Literature Review
In current time, every company is adopting innovative technologies to get competitive advantage in the market. To attain the goals and objectives in the organizational activities, it is essential for the companies to maintain their competitive and sustainable position in the market and this can be done by developing and implementing proper monitoring system. Based on various researches, it can be said that proper monitoring system is very helpful for the organizations in operating the business effectively and ensuring the stability of the organization (Stoddart, 2011). It is very important for the organizations to choose right technology and proper asset for the business environment. It is well known that the business operations in the market are full of many hurdles and challenges. So, there are many technologies designed with well developed solutions to give support to the business. The management system is able to manage various business actions and decision making process of the management within the organization (Zeithaml, Bithner & Gremler, 2009).
There are various researches which have done by theorists to give proper definition of the sustainability. Based on those researches, sustainability can be described as the identifying and meeting the needs of the organization without any kind of compromise with the ability of future generation (Schilling, 2010). According to the council of supply chain management, corporate sustainability is the effort by any company in its business operations in terms of social and environmental manner. It includes various factors i.e. corporate social responsibility, stakeholder concern, corporate responsibility and sustainable development. Further, sustainability combines with the social and economic dimensions including various needs of the stakeholders which are to be met by the company (Nidumolu, Prahalad & Rangaswami, 2009). In simple words, the word ‘sustainability’ is defined in many researches and all have provided the definitions with the same meaning of sustainability. The definitions say that sustainability is important to stay competitive for the company in the operating market (Mun, 2010). Along with this, it is also important to maintain the brand image of the company among the customers by offering them safe and secured products and services. In this manner, proper and effective sustainability monitoring system is very helpful for the organization. There are number of environmental and social issues which must be identified by the companies to have sustainable business in the market. Thus, to address those issues, there is the need to adopt effective and efficient business strategies by the companies (La & Kandampully, 2004).
This report is about developing monitoring system for an enterprise to monitor the sustainability in the market. For the discussion in the report, famous company Nestle has taken. Nestle is one of the popular company in all over the world. Main business of Nestle is to provide nutrition, health and wellness to the customers. Based on its business operations, the company offers best quality food products to the customers having superb rates. Along with this, company includes wide range of food and beverages in the product line for the customers. The company is located in the Switzerland. Now, the company has around two lacks employees who are working with the company. The company is working having many factories which are located in various parts of the country. It can be seen that Nestle has got high level of success and top position in the food industry in terms of quality of products. Further, the company has maintained its relationship with the governments in the various countries and has sustained its relationship with the fair and effective way. Along with this, company is also helpful for the agriculture industry to educate the farmers in various aspects. It is helpful for the farmers by the scientific management services and provides loans to develop the agriculture sector (Christopher, Payne & Ballantyne, 2002).
Description of Enterprise
Further, Nestle is trying to understand the living way and lifestyle of the customers and offering good taste to the people based on their needs and requirements. Nestle has the environment and culture of innovation and renovation in the products by group technology and brand extensive. The company is always trying to provide values to the customers by its effective slogan i.e. ‘good food, good life.’ By providing wide range of safe and high quality products, the company is now able to sustain its relationship with the target consumers. By analyzing its product line, it can be said that Nestle is offering international quality products with the international brand i.e. Nescafe, milk maid, and Maggi. Along with this, company has now introduced new feature of product consumption i.e. Nestle Slim Milk, and Nestle Milk. Nestle is popular as the responsible organization in the food industry. It is holding such kind of facilities which are very helpful for the company to maintain the life of the society in which it is operating (Nestle, 2015).
It is well known that agriculture plays` an important role in the success of every country. It plays` a fundamental role in the economic development and growth of each country. It can be seen that 70% of total population of the country lives in rural and urban areas and that population is totally dependent on the agriculture for their food (Brodhag & Taliere, 2006). So, Nestle is also providing job opportunities to those people who are occupied in agriculture. In this manner, company acts as the advisor for the people for developing their lifestyle in the society. The sustainability in terms of economic dimension is based on direct and indirect economic aspects which affect the company. Those aspects include stakeholders and environment of the company in which it is working. Nestle is contributing in the operations by giving tax and supporting to the government in terms of revenue. The reason of paying tax is that tax is main base of any business which has significant impact on the earning and distribution of money of the company. Along with this, Nestle has valuable license for operating its business in whole world. Customers have trust on the company because of its good and high quality food.
