Business Synoptic Essay Example | Topics and Well Written Essays - 4000 words - 1

Business Synoptic - Essay Example Strategic Posture of Nestle at Corporate Level 13 6.0. Efficacy of Nestle’s Strategic Posture 13 7.0. Alignment of Nestle’s Strategic Posture with its Management Structure and Philosophy 15 References 17 Bibliography 20 21 1.0. Linkage between Strategic Management Accounting and the Realistic Practices of Nestle According to the definition of Strategic Management Accounting (SMA), it efficiently links with the business strategy of a firm and helps to maintain and/or increase its competitiveness. Few basic attributes of the SMA process, relates with the collection of competitors’ information regarding price, products, market share and others; identifying opportunities in global market and recognising the efficacy of company’s strategic position with providing emphasis on the accounting aspects (Collier & Agyei-Ampomah, 2006). With a thorough analysis of Nestle’s case study, it can be stated that the company has achieved a sustainable and at the same time quite impressive growth with a long-term benefit to the company. Two most significant causes to stimulate growth of the company can be identified as strategic management approach and managerial accounting behaviour of the company to take a certain decision. These two theories can be evidently linked with the company’s adopted strategies, with reference to case study and fundamentals of the theory SMA. Nestle’s strategic decisions over the years have been focussed on its expansion in the global platform covering almost every economic market of the world. Thus, one of the company’s most significant strategic decisions can be identified as its aggressive expansion strategies. For instance, the company started expanding its operations worldwide since 1868 and by late 1990s, the company had already acquired the markets of 76 countries and 193 nations to manufacture and market its products respectively. Another strategic decision taken by the company was to diver sify its product lining from simple infant formulas to condensed milk, chocolates, coffee drink, soups and mineral water as well. With this strategic alliance the company was able to achieve a huge amount of profit in western economies, especially in European and the US markets. However, to imply these strategies in an effective and efficient manner the company focussed on few other factors, such as market competency, internal and external environment and others. In this regards, the company can be observed to apply a few analytical measures. For instance, as mentioned in case study, the company observed that markets of Europe and North America were particularly growing rapidly in terms of competition along with stagnant population growth. This in turn acted as a barrier to Nestle’s growth. To be specific, as the population growth was stagnant and number of market players was also increasing rapidly, there was a little scope for Nestle’s growth in the economies. Moreov er, the trends of markets were becoming much favourable for local firms manufacturing the products similar to that of Nestle’s. Realising these facts, the company initiated to expand its market in emerging markets where the population is at rise, demand for branded food items are also increasing and local competitors are also minimum. Hence, the company instigated its operations in eastern emerging countries such as China, India and others. Accordingly, the company also narrowed its market focus to basic food