle would have cost a lot of money for advertising new products to attract the attention of customers.

Nestle will face high risks, if Nestle does not succeed in producing a new product or not collected revenue from new products.

Nestle takes much cost analysis and market research before the implementation of strategies. Retrenchment

This strategy can bring stability to the company. The company has cut employees, cut spending when companies realize that they are not strong enough to compete with other competitors. There are three types of cutting strategies that Nestle could make to their company:

Cut-off labor: Nestle will cut unnecessary spending and labor when Nestle took profits and their share in the market.

Divestment: Nestle may sell or liquidate part of the assets of the company or a large department.

Liquidation: this is considered to be the most difficult because Nestle could lose assets. It leads to serious consequences for the employees that they will lose their jobs. Moreover, it lost the opportunity that Nestle pursue in the future.

Advantage:

Reduction strategies can help save money over Nestle to focus on their core competencies.

Nestle will stabilize the financial problems.Disadvantage:

Nestle faced with financial and resource distribution in the company when Nestle cut costs and resources.

Lack of staff leads to a decrease in production efficiency ( profits will decrease.

Nestle caused high unemployment rates.

Liquidation can cause serious consequences like bankruptcy.( After analyzing the advantages and disadvantages of each strategy, I think Nestle should choose limited growth strategies. It fits with the current business situation and business development activities in the future of Nestle. Thus, Nestle needs to focus on improving product quality; diversifying business activities and increase efforts to attract customers using advertising tools to develop new products and services for customers know the new products easily.

3.2 Select an appropriate future strategy for Nestle SA (Vietnam)Based on the advantages and disadvantages analyzed alternative strategies for Nestle, Nestle should be carefully analyzed to select an appropriate strategy for the company. In particular, limited growth strategy is considered appropriate and at least pose a risk. This strategy promotes the available resources and capabilities of Nestle. In addition, product development and market development is feasible to Nestle have many opportunities to expand new markets, enhance brand and business development objectives, vision and mission that Nestle has put place. Nestle can evaluate three strategies of limited growth through Ansoff Matrix (not including the diversification strategy). Since then, the management of Nestle can make the right decision to become a Nestle brand leading food nutrition world, especially to overcome the competition in Vietnam market as Starbucks. There are three main factors to help Nestle evaluate strategic is: suitability, feasibility and acceptability to stakeholders (SFA).

Evaluation on the penetration development strategy

Suitability

This strategy is appropriate for Nestle to develop because it based on the strengths, weaknesses, opportunities, threats of Nestle to fit the missions and the capabilities. Thus, Nestle wants to develop a sustainable business activity in Vietnam. Nestle to overcome the great competitor and also is expanding market share to Vietnam as Starbucks. To be able to successfully compete and do master Vietnam market, Nestle need to make a difference, market research and find out the basic needs of the people of Vietnam to be changed accordingly. Nestle must have technology development, brand and products closer to consumers through advertising, promotions. For example, Nestle has links with the National Nutrition Institute to open and operate health care services to the consumer, or consulting services, customer care. (Source: Nestle) Feasibility

Apply penetrating the market has highly feasible for Nestle. Nestle has resources such as capital, labor, modern technology and are in stable condition. Besides, Nestle has providers available and the long term in the market the Vietnam as coffee farms in the Central Highlands. Nestle signed a contract with the supplier to ensure that materials are purchased in large numbers, high quality and reasonable price. Nestls human resources are carefully selected. Employees have knowledge and experience, professional training suit each location. They are talented, energetic, creative, enthusiastic and responsible job. On the other hand, Nestle organize training programs for staff to develop their skills. Acceptability

This is a strategic interest of the shareholders and the stakeholders because they can achieve more profit from this strategy. Or is this strategy can spend money on advertising, marketing to attract customers. Moreover, this strategy is less risky for Nestle. It focuses on the current market and the customer of Nestle desire many change to choose. Besides, Nestle will be allowed to expand market share in Vietnam if Nestle comply with laws and government regulations such as labor law, environmental policy, etc. Evaluation on the market development strategy

Suitability

The Asian market is a huge potential for Nestle, especially Vietnam. Nestle is trying to introduce existing products to new markets. Although, it is more risky than the market penetration strategy, but it can be an opportunity for Nestle to make more profit because many Asian countries have a stable political situation and GDP figures such as Vietnam, Singapore, Myanmar, etc.. Vietnam's population is quite high, this is a great opportunity and potential for market growth and increased profitability at Nestle Vietnam.

