The global business environment and its impact on Nestle.

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Table of Contents

2.0 Introduction to the company        

2.1 The Vision of Nestle        

2.2 The mission of Nestle        

3.0 Globalization        

3.1 Globalization influences towards a organization like Nestle        

3.2 How to overcome those Globalization challenges?        

4.0 What is Information?        

4.1 Importance of information to an organization like Nestle        

5.0 Communication        

5.1 Objectives of Communication to a business Organization like Nestle        

5.2 Elements of Communication Systems/Process        

5.3 Types of Communication used by the Nestle Corporation        

5.4 Benefits to a Organization like Nestle in having proper internal communication system due to Globalization        

5.5 Benefits to an Organization like Nestle in having proper external communication system due to Globalization        

6.0 Stakeholders of an organization        

6.1 Internal stakeholders of Nestle Corporation        

6.2 External stakeholders of Nestle Corporation        

6.3 How stakeholders are been communicated and stakeholder challenges are met by the Managers of Nestle Corporation.        

7.0 Management overview of the Nestle Corporation        

7.1 Top level manages        

7.2 Middle Level Managers        

7.3 Lower Level Managers        

8.0 Globalization developments have helped the existing organizations?        

8.1 Transaction processing system (TPS)        

8.2 Office Automation systems (OAS)        

8.3 Knowledge Work Systems        

8.4 Management information systems (MIS)        

8.5 Decision Support Systems (DSS)        

10.0 Conclusion        

11.0 Reference        

1.0 Introduction

This Assignment is covers the whole of the Business Communication. And this is the final assignment where students are been examined about the factors which they learnt in the class for his module. Firstly I would like to mention that I made this assignment on my own and in simple words by putting all the factors together after going through and doing a lot of research in the internet as well as the text books and etc on my own words so that the reader will easily identify the details and the data and findings which I went through for the past few weeks and get the optimum result out from this report. We were supposed to choose an organization and to analyze the combination on how the company communicates with its stakeholders of the impact of and globalization to the organizations communication process. The reader of this assignment will be educated about the Nestle Corporation and how the globalization challenges the present managers and what steps they have and can take in order to overcome those challenges in communicating with their internal and external parties.

                                       

2.0 Introduction to the company

Nestle organization can be identified as one of largest food manufacturing companies in the world. Nestle Organization has around 480 factories approximately in around 87 countries throughout the world and helps the employment level of the world by employing around 265,500 people worldwide. By Today, Nestle Organization has been recognized by almost everybody in the world as one of the largest companies which is there in the globe. Nestle Organization has altered itself with time to satisfy and meet the expectations of their consumers.

2.1 The Vision of Nestle

"The vision of Nestlé is to be the leading nutrition, health and Wellness Company in the world," "When you have a good vision you don't change it dramatically each year. If you spoke about nutrition 100 years ago, it was about feeding people. If you speak about nutrition today, it is to feed the people with fewer calories. The vision has to evolve over time."(C.E.O.-Paul Bulcke 2008)

2.2 The mission of Nestle

“At Nestlé, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to nutrition, health and wellness, Nestlé products bring consumers the vital ingredients of taste and pleasure.”(Nestle)

The bottom line is that Nestle has become very successful due to one core reason which is, that they do not sacrifice long term goals and objectives for short term profit.

3.0 Globalization

Briefly Globalization can be defined as merging countries to the global economy by opening economies for foreign trade, foreign investment and technology. Countries would become interdependent and the world will become a global village by having political, legal, social, economic, technical, and cultural characteristics which are similar in all the countries in the world which will lead to a situation of free movement of resources, money and people.

Tom G. Palmer of the Cato Institute defines globalization as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result.

Several institutions intended to oversee the process of globalization which included the following institutions,

  • International Bank of reconstruction and development (World Bank)
  • International Monetary fund (IMF)
  • United Nations Conference on Trade and Development (UNCTAD)

Globalization has been facilitated by advances in technology which reduces the costs of trade as I mentioned earlier and they are been activated with the introduction of certain agreements which includes,

  • General Agreements on tariffs and trade (GATT)
  • North Asian Foreign trade agreement (NAFTA)
  • South Asian Preference Trade Agreement (SAPTA)
  • Indo – Sri Lanka Free Trade Agreement (ILFTA)

There are certain amount of advantages and disadvantages in globalization which affects almost all the countries throughout the world. The following are How the Globalization affect to an organization like Nestle Corporation.

3.1 Globalization influences towards a organization like Nestle

  • Advanced management skills will come in to being with the globalization developments.

As the Globalization developments, new technologies come in to being and the managerial skills of the people within the globe will actually increase due to this factor. Eg - Due the globalization developments the management levels and the methods of managing employees etc have become more efficient and effective in business organizations. Managers have the ability to strategize in the Business organizations activities due to the recent developments.

  • New technologies will come into being with the developments of globalization which can increase productivity.

As the world becoming global village new technologies will be invented to increase the nation output efficiently using a minimum number of inputs (Productivity). As an advantageous affect, the organization can produce goods at maximum efficiency and as a disadvantage the new technologies will actually lead to a decrease in employment of countries where new machineries will be used as a substitute for the employees of organizations to produce goods and service.

  • Ability to face the Competitions successfully

The managers and respective parties within the organization can collect information through newest technologies and this will result in efficiency of the organization. Efficient and effective decision making is essential to achieve organizational goals and objectives.

  • Improvement in communications within organizational structures/Hierarchy

Communication channels have got broader and the world has become a global village where people in any place can communicate with all over the world due to introduction of internet chatting, video conferencing etc. The managers and internal and external stakeholders of organizations have got the ability to communicate where ever they. Eg: mobile network, MMS and the 3G network.

  • Wider market will come into being with the globalization developments.

The world has become a global village means the Nestle organization’s will have a broader and wider target market for their products. But this incase will come as a disadvantage for the organizations too because the more the market becomes broaden, the more the competition will increase and the more the competition where the organizations will have to face.

  • Increase in competition

As the world becoming a global village, the consumers will expect standard products with standard quality. And due to the interaction and the widening of the target market for the products for the Nestle Corporation, the competitive firms for the same target market increases. Because of the increase of competition, the prices of the products will have to be reduced and the managers of the organization will focus on high productivity in creation of products at good quality standards as well at a lower price than normal.

  • Dumping of goods

Dumping of goods refers to the sale of goods from a particular organization in a particular country which are been rejected or prohibited in that particular country to other organizations and countries which are located n other countries at a very low and cheap prices where the consumers will get attracted to the particular products and to sale and gain an income from the products. These actions may make the consumers of the Nestle Corporation shift into those cheaper products which will minimize the profits for the organization again and increase the foreign income for the organization who are engaged in the dumping process.

  • Language barriers in communications

This can be categorized as a huge problem the Nestle Corporation is facing. The Nestle Organization is a multinational company which is located almost all over the world and they should have a good communication network or relationship with their external stakeholders. In communicating with their stakeholders the organization should be able to communicate in different languages to make them understand what the point, the organizational managers are talking about.

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  • Harmful effects on culture and society

As I mentioned earlier what globalization is, which is making the whole world interdependent and to use and consume a standard amount of goods etc. Certain cultures come as barriers towards the globalization developments. For example there may be a certain people who have only vegetarian food. But due to the globalization developments, the use of vegetarian food will fade away and food with meat will come in to being. There was problem regarding this concept and that can be understood by viewing the following diagram.

Figure 1

As you can actually see, ...

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