Nestle's Sustainable Practice: Recommendations and Timeline Report

This report provides a comprehensive analysis of Nestle's sustainable practices and operational management. It begins by identifying key sustainability challenges faced by the company, such as those related to unethical practices and marketing issues, leading to a worldwide boycott. Based on a vision and environmental analysis, the report offers several recommendations, including conducting extensive market research to understand customer needs, improving supply chain management through tools like Six Sigma and TQM to ensure food safety, using modern technologies like nano-biotechnology in food production, expanding market share in new markets, and developing organic products. The report then outlines a detailed 10-year timeline for implementing these recommendations, including milestones for market research, supply chain improvements, nanotechnology adoption, market penetration, and organic product development. It emphasizes the immediate milestone of improving supply chain management and discusses the operational changes required for its implementation, such as auditing, equipment checks, and the use of positive release tests and modern packaging technologies. Overall, the report aims to provide strategic insights to enhance Nestle's sustainability and achieve its business goals.

Running head: SUSTAINABLE PRACTICE
Sustainable Practice and Operation Management
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Task 1...............................................................................................................................................3
Recommendations building on the vision and environmental analysis on Nestle.......................3
Task 2...............................................................................................................................................6
a) Development a detailed timeline in order to achieve the growth over next 10 years in the
context of Nestle..........................................................................................................................6
b) Discussion of the most immediate milestone and possible changes in the operational
process for its implementation...................................................................................................10
References......................................................................................................................................13

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Task 1
Recommendations building on the vision and environmental analysis on Nestle
Nestle company has faced sustainability challenges during their business. One of the
major sustainability challenges of this organization was a worldwide boycott. This organization
was accused of the unethical work and wrong marketing procedure. This is the main cause of the
infant death of such organization (CSREurope, 2018). Based on the vision and environmental
analysis of Nestle some recommendations are as followed, which will be beneficial for this
organization:
Carry out an extensive market research to understand the current need of the customers
According to the new vision of Nestle is to become the world's first choice provides for
foods. In order to complete this vision, such organization needs to identify the current market
demand to implement their strategy. Market research helps an organization to bring success in
the marketing campaign and in-turn sales (Jaworski & Kohli, 2017). The proper market research
will help Nestle to identify their new business opportunity and to design their marketing
campaign. This will help them to target directly their audience and to enhance the sales. Nestle
has been facing problem due to their marketing. For a better marketing, this organization should
implement a customer-centric business. Market research will enable this organization to gather
valuable information regarding the potential of a specific market segment within a specific time
for a specific age group. Nestle wants to get the first position in the food industry in the global
market. However, their sustainability challenges resist them to grasp such opportunity as they
have faced many boycotts. To give shape their new strategy this organization needs to follow an
extensive market analysis.

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Market research helps this organization to keep a tab on their major competitors. Market
research is considered as a great tool to make a comparison with other organizations (Yang &
Gabrielsson, 2017). By using such tool Nestle can keep track on their company growth and the
current position of their competitors in the market. On the other hand, market research helps an
organization to avoid loss and to establish a sustainable business in the international market. In
the context of Nestle company conduction of a huge market research will be beneficial as it will
lead them to fulfill their current vision and get number one position in the global food industry.
Improve the supply chain management to ensure food safety by using six sigma and TQM
Many products of Nestle are rejected by the New Zealand government due to the poor
quality supply chain and infectivity of such products. In order to penetrate and keep the business
within New Zealand Nestle needs to comply with government regulations of this country. As per
the rule of HACCP or Hazards Analysis or Critical Control Point, the food should be secured
while it is imported in a new country. In the context of Nestle, they need to register their
organization under Food Act 2014, which is the government regulation of New Zealand.
According to this regulation, the food sectors need to maintain the hygiene and to take control
over the food processing (Legislation.govt.nz, 2014). Nestle has faced issue regarding their food
quality due to their poor supply chain. Use of total quality management six sigma tool is
helpful to ensure the quality and remove the viability from the supply chain. They need to bring
improvement in the entire supply chain process that is from collection of raw materials to the
packaging. Each step of food processing should be done in a hygienic and aseptic way.
Implementation of proper auditing process during the collection of raw materials will be helpful
for Nestle to ensure their food safety. Therefore, use of clean and safe equipment and proper pest
control process during the manufacturing is mandatory.

