case of Nestle

In the case of Nestle what type of operations strategy it needs to adopt? Explain why?

            Nestle presents a typical company with pursuits to establish a global business empire.   Based on the case, Nestle needs universal sustainable operational strategy   as a key operation   strategy for global its brand identity instead of customization. The reason is that Nestlé uses global brand identity but based on the internal perspective.  it utilizes  local ingredients  as well as  other technologies which resonate with  local environment and  locally  known brand.  Customization strategy causes many hindrances in carrying out its distribution of products from local farmers to factories.  Nestlé needs a universal operation strategy to deliver its products to local warehouses which are convenient to stakeholders. Even though this can be an expensive strategy, profitability can increase.

Nestle waters are established in 130 countries. Determine the advantages and disadvantages of building operations in different countries.

            Building operation in different countries is advantageous because it helps in times of emergencies where products can be imported to meet the demands.  Such operations are also important in providing production economies of scale. Such operations are also important for the stability of prices and widening of markets for products.  They also improve products; operations and attract global talents. International business also helps to earn valuable foreign currency and enhances the optimum use of local resources.  Such operations are also important in enhancing business knowledge.  On the other hand, doing business in many countries   makes company vulnerable to competition from such countries.  Such operating is also costly in terms of management. International franchises pose a threat to the survival of infant as well as nascent industries.  Because of foreign competition as well as unrestricted imports, upcoming industries in the home country can end up collapsing. International business operations are also very technical, and it has complicated procedures.  Hence, it requires expert services to cope with complicated procedures at different business stages.

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