Case report (The subject of Strategic integration, Marketing) Essay

Case report (The subject of Strategic integration, Marketing) - Essay Example Followed by this review, the company’s initiatives to achieve organic growth in mature markets are also discussed and explained in detail. Nestle’s strategies to achieve this was supported by launching operational efficiency programs worldwide. Including these programs, Nestle’s most important milestone is GLOBE, a program which aims to integrate the widespread manufacturing, accounting and operational activities of business units worldwide is explained along with its applications on the company’s overall objective to achieve internal growth though companywide synergies and integrations. Nestle’s strategic marketing decisions of bringing products under a few strategic brands are also discussed in detail and its implications on the company’s expenditures and strategic long-term objectives are also explained. Besides this, all the challenges which were faced by Nestle in pursuing its strife for achieving internal growth are also discussed in de tail. How Nestle tackled them with its unique approach, are also discussed. Along with the challenges, how Nestle plans to survive in mature markets by incorporating innovation in a sustainable manner in its product and brand portfolio for long-term sustainability is also illuminated in detail. 2. Introduction When Brabeck took over in 1997 from his predecessor Maucher, Nestle had its presence in almost 19 food categories, predominantly in food, pet food, milk, coffee, confectionary, clinical nutrition etc. However, despite such massive growth initiatives taken by Maucher, Nestle lagged behind in some categories and it can be owing to bad investments which were made during Maucher’s period in office. Brabech’s focus on organic growth directed the company towards discontinuing allocation of resources towards unprofitable channels. (Maucher, 1994). Being one of the leading global food companies, Nestle has established its strategic brands in various segments throughout t he world as one of its effective initiatives to boost internal growth, also known as organic growth. Nestle’s CEO Helmet Maucher from 1982 till 1997 had led the corporation from being just a European based company with strong footing as a manufacturer of milk and coffee to being a comprehensive and diversified global corporation dealing in a wide range of food products. Maucher’s main strategy for growth was to rely heavily on external sources and inorganic growth channels. Conglomerate mergers and takeovers were the major focus of Nestle’s growth strategy during Maucher’s tenure as CEO of the company. This did steer the company towards being the global leader in the food and beverage industry however, this was being done at the expense of not saving money through those channels which otherwise could have done so by not investing in unprofitable mergers and acquisitions. Brabeck however, did realize this fact and was determined to steer Nestle towards a m ore internalized approach to growth, with which he believed that the company will save a lot more capital and the resources could then be channelized into more profitable ventures. Brabeck took some important steps to promote organic growth by launching various programs and campaigns followed by setting up of special Business Units with various objectives (Maucher, 1994, Bell et al, 2009). 3. Organic Growth Programs In order to make Nestle’s operational activity more efficient, Brabech had to make some