Formative Assessment
Flexibility in
Student Name: Sowmyasree Nissankara Rao
Subject: Supply Chain Strategy and Processes
NESTLE
Introduction
Nestlé is a multinational food and beverage company based in Switzerland. It is one of the
biggest and most well-known companies in the sector. Henri Nestlé, a Swiss chemist, created
a wholesome infant formula in 1866, which is when the firm was founded. The groundwork
for Nestlé was laid by this innovation.
Nestlé now conducts business in more than 180 nations and offers a wide range of goods in
several categories, including infant food, bottled water, breakfast cereals, coffee,
confections, dairy products, frozen food, pet care, and more. Its well-known trademarks
include Haagen-Dazs, KitKat, Nestea, Nestlé Pure Life, Nespresso, Purina, and Nescafé.
Objectives of the Company
A set of overarching objectives serves as the foundation for Nestlé's corporate operations
and strategy. The objectives are creating shared value, commitment to Nutrition, Health and
Wellness, Sustainable Development, Consumer Satisfaction, Innovation and Research,
Responsible Sourcing and Supplier Relationships, Employee Development and Diversity.
Product group:
Food
Operations Performance Objective (Flexibility):
Nestlé has a reputation for being adaptable when it comes to adjusting market conditions,
consumer tastes, and business developments. The business exhibits flexibility in a number of
areas of its operations:
Product range: Nestlé has a diverse product range that covers several categories, allowing
the corporation to change and adapt to growing consumer expectations. Nestlé regularly
analyses market developments and consumer preferences to introduce new goods, change
old ones, or enter new categories as appropriate. Nestlé can adapt to the shifting demands
and preferences of its customers because to its flexibility.
Research and Development (R&D) Investments: Nestlé makes large R&D (research and
development) investments to foster innovation and remain ahead of market trends. To
create and enhance its products, the company is constantly experimenting with new
ingredients, technology, and procedures. Nestlé's emphasis on innovation gives it the
freedom to launch new goods or rework current ones to conform to changing consumer
preferences or meet particular market needs.
Manufacturing & Production: Nestlé runs a huge network of manufacturing sites all over
the world, allowing for flexibility in production and distribution. On the basis of changes in
demand or shifting market conditions, the corporation can adapt production numbers,
product formulas, and supply chains, as well as optimise them. Because of its adaptability,
Nestlé is able to efficiently meet consumer demand while preserving the quality and
freshness of its products.
Localization: Nestlé is aware of the value of taking into account regional tastes and
preferences. Due to the company's decentralised strategy, its regional and local divisions are
able to customise products and marketing plans for particular markets. Nestlé's regional
teams are free to modify their offerings in accordance with regional consumer demands and
cultural quirks. Nestlé can successfully engage with customers on a local or national level
thanks to its versatility.
Collaborations & Business Partnerships: To promote innovation and look into new business
opportunities, Nestlé works with outside partners such as suppliers, research organisations,
and startups. Through these relationships, Nestlé has access to cutting-edge technology,
industry knowledge, and expertise, boosting its capacity to respond quickly to shifting
customer tastes and market conditions.
Competitor
PEPSICO
Introduction
A multinational food and beverage corporation called PepsiCo is well-known for its enduring
brands and broad selection of goods. PepsiCo, which was created in 1965 as a result of the
union of Pepsi-Cola and Frito-Lay, has developed into one of the biggest and most well-
known firms in the world.
With a broad range of food and beverage products, PepsiCo operates in more than 200
countries and territories. A few of its well-known brands are Pepsi, Lay's, Gatorade,
Tropicana, Quaker, Doritos, and Mountain Dew. These brands cover a wide range of
products, including morning cereals, sports drinks, juices, snacks, and ready-to-eat meals.
Conclusion
On Overview, both Nestle and PepsiCo show operational flexibility, market adaptability, and
sustainability initiatives. However, PepsiCo's strong emphasis on the food and beverage
market enables them to concentrate their efforts and resources in one particular area, while
Nestle's wider product selection gives them a little larger degree of flexibility. In the end,
each company's flexibility is based on its distinct business models, plans, and industry
positioning.
