Sustainability of Nestle

Question: Discuss about the Sustainability of Nestle. Answer: Introduction Each and every organization is trying to do business with the innovative technology in the market. To achieve the goals and objectives of the organization, it is important to maintain the sustainable position in the market by implementing proper and powerful monitoring system. According to the Andrew, a proper monitoring system helps the organization to secure the business operations and ensures the stability of the organization. It is necessary for the organizations to select right technology and choose effective asset for the business environment. The objectives of the business can be achieved by implementing the safe sustainability monitoring system. The advantage of implementing a monitoring system is that it will improve the efficiency of the business operations of the organization and reduce the cost in terms of operations (Schilling, 2010). The operations of the business are full of many challenges and hurdles. There are technologies with well designed solutions and systems to provide support to the business. The organization management system manages the business actions and decisions taken by the management of the organization. Along with this, this system also helps the organization to monitor the movement of the employees in terms of their salaries and performances. The monitoring system plays important role in the system of the organization. Through the monitoring system, the organization is able take important decisions and execution of those decisions (Hitt, Ireland, Hoskisson, Rowe Sheppard, 2009). Monitoring system also manages all the functions in the business operations by providing support in terms of business information. The system handles the operating system for the growth of the business by the required planning and execution. In the sustainability monitoring system, the sustainable indicator can be used as the tools for change process. It is crucial to choose right indicator for measuring sustainability as it may change the whole envir onment and behavior of the organization system (Mun, 2010). Literature review Sustainability in the organization can be defined as meeting the needs of the organization without compromising the ability of future genreration. According to the council of supply chain management, corporate sustainability can be described as the efforts of a company in the business opwrations in a socially and environmentally responsible manner. It can include the factors such as stakeholders concern, corporeate social responsibility, sustainable development, and corporate accountability. The sustainability includes social and economic dimensions having needs of the stakeholders that are to be met by the company. Basically, term sustainability is defined in various journals and those are providing same meaning of sustainability that is important to stay competitive in the market and to maintain the brand image among the customers by providing safe and secure products and services. The objectives of the business can be achieved by implementing the safe sustainability monitoring sys tem. There are various environmental and social issues which should be addressed by the companies to maintain sustainability in the market. so, it is important to address those issues by adopting prpper and effective nuisness streategies by the companies. Description of the enterprise For the discussion in this report, Nestle will be taken. Nestle is one of the famous company in the world. The main business activities of the company are nutrition, health and Wellness Company. As per its business operations, the company provides the best quality of products to the customers with the superb taste. The company also includes wide range of food and beverage in its product line for its customers. Headquarter of the company is located in Switzerland. The company has more than two lacks employees for the business operations. The company has many factories which are located in several parts of the country for the growth and development of the business. In the food industry, the company has achieved great success and got top position in terms of quality of products and fame. Along with this, the company has sustained its relationship with the government of different countries and still it has maintained those relationships in effective and fair way. The company also helped in the agriculture industry to teach and educate the farmers in different aspects. The company helped the farmers in the scientific management services and the bank loans to develop the agriculture sector. Nestle always tries to understand the lifestyle and living way of the customers in the various countries and provides the taste to the people through the products. The company has the culture of renovation and innovation for the group technology and brand extensive. The Nestle has also created good values among the customers by its slogan good food, good life. By offering wide variety of high quality and safe product, the company is able to maintain the sustainable relationship with the customers for long term basis. The company provides highly international quality products under the international brand such as milk maid, Nescafe, and Maggi. The company has introduced the feature of product consumption of nestle milk and nestle slim milk. The Nestle Company is famous as the responsible organization in the market. The company holds the facilities that are very helpful for the company to improve the quality of the life of the society where it is established and operating. Sustainable dimensions: Social In the sustainable dimension, social culture is the most important factor for the development of any business. Nestle has developed its business in the international market. Along with this, the company became famous because of its products in the market which are closely related to eating and social habits. The company has adopted the developing strategies for the growth and success. Along with this, the company has also respected the culture, traditions and values of the customers. The company has involved itself much into the cultures and traditions where it is operating. The company has encouraged the social and cultural diversity and does not ignore the nationality, gender, religion, and race in the society. The company believes in long term benefits in the community basis. Having powerful strategy, the Nestle thinks globally through local actions and commitment. So, company is committed with the various culture and values of the customers. These all are the roots of the Nestle which are developing in all over the world where they have been established (Coulson-Thomas, 2013). Economy Agricultural plays an important role in the success way of each and every country across the world. Agriculture plays a fundamental role in the economic growth and the development of every country. It can be seen that 70% of population lives in rural areas and they are completely dependent on the farming for their food. So, company is also offering the jobs opportunities for those who are engaged in agriculture. Company also acts as the consultant for those people to develop their lifestyle. The sustainability in economic dimension depends upon direct and indirect economic aspects affecting the company. Those aspects are shareholders and surroundings of the company in which it is operating. Nestle also contributes in the operations by local tax which supports the government in terms of revenue. The reason