Assignment

Topic
Strategic Process of an Organization

Submitted To
Sir Shams

Submitted By
Saqib Adnan

Class No
18

Department
IBMS
K.P.K AGRICULTURAL
UNIVERSITY
Peshawar

Strategic Process of an Organization

Unfortunately, strategic planning is also one of the most misunderstood and poorly used tools in
many organizations. Strategic plans are often large documents with detailed plans created
arduously over months at great effort...only to gather dust and languish after they have been
duly acknowledged and then filed away.
There are several reasons why strategic plans are not developed properly, or not implemented
properly. Among the most common are:

Senior management does not follow a defined process to accomplish this task. As a
consequence, months of effort are wasted in creating reams of paper that do not have
strategic import.

The process is Strategic planning is one of the most important responsibilities of the senior
management of an organization. It is the vehicle that senior management should use to set the
organizational vision, determine the strategies required to achieve that vision, make the
resource deployment decisions to achieve the selected strategies, and build alignment to the
vision and strategic direction throughout all levels of the organization.

delegated to a planning group, or assigned to the various functional leaders to complete

for their respective areas. If completed in individual functional areas, the plan may work
for individual departments, but is likely to sub-optimize the whole organization. If
assigned to a planning group, the result is often not truly embraced and endorsed by
senior leadership.

Senior management does not set aside the time to develop the strategic plan as a
collective team work product.

The organization does not understand what a strategic plan is actually designed to
provide. Therefore, the strategic plan is a tactical business plan with multiple year
extrapolations. There is very little about it that addresses actual strategic direction.

Senior management does to follow a defined process or methodology that will result in a
strategic plan in a timely and efficient yet comprehensive manner.

The plan is developed but there is no process to communicate it throughout the

organization and build organization-wide alignment to its implementation.

The plan is developed with no implementation guidelines at all. At best, it is implemented

in pieces. At worst, it is unfunded and ignored.
does This not have to become the reality. Strategic plans can be developed in an
efficient and timely manner as long as the senior management team of an organization

is committed to meeting and working together over a period of several months to

develop it.

Marketing Plan of Nestle Pakistan

1.Vision Statement .Nestl's global vision is to be the recognized leading Nutrition, Health and
Wellness Company. .Nestle Pakistan subscribes fully to this vision of being the number one
Nutrition, Health, and Wellness Company in Pakistan. Mission Statement To positively enhance
the quality of life of the people of world by all that we do through our people, our brands and
products. Situational Analysis The Nestle Cerelac consumers are spread all over the world one
of the reasons behind is the lower prices offered by Nestl and its easy availability every where.
Market Demographics Nestl Cerelac segments its market on following bases: Geographic
Segmentation Demographic Segmentation Psychographic Segmentation Behavioral
Segmentation
2.Market needs .Due to rapidly increasing the population and increase birth rate in Pakistan
there is increased in the needs of healthy foods which nourishes the infants. .Good nutrition is
essential for the growth and development of infants first year of life. They required appropriate
food. Market Growth Strategy of Nestle Cerelac Infant food and nutrition as a category will grow
10-12% and Nestle is well placed to capture growth in this category because it is at the forefront
of infant foods technology. Nestle adopted two growth strategy 1-Product development. 2Market penetration. SWOT Analysis 1. Strengths -Nestle includes a culture that is team focused
and an open door policy which encourages employees to work hard. -People all over the world
trust and recognizes Nestle as a big brand name. It looks at achieving higher volumes by
renovating existing products and innovating new products.
3.Weaknesses One major weakness of Nestle is that it is entering into markets that are already
mature and can give a tough competition to new entrants. 3.Opportunities Nestle in Pakistan
has a great opportunity for expanding its markets because in Pakistan there is a large market of
food and beverages. 4.Threats A threat for nestle is the increasing popularity of its competitor
OLPERS in local and international markets. Competition Nestle competes with other packaged
foods companies as well as store brands from retailers Nestls major competitor are: ENGRO
FOODS. EMEVEN GOLBAL LTD.
5.Competitive Advantage .Cerelac is the only popular and quality baby food in Pakistan. Its
unique stay fresh seal and a long lasting shelf life gives the brand a formidable competitive
advantage. .The factors that make Cerelac successful is quality and superior nutritional value
which fulfill requirement of infants in different stages of age. Product Offerings Cerelaccome in a
range of seven varieties of baby food products which are as follows: Cerelac Rice, Cerelac

