EXECUITVE SUMMARY
This report is based on the analysis of the concepts of corporate communication .In order to analyze the concepts of corporate communication a company is selected. The selected company in the analysis of corporate communication is Nestle. The report starts with the introduction of the Nestle. In the analysis, the corporate identity, image a reputation of the Nestle is described and the how the organization follows the rep trak model is briefed. Nestle is a company which has a strong brand name and logo. The brand name and the logo of the company are used in its all products and it affects the purchasing power of the consumers.
In order to create a solid image, nestle gives huge importance to the customers of the company and they take various precautions to provide quality and safe products to their stakeholders. The reputation of the company is built through gaining the attraction of investors and motivation of the employees to create a good reputation of the company. The characteristics of rep trak model Nestle follow are innovation, products and services and leadership. Recommendations for the organization include improving their communications through formal events. Through this way, the organization can get publicity. Another recommendation is monitoring the employees and conducting workshops to improve the behavior of the employee. Last but not the least, recommendation is providing gifts to enhance effective business relationships between the stakeholders of the company.
Introduction
The company Nestle was established in the year 1905, by the merger of a company called Angola-Swiss Milk Company. The company got its name “Nestle” based on the last name of the founder of the company Henri Nestle. The company developed through the first and the Second World War and expanded their products. (History,n.d) Today, the Nestle is one of the successful multinational food and Beverage Company in the world. Headquarter of the Nestle is in the Switzerland and its outlets are all over the world. There are Four hundred ad fifty factories of the Nestle in Eighty six countries. The total workforce of the company is around Three hundred and twenty eight thousand. Nestle is the largest food company in the world on the basis of profit wise. (History, n.d) The company Nestle has a wide range of products.
Brands of Products under the roof of Nestle are Baby foods, Bottle water, Cereals, Chocolate and confectionary, coffee, frozen foods, dairy, drinks, foods, healthcare nutrition, ice cream and weight management products. (Brands, n.d) The corporate business principles of the Nestle are based on the culture of the organization. Nestle practices these business principles in their outlets in all the country. These are Nutrition, Health and wellness, quality assurance and product safety, consumer communication, human rights in the business activities, leadership and personal responsibility, safety and health at work, agriculture a rural development, environmental sustainability and water. (Nestle corporate business principles, n.d) Mission of the company
“Positively influence the social environment in which we operate as responsible corporate citizens, with due regard for those environmental standards and societal aspirations which improve quality of life” (Mission and Vision, n.d). Vision and values of the Nestle
“To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products” (Mission and Vision, n.d) CORPORATE COMUNICATION
In today’s business world, competitions are increasing and the stakeholder’s power is increasing. Every business entity is trying to obtain maximum output to gain competitive advantage. Corporate communication is one of the most important management tools to increase the relationship between stakeholders and gain the competitive advantage of the business. (OUM) Corporate communication is a powerful management discipline. It is about building relationship and reputation with the internal and external stakeholders of the company. The corporate communication helps to build up socially responsible decision making processes and supports to build employees assurance in the difficult times of the company. (Aziz &Abdulla, 2012) CORPORATE IDENTITY
Corporate identity is one of the most important elements of the corporate communication. The corporate identity of a company is the mirror of the organization to internal and external stakeholders of the company. Basically, a corporate identity of a company defines values, ambitions and characteristics of a company. (What is corporate identity?, n.d) According to Birkigt and Stadler’s model of corporate identity, there are three characteristics. These are symbolism, communication and behavior. Symbolism is the characteristic that emphasis on the visibility and recognition of the organization.
The logo of the organization, uniform and other in house styles comes under the symbolism of the organization. Communication is the model of corporate identity mean internal and external communication and communication tools influence the consumers. The behavior refers to the behavior of the employees in the organization and it affects to the image of the organization. (Aziz &Abdulla, 2012) COMMUNICATION
The corporate business principles of the Nestle attract their stakeholders. Some of these principles are infant health and nutrition, human rights and protection of the environment. The business principles of the organization are translated into forty different languages. The business objective of the organization is to manufacture and market products of the organization in a way that it creates value that can be sustained over the long term for the stakeholders of the company. These are something the organization does to get the publicity and influence consumer purchase intention.