In the concept of sustainable dimension, social culture is the crucial factor for the growth and development of the business. In case of Nestle, the company has expanded its business in e very corner of the world. The company has become popular due to its high quality products which are closely related to the social and eating habits of the customers. Along with this, company is adopting new and innovated strategies for the success in the future. It is well known that Nestle has respected culture values and traditions for the consumers. It is also involved in the more cultures and traditions of the society in which it is operating (Collins et al, 2007). The company has focused on the social and cultural diversity with gender, nationality, race and religion in the society. Nestle always believes in the benefit for community for long-term basis. With the effective and powerful strategy, Nestle always thinks globally by commitment and actions. Thus, it can be seen that company is connected with the different culture and values of the consumers. These all are the origin of the company by which company is to develop itself in all over the world.
Sustainable Dimensions
Environmental factors can be considered as the one of the key factor for sustainable development because it acts as the main pillar of the social responsibility. The key issues for the sustainability are ecologic and environmental security. In other words, the environmental issues create negative impact on the climate which is the cause of soil erosion and climate change. Sometimes, these issues arise due to deforestation, overuse of natural resources and nonrenewable energy resources. These issues always create negative impact on their various operations of the business within the company. Nestle has also faced many challenges in its business because of deforestation and climate change. But, Nestle has overcome from these issues by adopting its effective strategies. By addressing the ecological issues, company has maintained its strong position in the food industry. Apart from this, Nestle is committed to the ecological responsibilities, challenges and changes. According to Nestle, there should be traditional mode in the operations to address the environmental issues. Thus, company has executed and implemented environmental management system to the good performance in the company (Hitt et al, 2009).
Social factors are one of the key areas which must be focused by the company. These factors are helpful in sustaining the company as compared to its competitors. There are many companies in present time who are focusing on the social related responsibilities. Those responsibilities include stakeholder and organizational management and making action plans to contribute for the welfare of the community (Galpin & Whittington, 2012). For this manner, Nestle has targeted wide customer segments in all over the world and provided best quality of products to those customers. Along with this, company always gives much importance to its stakeholders and improves its relationship with them. In the history of food industry, Nestle has top position by its fair source of trading and advertising. Further, Nestle is accountable for the employees and their responsibilities so, it provides many advantages to the deserving employees. It is well known that the strength of the company is based on the responsibility and performance of the employees as they are important asset for the company.
Now, there is the need to understand the working environment and welfare of the employees within the company For Nestle, social responsibility of the company to provide equal opportunities and to treat fairly to all the employees without comparing them on the basis of their gender, age and religion. In case of Nestle, it focuses on the prosperity and health stability of the customers by offering best quality of food products to them. There is strong competition in the food sector for Nestle but by the effective strategies, Nestle has maintained its leading position by focusing on the key areas of marketing. The company has maintained its brand image by the services and appropriate location of the company for the customers. Company is also involved with the community to educate them by providing training to the people who are engaged with the agriculture. Company is also sponsoring the sports and cultural events for its employees to offer good and positive environment to do the work.
It is crucial for the company to analyze and monitor the progress level in terms of economy. It is helpful for the company to understand its capabilities of the business in every country. For the success and economic development of the country, investment can be a good source. By developing and implementing long term value for the shareholders and customers, company is now able to get competitive advantage over the customers in the market (Goleman, 2010). It is very essential for the company to manage the accounts for evaluating profit and loss in whole year. This will be very helpful for the company to move ahead in the business. Along with this, there is the strong impact of exchange rates on the food companies. Nestle which offers good food products has opportunities to expand its business across the world. It can be good scope for the company to expand its business in various parts and to exports in the various countries. To maintain the growth of the company, it is important to practice fair trades in the market. It can be analyzed by the annual report of Nestle that the sales of the products of the country have increased in the market. So, it is also essential for the company to maintain this growth. Because of good quality products and services, the trading of Nestle products has increased as compared to other companies in the food industry (Bainbridge, 2011). Along with the growth in the international market, company is trying to expand its business towards the success. By identifying the needs and requirements of the consumers, the company is trying to satisfy them with the good quality of food with value of money. Nestle is focusing on the main area to develop its business in the high level. With the technology development and monitoring program for the employees, Nestle is now generating sustainability in the business for long term basis and it is now having healthy position in the economy (Biedenweg, Monroe & Oxarart, 2013).