Wheat, Cerelac Wheat +apple, Cerelac Wheat + honey, Cerelac Wheat + banana, Cerelac
Wheat + fruits, Cerelac Wheat +Vegetables. Marketing Strategy Companys objective is to be
the worlds largest and best branded food manufacturer while with the products of the highest
quality among all others.
6.Target Market Geographic dispersion Urban, suburban. Family life cycle Full nest, single
parent. Social Stratification Upper upper class, lower upper class, upper Middle class. Age
segments Infants(0-5), mothers (18-45). Income level Average income, above average.
7.Differentiation Of Nestle Cerelac Nestl Cerelac has positioned among people as health
provider brand for infants. Brand Positioning Nestle communicates itself as Good food, good
life. Cerelac is a name of quality and best food for babies and the positioning statement of
Cerelac also tells the same as, best start to a healthier future Marketing Mix Of Nestle
CerelacProduct:Sizes It is available in 3 sizes; 350g and 175g box packaging and a 25g sachet
for customer convenience. Shape & Color The shape and color are very attractive for the
customers. Labeling and packaging The labeling and packaging includes Nestl brand and logo.
8.Price: Nestle Cerelac Banana Price Rs.135 Nestle Cerelac Wheat Price Rs.135 Nestle
Strawberry & Apple Cerelac Price Rs.135 Promotions: Nestle has adopted the channels for
promotion through TV, News papers, magazines Doctors and hoardings etc. Nature of
marketing The product is marketed aggressively in the market. Placement: Nestl Cerelac is
available all over in Pakistan regardless of big and small cities.

Social Responsibility and Ethics

1. Nestle Philippines Incorporated is a large- scale, well-known international food manufacturing
corporation engaged in the manufacture of instant coffee, milk, and ready-to-cook noodles. It
was established in 1983 and is registered with the Securities and Exchange Commission (SEC)
and Bureau of Food and Drugs (BFAD). Currently, it has 497 employees and member of various
organizations such as Mindanao Association for Quality, Cagayan de Oro Chamber of Industries
and Personnel Management Association of the Philippines.
2.Nestle Philippines is committed to helping in community and nation building through programs
that help the underprivileged members of society. Agronomy Assistance Since the 1960's,
Nestle Philippines has been helping coffee farmers in different parts of the country through
imparting knowledge on how they can improve their crops. Members of the company visit these
farmers regularly to reinforce among them the importance of good plantation management. By
improving methods in growing coffee, farmers get better yields and eventually help increase the
coffee supply in the Philippines as well as help the farmers increase their income.
3. Health and Nutrition Nestle is an advocate for good health and proper nutrition. It conducts
feeding programs and medical missions in the areas where it operates.
4. Education and Manpower Development Donate-a-Classroom Program Technical Skills
Scholarship Program Academic Linkage Program

5. Community Development Cut and Sew Livelihood Project Yard and Garden Livelihood
Project Suklay and Gunting Project Misis Kong Trainors Program Julius Maggi Kitchen
Street Illuminations Project
6. Environmental Protection and Preservation Nestle Environmental Management Solid
Waste Management Program The Greening the Supply Chain Air Emission Testing
7. ProgramShift from Corrugated Container to Shrink Film From twin to single sachet Reduced
cut-off length Packaging Source Reduction Program
8. SOLID WASTE MANAGEMENT Segregation Reuse Composting
9. Increasing population, with simultaneous depletion of quality water are driving a focus to
preserve this essential resource of life Water: a precariously diminishing resource
10. Sensor operated faucets Water in Manufacturing Water Conservation Program Water
Conservation Task Forces and SGA teams Water gun on all hoses at production area Water
recycling at vacuum pump cooling system Re-used water for CIP Boiler blowdown and effluent
used for watering plants
11. Rural Development in Pakistan Since the 1960s, Nestl Pakistan, Inc. has adopted an
agronomy programme aimed at increasing the income of coffee farmers. By improving the
methods in coffee growing, farmers can get better and higher quality yields, and help increase
coffee supply in the country.
12. In 1994, the Company established the Nestl Experimental and Demonstration Farm in
Tagum, Davao del Norte, where coffee farmers are trained on the most efficient ways of growing
coffee. It also serves as a venue for the conduct of experiments and production of planting
materials.