Feasibility

Nestle has built a strong workforce of market research from many different countries come with different cultures . In addition, Nestle also has a chain of reputable providers, quality and long-term. Nestle support for cultivation at coffee farms and dairy farms .... Besides, Nestle also open more branches or retail stores so that customers can easily find and buy Nestle products.

Acceptability

For investors and shareholders, they are always interested in the company's profits, and they want to get higher returns from this market. If Nestle succeeded in developing markets, they will be more profitable. Moreover, customers also play an important role in this strategy, they will decide the success of this strategy and profitable for Nestle or not. Shareholders and investors will continue to invest in building more branches worldwide. when expand business into new markets, Nestle must comply with the rules and regulations of the countries where they operate as the law of environmental protection policies, taxation and consumer protection. These rules do not cause difficulties for Nestle because they have a lot of experience in operations in many countries around the world.

Evaluation on the product development strategy

Suitability

This strategy is an appropriate strategy for the current operations of Nestle. Applying this strategy, Nestle need to update the market trends to improve and develop new products to meet market demand. During development, continuous innovation and Nestle launched the new product line to meet the needs and accordance with the consumer. In addition, Nestle has always focused on the application of technology, the most modern techniques to make products with the highest standards to bring satisfaction for consumer products. With strategic bring nutritious food sources and healthy consumers, Nestl provides nutritious foods such as milk, nutrition flour and confectionery for children. FeasibilityNestle has huge financial resources and human resources to implement the strategic plan of services and product development. Technology is an important part of the R & D of Nestle. Nestle has engineers working in R & D in many areas - from packaging equipment, food processing technology and production of new beverage systems such as Nespresso, Nescafe Dolce Gusto, especially. T&BabyNes. Together with the engineers, food scientists Nestle developed processes and technologies that enable the development of safe, nutritious food and beverages in order to bring the most delicious taste of Nestle food. AcceptabilityThis strategy is also affecting sales of the company as well as the interests of stakeholders. Nestle can expand the market share with new segments to serve the needs of our customers. It is not easy to anticipate customer's needs, so Nestle should have more specific strategies for advertising, promoting. If these products can meet the needs of customers, they will get more belief and the number of products sold increased as well as profit from higher sales. Consequently, stakeholders will have more profit and they will accept this strategy. More importantly, Nestle need create strong relationships and long-term supplier. It ensures adequate supply of raw materials to manufacture new products.... Recommendation: Through the analysis and evaluation of three factors as Suitability, Feasibility and Acceptability to stakeholders. Nest can see that Market development, products development strategy are good choice. It can increase the reputation and competitive advantages of the company. Moreover, with this strategy, Nestle can use maximize resources of company. Therefore, this is a good strategy for development of the company in the future.4.1 Compare the roles and responsibilities for strategy implementation in two different organizations (Nestle against its nearest competitor)

Each company has different strategies for their business activities, including Nestle. Moreover, to achieve objectives and effectively manage a business, Nestle needs to define the role and clear responsibilities for each department of the company. Following are the roles and responsibilities in each department of Nestl to ensure success strategy selected.Human

Resources

DepartmentRole

Human resources play a very important role for the development of a company. Therefore, Nestle needed to maintain stability human resource. Nestle need to recruit effective human resource for the company, from which provides and competency assessment of each employee, then company arrange human resources in the appropriate position for each plan in order to maximize profitability and ensure future for Nestle. Nestls staffs have to meet the expectations of the customer to ensure the long-term goals for the company.

Responsibility

All responsibility is to ensure that Nestle to achieve their business goals through:

Recruitment and training of staff professional development more, Nestle to comply with labor laws, paid to employees based on labor law, to ensure that staff can develop through wages, health care, equal treatment, and morality with staff.

Besides, creating a pleasant working environment, effective and providing training professional programs for staff. On the other hand, Nestle needs to build a specific work plan to create a balance between needs and resources to reduce stress among employees. Taking advantage of available qualified human resources in the company to keep objectives cost less.