The Dunphy phase is very useful model to analyze and evaluate the level of sustainability in the company. It can be considered as the typical graphical representation to evaluate the sustainability. It provides the way to manage sustainability in the market and there are many organizations that use this idea for maintaining sustainability. The Dunphy model was developed by Dexter Dunphy. In simple words, Dunphy phase provides a clear picture of sustainable organization related to the society. There are six stages provided by the phase which are linked to the success and growth of the organization in the operating market. It reveals that sustainability is important for the company, no matter how the company is progressing on sustainability. The stages included in the Dunphy phase are rejection, non-responsiveness, compliance, strategic sustainability and sustaining corporation (Coulson-Thomas, 2013).
Figure 1: Dunphy Phase
(Source: Stoddart, 2011)
In the above given figure, the various stages of Dunphy phase are described. Based on the Dunphy phase, sustainability of Nestle can be measured and it is as follows:
Rejection is based on the strong belief that company is only focused on maximizing the profit and some figures such as safety and health figures for the employees are ignored by the company. In this stage, it can be analyzed that company is not accountable for future career and health welfare of the employees. In terms of environmental sustainability, owners of the company are serious and they are not focusing on environmental sustainability. In case of Nestle, there are some points which prove about the social and ecological sustainability of the company.
- Nestle is involved in the culture and traditions of society in which it is operating,
- Nestle has targeted big segments across the world by offering best quality products,
- Nestle has encouraged the cultural and social diversity with the nationality, religion, gender and race in the society,
- Company is providing job opportunities to them who are engaged in the agriculture (Berns et al, 2009).
This phase shows that the financial and technological factors are affecting the business. This stage comes when the company is not focusing on marinating the industrial relations or employees relations. In case of Nestle, company is out of non-responsiveness:
- Nestle gives importance to the stakeholders and maintains strong relationship with them.
- Nestle is focused on the welfare of the employees so, it provide various advantages to the deserving people,
- Company identifies the needs and demands of the customers and provides quality of food to them.
This phase focuses on the reducing risk during the operations. To gain human and environmental sustainability, company has to address the financial and technological factors affecting the business of the company. In case of Nestle, the company is focusing on the technological factors to improve the performance of the business.
- Nestle is famous as the responsible organization in the food sector,
- Technological system manages operating system for the success of the business by planning and execution.
Efficiency can be described as the growing awareness of the company which is the real advantage for the company to achieve sustainable practices. For the success and growth, people can be viewed as the significant sources. Company can conduct different programs around its operating market for the significant business function. Nestle helps the agricultural industry to educate the farmers. Further, it is providing training for the successful farming.
This phase describe that strategic sustainability is the important part for the business strategy of an organization. By offering high quality and safe products, Nestle is able to maintain sustainable relationship with the customers. The company has the culture of innovation based on technology and brand extensive. Company y has developed its brand image by quality services and stores.
This is the final phase of Dunphy phase and this provides a view for the organization to do work in a sustainable world. The company Nestle makes good food product has the better opportunity to expand its business in all over the world. There is the good scope for the company to expand in different parts and to exports in different countries. Company is sponsoring the cultural and sports events for its employees to provide the good environment to do work. The company is committed to the environmental changes, challenges and responsibilities (Brodhag & Taliere, 2006).
There are some strategies by which the company can maintain its sustainability:
- It is important to evaluate sustainability monitoring system so, company should evaluate the performance of the employees and business operations by maintained reports.
