Nestle's Strategic Information Theory: A Comprehensive Report

This report provides a comprehensive analysis of Nestle's strategic information theory, examining its current processes, identifying gaps within the industry, particularly in the Australian market, and discussing how technology is used to overcome specific issues. The report details Nestle's strategic information system, including outward, inward, and hybrid systems, and explores the need for such a strategy. It covers business-level and firm-level strategies, emphasizing the importance of competitive advantages. The report further explores the marketing information strategy, its various components, and how Nestle leverages the internet for information gathering and market initiatives. The analysis includes discussions on the application of Microsoft platforms and the company's approach to digital marketing. The report also touches on the importance of strategic alliances and the challenges associated with implementing strategic information systems, such as high costs and the risk of imitation.

Running head: STRATEGIC INFORMATION THEORY
Strategic Information Theory
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Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Current process in Nestle:..........................................................................................................2
Gap in the Industry: Nestle........................................................................................................3
Overcoming of specific issues by the use of the new system:...................................................4
Strategy regarding Information System:....................................................................................5
Need for such kind of strategy:..................................................................................................7
Conclusion:................................................................................................................................8
References:.................................................................................................................................9

2STRATEGIC INFORMATION THEORY
Introduction:
Nestle is a company which is having an organised board of structure which is led by
the Chairman of the company named Paul Bulcke, former CEO, Nestle. The management of
the business is done on a daily basis by the Executive board. A diverge portion of the
business is managed by these designated board members (Ahlemann et al. 2012). Nestle was
established in the year of 1975 which initially evolved to nestle professional in the year of
2008. Nestle is having different partners who are associated with different types of food
servicing operations in and out the whole management. Various nestle food and beverages are
present in the market and this includes thigs like the Maggi, nestle Milkmaid, nestle everyday
and many more items. This report mainly discusses about the current processes in nestle
along with discussing about the current gaps in the present system after identifying them in
the country of Australia. The identification of the issues that will arise due to the adaptation
of the new system has also been done along with providing the definitions about the issues.
Discussion:
Current process in Nestle:
Nestle is a manufacturing company which includes various processes. The process
generally involves the turning of the raw material into various products which are not only
but also nutritious for the customers. The manufactured products are delivered to various
parts of the world (Bente Bombosch and Langade 2012). Environment Management System
(EMS) has been greatly favoured by Nestle than in turn helps in the improvement of the
product. This is followed by the providing of certain methods which is done by an initiative
that is termed as the Nestle Continuous Excellence(NCE).
The concept of Nestle is mainly based upon the 3C’s and this 3C’s are listed below:

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 Excellence in the compliance which is based upon the terms of the legal as well as the
internal factors.
 Better services and products are to be provided helping in the better communication
for the brand and this can be done by proper sharing of the company’s aim regarding
sustainability along with the objectives.
 Competitive advantage is to be provided which can be done by making use of the zero
waste along with improving the efficiency in terms of water and energy.
The company is having an aim and objective of having a zero impact on the
environment. One of the critical factor which is involved in achievement of the ambition is
the efficiency in the domain associated with manufacturing of the products (Bernard 2012).
The life cycle of the various assets also helps in understanding of the facts. This facts
generally includes things like the amount of the energy that is generally used for the purpose
of manufacturing of the various products of the company. By the use of the five crucial
factors the greatest efficiency has been achieved and this includes the “Sustainability”,
“Availability”, “Safety” and finally the “Cost”.
Gap in the Industry: Nestle
The quality of the product of the company is considered to be having a premium
value. Therefor it can be concluded that the products of Nestle are much more expensive than
the other manufacturing companies which are locally available in the market. The company is
mainly a Switzerland based company which is having a lot of customer’s form Australia as
well as from parts of the world (Bernus Nemes and Schmidt 2012). It has been seen that
many of the customers of Australia are not at all aware of the various products of Nestle.
Along with this it has also been seen that the demand for the products of nestle are very much
less in Australia as Nestle is a foreign company in Australia. Besides this the right of using

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the products of Nestle are only provided to the peoples of Australia who belong to the upper
class of the society. In Australia it has also been seen that there are various quality issues
regarding the product of Nestle.
Overcoming of specific issues by the use of the new system:
Technology has played a very important role in the research and development of
various companies and the same thing has happed for Nestle as well. It has been claimed by
Nestle that there are various engineers who are associated with the research and development
for various domains. These domains mainly range from the packaging of the products to the
processing of the foods (Bradley et al. 2012). The latest activity of Nestle was that it has
focused on the production of a new beverage product named “Nespresso”. Along with
focusing on several products as well. Along with this the engineers are also associated with
the development of the various processes and technologies. These technologies are mainly
associated with the development of the safe and nutritious products and the beverages which
will be having a proper maintenance procedure.
Fermentation and probiotics: It has been decided by Nestlé’s research centre to look
into various matters. One of the important factor that is considered by Nestle is the molecular
interaction with the probiotics and the cells of the intestine.
Healthier fats: It has been claimed by Nestle that they are involved in the
development of new technologies. These new technologies will be helping in allowing of the
use of the natural vegetable oils rather than using the partially hydrogenated fats in products
like the Maggie which will be having cups and seasonings.
Malt extraction: Various new processes have been developed by the company Nestle
for the purpose of extracting the Malt. Which means that the product which is being