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Application of positive release test will be helpful for the food sector to ensure that the
food is safe to consume (Rueda, Garrett & Lambin, 2017). On the other hand, Nestle should
ensure that the packaging is done at optimum temperature and each product should be packaged
with the proper date. Including such steps in the supply chain management will be helpful for
nestle to ensure the safety of their food product, which will beneficial for them to get an entry in
New Zealand.
Us of modern technology in food production
Despite the adoption of the new technology Nestle has been facing quality problem in
their food products. Hence, use of nano-biotechnology in their food processing and packaging
will be beneficial to enhance the innovation. This technology is crucial to attach the antibody to
the food and to detect the pathogen from the food (Ojha et al., 2017). Incorporation of such
technology will be beneficial for Nestle to reduce their quality issue in the product. On the other
hand, use of super dry technology will help such organization to preserve the seasonal food
throughout the year and keep its nutritional value.
Expand the market share in new market
Nestle wants to penetrate the mature market that is a major weakness of this organization.
In order to increase the sale, an organization needs to focus on the new market that is not
matured yet (Christopher, 2016). Hence, Nestle needs to expand their business in the new
market, where is no rival or similar industry. This will be effective to enhance their growth in a
specific market.
Development of organic product

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Nestle has been facing problem for their product Plain Yoghurt as it fails to make a
strong presence in the operating market (CSREurope, 2018). Hence, production of the health-
conscious product will be helpful for such organization to capture a large proportion of the
customers who are health conscious.
Task 2
a) Development a detailed timeline in order to achieve the growth over next 10 years in the
context of Nestle

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Selected
milestones
1st
year
2nd
year
3rd
year
4th
year
5th
year
6th
year
7th
year
8th
year
9th
year
10th
year
Market
research
Improve the
supply chain
Application of
nano-
technology
Penetrate in
the
undergrowth
market
Introduction
of organic
product
Table 1: Time Frame for the Five milestones
(Source: Author)
Analysis
Nestle has been facing sustainability challenges to operate their business in New Zealand.
Their first approach is to carry out a good market research to get the number one position in the
global food industry.
Process to carry out the market research
Problem identification is the first step of market research (Beske, Land & Seuring, 2014).
Nestle needs to identify their exact issue and then carry on the market research process. After
identifying the issues this organization needs to accomplish a formula and by using analytical
model. Research design formulation is crucial to make a market research as it acts as the

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blueprint for a market research (Grant, Wong & Trautrims, 2017). Step four includes field work
and collection of data based on the current market trend. Step five includes data preparation and
step six includes preparation of the report. Such six steps are crucial for Nestle to complete their
market research and to identify the demand of their target audience. Steps to improve the
supply chain
Nestle has been facing the quality issue in their product due to their inappropriate supply
chain management. In order to improve their supply chain process, they will take 3rd and 4th year.
During this period they need to make an audit to ensure the quality of their raw materials.
Therefore, they will develop a team to check the equipment and the cleaning process of the
manufacturing zone. Testing of the product is crucial for a food industry to ensure its safety
(Chardine-Baumann & Botta-Genoulaz, 2014). They will incorporate positive release test to
check the quality of the food. Therefore, they need to use modern technology in their packaging
process such as pneumatic technology for safe packaging. To accomplish such steps six sigma
and TQM tool will be helpful. However, six sigma tools help to measure, analyze and improve
the process of supply chain. On the other hand, application of TQM helps the organization to
bring continuous improvement in the quality of the product and collecting feedbacks from the
stakeholders.
Actions that are taken to use nanotechnology
Application of the nanotechnology in food processing needs more time as it is a complex
and costly process. Nestle aims to take 5th, 6th and 7th year to adopt nanotechnology in their food
processing. This helps a food industry detect pathogen from their food particles (Touboulic &
Walker, 2015). Such organization will recruit a team includes experts, who are highly