Financial Department

Role

The finance department is an important department in a company. For Nestle, too, all the profits, cost, and debt will be finance department controlled and measured through financial statements. In addition, this department can be adjusted cash flow and raise capital for investment activities and business of Nestle. Besides, the finance department also created good working relationships with other departments within the company to run the company efficiently.

Responsibility

The finance department is responsible for some certain of activities:

The finance department should ensure that salaries and bonuses for staff, pay bills, pay dividends to shareholders must be paid on time. On the other hand, this department is responsible for monitoring the changes in business conditions and forecast performance indicators such as sales revenue or cost of Nestls

investment as well as analysis of credit risk and interest profits to invest in new markets. Moreover, the finance department have to ensure the operational budget of the other parts, then, internal communications and make forecasts about future budgets for other departments

Marketing Department

Role

To reach out to customers effectively, bring in revenue, and profit for the company, Nestle must have marketing departments. The marketing department will represents for company create a relationships and good image in consumers' hearts. This department play a role search new market has the potential to expand the business. Then, it has to research, analyze, and survey the needs of customers to produce new products. Moreover, this department needs to work with other departments to identify potential as well as the target market.

Responsibility

There are some marketing aspects that this department strongly takes responsibility for:

Nestle needs to build a strong brand and reputation with customers by advertising products on television and newspapers and hired an advertising agency to do the project, to get the best professional results. The marketing department shall have to research the market and considering the attitude of customers with products of Nestle, from which, change or create new ideas and unique products to attract more customers than competitors. It is responsible for supporting the efforts of the sales department. Furthermore, the marketing department needs to invest strongly in advertising campaigns or promotion program. Besides, it must build a clear distribution system for customers to buy products more easily and provide consulting services for product and health care for consumers.

Manufacturing DepartmentRole

Ensure market demand by producing high quality products as well as ensuring input materials and the quality of the product in output. That is a process of product manufacturing and this department has role to control the production process without incident occurs or delayed.

Responsibility

Production department is responsible for research new or modifying existing products. Setting standards and goals for each department of the production process and check each stage of production of products and raw materials for the manufacturing process. After that, the department must ensure and certainly that all products must be standards before launching into the market. All products must meet the requirements as: No products recall, Quality, High satisfy

This section will compare the roles and responsibilities of the department in Nestle and Starbucks.

Slogan

MissionGood Food, Good Life " is the mission statement of Nestle in 2013. With this mission, Nestle provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. (Nestle, n.d.).

Nestle was producing nutritious food with great taste and reasonable price but is produced in standard and conditions the best. The company designed specifically for products in accordance with needs of local. Nestle ensures that the product will always be in the right place and the right time.

Mission: to inspire and nurture the human spirit one person, one cup and one neighborhood at a time.

Establish Starbucks as the premier purveyor of the finest coffee in the world

Human resources

Department

Nestl opens for staff not only an opportunity for attractive jobs but also a lot of professional development opportunities long-term and abundance.

Activity in the area associated with the essential needs of human beings, so that Nestl is a company built on a foundation very cloning. At Nestl, human is central to the success of the company. Nestle interested in their staff on all aspects, to help them develop a better way and try to bring them the most practical benefits.

Source: website NestleStarbucks is looking for staff can communicate in two languages, English and Vietnamese, have great passion in business always learn and meet customer needs, all staff must be linked together. Listen and communicate well with other members inside and outside Starbucks, creating a teamwork environment friendly and efficient. And most importantly, employees must have the spirit of learning and responsibility towards work. Starbuck create career development opportunities in a professional way. Starbucks will help employees go on the road to developing a sustainable career.

Source: website Starbuck

Marketing

Department

Nestle need to study and find out gather and information from consumers. Also, find out the competitors and the fluctuation is going on in the market.

Nestle need to analyze the strengths and weaknesses their products and proposed a new marketing strategy.

Moreover, during the crisis period of the global financial, Nestle also influenced. Therefore, businesses need marketing strategies with the lowest cost but the best effective as media, newspapers, the Internet....

On the other hand, Nestle should organize events to promote the brand and image to customerThe company focuses on its initial products include good coffee, quality of service and create a friendly atmosphere while in Starbuck.

Social Media Strategy of Starbuck was built on the website including Twitter, Facebook, Youtube. Starbuck always create new ideas.

Starbuck nurture current relationships of them. This ensures customers will continue to support the brand in long time.