Research and Analyzing in Nestle Pakistan

Nestl's strength in product research and development makes it possible to develop products to
fit market requirements. Maggi is committed to providing cutting edge products that chefs want,
e.g. products with a lower salt content. These products are high quality and easy to use. The
new products need a more natural taste while at the same time offering value for money.
The Maggi 'A Natural Choice' range is now lower in salt and made using sunflower oil. In
addition, where possible the range benefits from having no added MSG, is gluten free and
contains no artificial colours or flavours. The Maggi 'A Natural Choice' range has clear and easy
to understand nutrition and allergy information on all packaging to help chefs understand what is
in the products so they in turn can inform their customers. The range is aimed at a variety of
chefs. For example, two Maggi 'A Natural Choice' products widely used in school kitchens are:
1. multi-use tomato sauces - this saves time vs using chopped tomatoes. The product is prereduced which means less wastage (the juice from chopped tomatoes makes up one third of a

tin and is usually poured away) and also less cooking time as the product can be used straight
from the tin. It contains sunflower and olive oil and is pre-seasoned with basil and oregano so it
can be used straight from the tin. The sauce is mainly used as a pizza topping or a pasta sauce
as well as in soup and casseroles, and one serving can contribute to one of the suggested five
portions of fruit and vegetables per day.
Maggi also uses easy to understand labels showing nutritional and other information. For
example, the multi-use tomato sauce label states:
there are no added colours or artificial flavours
there is a low fat content
the salt and sugar content has been reduced by 25%
the key nutrients contained e.g. energy, protein, carbohydrates, sugars, fat, saturated
fats, fibre and sodium, salt equivalent labelling (if used on brand)
details of allergenic ingredients used.

Develop Competetive Advantage

Competitive Advantages of Nestle Leading overall market position and number one or two
brands in most areas.The extraordinarily large scope of Nestls business provides for significant
economies of scale inmanufacturing, marketing and administration.The research and
development capabilities allow the Company to lead the way in innovation andprovides for
maximum portfolio flexibility.Competitors of Nestle Food and Beverage: P&G, Mars, Danone,
Kraft, ConAgra Foods, Sara Lee, Kelloggs, Unilever.Commercial Products and
Pharmaceuticals: Johnson & Johnson, Novartis, Bayer, P&G.Private Label: Costco (Kirklands
Signature), Wal-Mart (Sams Choice, Great Value), Loblaw (PresidentsChoice), Aldi,
TESCO.Regional and Local Manufacturers: China Yurun Food, Nissin Foods, Indofood Agri,
Illova Sugar, MarfrigAlimentos, etc.Barriers to Entry for Nestle Economies of scale - To be
successful in todays food and beverage sector the cost component is criticaland economies of
scale are a main cost driver.Shelf space - Between the shelf share of multi-billionaire brands
and the recent push of retailer drivenprivate-label products a new entrant would be
challenged into executing a successful distributionstrategy.GENERIC BUILDING BLOCK
INNOVATION :
Innovation is one of Nestl's key competitive advantages. We have more than 140years of
research, development and scientific know-how. While there is a great deal of pure and
appliedscience research that takes place in our global R&D centres, Nestl ensures that
the consumer, and theconsumer benefit, remains at the core of all our activities.
Consumer Benefits
Nestl R&D addresses three areas of benefits for consumer
y
Safety and Quality - this underpins all Nestl products
y
Nutrition and Health
y