Nestle spent huge sums of money on a consumer communication campaign on GDAs. This campaign was assessed by a market research to help the Nestle to recognize how well the communication with the consumers had worked. Besides it helped measure how informing consumers about product content actually influences what they buy. Monitoring is very important for Nestlé to assess the impact of its business practices. (Business principles in action- nutritional labeling, n.d)
CORPORATE SYMBOL OF NESTLE
Nestle brand strategy
In the year 2001, the brand Nestle was in the 23rd position in the Interbrand’s list of 100 most valuable brands in the world. The brand value was more than thirteen thousand million dollars back in the year 2011. The company Nestle gives huge impact on the brand of the organization. In the year 1988, Nestle bought Rowntree Mackintosh PLC due to the brand value of the company. The brand name “Nestle” plays an important role in the success of the products of the company Nestle.
This is because the brand nestle is a strong brand name and it affects the minds of the people to buy the products under this brand name. The company uses its brand name in all the products of the company. Besides, the company uses their brand name in all their advertisements. Therefore, the stakeholders of the company can distinguish the products of the Nestle from all other products in the market. (Nestle brand strategy, n.d). Nestle corporate logo
The hallmark of the Nestle is its corporate logo. It goes into each and every product of the company. Nestle is a company which has separate logos for their different products. As the Nestle is world’s biggest consumer package food producers their corporate logo changes according to their product they have a main logo and sub-logos for the different products of the company. The main logo is based on the founder of the company Henri Nestle. The graphical representation of the logo shows a bird family in a small nest. This represents the name of the nestle family. The last name of the founder of the company is Nestle and the Nestle means the “small nest.” (Nestle brand strategy, n.d). The logo of the daily products of the Nestle is designed to attract the customer of these products. This helps to set the market for this product and it is a method of corporate advisement of the company. One of the successful logos of the Nestle is the logo of the chocolate ad confectioners. This logo was powerful that some stakeholders of the company associate this logo as the original logo of the company. This logo helped to build up a niche for the company. Though, there are different logos for the company, the brand name “Nestle” is written on every logo of the company. As the company uses its brand name on each and every logo of the company, it gets high end return for them. In addition it conveys better the information about the product is required .It simply provides a better representation for the product than the universal logo if the company. (How branding good logo boost up your business, n.d)
CORPORATE IMAGE
Corporate image is one of the most valuable yet difficult to control the assets of a company. The corporate image is the immediate mental picture that the stakeholders have of a company. The stakeholders judge the organization through its corporate identity and images of the company. As today’s world is considered as a global village, discussions among consumers about the products and services increased. Hence the organizations need to manage the corporate image of the company for the sustainability of the business. According to the (OUM) there are five factors affecting the corporate image of an organization. These are customer service management, quality of products and services, media as your “best friend”, establish business relationship and he transparent to your stakeholder. Customer service management
As the competition increases, today’s customers have a variety of choices to select the brand they desire. Therefore, it is very important to manage the customers of the organization. In order to manage customers it is vital to listen to the grievance and complaints of the customers. Besides, it is essential to provide detail and information about the products of the organization. This is a simple marketing approach to gain repeat sales from the customers who had a positive shopping experience. (OUM)
Quality of the product and service
Quality is one the most important aspect of a product that a customer would care about. There are concerned about the quality of the products and services they consume. Therefore, the organizations must certify that the products and services they provide are tested and viable. (Aziz &Abdulla, 2012) Media as your “best friend”
Media plays an important role in creating a corporate image of an organization. It is very important to deal with the media in a professional way in order to create a positive corporate image of the organization. The positive news coverage could help to build a good corporate image. Establish business relationships
This is the relationship between the organization and stakeholders of the company. These stakeholders are customers, suppliers, and partners. A positive relationship between the stakeholders of the company would build trust of the company in the group of the stakeholders. (Aziz &Abdulla, 2012)
Be transparent to your stakeholder
It is essential to be truthful to the stakeholders of the company especially during managing crisis. Stakeholder could easily find out the status of the company through media and other forms of communication. Therefore it is important to be transparent. (OUM)
CORPORATE IMAGE OF THE NESTLE
Nestle is a company which has created a positive image through various strategies. One of these strategies is the importance Nestle gives to their consumers. Nestle is a company that puts their consumers first and focused to fulfill their needs. In order to win the consumers it is very important to build the consumer trust in the company and their products. The aim of the company is to understand the customers better than the competitors of the company. To achieve this goal of the company, employees work very hard. The employees work in the shoes of the consumer at every step. All of this is done to provide a better image of the company in the eyes of the stakeholders of the company. Nestle also have concentrated on the lower-income consumers and made their products available at affordable prices while providing a diet compensating the local dietary deficiencies and including relevant nutrition. This would build the image of the company as a brand for everyone. (The world of Nestle, n.d)