Starbuck has promotions such as "buy 1 get 1 free" attract a large number of customers for Starbucks.

http://www.digitalsparkmarketing.com/creative-marketing/social-media/starbucks-marketing/

Manufacturing

DepartmentAt Nestle, Nestle comply with the strict requirements of the production process. Build trust by providing products and services accordance with expectations and preferences of consumers. Nestle commitment to good quality and safe product for consumers is a top priority of Nestl.

To achieve this, Nestl has built 17 leading research centers in the world, and a staff and engineers of Nestl constantly research can be applied the development of technologies into improve products, develop new products, contributes create to sustainable competitive advantage for the company, To confirm the trust of consumers.Starbuck's products concocted according to preferences of customer. Since the process of finding the best material resources until process of Coffee making implemented carefully and detailed. Each step is important in determining the taste of coffee. Starbucks have to bring satisfaction to customers.

4.2 Identify and evaluate resource requirements to implement a new strategy for Nestle Vietnam.Nestle should assess resource requirements carefully. This will help the company understand the situation and their capacity. There are four types of resources; it needed for Nestle really can meet the goals that they have set up an efficient manner as Finance, Labor, materials, and technology. FinanceFinancial resources are evaluating the strength of the fastest time and the ability to apply new strategies. It is an important factor indispensable and should be investment such as product development, service and market development. When Nestle wanted to implement the new strategy is to expand new markets, Nestle should have strong financial resources to cover expenses and provide a new strategy. If finances of Nestle are not big enough to invest, this can cause high risk for business operations of the company. Therefore, Nestle need to control and balance the financial situation in order to maintain the company's activities take place smoothly. They should check on the balance sheet assets and liabilities, bank loans and cash flow. The financial situation of Nestle, net profit was up CHF 1.1 billion to CHF 10.6 billion, and earnings per share were up 12.2% reported to CHF 3.33. Underlying earnings per share in constant currencies were up 7.5%. Nestle increased operating cash flow by CHF 5.6 billion to CHF 15.8 billion, reflecting primarily a substantial improvement in working capital. The strong operating cash flow, the Groups financial net debt increased from CHF 14.3 billion to CHF 18.2 billion, with the dividend of CHF 6.2 billion, capital expenditure of CHF 5.4 billion, and the CHF 10.8 billion acquisition of Wyeth Nutrition being the main contributors. The Groups return on invested capital was 14.1% including goodwill and 30.2% excluding goodwill. The board is proposing a dividend of CHF 2.05 per share, up from CHF 1.95 in 2011.For decades; Nestl has had consistent, stable, and accelerated growth in overall turnover. In terms of current performance, the year 2001 was once again a record year for sales, net profits and dividends to shareholders, with CHF 84.7 billion in sales, CHF 6 681 million in net profit and 4.4 % real internal growth. Source: 2012 Nestls annual report. Hopefully this number will go a good way in the future. With these favorable conditions, Nestle can buy high quality raw materials; improve services and investment to build new branches as well as new distribution channels.

Labor

Human resources play a very important role in the implementation as well as success strategies. Human resource is considered a property of Nestle. Recruit and retain talent is the biggest challenge of the organization. In Asia, especially Vietnam, here is a large potential market for human resources. Nestle company with over 280,000 employees from 100 different countries working in 449 branches in 83 countries, more than one third (33.9%) of the workforce is located in Europe, 38 % in the Americas and 28.1% in Asia, Oceania and Africa. Culturally unified everyone on all continents should, therefore, forces personnel from the different cultures of Nestle have created strength to compete with other companies in the industry. Nestle by the ability of human resource management; the company has created for the favorite staff work, which constantly devoted to the future of the organization. Nestle confirms that an employee of Nestle "you are working in a global environment". Nestle always have the long-term investments in training and professional development for staff to have the opportunity to do a better job and higher income. With the principle and its business culture, Nestle used human potential in a safe working environment, fair, their opinions are heard and the ability to work is highly appreciated. In addition to an abundance of human resources and capacity to work, Nestle has always had the policy of recruitment and training through its own training program at the University of Nestle. It is what the above has helped the company obtain a competitive advantage, a barrier for competitors in the same industry Nestle. (Nestle. nd) The human resource of Nestle will contribute an essential part to helps market development strategy of Nestle carry out easily, This helps Nestle completed their mission is to bring good nutrition food source for health of consumers