is that tax is main base of the business and hold significant impact on earning and distribution of money of the company. The company also have valuable license to operate its busin ess inn all over the world. The company also creates trust among the customers to believe in the food quality (Berns, et al, 2009). Environmental According to the Hilgenkamp, the environmental factor is one of the key to the sustainable development. This factor acts as the pillar of the social responsibility. The main issues for the sustainability are environment and ecologic safety. Basically, the impact of environmental factors creates negative impact which results in the soil erosion and climate change. Sometimes, environmental issues include nonrenewable energy resources, deforestation and overuse of natural resources. This always creates negative impact on the business operations of the company. Although nestle has faced many hurdles in the business due to climate change and deforestations. But the company has overcome these problems with its effective strategy and maintained strong position in the food industry. The company is committed to the environmental changes, challenges and responsibilities. According to the Nestle, the traditional mode of operations should be used towards the environmental issues. So, company has executed the environmental management system for the good environmental performance (Goleman, 2010). Specific sustainability area Social aspect is one of the key areas to focus by the company. The social aspects will help to sustain the company among the competitors. There are many organizations which are focused on the social related responsibilities by improving the social effect of the company. This includes supply chain with the company and its people. It also includes the management and stakeholders to make the action plans to contribute for the welfare and interest of the society. Nestle has targeted huge customers in all over the world by providing best quality of products. The company also gives much importance to the shareholders and maintains the relationship with them and the customers. The company provides safe and secure products to the customers. The company got top position in the history of food industry by fair source of trading and advertising. Along with this, company is also focused on the responsibility of the employees so; it provides good benefits for the deserving employee. Every employe e in the organization has social responsibility beyond his formal contact of employees. The strength of the company depends upon the performance and responsibility of the employee as they are the assets of the company (Collins, Lawrence, Pavlovich Ryan, 2007). There is the need to understand about the employees welfare and working environment within the company. The social responsibility of the company is to treating fairly and providing the equal opportunities to its employees without focusing on age, gender and religion. Nestle is focusing on the health stability and prosperity of the customers by providing best quality of products to them. Although there is tough competition in the food market for Nestle but the company has maintained its leading position by focusing on the key areas of business strategy. The brand image of the company is developed by the services and the location of the company among the customers. Company is also involved in the society to provide the training to those people who are socially excluded from the society. Company is sponsoring the cultural and sports events for its employees to provide the good environment to do work (Zeithaml, Bithner Gremler, 2009). Indicators for monitoring It is important for the company to monitor the progress in the economy level. It will be helpful for the company to identify the capabilities of business in all the countries. For the economic development and for the good of the country, investment is the good source. By creating a long term value with the customers and shareholders, company can be able to survive over the competitors in the market. It is important to manage the accounts of the company properly having profit and loss. This will be helpful for the company to step forward in the business. Along with this, the exchange rates of the country always impact the largest food company. The company like Nestle which makes good food product has the better opportunity to expand its business in all over the world (Christopher, Payne Ballantyne, 2002). There is the good scope for the company to expand in different parts and to exports in different countries. Due to quality of products and services, the trading of the Nestle produc ts has been increased among the competitors. Along with this, the sales of the Nestle products have been increased in the market. It is also important to maintain the growth of the company without affecting the trade. Despite of having growth globally, the company is continuously trying to expand its business for the success. The company is also trying to identify the needs and demands of the customers and providing the quality of food with the value of money. The company is focused on the key area to develop the business in the high level. By the technology development and monitoring program for the staff, company is able to generate sustainability for long term. Company is now able to get healthy position in the economy (Nidumolu, Prahalad, Rangaswami, 2009). The Dunphy phase The Duphy phase is a useful model for the evaluation of sustainability of a company. It is a typical graphical representation of the evolution of sustainability. It provides the idea of managing sustainability in the market. Every organization uses this path for maintaining sustainability. The Dunphy phase was given by Dexter Dunphy. Basically, Dunphy phase provides a picture of the situation of the organization related to the society. There are six stages in this phase which are connected to the growth and success of the organization. It shows the way of sustainability, no matter how the company is progressing on sustainability. The stages in the Dunphy phase are rejection, non-responsiveness, compliance, efficiency, strategic sustainability and sustaining corporation (La Kandampully, 2004). Figure 1: Dunphy phase (Source: Stoddart, 2011) In the above figure, the stages of Dunphy phase are given. The sustainability of the Nestle Company can be measure by the stages of Dunphy phase. Rejection Rejection is the strong belief that the company is focusing only on maximizing the profit and health and safety features are ignored by the company. By this stage, it can be measured that the company is not taking responsibility of the health welfare and the future career of the employees. In the terms of ecological sustainability, owners of the company are not environmental activists and not achieving ecological sustainability. In the case of Nestle, there are some points which prove that the company is focusing on the social and ecological sustainability: The company has involved itself much into the cultures and traditions where it is operating. Nestle has targeted huge customers in all over the world by providing best quality of products. The company has encouraged the social and cultural diversity and does not ignore the nationality, gender, religion, and race in the society. Company is also offering the jobs opportunities for those who are engaged in agriculture. Non-responsiveness This phase shows the lack of awareness or ignorance rather than focusing on active ethics. This phase shows that the