Quality and safety is one of the consumers of the company are one of the highest priority of the organization. The company has quality policy and guidelines. Each and every member of the organization follows on these guidelines. These guidelines briefly describe the commitment of the organization to build trust in the product and services of the company that reach the expectations of the consumers, obey all the food safety, regulatory quality requirements, gains a zero-defect and make quality group wide objective. The quality management system of the organization is the
platform that the organization uses to guarantee food safety, compliance with quality standards and to create value for consumers of the organization. This system is audited and verified to approve conformity to internal standards, ISO norms, laws and regulatory requirements. (Quality and safety, n.d)
CORPORATE REPUTATION
According to (OUM) Reputation is one most valuable asset to the todays’ organizations. The reputation of the company has a huge impact on the corporate performance and profitability of the organization. The corporate reputation can be described as organizations collective representation of the past images prompted by past experiences that recognized over time. There are several advantages of the good corporate reputation. These are employees motivated to work hard, repeat customers, investors ready to invest more, encouraged journalists provide a positive image about the company and financial analysis analyst give better favorable coverage.
HOW NESTLE CREATE CORPORATE REPUTATION
Nestle is a company which gives importance to the investors to create a good reputation of the company to attract and invest more on to the company. Nestle uses various techniques to rise the interests of the investors in the company. Nestle is a company which publishes half year financial results. The company reported sales only and this information is available through the results in the financial result of the first quarter of the year. These sections contain some other reports as well. These are reports on the environment, people and some other topics. As these reports present current information about the company, the investors have a better understanding about the group and the attraction of the investors increase towards the group. (Publications, n.d) Nestle is a company which conducts early seminars with their investors and analysts. As the Nestle being a multinational company, these seminars are conducted in different parts of the world. This gives the opportunity to create investors of the company over the world. Nestle answers the questions of the investors in this seminar.Hence the company could build a good corporate reputation. (Nestle investment seminars, n.d)
Nestle is a company which tries to motivate their employees and provide high job satisfaction. The Nestle aims to provide continuous learning and talent management to help our employees develop and adapt their capabilities and career prospects in a rapidly changing world. In return the organization anticipates the employees to behave in a way that supports the corporate principles of the organization. This would increase employee motivation to work hard and enjoy the job satisfaction. This is an advantage of the good corporate reputation practice. The company motivates their employees through labor practices, training and learning, work place wellness, diversity, health and safety and employee engagement. (Overview, n.d) Rep track model
This is one of the famous reputation models created by Charles Formbun and Cees Van Riel. Rep Trak is a proprietary tool used by the Reputation Institute to measure reputation across stakeholder, industries and countries. The seven core directions of the Rep trak are products and services, innovation, workplace, governance, citizenship, leadership and performance. (Aziz &Abdulla, 2012) The stakeholders of the organization always worry about the quality of the products and services of the organization. In addition, the stakeholders are keen to buy the innovative products and services. The workplace is also a core dimension of the rep task model, which emphasis on taking good care of employees. Governance is about the transparency of the organization by considering business ethics. Citizenship in the rep trak model means organizations should be socially responsible corporate citizen. Leadership is about developing clear mission and vision about the organization. Performance is about the profitability and annual positive growth of the organization. (Aziz &Abdulla, 2012) Rep trak model in the nestle
Some of the objectives of the Nestle include to be known as the world leader in nutrition, health and wellness with the trust of all the stakeholders and to be reference of the financial performer in its industry. According to the Nestle, leadership is not about the size, it is about trusting the behavior as well. Nestle is a company that builds the trust of the stakeholders over a long period by consistently delivering promises. These objectives of the company are incorporated in this simple phrase “ Good food, Good life”. Through this the company can fulfill their corporate citizenship as well. (Strategy, n.d) The quality management system of the organization is the platform that the organization uses to guarantee food safety, compliance with quality standards and to create value for consumers of the organization. This system is audited and verified to approve conformity to internal standards, ISO norms, laws and regulatory requirements. The Nestle is a company which has an innovation acceleration team. This team has at least five years of experience. This team focuses on accelerating multi-market deployment of key innovations and the exploration of complex R&D projects into business opportunities. The team work in various markets and product categories and develop innovates products to their stakeholders.