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manufactured will have a more complex type of carbohydrate along with having a less
amount of sucrose.
Strategy regarding Information System:
The Strategic Information System can be simply defined as the computer system that
is mainly designed for the purpose of making changes in the goals, products services,
operation and lastly the relation. This exists with the environment and this will ultimately
result in the helping Nestle in tackling the competitive advantage (Foorthuis and
Brinkkemper 2015). This is generally considered to be a power tool that is mainly used by
Nestle for the purpose of staying a step ahead in the market of competition. Strategic
information system is generally used for the purpose of providing the strategic goals to Nestle
(Fischer Aier and Winter 2015). And this is mainly aimed at the improvement of the
performance along with the productivity of the company. There exists four strategic
information system and this includes the following “outward system”, “inward system”,
“hybrid system” and “strategic alliances”.
Outward system: This system mainly focuses on the fact of providing a tough
competition for the other companies which are present in the industry.
Inward system: This system mainly works for the enhancement of the competitive
place or the position where the company is present right now. This is mainly done by the
process of increasing the productivity of the employees, improvement of the work by team,
enhancement of the methods in the communication that exists between the different
components of the organisation.
Strategic alliance: This mainly refers to the sharing of two or more common stares in
a strategic information system.

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There exists a risk of large value of investment during the implementation of the
Strategic Information System (Franke Johnson and König 2014). Porter and miller framework
is used by the Strategic Information System for the purpose of planning. Along with this it
also involves the development of the various strategies that lies behind the use of the
Strategic Information system.
Along with the above stated facts the Strategic Information System is also considered
to be very much difficult for the purpose of building. This is because of the fact that the cost
is very much high and along with this it is also risky because of the fact that it is very much
time consuming and can be easily be copied by other organisation (Gibson and Akhgar
2017). The implementation of the strategic information system varies according to the
company transition from one sociotechnical level to the next level.
The encompassing of all the strategic information system is generally not done by a
single value. On the other hand, there also exists certain strategies which are present at the
various levels and this are namely business, firm, and along with the level of the industry.
Business Level Strategy: The best thing of this strategy includes the production of
the products at a low cost than the other products and services which also includes the
changing of ideas or scopes. This are related to the competition which is done by either the
markets or the global markets along with focusing on the smaller areas which are being
served by the other competitors of the market (Iacob et al. 2014). Different digital firms
located in different regions of the world focuses on the strategy of supporting by the
managing supply chain, creating a customer system. These systems are efficient and takes
part in the web services associated with the delivering of the products or the services to the
market at different levels of business.

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Firm Level Strategy: The term synergy is used for the purpose of defining the units
which are associated with the inputs for the other outputs that exists between two
organisation. Along with helping in the pooling of the markets and experts it also provides
the relation that exists between the low cost and the profits that are being generated (Jallow et
al. 2017). One of the method used by IT is to make use of the synergy situation for the
disparate units of the business so as to make them act as a whole.
Competitive Force Model: This model is generally used for the purpose explaining
the various kinds of interactions. This model is associated with the external influences
particularly the threats and the opportunities which will be having an effect on the strategies
that the organisation is having. Besides this there will be an effect on the capability of the
organisation in competing with the other organisations (Närman Buschle and Ekstedt 2014).
The main reason for adopting and developing this strategy by various organisations is for the
purpose of improving the competitive edge. The forces associated with this are
 Threat from the new competitors
 Bargaining from the power suppliers
 Bargaining power of the different customers
 Threats from various substitute products
Need for such kind of strategy:
The Marketing information strategy can be classified into four zones and this are
namely the “internal accounting system”, “marketing intelligence system”, “research system
which is related to the market” and lastly the “analytic systems” that are related to it. The
main use of this strategy includes the buying of various raw materials which might include
the cocoa that is used for the purpose of marketing, producing, and selling of various
products. These products mainly includes the KitKat chocolate, biscuits, instant coffee and

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many more things which are related to the business processes (Simon Fischbach and Schoder
2013). Once the integration of the internet strategy is done it has been seen that the 20% of
the total annual budget is spent upon the internet. It is claimed by nestle that they are having
various sites for the peoples who love coffee along with a club Buitoni site for those who
love Italian food. Internet has been used by Nestle for the purpose of collection and leverage
of the various information’s. This informations are mainly related to the customers and along
with these new initiatives are provided for the market (Zarvić and Wieringa 2014). The use of
the Microsoft platform has been proven to be very much flexible. This helps Nestle a lot in
the development of various components that are based upon the architecture of the web.
Conclusion:
The above discussion carried above helps a lot in understanding the basic structure of
the company named Nestle. Nestle provides a wide variety of products along with various
services. The gaps that are present in the organisation has also been identified in this report.
All the processes of Nestle are controlled by a collection of various zones and is termed as
“EMENA” or the Europe, Middle East and North Africa, America and regions of Asia. The
majority of the food and beverages are produced by Asia having exceptions related to the
businesses that are managed globally and this mainly includes the Nestle Water, nestle
Nutrition, Nestle Health Science and skin health, nestle is a globally established business that
has claimed itself to be a business that provides branded food and beverages along with
providing solutions which helps the operators in understanding the various conditions and
requirements of the customers.

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