Sustaining Growth in Mature Markets Research Paper

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("Code of Business Conduct," 2010)

Explain how Nestle establishes and manages relationships with its primary stakeholders.

Nestles builds and manages its relationship with primary stakeholders by ensuring that they are consistently delivering to them the kind of results; that will promote the long-term stability and growth of the company. This is achieved by finding those businesses / products that have the potential to contribute to the company's bottom line growth, during times of expansion and economic contraction. This is significant because it establishes and maintains strong relationships with shareholders, who see directly how such a strategy is benefiting them. A good example of this would be the 4.8% growth rate that the company delivered in the first quarter, despite the fact that many companies are struggling. ("Strong First Quarter Results," 2010)

Discuss the leadership tasks that are fundamental to Nestle's success.

Management has the responsibility of providing leadership to the entire company. Where, there are a number of different tasks that they must engage in to continue to effectively lead the company the most notable would include: ensuring that the company has viable product lines that will contribute to the bottom line, locating business opportunities that will support the long-term growth of the company and ensuring that the staff remains focused on providing the best quality products to consumers. Ensuring that the company has viable product lines that will continue to promote profit growth is when: management must be observant and identify those areas that could hurt the bottom line. At which point, they must divest themselves of these businesses that could become a drag on profit growth. Locating business opportunities that will support long-term growth is when you are seeking out those products that could help to grow the company's bottom line over the long-term. Once such products have been identified, is the point that leadership must be exercised to acquire those companies.

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Ensuring that the staff is focused on providing the best products to consumers is a constant challenge that all leadership must go through. This is imperative because if the staff begins to deliver poor quality products, it could mean that the company's reputation could be damaged over the long-term.

Update the case information using at least three (3) data sources in addition to the text.

Nestle has underwent a tremendous change throughout the decades, where the company has been focused on a strategy of growing by identifying those product lines that could help contribute to its long-term success. At which point, they will continue to sell the product under the original brand name of the product or company they purchased. This is significant because it underscores a trend that is taking place, where the company will purchase those products / brands that are very successful in specific demographics / markets. Once this takes place, it allows Nestle to be able to establish an image within the local market, because of the favorable image that was created by the product or brand that they purchased. This is in line with company's objective, to find those products or business that will help to promote its long-term growth. It also helps to deliver something of value, to the various customers that they sell to around the globe. An example of this can be seen with Nestle Quick in the United States, where many consumers will view the product as an American-based product, yet it is actually owned by Nestle. This is important because it underscores a strategy of financial prudence and finesse, to build the long-term profitability of the company. It is through examining the different products that Nestle sells and their overall philosophy on business; that highlights how the company was able to deliver consistent results over the last ten.....

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