Material

The selection of materials is a very important issue in the product development process. Therefore, Nestle always choose materials for their products carefully. Company to strengthen relationships with their suppliers locally and overseas. Currently, Nestle has signed many contracts with suppliers to ensure the large quantities material. Moreover, Nestle need to keep their relationship with the supplier in a long time. On the other hand, Nestle is also suppliers specializing in the manufacture of their own products. Nestl is the world's leading companies in nutrition, health, and healthy living. Statistics 2010, Nestl has 233 factory, 17 research centers and development are located in all continents with branches in most countries of the world. Nestl produces about 10,000 kinds of products. The spread that helped Nestl access to customer needs, from creating products that best meet consumers needs. It is a great result from the tireless efforts of the group through a long-term business process to achieve a global system that competitor can not easily overcome. (Nestle. nd) Technology

Technology is one of the important things that help to develop quality products. Technological environment include elements such as innovation, research and technological development, new equipment. It is a major impact on the method of marketing and advertising for Nestle. Nestle may have significantly changed their operating strategy when changing technological environment. If Nestle focus on developing and innovative environmental technologies, Nestle will increase product quality, less expensive costs, higher productivity and gain more profit because of customers will choose products high quality.

Example: Today, with a network of 17 research centers across the globe and Development on 4 continents, Nestl is proud to be a group have capable research on food and nutrition the largest in food industry world. Nestls Research Center is a center of scientific research in the field of food and nutrition leading the world. This center has built a solid foundation of scientific knowledge, the knowledge accumulated to support the business activities of Nestl. Its success is tied to bring consumers the best products. Despite the world economic situation of the past there are many difficulties and severely affected from the crisis but Nestl continues to invest in research and product development. Nestle has ranked in the top 100 and is the leader in invention patent for the food industry and beverage. Nestle hosted more than 250 patents each year and manages a portfolio of more than 200,000 patents worldwide. With the motto "Scientific research to meet a better nutrition," Nestl has always believed that the research helps bring more quality product than to help people have a better life. (Nestle. nd)Besides, technology support for Nestle with after-sales service to customers through e-mail, Facebook, Twitter, YouTube, Instagram and customers can be easy to find the informations Nestle through the social media high technology.4.3 Discuss targets and timescales for achievement in Nestle to monitor a given strategy

Market development and product development is considered to be the most appropriate strategy for survival and development for Nestle. Therefore, Nestle need to set targets and timeframes to ensure effective and successful strategy. It includes plans for short and long term. I will provide specific information to develop, market development and provides rankings for each plan. In short term plan:

Objective Increase market share in new target markets in Vietnam at the end of 2014.

Key activity Research, strategic planning and implementation of marketing strategies

Action required Research needs customer and new product innovation at targeted markets in Vietnam

Introduction and contribute new ideas to improve product marketing strategy.Collect and opinion survey and feedback from customers for new products on the website, phone, e-mail or company.

Subscribe and find out the competitors in the same industry in Vietnam.

Planning for new target markets in Vietnam.

Evaluation of the process and results of the implementation strategy.

Expected results Increasing the number of loyal customers in Vietnam market.

There is enough information about the needs of customers and competitors in Vietnam market.

Schedule A year (from January 2014 to December 2014)

Resource requirements The annual financial statements of the company.

There is full information of competitors, including financial reports, SWOT analysis and so on.

Collect customer information in awareness, behavior and so on.

Funding resources Owner capital, retained earnings

Monitoring Feedback from customers.

The annual report of the company.

CodeActionTimescale

AResearch needs customer and new product innovation at targeted markets in VietnamJanuary

BIntroduction and contribute new ideas to improve product marketing strategy.January to February

CCollect and opinion survey and feedback from customers for newMarch

DEstablish and implement planning for new target markets in Vietnam.April to October

ESubscribe and find out the competitors in the same industry in Vietnam.November

FEvaluation of the process and results of the implementation strategy.December

Grant chart

Action requiredJanFebMarAprMayJunJulAugSepOctNovDec

A

B

C

D

E

F

In long term plan:

Objective Become the company leading food nutrition in new markets.

Maintain and increase sales

Key activity Open more and more distribution channels as well as branches around the world.