- Partnership and collaboration must be done by the company as it is the most effective way to maintain sustainability.
- Company should implement effective business strategies to sustain its competitive advantage.
- Company should focus on proper communication with customers and employees to create trust among the customers.
- There should always be a perfect leadership for change. By implementing the change in terms of technology, company will be able to maintain its competitive advantage in the market.
- There must be proper flow of information and fund to stay competitive in the market (Cooper & Vargas, 2004).
Conclusion
A well developed monitoring system plays an important role in the managing whole system of the organization. Along with this, it is also significant in monitoring the performance of the employees in terms of their job roles and salaries. By the monitoring system, it is very easy to take important decisions and execution of those decisions. Further, it also manages all the important functions of the business by providing support to the business. In the sustainability monitoring system, there are various sustainable indicators which can be used as the appropriate tools for the change process within the organization. So, it is important for the organization to select right indicator to measure sustainability because it may change the overall environment of the system in the organization. It is observed by the above discussion that Nestle is successful company in mainating sustainable business in the market.
References
Bainbridge, W., (2011). Leadership in science and technology: A reference handbook. US: SAGE Publications
Berns, M., Townend, A., Khayat, Z., Balagopal, B., Reeves, M., Hopkins, M. S. & Kruschwitz, N. (2009). The business of sustainability: what it means to mangers now: MIT Sloan Management Review. 51(1). pp 20-26
Biedenweg, K., Monroe, M. C. and Oxarart, A. (2013). The importance of teaching ethics of sustainability: International Journal of Sustainability in Higher Education. 14(1). pp 6-14
Brodhag, C., & Taliere, S. (2006). Sustainable development strategies: Tools for policy coherence. Natural Resources Forum, 136-145
Brodhag, C., & Taliere, S. (2006). Sustainable development strategies: Tools for policy coherence. Natural Resources Forum, 136-145
Christopher, M., Payne, A., & Ballantyne, D., (2002). Relationship Marketing: Creating Stakeholder Value. Oxford: Butterworth Heinemann
Collins, E., Lawrence, S., Pavlovich, K. and Ryan, C. (2007). Business networks and the uptake of sustainability practices: the case of New Zealand: Journal of Cleaner Production. 15(8-9). pp 729-740.
Cooper, P. J., & Vargas, M. (2004). Implementing sustainable development: From global policy to local action. Lanham, MD: Rowman and Littlefield Publishers, Inc
Coulson-Thomas, C. (2013). Quality leadership for sustainability. Management Services. 57(1). pp 14-18
Galpin, T. and Whittington, J. L. (2012). Sustainability leadership: from strategy to results. Journal of Business Strategy. 33(4)
Goleman, D. (2010). Why leading sustainability matters more than ever. People & Strategy. 33(1). pp 7-8
Hitt, M. A., Ireland, D. R., Hoskisson, R. E., Rowe, G. W., & Sheppard, J. P. (2009). Strategic Management. Toronto: Nelson Education Ltd
La, K.V., & Kandampully, J., (2004). Market orientated learning and customer value enhancement through service recovery management: Managing Service Quality. 14(5): 390–401
Mun, H., (2010). Global Business Strategy: Asian Perspective. Singapore: World scientific publishing co. pvt. Ltd.
Nestle, (2015). Australian Packaging Covenant. Retrieved on 2nd May 2017 from https://www.nestle.com.au/asset-library/documents/nestle-2012-2015-apc-convenant-action-plan-v3.1.pdf
Nidumolu, R., Prahalad, C. K. and Rangaswami, M. R. (2009). Why sustainability is now the key driver of innovation: Harvard Business Review. 87(9). pp 56-64
Schilling, M. A., (2010). Strategic Management of Technological Innovation. New York: McGraw-Hill Irwin.
Stoddart, H. (2011). A Pocket guide to sustainable development governance. Stakeholder Forum
Zeithaml, V.A., Bithner, M. J., & Gremler, D.D., (2009). Services marketing: Integrating customer focus across the firm (5th). NY: McGrew Hill
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