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Essay: Evaluation of Nestle and Unilever

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  • Subject area(s): Business essays
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  • Published: 22 September 2015*
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  • Words: 840 (approx)
  • Number of pages: 4 (approx)
  • Tags: Nestlé essays

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This report is based on comparators evaluation between two competitor’s companies in terms of stake holder management , corporate governance and supply chain risk. The purpose of this report is to find out competitive advantage of both companies over its competitors and what makes us different from others. Considering two companies Nestle and Unilever for comparison.

1.1 Introduction:

The report has been prepared on the basis of Innovation. Is about putting a new idea or loom into action. Basically Innovative business described as : The commercially successful utilization of ideas. Mostly successful people in business today started as entrepreneurs. In further discussion in this report I compare two businesses in terms of these three areas which I have discussed below.

Here is come stakeholder management background. stakeholder management basically supports an Organization’s or corporation’s strategic objectives by interpreting and influencing both the external and internal environments.

Corporate Governance termed as a system where corporations are directed and controlled such as the board of directors , managers , shareholders , auditors , creditors and other stakeholders. The governance structure tells the allocation of rights and responsibilities among the participants which I have explained above.

Supply Chain risk is basically the implementation of strategies in our business to manage both everyday and exceptional risks along the supply chain management based on continuous risk consideration with the objective of falling weakness and ensuring continuity.

1.2 Background: (NESTLE)

Nestle is a food processing company. It is founded in 1866 in Switzerland when the first European condensed milk factory was opened named as Anglo-Swiss condensed milk company. In 1905 they merged with NESTLE after a couple of decades as fierce competitors to form the nestle and Anglo. In 1925 they offered his first coffee product. In 2011 they announced partnership with HSU FU CHI , A confectionery and snacks manufacturer. And became the first food company to partner with fair labor association. It is the largest food company in the worldwide. It has around 450 factories operates in 86 countries and employs around 328000 people.

1.2.2 Background: (UNILEVER)

Unilever started in late 19th century. His first name was Lever & Co. In 1872 the Netherlands , Jurgens and Van den Bergh opened their first factories to produce margarine. After that they start their journey to produce products 1886 they launched first KNORR soups. In 1890 Lever & Co become limited company named as Lever brothers LTD. In 1894 they become a public company. In 1929 Lever brothers and Margarine Unie sign an agreement to create Unilever. In 1930 January Unilever is officially established. Now Unilever scooped 44 awards at the 60th canes lions international festival of creativity. It is a leading company in the world wide. (464 words)

2.0 Theoretical Framework:

The source of the Stakeholder theory of corporate governance can be traced to Freeman (1994) who defines stakeholders as ‘any group or individual who can affect, or is affected by, the achievement of a corporation’s purpose’.

In the conventional view of the firm , the shareholders and stakeholders are the owners of the company. R.Edward freeman addresses ethics and values in managing an organization in his award winning book ‘Strategic management , A stake holder approach’. Stakeholder management is the essential theme of at least one important recent business and society text (Carroll, 1989), Clarkson (1991: 349), for example, asserted an defined connection among all three when concluded that his stakeholder management model represents a new construction for “telling, evaluating, and managing corporate social performance.”

According to Evan and Freeman (1988: 97) justified stakeholder theory on normative grounds, particularly its power to satisfy the moral rights of individuals. They asserted that the theory of the firm must be re conceptualized “along fundamentally Kantian lines.”
Geus, Arie (1997). According to him, companies are living organisms that are dynamic by their histories and the learning, skill and commitment of the people who work in them. This truth is completely ignored by most investors, who are more paying attention in numbers and physical or financial assets and are driven by short-term gain and asset and value extraction as the most important means of making money.

According to Giunipero and Eltantawy, (2004). In recent years, many companies have pragmatic that beside their ‘traditional’ risks arising from their business activities new risks emerge from sources that are frequently related to the close collaboration within their supply chain networks.

In the literature, the definitions of the term ‘risk’ as well as the instruments that are used for risk dimension strongly depend on the chosen field of research (cp. Christopher and Peck, 2004).

Risk is defined as the distinction in the distribution of potential results, their probability of occurrence and their subjective value (Arrow, 1965).

Supply chain risks can be typed according to different classifications in creative writing (Ritchie and Brindley, 2000, Pfohl, 2002, Christopher and Peck, 2004, Spekman and Davis, 2004). Pfohl distinguishes between endogenous risks rising in a supply chain and exogenous risks whose origin is located in the environment of the crucial network (Pfohl, 2002).

Management is defined as a part of Supply Chain Management which includes all strategies and measures, all knowledge, all foundations, all processes, and all technologies, which can be used on the technical, personal and organisational level to reduce supply chain risk (Kersten et al., 2006)

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