Describe about the International Marketing Strategy for Culture of an Organization.
The Culture of an organization is deeply built on its interpersonal relationships, training materials and policies (Doucette, C, 2016). Nestle is facing many challenges in managing its internal and external factors. Here are some major challenges which Nestle face around the world.
Nestlé’s Current Internal Issues
Lack of investment in education and training: It is essential to invest on education and training to enhance the efficiency of the employees. Though Nestle is offering training and education program of its own, but that does not seems to be an effective one.
Lack of proper Policy of talent acquisition: Nestle Bangladesh has started to follow their international HR policy that is usually not applicable in Bangladesh’s perspective. They do not have any proper policy of talent acquisition.
High turnover rates: Nestle has always been conducting recruitment regularly which shows that they have been facing the problem of retaining efficient employees.
Nestlé’s strategy to solve the problem of arising internal challenges
It is obvious that a motivated and a happy employee has the capability to make the guests happy, so Nestle is now focusing to motivate their employee by providing them a better place for work. They make changes in their workplace policies as per the requirement of the employees and giving consideration to the culture and background of their employees (Nestleprofessional.us, 2015). A new system is introduced to measure performance, give evaluations and necessary feedback. Empowers service staffs to solve problems on their own and ensure facilities to all the available staffs equally and safe as possible.
Nestlé’s Current External Issues
Resources shortage: We know that shortage in resources will lead to increase in price and volatility. Due to grain shortfall Nestle has to increase the price of the products (nestle.com, 2013). In Europe most people have to spend 40-60% of their income on food, and usually on staple food.
Horsemeat crisis affects Nestle: Due to the horsemeat crisis there is a widespread fraud across Europe, including Europe (News.sky.com, 2013). As a result many customers started to feel mislead. It is clear that the success of a food industry such as Nestle is truly built on trust. It is the most important asset to the company and should work hard for not losing it.
Ways to overcome external issues
Nestlé’s CEO, Keynote mentioned in his speech that water scarcity is the main cause behind shortage of food grains and increase in the price of products, in order to resolve such issues conservation of water is must to maintain sustainability in their business activities (Andrei, M, 2015). Trust is an important part that should not be lost. Therefore, Nestle is trying to maintain this trust factor among their potential customers by feeding millions of people with nutritious and safe products (Clark, P, 2014).
Nestle is the world’s largest food company and has such a history that makes the hardcore industrialists shiver. The major issue of this industry is that they promote unethical promotions, pollution, price fixing and mislabelling. All these unethical practices should be avoided to gain trust from their customers.
Andrei, M. (2015). [Online]. Why Nestle is one of the most hated companies in the world. Viewed 4 October 2016 from https://www.zmescience.com/science/nestle-company-pollution-children
Clark, P. (2014). [Online]. Nestle warns water scarcity more urgent than climate change. Viewed 4 October 2016 from https://www.ft.com/content/c8d19bc6-0b49-11e4-ae6b-00144feabdc0
Doucette, C. (2016). [Online]. Internal & External Factors That Affect an Organization. Viewed 4 October 2016 from https://smallbusiness.chron.com/internal-external-factors-affect-organization-16641.html
Nestle.com. (2013). [Online]. Nestle CEO warns water scarcity is major threat to food industry. Viewed 4 October 2016 from https://www.nestle.com/Media/NewsAndFeatures/city-food-lecture
Nestleprofessional.us. (2015). [Online]. How to Motivate and Retain Employees. Viewed 4 October 2016 from https://www.nestleprofessional.us/trends/how-motivate-and-retain-employees
News.sky.com. (2013). [Online]. Horsemeat: Nestle Withdraws Products In Scandal. Viewed 4 October 2016 from https://news.sky.com/story/horsemeat-nestle-withdraws-products-in-scandal-10454180