Management Informatics Report: Nestle and Information Systems

This report delves into the application of Management Informatics within Nestle Corporation, focusing on its operations in the Australian market. It explores the significance of Information Systems (IS) in driving Nestle's growth and competitive advantage, detailing the use of Management Information Systems (MIS) to enhance various business functions. The report examines the challenges faced by Nestle in the international market, employing Porter's Five Forces model to analyze its competitive position. It highlights the role of IS in creating new business opportunities, identifying technology-related issues, and proposing solutions. The report also covers Nestle's historical background, its adoption of information technology, and its strategies for data management and customer relations. The conclusion emphasizes the importance of MIS for long-term advantages, providing insights into how Nestle leverages technology for increased sales and growth.

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Management Informatics
Report
Student name

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................3
Use of Information System/Technology Management................................................................4
Management Information System (MIS).................................................................................4
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Executive summary
In this report, role of information system for Nestle will discussed. It will provide details of
informatics of nestle and how it provide competitive advantage to the company.
In this context, this report will explore status of information system issues in business
environment of Australia. Porter’s competitive force model has been used to audit Nestlé’s
information system in Australia.

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Introduction
Information System is base of an organization in present era. Computer systems are highly used
in different business operations of the organization, such as sales, purchase, etc. This report will
explain about importance of information system in growth of Nestle Corporation in Australian
market as well as international market (jobs.nestle.com, 2019).
The report in this context has provided history of the Nestle and use of management information
system practices by Nestle in Australian market. Nestle corporation is a huge organization in
food industry. This report is mainly described challenges related to the information system. That
challenges faced by Nestle while dealing in the international market. To find different factors of
nestle, the report has to use Porter’s forces model. It is a strategies analysis model that has
provided status of Nestlé’s competitive position in its related industry in Australia (nestle.com,
2019).
Further, this report has explained about the information system role to gain competitive
advantage by the Nestle. In the later section of this report, identification of issues of nestle
related to the information technology. This report provides information about the technologies to
help Nestle in context of creating new business opportunities in International Market.
Nestle is a well-known company in the field of food and beverage industry. It is a multinational
company, which provides services to many areas. Nestle has been preforming well in Australia
as well as international market. They are attracting their customers from different approaches,
such as good quality of products and services. Nestle has gained huge financial growth through
changes in the business processes that improved degree of financial power in Australia.
Nestle uses latest information system to manage their manufacturing processes to gain
sustainable competitive advantage. Company takes competitive advantage using information
system. They have created a new business environment through information system in
marketplace. From last two decades, nestle is increasing their business in Australia. Network of
sales agents is playing a key role to enhance business of nestle in Australia. Nestle introduces
new technologies in their products as well as services, such as delivery of products, customer
record, and many others (Bharadwaj, et al., 2013).

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It was establish by Henri Nestlé in 1867. From year 1906, it has been known as Nestle. In the
year 1906, Nestle setup their business in Australia. Nestle having collaboration with different
nutrition departments of Australia to setup their business in proper way (nestle, 2019).
Nestle has adopt information technology to enhance business opportunity in Australian business
market. They have focus on the time and cost of different operations. Therefore, Nestle take help
of information system and technology to improve efficiency of operational functions, such as
sales, packaging, and destruction of products. Information system has provided various
technological capabilities to the Nestle (Wu, et al., 2013).
Introduction to the case
Data collection is a case that is most important part of the Nestle. Nestle is having a huge
problem to manage large data of customers and suppliers. Information system has been provided
several business opportunities using innovation in products and services. Nestle has used
numerous information from internet and information system to create consumer centered
innovations.
Nestle has collected personal information from the customers and made a policy to secure that
data using information system. According to the rule and regulation, it is main concern to secure
personal information using piracy policy in a proper way. Company has to take personal
information of customers from third parties, which is a risky task. Nestle has more than five lacs
of suppliers in distribution process. Therefore, it is a messy process to manage all the suppliers.
In addition, company has to go for new software, which can manage large data, such as SAP,
ERP, and many others (Campbell, 2016).
Management Information System (MIS)
Information Technology (IT) is a major concern of company to take long-term advantages in
business. MIS can provide success in the huge revenue and long-term perspective to a business
organization. Porter’s five-force model can be used to identify different factors with the help of
different forces (Wu, et al., 2015).
Bargaining power of customers

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In food and beverage industry, there is a high competition in Australia; therefore, bargaining
power of customers can be considered high in Australia. Australian customer’s taste and
preference are changing on frequent basis. Therefore, company requires frequent changes in the
services and products to satisfy customers, which is based on the preference of customers.
Information System has provided help to manage the frequent changes in taste of products with
high quality of the products. Information system can provide preferences based on the customers
feedbacks and details (Abbas, 2005).
Source: (oxfordcollegeofmarketing.com, 2018)
Bargaining Power of Suppliers
Nestle also faces the high bargaining power of suppliers for raw material in Australia. Company
is having many suppliers for different raw material. Company can reduce bargaining power of
supplier through alternate access of suppliers using information system (Reynolds, 2011).
Threat of New Entrants
Nestle is best company of Australia, still a threat is always there in mind that is new entrants in
the Australian market in same industry. This industry is not having high barriers for entry.
Therefore, it is high risk to business of company. Information system is helping to reduce this

