The External Analysis of Nestle Nestlé, the world 's biggest food company, has established its products in many countries and it has expanded its company by increasing its food brands. Although it has many competitors, Nestlé is able to maintain its competitive advantage with the current market conditions. Since the company is the only leader in the food industry when it comes to producing products with reduced energy, they are able to market their products for a very low price. Nestlé has also great customer relations since they provide quality products at a lower price than its competitors. They also have many brands that allow them to create many new innovative products and services.
1Introduction Ethics is the standards of how to deal with the relationship with each others. And the companies need business ethics to govern relationships with all aspects of stakeholders. The need for a company’s business activities followed the business ethics has positive impact to its stakeholders. 2What is ethics? The word “Ethics” originates from Greek terms “Ethos” and “Ethikos”.
It is one of the main shareholders of L’Oréal, the world’s largest cosmetics. So, partnering with other food giants will help the company in further growth. 4.THREATS Competitor: Two main competitor of Nestle are Haleebfoods and Enfrofoods which causes threat for the company. New entrants: The growth is the market segments can attract new entrants. Political and economic issues: The demand on a product can be reduced due to economic and politically our country Pakistan is not a stable country.
In evaluating the impact of ethics and social responsibility on companies, it is imperative to establish the underlying conceptualization of the terms 'ethics' and 'social responsibility.' Essentially, this provides a better comprehension of how they may impact businesses. The concept of ethics is based on moral judgments of what is considered right or wrong. In the context of the corporate world, ethics is concerned with the examination of moral principles and issues that a company may face or that come up in the professional environment of business. Indeed, ethics applies to all aspects of the company including processes and ways of conducting business both internally and externally (Singhapakdi et al., 2006).
Nestle is the well-known company in the world’s leading food company since it was set up by Henri Nestle to provide an infant food product. It has been associated with high quality customer and consumer focused products. Nestle has focused on becoming a nutrition health and wellness company. Nestle earned the trust and respect of society because Nestle insists in all aspects of its business and expects the same in relationships. Nestle has also played a role in environment conversation and social development.
Ethics in business are not just a passing fad. Ethics are foundation of any business. Ethics are the values that you invest in a business. When your organisation is ethical the employees in the organisation feel motivated to work in the organisation. I visited a company in which the main motto of their company in their mission statement was "To deliver value products and services to customers NOT under any cost."
Leadership development in today’s diverse business settings requires ongoing training and communication in order to stay on top of the hottest topics and most important business trends. In recent years, business ethics has emerged as the standard with which to judge an organization. Management is concerned with how decisions affect the company, while ethics is concerned about how decisions affect everything. Management operates in the specialized context of the firm, while ethics operates in the general context of the world. Management is therefore part of ethics.
Ethics, culture, morals – are bind together, they are embedded. Every single person follow some system of values and ethics, in private life. But also in business life, in a workplace. Ethics are about what is and what should it be. It depends from your point of view, which is subjective.
Nestlé and Society Nestle through its policies has communicated the principle of sustainable development. 2006 was a change year for Nestle, the company made contracts with foundation strategy group. That was a non- profit organization which specialty is strategy consultation, evaluation and research. The alliance was resulted by the efforts of Mark Kramer and Michael Porter who were founders. The aim of this alliance was to study the Nestlé’s social responsibility practices and give recommendations by which the company can bring betterment in its CSR practices.
Ethical leadership is a growing concept and many large companies are promoting business ethics as their corporate social responsibility. The behavior and the individual values of the leader provide the direction to the business. Leader’s actions in term of ethical behavior and unethical behavior gives ideas to the employee and other stakeholders that what need to follow and what values are aspired in an organization. The position of the leader with moral and ethical values is most important to provide the solutions to ethical issues in a workplace. This also evident from above discussion that ethical leadership is also crucial in developing the ethical culture within an organization.