Action required Research and survey information about new markets.

Determine target markets and marketing plan.

Identify and plan for the target market.

Identifying the factors can avoid the competition and the potential value of the competitors.Expanding retailers and agents in new market

Recruitment, training skills as well as their experience for local staff.

Establish good relationships with partners in Vietnam markets

Creating customer belief and attract more and more loyal customers.

Expected results Increasing market share in Vietnam markets.

Open retailers and resellers in Vietnam market

Schedule 10 years (from 2014 to 2024)

Resource requirements Staff are trained

An abundant financial resources and stability for Nestle

Some activities for Nestle such as investment, construction of branch distribution channels as well as, wages, etc.

Funding resources Owner capital

Investment

Retained earning

MonitoringFeedback from customers, managers, and employees.

Good relationship with the government in Vietnam markets.

CodeActionTimescale

A

Research and survey information about new markets.2014

BDetermine target markets and marketing plan.2015

CIdentify and plan for the target market.2015 - 2016

DIdentifying the factors can avoid the competition and the potential value of the competitors.2017 - 2018

EExpanding retailers and agents in new market2019 - 2024

FRecruitment, training skills as well as their experience for local staff.2019 - 2020

GEstablish good relationships with partners in Vietnam markets2021 - 2022

HCreating customer belief and attract more and more loyal customers.2022 - 2023

ICollecting customers feedbacks2023 2024

KSummarizing feedbacks, making assessments and Reports.2024

Grant chart for long term:

Action required20142015201620172018201920202021202220232024

A

B

C

D

E

F

G

H

I

K

CONCLUSIONThis report will help Nestle can identify and assess resource needs to implement new strategies to achieve these goals in the future. This requires a concentration of three factors - suitable, feasible and acceptable strategy. Moreover, in the process of expansion and investment, Nestle have to political analysis, legal, technology, and environmental technology to understand the market and the economy. It helps Nestle makes good business activities and maintain a competitive advantage with other competitors. Nestle to invest in new market with opportunities and challenges. Therefore, Nestle should be marketing strategy or manufacturing strategy is good to attract and create trust with customers. Finally, set goals and specific timeframes to help Nestle can be controlled and timely strategic planning if the problem changes.REFERENCE:Anon., n.d. finance-nestle-jobs. [Online] Available at: http://www.nestlecareers.co.uk/content/finance-nestle-jobs.htm[Accessed December 2013].

Anon., n.d. Mission+Statement. [Online] Available at: http://starbuckscoffee.ru/en-US/_About+Starbucks/Mission+Statement.htm[Accessed December 2013].

Anon., n.d. nestle. [Online] Available at: http://www.nestle.co.za/aboutus/missionvision[Accessed December 2013].

Anon., n.d. nestle. [Online] Available at: http://www.nestle.com/aboutus/quality-and-safety[Accessed December 2013].

Anon., n.d. nestle. [Online] Available at: http://www.nestle.com/aboutus/strategy[Accessed December 2013].

Anon., n.d. Nestle. [Online] Available at: http://vi.wikipedia.org/wiki/Nestl%C3%A9[Accessed December 2013].

Anon., n.d. Nestle. [Online] Available at: http://www.nestle.com/aboutus/strategy[Accessed December 2013].

Anon., n.d. starbucks. [Online] Available at: http://www.starbucks.com/responsibility/environment[Accessed December 2013].

Anon., n.d. starbucks-marketing. [Online] Available at: http://www.digitalsparkmarketing.com/creative-marketing/social-media/starbucks-marketing/[Accessed December 2013].

EDEXCEL HNC & HND BUSINESS, (2010), Business Strategy course book, Chapter 9, Strategy Selection, p161, London: BPP Learning Media.

EDEXCEL HNC & HND BUSINESS, (2010), Business Strategy course book, Chapter 9, Strategy Selection, p162, London: BPP Learning Media.

Monamaieed, n.d. Strategy. [Online] Available at: http://www.nestle.com/aboutus/strategy[Accessed November 2013].

Anon., 2012. Annual Report 2013, s.l.: Climareneutral printing.

Nestle, n.d. core competency of Nestle. [Online] Available at: http://www.ukessays.com/essays/marketing/core-competency-of-nestl-marketing-essay.php[Accessed November 2013].

LUU NHAT HAPage 1