FIN242: Fundamental of Finance lecture

ACKNOWLEDGMENT
We would like to express our gratitude to everyone that involved rather directly or
indirectly in helping us to complete this assignment report.
Firstly , in the name of Allah the most forgiveness, we would like to thankful to Allah
because with HIS blessing and help, finally we had finish our assignment report in
time without any problems. Even we face a lot of difficulties along to complete this
assignment, we still manage to complete it and we so glad about it.
We also would like to give a big appreciation to all the helps, advises and information
which given by our FIN242: Fundamental of Finance lecture, Mohd Sufian Bin Ab
Kadir. also thankful for his effort in making sure everyone understands this subject
thoroughly even though this semester has been tough for everyone since we are
conducting Online Distance Learning (ODL) because of the pandemic. Without his
support, we may not be able to face and solve the difficulties that we encounter during
the process until we finish this report successfully.
In addition, we would like to take this opportunity to thanks those of our friend who
helped us and giving some idea in order to complete this FIN 242 assignment report.
Last but not least, We are thankful for having a supportive and understanding
family in making sure we manage to complete my assignments and send it
on time. Big thanks to my parents for providing all the necessities especially
high-speed internet and laptop to ensure I can study and cope well with the ODL
that has been going throughout this semester.

CURRENT ISSUE OF NESTLE’S COMPANY
Nowadays Nestlé remains a big name in the food industry, and the company
obviously owes its success to the specific management approach that it adopts in
order to market its services to the target audience, as well as the approach towards
motivating the staff towards a better performance and a set of strategies aimed at
innovativeness.
However, it seems that Nestlé should put a stronger emphasis on its network strategy
used as the framework for its R&D approach, as it allows for making the company
even more conspicuous in the realm of the global market and attract new customers.
Nestle had to respond rapidly in the face of the COVID-19 crisis to optimize their
company's resilience—rebalancing for risk and liquidity while analyzing chances for
growth emerging from the downturn. Current and future viability are dependent on
quick C-suite action, encompassing both short-term acts for stability and long-term
movements that will generate new futures for firms and sectors. The primary section
focuses on the various supply chain management process which is required for Nestle
to identify their business processes and effectively plan, execute and measure
performance.
According to an article ‘Nestle Seen Focusing On Boosting E- Commerce’ published
by P. Aruna , The Author of TheStar mentioned that Nestle Malaysia Bhd is expected
to focus heavily on capturing a higher volume of e-commerce sales during the period
of the Covid-19 pandemic. Thus , the secondary section of Nestle entails the
implementation of an E-Commerce application which would not only bring every
resource at the same page but also facilitates communication among them. Supply
chain management The SCM for Nestle would manage their primary business
segment and its manufacturing plants. The various integration of the businesses
ensure efficient handling of the product transformation at every phase and handling all
the business functions like shipment, delivery, warehousing, logistics and many others
.

As stated in article, the reason Nestle seen focusing on boosting e-commerce is
because of Nestle’s performance for the first quarter had come in below the research
house’s expectations mainly due to softer domestic sales owing to the impact of the
movement control order . But for the quarter ended March 31,2020 , Nestle’s revenue
had dipped by 1.3% to RM1.43bil from RM1.45bil a year ago. Its net profit fell by
20.8% to RM186.31mil from RM235.22mil a year ago. Besides, Nestlé Malaysia’s
performance was also dragged down by unfavourable commodity costs and exchange
rates. Despite this, the company has pledged to donate RM15 million as part of its
COVID-19 relief efforts.
Therefore, e-commerce is one of the fastest areas of growth for the Nestle’s company.
Beside that, e-commerce has affected businesses positively and negatively. On the
one side, Nestle’s company have been show that using e-commerce based enterprises
have been shown to sustain fast growth while increasing returns as well. The reason is
that these startups have minimal infrastructure and inventory and rely heavily on
information and communication. In fact, in information based product industries,
distribution and sale via e-commerce may bring the cost per unit to almost zero.
Indeed , the impact of e-commerce on Nestle's business is immense.