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treat using large database of suppliers and customers. Updated system provides more benefits to
the Nestle in many terms (jobs.nestle.com, 2019).
Threat of substitutes
In Australian market, company recognizes high availability of substitute product. It is a crucial
competitive force for Nestle. It can affect the profitability and viability of product. To reduce this
threat, MIS can use data of related products and industry. Therefore, management can take
decision to handle this threat (ins2outs.com, 2019).
Competitive Rivalry
This force is providing details about the competition level in industry. In the Australian market,
Nestle has faces high degree of competition. In this regard, company can use the existing
information system to develop new strategies to reduce competition. Recently, Nestle has added
new technologies in food products and information system, such as SAP software (nap.edu,
2018).
Problem identification from the case
Nestle use MIS system to gain strategic advantage. The company use information system to
collect data and use it for data analytics, which is beneficial for growth of Nestle. Nestle can gain
competitive advantage and strategic advantage from the information system. Company can take
help of different applications of MIS and manage its customers and competitors. Company can
take help of data and use them in the advertising and marketing to increase sales of company.
There are many things to manage by company. Therefore, it is necessary to use information
system for handling different operational functions of company (Salesforce, 2018).
Nestle already uses different technologies in their research and development department, such as
food technology, automation, distributions system, and many others. To compete the
competitors, Nestle must have a strong MIS system to manage all the business process with
efficient manner. It will enhance the productivity and revenue of the company. It is a way to
manage all the operations in an efficient manner with high quality of services to their customers.

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Nestle is second largest company in Australian market in food industry. It provides best products
and maintains two things in products, which are taste and nutrition. In addition, it has used
information technology to manage proper working of system and processes.
Conclusion
It is concluded from the above parts of this report that MIS can be considered as an important
requirement to take long-term advantages. MIs help the Nestle to collect information of
customers, suppliers, and many others, which is helpful to design new strategies to gain benefits.
Porter’s five-force strategies analysis model has provided different factors of MIS and their uses
to reduce threats of Nestle in Australian market. Nestle can invents on the new technologies to
enhance the functionality of their operations. MIS can provide solution of all those challenges,
which are faced by the Nestle in Australia. This report has provide use of information system for
a company to manage different functions of the company. it is process that provide long-term
advantages to the company.
Nestle adopted information technologies to manage their business functions and get new
opportunities in future. It has many advantages from information system, such as data analytics,
information management, and many others.
Finally, it is concluded that MIS is beneficial for long-term competitive advantages. Nestle can
use latest technologies to increase sales and growth of the organization in international market.

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.
References
Abbas, O., 2005. The Role of Data Mining in Information Security. [Online]
Available at: https://www.researchgate.net/figure/Data-mining-Process_fig2_295907254
Bharadwaj, A., El Sawy, O., Pavlou, P. & Venkatraman, . N., 2013. Digital business strategy:
toward a next generation of insights. Managemengt information system:mis quarterly, 37(2), pp.
471-662.
Campbell, T., 2016. The Information Security Manager. Berkeley: Apress.
ins2outs.com, 2019. How to implement an Information Security Management System. [Online]
Available at: https://ins2outs.com/implement-information-security-management-system/
[Accessed 10 March 2019].
jobs.nestle.com, 2019. Information Systems/Information Technology (IS/IT). [Online]
Available at: https://jobs.nestle.com/en/career-area/isit
[Accessed 22 March 2019].
nap.edu, 2018. Effects of Information Technology on Productivity, Employment, and Incomes.
[Online]
Available at: https://www.nap.edu/read/24649/chapter/5
[Accessed 23 March 2019].
nestle.com, 2019. Food science and technology. [Online]
Available at: https://www.nestle.com/randd/technologies
[Accessed 24 March 2019].
nestle, 2019. History. [Online]
Available at: https://www.nestle.com.au/aboutus/history
[Accessed 24 March 2019].
oxfordcollegeofmarketing.com, 2018. Porter’s Five Forces Model: Analysing The Competitive
Environment In Marketing. [Online]

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Available at: https://blog.oxfordcollegeofmarketing.com/2016/01/29/porters-five-forces-model-
what-is-it-and-how-is-it-applied-to-marketing-strategy/
[Accessed 23 March 2019].
Reynolds, G. W., 2011. Ethics in information technology. 5 ed. Boston: Cengage Learning.
Salesforce, 2018. The New Information Technology: The Changing Role of IT in Business.
[Online]
Available at: https://www.salesforce.com/research/changing-role-of-business-it/
[Accessed 14 September 2018].
Wu, S. P. J., Straub, D. W. & Liang, T. P., 2015. How information technology governance
mechanisms and strategic alignment influence organizational performance: Insights from a
matched survey of business and IT managers. Mis Quarterly, 39(2), pp. 497-518.
Wu, Y., Casey, C. G., Hazen, B. T. & Hall, D. J., 2013. Cloud computing in support of supply
chain information system infrastructure: understanding when to go to the cloud. Journal of
Supply Chain Management, 49(3), pp. 25-41.