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knowledgeable about the nanotechnology. For this reason, Nestle has targeted to enhance their
funding as the application of nanotechnology is an expensive process. They have decided to
increase their partnership work to boost their fund to use nanotechnology.
Get entry in the new market
Nestle aims to expand their market share in the matured market, which leads them to face
huge competition. However, it is important for an organization to focus on the market, which is
not matured while starting a business in the new country (Brandenburg et al., 2014). Nestle has
started their business New Zealand thus, they need to capture those markets which are
undergrowth and where the less number of competitors are present. To identify such type of
market Nestle needs to make marketing team who are able to find out a suitable market for their
new business in a country. In the next step, Nestle needs to identify the trend of this market.
Based on the trend they need to introduce their product. Therefore, they have to develop
marketing strategy especially the pricing strategy to get an entry in this market. They need to use
low pricing to cover a large number of customers in this particular market.
Produce organic product
Nestle has introduced Plain Yoghurt, which is failed to attract the target customers.
Hence, based on this situation Nestle needs to introduce organic food products to cover the
health-conscious customers. In the recent years, maximum people are health conscious and they
prefer food products, which are healthy and tasty for them (Touboulic & Walker, 2015). In order
to introduce an organic product, they need to select good suppliers to get fresh and hygienic raw
materials for their product. After selection of the product, they need to get a license to sell their
product. Therefore, they need to develop strategy and register it with the appropriate government

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agencies. To sell the organic product direct marketing is necessary at the initial stage. Nestle can
market their product directly by using different marketing channels as for example, CSA and
grocery are good channels to accomplish a direct marketing. On the other hand, promotion is
crucial while developing a new product. Nestle should promote their product by using proper
advertising, which will help the target audience to know about the new product. Advertisement
through the social media will be helpful for Nestle to launch their new product in the market.
b) Discussion of the most immediate milestone and possible changes in the operational
process for its implementation
Five milestones are recommended above to reduce the sustainability challenges in the
context of Nestle. The most immediate milestone is the improvement of supply chain
management to enhance the quality of the product. However, in order to improve the product
quality it is crucial for a business to enhance their manufacturing process in the supply chain
management (Sarkar & Panchal, 2017). Application of TQM and Six sigma tools are beneficial
to improve the quality of the product by improving the supply chain management. A process
diagram has been shown below to understand the six sigma process to ensure the quality.

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Figure 1: Process diagram of six sigma tool
(Source: Banawi & Bilec, 2014)
According to the above diagram many changes need to be implemented in the supply
chain operation process in the context of Nestle. Define, measure, analyze, improve and control
are the major four steps of using six sigma tool. In order to define the current issue business case
analysis, stakeholder analysis, risk assessment and customer information collection are crucial.
These will help Nestle to identify their current problem that is the quality issue of the product. In
the measurement process the operating process is measured and system is analyzed (Banawi &
Bilec, 2014). Nestle needs to use process mapping to analyze the quality efficiency. Therefore,
value analysis and root cause analysis should be done to understand the root of the problem. This
will help nestle that poor supply chain process is the major reason of the quality issue. Root

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cause analysis of the problem is necessary to analyze the current issue. This can be done by the
help of expert team in an organization.
After analyzing the issue it is crucial to bring improvement in the current status of the
organization (McAdam et al., 2014). For this reason, development of the solution is crucial.
Nestle has been facing quality issue regarding their product. Thus to reduce such issue they need
to offer quality product. Introduction of the health conscious and hygienic product will be
effective solution for Nestle to decrease their quality issue and to meet the need of the target
customers. After development of the solution control is required. It is important to control the
implemented process by conducting regular monitoring. During the monitoring process
documentation of the issues that may occur in the new system is required. This will be beneficial
for Nestle to reduce any issues from their new operating process. Hence, application of six sigma
tool will be effective for Nestle to improve their supply chain management.