Taste, Texture and Conveni

Marketing strategies of Nestle Pakistan

Vision Statement .Nestl's global vision is to be the recognized leading Nutrition, Health and
Wellness Company. .Nestle Pakistan subscribes fully to this vision of being the number one
Nutrition, Health, and Wellness Company in Pakistan. Mission Statement To positively enhance
the quality of life of the people of world by all that we do through our people, our brands and
products. Situational Analysis The Nestle Cerelac consumers are spread all over the world one
of the reasons behind is the lower prices offered by Nestl and its easy availability every where.
Market Demographics Nestl Cerelac segments its market on following bases: Geographic
Segmentation Demographic Segmentation Psychographic Segmentation Behavioral
Segmentation
2.Market needs .Due to rapidly increasing the population and increase birth rate in Pakistan
there is increased in the needs of healthy foods which nourishes the infants. .Good nutrition is
essential for the growth and development of infants first year of life. They required appropriate
food. Market Growth Strategy of Nestle Cerelac Infant food and nutrition as a category will grow
10-12% and Nestle is well placed to capture growth in this category because it is at the forefront
of infant foods technology. Nestle adopted two growth strategy 1-Product development. 2Market penetration. SWOT Analysis 1. Strengths -Nestle includes a culture that is team focused
and an open door policy which encourages employees to work hard. -People all over the world
trust and recognizes Nestle as a big brand name. It looks at achieving higher volumes by
renovating existing products and innovating new products.
3.Weaknesses One major weakness of Nestle is that it is entering into markets that are already
mature and can give a tough competition to new entrants. 3.Opportunities Nestle in Pakistan
has a great opportunity for expanding its markets because in Pakistan there is a large market of
food and beverages. 4.Threats A threat for nestle is the increasing popularity of its competitor
OLPERS in local and international markets. Competition Nestle competes with other packaged
foods companies as well as store brands from retailers Nestls major competitor are: ENGRO
FOODS. EMEVEN GOLBAL LTD.
5.Competitive Advantage .Cerelac is the only popular and quality baby food in Pakistan. Its
unique stay fresh seal and a long lasting shelf life gives the brand a formidable competitive
advantage. .The factors that make Cerelac successful is quality and superior nutritional value
which fulfill requirement of infants in different stages of age. Product Offerings Cerelaccome in a
range of seven varieties of baby food products which are as follows: Cerelac Rice, Cerelac
Wheat, Cerelac Wheat +apple, Cerelac Wheat + honey, Cerelac Wheat + banana, Cerelac
Wheat + fruits, Cerelac Wheat +Vegetables. Marketing Strategy Companys objective is to be

the worlds largest and best branded food manufacturer while with the products of the highest
quality among all others.
6.Target Market Geographic dispersion Urban, suburban. Family life cycle Full nest, single
parent. Social Stratification Upper upper class, lower upper class, upper Middle class. Age
segments Infants(0-5), mothers (18-45). Income level Average income, above average.
7.Differentiation Of Nestle Cerelac Nestl Cerelac has positioned among people as health
provider brand for infants. Brand Positioning Nestle communicates itself as Good food, good
life. Cerelac is a name of quality and best food for babies and the positioning statement of
Cerelac also tells the same as, best start to a healthier future Marketing Mix Of Nestle
CerelacProduct:Sizes It is available in 3 sizes; 350g and 175g box packaging and a 25g sachet
for customer convenience. Shape & Color The shape and color are very attractive for the
customers. Labeling and packaging The labeling and packaging includes Nestl brand and logo.
8.Price: Nestle Cerelac Banana Price Rs.135 Nestle Cerelac Wheat Price Rs.135 Nestle
Strawberry & Apple Cerelac Price Rs.135 Promotions: Nestle has adopted the channels for
promotion through TV, News papers, magazines Doctors and hoardings etc. Nature of
marketing The product is marketed aggressively in the market. Placement: Nestl Cerelac is
available all over in Pakistan regardless of big and small cities.

