Agricultural Material Sourcing within the Concept of Creating Shared Value (CSV) Harvard Case Solution & Analysis

Agricultural Material Sourcing within the Concept of Creating Shared Value (CSV) Case Solution 

1. Explain how the tripnestleupto the decision to adopt the concept ofCSV?And what the real impact on the implementation ofsupply chain management Nestle?

Answer to Question #1

As an organization, the company is an ambitious entity and the company has been well aware of the sustainability issues that may create complexities in the future for the industrial sector. The company looks way ahead of the current time in order to craft their strategic decisions that would be most beneficent for the company in the future and would be most feasible and suitable for the future unpredicted situations.The reason behind the visionary decisions of the company is to identify the complexities that might occur and craft feasible strategies accordingly.

The company adequately identified the potential which it acquired in making contributions in reducing the disease rates and supported the developments in the health sciences. These identifications helped the company in looking beyond the food supply and health sciences for making contributions that will make a difference in making the affected areas.
Implementations like these will positively affect the company’s image as well as ensure the sustenance of the quality standards involved in manufacturing procedures. Currently, the company had invested in Accera and this investment from the company in the innovative medical food company is an unusual notion for a leading food company. The infrastructure and the company’s resources have made the company capable of investing more in finding out solutions with respect to nutrition and health.
Identifying the trends that have been shaping the food systems Nestle accurately has taken steps towards minimizing the negative effects caused by the non-sustainability of food security and food supply.

As the company effectively identified the changing trends, the company has built its strategy which majorly revolves around the three core and most significant aspects within the concept of “creating shared value.”The concept of creating shared value has been of core and essential importance to the company as it heavily affects the operations of the company with respect to nutrition, water and rural development. The set of company’s corporate business standards and rules reflects and highlights the priorities set by the company towards these food security issues and the reducing the diseases caused due to the low standards of processing food products. The company is committed towards the agricultural and rural development supported by the environmental and water sustainability.

2. Using data and facts given in the case nestle:

a. Use Kraljic framework for identifying the position of agricultural raw material stonestle?

b. According Kraljic framework, what the procurement strategy that should be applied? Whether this strategy which was adopted by Nestle? Explained by comparing the performance measures applied by Nestle with standard performance SCM (by Simchi-Levi)?Explain the uniqueness of the Nestle performance measure sinen sure continuity of the main agricultural raw materials as well as in maintaining its leadership in the global market?

Answer to Question#2

The company has effectively utilized the level of available resources for investing more in the development of the agricultural and rural development which will help the company in increasing the rate of sustainability with respect to its raw material supplies and how the suppliers for the company will be able continue to conduct their business activities with the company in the future.
Currently, the company has been investing handsome proportions from its resource pool in enhancing the performance and working standards for the farmer which do not violate the human rights in any way possible. The company has worked on reaching a balance between the buyers and customers in order to increase the level of production from the company while maintaining the quality standards.

The position of the company currently is in a balance as it has invested in innovative medical food industries to increase the power of its suppliers as well as maintain the dominance of the company with respect to their business activities.................


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