Question

Question 1 :
Corporate sustainability is a new and evolving alternative to the traditional growth and profit
maximisation model. Under corporate sustainability, corporate growth and profitability are
still recognised as important, but it requires the corporation to also pursue societal goals
including environmental protection, social justice as well as economic development.

The Global 100 ranks large corporations across the globe on their reducing carbon waste,
gender diversity and overall sustainability. The top three from this list in 2019 were:
1 Chr. Hansen Holding A/S Denmark Food or other Chemical Agents
2 Kering SA France Apparel and Accessories
3 Nestle Corporation Finland Petroleum Refineries

Applying your understanding of sustainability accounting, critically analyse one of the above
companies. With your analysis, consider the aspects of profitability, share price growth along
with the societal goals.

this is all i get, its a homework from the lecturer. if i have to add and find the information myself i wouldn't use chegg q&a

Answer 1

Our long-term value creation model is based on the balanced pursuit of resource efficient top- and bottom-line growth as well as improved capital efficiency. We create value by:

• Increasing growth through innovation, differentiation and by offering relevant products and solutions to our consumers. We are committed to reach a sustainable mid single-digit level of organic growth.
• Improving operational efficiency with the goal to increase our underlying trading operating profit margin to between 17.5% and 18.5% in 2020 (from 16.0% in 2016).
• Allocating our resources and capital with discipline and clear priorities, including through acquisitions and divestitures.

Nestlé's long-term value creation model

1 Increase growth

We compete in attractive and growing categories. We have a global footprint with presence in 187 countries. Our portfolio includes more than 2000 brands, from global icons such as Nescafé to local favorites like Bear Brand. Among these, 34 brands generate over CHF 1 billion each in annual sales at retail level.

We continue to actively manage our portfolio and prioritize our investments to stay relevant, address the latest consumer trends, and win in every category and market in which we operate. This requires setting clear priorities and allocating resources behind activities that create the most value, either through growth or efficiencies.

2 Improve margins

In order to fuel faster growth we must remain disciplined on our cost management and strive for efficiencies at all levels. This approach enables us to free up resources to reinvest in product innovation and brand building, creating value for our consumers as well as our shareholders. Consumer-facing marketing expenses increased by 3.4% in constant currency.

3 Allocate capital prudently

Our priorities are to invest in the long-term growth and development of the business, while increasing shareholder returns and Creating Shared Value. Our preference is to allocate capital toward value-creating investments to expand the company’s core food, beverage and nutritional health product business. We take a disciplined approach to capital allocation, with prudent financial policies. In doing so we aim to maintain a conservative but efficient capital structure that provides flexible access to financial markets. In combination with improved operating performance, this has allowed us to increase our return on invested capital by 20 bps, from 12.1% in 2018 to 12.3% in 2019.

4 Creating Shared Value: The way we operate

No other food and beverage company has the global resources and local know-how to make positive impact at the scale and pace of Nestlé. We aim to continuously improve, taking on commitments that ensure that we enhance quality of life for everyone.

Nestle targets include: zero waste to landfill, responsible packaging and reducing food waste.

According to Nestlé, one of its key competitive advantages is research and development (R&D) capabilities. The company spent CHF1. ... Nestlé's superiority in R&D against its rivals provides a sustainable competitive advantage and long-term success.

Nestlé's Chairman and CEO Paul Bulcke had set Nestlé on the path of achieving worldwide sustainable competitiveness through the following strategic “pillars” such as low-cost, highly efficient operations; renovation and innovation of the Nestlé product line; universal availability and ability to customize products

Nestle is pursuing a differentiation strategy. Nestle is able to command price premiums for its products that allows the company to recover their higher costs.

Positioning Strategy • Product Differentiation: Nestle brings a lot of product for target different customers. As they provide 25 types of minerals in Nido for children. Channel Differentiation: Nestle reach their products to the customers through their expert market salesman and transportation.

The market structure of Nestle is under monopolistic competition as it is product differentiation, it has many sellers and buyers, easy market entry and exit, it is price maker and it spends money in the advertisement.

Supply Chain.

Supply chain professionals at Nestlé play a critical role in ensuring the quality of products that reach our customers and consumers. ... Once produced, supply chain is responsible for safely storing and transporting our products to meet our customers' and consumers' needs in-full and on-time.