HRM70006: Strategic HRM in the Business Context
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Strategic HRM in the Business (HRM70006)
Added on 2020-05-01
HRM70006: Strategic HRM in the Business Context
Strategic HRM in the Business (HRM70006)
Added on 2020-05-01
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Running head: Strategic human resource management Strategic human resource management
Strategic human resource management Table of ContentsIntroduction.................................................................................................................................................3Mission, vision, corporate and business strategy of the company..............................................................3Description of the specific context and organizational structure................................................................5Competitor and industry analysis................................................................................................................6Impact of porter five forces analysis on the organization HR related initiatives.........................................7How HRM plays vital role to attain sustainable competitive advantage......................................................8HR related issues and recommendations..................................................................................................10Ethical issues for human resource management.......................................................................................12Conclusion.................................................................................................................................................13References.................................................................................................................................................132
Strategic human resource management Introduction The report talks about the Nestle Company which is dealing in various food and beverageproducts. It explains that how the company manufacturing various types of food products in international market. It describes the objectives, mission and corporate and business level strategies of the company. Further, it explains the organizational structure of the firm. It describes the porter five forces model and it explains the function of human resource management within the organization. Along with this, it explains that how HRM helps to attain sustainable competitive advantages in the market. In addition, the report explains the ethical issues and strategies of the HRM to resolve these ethical issues within the organization. Nestle is an international drink and food company with headquartered is located in Vevey, Vaud Switzerland. It is one of the biggest food companies in the world measured and analyzed by the profit and revenue. It deals in various food and drink products such as baby food, bottled food, coffee and tea, breakfast cereals, ice-cream, snacks, frozen food, pet food, confectionery, and medical food etc (Sethi, 2012). The company operates and manages 447 stores in 194 countries and approx 339,000 employees are employed in the company. L’Oreal is one of the biggest shareholders of the company in the world. In today’s era, the firm is expanding and flourishing its business activities and operations in the global market. The company was founded on 1866 in Switzerland. It is one of the largest leading companies in Switzerland which is based on the nutrition, wellness, and health (Eberle, Berens, and Li, 2013). Mission, vision, corporate and business strategy of the companyThe mission of the company is to provide good quality of food and drink products to the customers with best nutritious choices, best testing and best requirements in the global market. Further, the company maintains an effective and potential team to create and provide safe and delicious food and drinks products with highest quality in the universal market (Kiran and Sharma, 2011). The long-term vision of the company is to deliver the food and drink products forimproving the shareholder value and growth within the organization. Further, the vision of the company is translated into the four strategic pillars of the science, consumers, implementation, 3
Strategic human resource management and people etc. The main aim of the company is to achieve the long-term goals and objectives of the firm by maintaining sustainability within the organization (Saluja and Mahajan, 2017). Business level strategies: The Company uses effective and unique business-level strategies to attain the long-term success and growth of the firm. The business level strategies include cost leadership, differentiation, and focus strategy. The strategies have been discussed below (Siddik, 2016). Cost leadership strategies: Nestle delivers good quality of food and beverage products. The company purchases high quality of raw material from the suppliers in the global market. Thus, the costs of production are higher than comparatively other company. The company is not able toattain low-cost leadership in the food and beverage industry due to its high cost of production. This strategy focuses on the quality assurance, inventory management, and efficient operations etc. Nestle is using this strategy to achieve the operational efficiency and effectiveness within theorganization (Epstein and Buhovac, 2014). Differentiation strategy: The Company is using this strategy to differentiate its products from the competitor’s products in the global market.By using this strategy, the company can take competitors advantages in the universal market. Currently, the company is producing more than 10,000 food and beverage products under 8,500 different brand names. Most of these products can easily differentiate from the competitor's products in the global market (Kapferer, 2012). Focus strategy: It is the third business strategy of Nestle. It focuses on the low-cost strategy to control and manage the heavy marketing and manufacturing cost to maximize the growth and success of the firm. By using this strategy, the company is creating more revenue in the competitive environment around the world. Now it is assumed that differentiation strategy plays a major role in Nestle. The company is flourishing its business activities and operation around the world through differentiation strategy. This strategy also helps to develop and build a strong brand image in the food and beverage industry (Nestle, 2013). Corporate level strategies: The Company is using effective corporate level strategies to maximize the revenue of the company. The corporate level strategies have been discussed below.4
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