financial and technological factors are affecting the business. This stage comes when the company is not focusing on marinating the industrial relations or employees relations. Where the HR strategies and policies are ignored by the company there this stage will take place. It includes the traditional approaches which are not used to minimize the ecological issues (Stoddart, 2011). In case of Nestle, the company is out of the phase of non-responsiveness due to these strategies: The company gives much importance to the shareholders and maintains the relationship with them and the customers. Company is also focused on the responsibility of the employees so; it provides good benefits for the deserving employee. The company is also trying to identify the needs and demands of the customers and providing the quality of food with the value of money. Compliance This phase focuses on reducing the risk raised during the operations. This phase basically focuses to minimize the risk to meet the minimum standard of the industry. To gain the human and ecological sustainability, company has to overcome from the financial and technological factors that dominate the business operations of the company. Company will be unable to achieve the human sustainability where negative publicity may damage the brand image of the company. Company will not be able to achieve ecological sustainability where the company does not focus on the most important environmental issues that create risk for the business activities. In case of Nestle, the company is focusing on the technological factors to monitor the performance of the business. The technological system handles the operating system for the growth of the business by the required planning and execution. The Nestle Company is famous as the responsible organization in the market. The company is committed to the environmental changes, challenges and responsibilities. The traditional modes of operations are used towards the environmental issues by the company (Cooper Vargas, 2004). Efficiency The efficiency includes the growing awareness of the company that is the real advantage for the company to gain the sustainable practices. By the systematic attempts of human resource functions, company can achieve sustainability. For the success and growth, people can be viewed as the significant sources. Company can conduct different programs around its operating market for the significant business function. The company has sustained its relationship with the government of different countries and still it has maintained those relationships in effective and fair way. The company also helped in the agriculture industry to teach and educate the farmers in different aspects. The company has provided training and education for the successful farming. The company helped the farmers in the scientific management services and the bank loans to develop the agriculture sector. Strategic sustainability This phase describe that strategic sustainability is the important part for the business strategy of an organization. Company should focus on the communities also so that they should not get affected by the business operations of the company. To contribute in the culture and values of the customers, company can be able to get sustainability among the customers. The proactive environment strategies will provide ecological sustainability and will provide the opportunity to get competitive advantage in the market. By offering wide variety of high quality and safe product, the company is able to maintain the sustainable relationship with the customers for long term basis. The company has the culture of renovation and innovation for the group technology and brand extensive and company is committed with the different culture of the customers. The brand image of the company is developed by the services and the location of the company among the customers. sustaining corporation This is the final phase of Dunphy phase and this provides a view for the organization to do work in a sustainable world. The company should accept the responsibility of employees as well as the society in which it is operating. The society seeks for the strong influence by the company in the market. People are seen as the valuable part of the company. The company Nestle makes good food product has the better opportunity to expand its business in all over the world. There is the good scope for the company to expand in different parts and to exports in different countries. Company is sponsoring the cultural and sports events for its employees to provide the good environment to do work. The company is committed to the environmental changes, challenges and responsibilities. By focusing on these ways of the phases, Nestle will be able to maintain its sustainability in the market (Galpin Whittington, 2012). Maintain long term sustainability It is very important to maintain sustainability in the market by a company. For the Nestle, it is necessary to maintain the sustainability for the future as it is the leading food company in the market (Biedenweg, Monroe and Oxarart, 2013). There are some strategies by which the company can maintain its sustainability: There should always be a perfect leadership for change. By implementing the change in terms of technology, company will be able to maintain its competitive advantage in the market (Bainbridge, 2011). There should be proper flow of fund in the company as money is the important factor top stay competitive in the market. Money is required for the positive outcome. It is most important to evaluate the sustainability monitoring system. Company has to evaluate the performance of the employees and business operations through the maintained reports. Partnership and collaboration should be done by the company if needed. Partnership is the most effective way to maintain the sustainability and to achieve the goals of the company. By implementation of effective business strategies, company will be able to sustain its competitive advantage. By proper communication with customers and employees, company will be able to create the trust among the customer. Proper communication plan will be helpful in this manne (Brodhag Taliere, 2006). Conclusion Sustainability is the most important factor and the main strategy to maintain the stability of a company. By adopting the suitable strategy, company will be able to stay alive in the competitive environment. The proper business strategy will allow the company to move further for the success and development in the business. By understanding the condition of the market and the economy, the company will be able to maintain its sustainability by measuring its operations. The moral approaches are also very important to maintain the ecological and social sustainability. The success and growth of the company depends upon strategy and the management which are adopting the business operations according to the market condition. Nestle has tried many strategies and expanded its business in the international market. The company also helped the countries to grow their economy. Along with this, Nestle has also come up with the new and innovative products as it has started to provide the products f or kids in need of nutrition. Nestle is one of the largest food company in the world but the company is unknown about the investors in America. Apart from this, the company has provided benefits and rewards to the employees and also focused on the management to develop more innovative products. 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