Nestlé Corporate Level Strategy

Nestlé Corporate Level Strategy Corporate level strategy is essentially what makes the whole company greater than the sum of its business units. The separation of strategic str ategic and tactical decision making as argue by Chandler (1962 1991! is the most e"cient corporate organi#ation as it allows the corporate centre to focus on the destiny of the corporation and allow business units to focus on within business unit operations. $int#berg puts forward %ve formal de%nitions of strategy& strategy& plan ploy pattern position and perspective. 'lanning is concern with the development of mission or vision of what the company would aim to achieve. The organi#ation must have a vision of what they want the company to be at a point in future. The pattern has to do with how the strategy unfolds and becomes concrete. f strategy as plan refers to deliberate) intended strategy that may or may not be reali#ed) then strategy as pattern suggests unplanned) emergent strategic patterns or consistencies that are reali#ed despite) or in the absence) of intentions ($int#berg and *aters) *aters) 19+, in -rae# 22) p. /,6!. 0n integrated organi#ation strategy is based on overall orientation towards growth and stability. stability. n the case of estl) the overall orientation is to be the world3s largest and best branded food manufacturer with the highest 4uality standard. 0 company may also focus portfolio corporate strategy) which is a strategy focus on the market that the %rm competes in through product line and business units. n fact this is the basic underpinning strategy that drives estl orientation of producing the world healthiest product. The core principle of estl is helping consumers to have a balanced healthier diet. 5or %rms to sell se ll successfully to foreign customers re4uires culturally sensitive adaptations to product services) services) marketing and advertising (7ugman and Collinson 29) p. 182!. n the face of an unpredictable) highly volatile and competitive marketplace) a capacity for innovative) divergent strategic thinking at multiple organi#ational levels is seen as central to creating and sustaining competitive advantages (iedtka 199+ in -rae# 22) p. /,6!. estl uses both planning scenario and strategic business models. estl utrition) an autonomous unit within estl) is responsible for the claim: based business of infant and healthcare utrition. This is one of the strategic units of estl created in order to maintain the company competitiveness. This unit aims at delivering superior business performance by developing and o;ering consumable nutritious products. The unit in particular would strengthen estl leadership in this market hence a key element of the company corporate strategy .$ichael 'orter (19