Recommendation
Communication
Based on the analysis it can be said that the Nestle is a company which gives huge importance to the communication of the company. The company can improve their communications through formal events. As Nestle being a multinational company, official events can be conducted in different parts of the world at the same time. The attention of the media will be driven to such huge events. As a result the company gets publicity and its influence the consumer purchase intention. “The impact of any event or action your group plans can be greatly increased by media attention. Larger events can reach an audience of hundreds or thousands if covered by a radio or TV station or newspaper. Media attention can put you in contact with people in your community working on similar issues” (Publicity, n.d) Behavior
Based on the analysis of the report, it can be concluded that the company does not mention any approach to monitor the behavior of the employees. The company should give more importance to improve the behavior of the employees in all the level to provide better picture of the organization to the public. In order to improve the behavior of the employees, the organization can monitor the employee relationship within the work place. Besides, the company can conduct special workshops to increase behavior of the employees of the organization to form a better corporate identity of the organization.
According to the (Corporate identity, n.d) through corporate behavior, a better understanding of the third party could be achieved. The one who knows company’s philosophy can articulate the message easily. Therefore many organizations give emphasis on the corporate behavior of the organization to build a strong corporate behavior image. This is because purchase power of customer depends on the like or dislike of the customer on the corporate culture of the organization. Establishing a good business relationship is another important aspect of the prorate image the company Nestle should acquire in order to create a good corporate image. There are various techniques the company can follow to establish a good business relationship with their stakeholders. One of the strategy the company can adhere is gift giving. The company can provide corporate gifts to their major clients and suppliers to increase the business relationship. The gifts sent should be genuine and value the relationship value placed on the relationship and these gifts should build the corporate image of the organization. According to the (The corporate art of gift giving, n.d) corporate gift giving is a cost effective way to build a good business relationship with the stakeholders. Based on many surveys, most of the times corporate gift are given to major stakeholders. Some of the reasons of gift giving are as a thank you, congratulation and as an encouragement. The general reason behind all these reasons is to build the relationship. REFERENCE
1.Abdulla., Z, Aziz., A. (2012). Principles of corporate communication. Malaysia: Open University 1.Corporate identity. (n.d.). Retrieved February 18, 2013 from http://www.sundz-design.de/en/wissen/corporate-identity.html 2.How branding a good logo can boost up your business. (2012). Retrieved February 21, 2013 from http://www.underworldmagazines.com/how-branding-a-good-logo-can-boost-up-your-business/ 3.Mission and Vision. (n.d.). Retrieved February 18, 2013 from http://www.nestle.co.za/abo The art of corporate gifting. (2013). Retrieved February 18, 2013 from http://www.crystalartusa.com/theartofcorporategiftgiving.aspx utus/missionvision#.UTNA1DBRCS
4.Nestle brand strategy. (n.d). Retrieved February 21, 2013 from http://finance.mapsofworld.com/brand/value/nestle.html 5.Overview. (n.d.). Retrieved February 18, 2013 from http://www.nestle.com/csv/ourpeople/overview 6.Publications. (n.d.). Retrieved February 18, 2013 from http://www.nestle.com/investors/publications 7.Publicity. (n.d.). Retrieved February 18, 2013 from http://www.abilitymaine.org/rosc/cogpub.html 8.Strategy. (n.d.). Retrieved February 27, 2013 from http://www.nestle.com/investors/strategy 9.The Nestle corporate business principles. (2010). Retrieved February 27, 2013 from http://www.nestle.com/asset-library/Documents/Library/Documents/Corporate_Governance/Corporate-Business-Principles-EN.pdf 10.The world of Nestle. (n.d.). Retrieved February 21, 2013 from http://www.nestle-family.com/our-company/english/assets/downloads/The-World-of-Nestle.pdf 11.Quality and safety. (n.d.). Retrieved February 27, 2013 from http://www.nestle.com/aboutus/quality-and-safety