Implementation and Control Process of Nestle Pakistan

The term ERP implementation has become synonymous with nightmare in recent years. High
profile failures dot the headlines and companies are often intimidated not only by the high price
but also the negative effect implementations can have on their business. Vendors such as SAP
are working diligently on shaking this reputation and have made great strides in meeting their
goals. In 1996, a user could expect to pay six to 10 times the license cost in consulting
charges. These days the external consulting cost has dropped to typically one to two-and-a-half
times the software costs, depending on how much process re-engineering the user does
(Adshead, pg. 26). Fortunately for companies considering an ERP implementation there have
been enough done in the past that there are opportunities to learn from the successes and
failures of others. One of the key factors of a successful implementation is dont try to make
the product fit exactly the way you would ideally like to work or on the other hand assume that
people will completely change their processes to meet the package. The first takes many years
and costs loads, the second meets big resistance (Adshead, pg. 26). For most businesses
there needs to be a middle-of-the-road approach where individuals realize that the software will
not solve every organizational problem and not every process in the company can be reengineered to fit the software. Regardless, savvy project leaders with prior ERP implementation
experience will tell you that there are several pitfalls to avoid during ERP projects. The first is
not to select an ERP package based on a demo. Choose your package wisely, ask questions,
get references, and do your homework. An ERP package is a costly investment and you need
to be sure you are choosing the package that best fits the needs of your organization. The
second is get management commitment. Not securing top management buy-in results in an
automatic project failure. Management commitment is often high at the beginning of a project
but begins to wane as the project wears on. It is vital to keep management interested, involved,

and positioned squarely behind the project. The third is to avoid heavy customization. It is both
easy and tempting to customize ERP packages to fit your exact needs. Unfortunately excessive
customization will haunt you by lengthening the project timeline and by driving up maintenance
costs in the future. The final pitfall to avoid in ERP implementations is not to underestimate the
importance of training. It is not uncommon that users receive several days of training on the
new system and then do not see the system again for months. Users need in-depth and ongoing training and should even be involved with system testing if at all possible.

CRM of Nestle Pakistan

1.FEATURES OF CRM
Front office operations Back office operations
Business relationships Analysis
These can be differentiated in following 4 parts :2.
Nestle's relationship with India started in1912, when it began trading as The Nestle Anglo-Swiss
Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian
market.
Nestle is the world's largest and most diversified food company.
3.
It has around 2,50,000 employees worldwide, operated 500 factories in approximately 100
countries and offers over 8,000 products to millions of consumers universally.
Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT,
BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh 'n' Natural
Dahi and NESTLE JeeraRaita
4.NESTLE and CRM
5. CRM OBJECTIVE - NESTLE
Building a Relationship.
Customer Relations Marketing means deepening the relationship with consumers, which
involves extra effort in talking to and listening to them regularly.

6. Getting Feedback The Nestl Care Center is an important channel in the dialogue with
consumers to welcome feedback. In attending to product complaints, Nestls protocol includes
visits by field representatives to consumers homes, and laboratory analysis of the products
concerned .
7. Nestle Embraces Loyalty Scheme to Reach Buyers Nestle Food Services and Young's
Bluecrest have adopted a CRM programmer designed to help them get closer to customers in
the catering trade. Foodservice Rewards is a loyalty programmer that allows manufacturers to
collect data on businesses.
8. NESTLE DIVISIONS OF CRM Transaction Processing System Process Control Systems
Enterprise Collaboration Systems
9. Transaction Processing System
In this segment Nestle process data resulting from business transactions, update operational
databases, and produce business documents. Like they use TPS in sales & inventory
processing and accounting systems. And Nestle use this system to find out the Point-of-Sales or
Sales Data from all over its subsidiaries.
10. Process Control Systems
Nestle use PCS as production control system. Nestle use this system in its food department.
They use electronic sensors linked to computers to continuous monitor food material processes
& made instant (real time) adjustments.
11. Enterprise Collaboration Systems
In this segment Nestle considering Team & Workgroup Collaboration within and outside the
boundaries of the organization. Like e-mail, chat, videoconferencing groupware systems. For
example knowledge workers in a project team may use e-mail to send and receive electronic
messages.
13. BENEFITS FOR NESTLE-IN USING CRM- DIAGRAMATIC VIEW
14. A major benefit can be the development of better relations with your existing customers.
which can lead to :
increased sales through better timing due to anticipating needs based on historic trends.
identifying needs more effectively by understanding specific customer requirements.
cross-selling of other products by highlighting and suggesting alternatives or enhancements.
identifying which of your customers are profitable and which are not.
15. WHICH CAN FURTHER LEAD TO :Effective targeted marketing communications aimed specifically at customer needs

A more personal approach and the development of new or improved products and services in
order to win more business in the future