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Formative Assessment

Flexibility in

Student Name: Sowmyasree Nissankara Rao

Subject: Supply Chain Strategy and Processes



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:


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.




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.


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