Question

Exercise: answer the following questions in the space below

a) Refer to the companies listed below. Choose on company and perform a Swot analysis related to human resource management. Clearly explain each component of this analysis. Provide clear arguments (Avoid bullet format)

Nestle Middle east
Danone
Emaar
Ikea
HSBC
b) Analyze and discuss the employer brand of the company that you have chosen. And provide recommendations to develop it of improve it. Provide clear arguments (Avoid bullet format)

Answer 1

a) Considering Nestle as the company, when we talk about Nestle's swot analysis into the middle east here are few of the most important points to be noted while considering the human resources perspective as well :

Strengths :

Nestle has a strong geographic presence all over the world which enhances it to have a diversified employee structure. operates and sells its products in 189 countries, reaching almost the entire world. The company has divided its operating segments into 3 geographic areas: The Americas (AMS), Europe, Middle East and North Africa (EMENA) and Asia, Oceania and sub-Saharan Africa (AOA). No region earns over 50% of the total revenue. It has an excellent research and development team which makes it easy for them to identify new trends globally in the human resources sector and to implement them across the globe. Nestle's portfolio is wider and it offers more than 2000 varieties of products worldwide.

Weaknesses :

The company is facing a lot of criticism these days due to it's extensive water usage and also about their labour policies for all their workers globally. Anti unionism practice that they follow is the most criticised part in many countries. Because in many countries industrial policies differ and the unions practise is also completely different depending on various circumstances that the industries are in. Scenarios like these might highly increase the attrition rate in the company leading to a low employee turn around on a regular basis. This is one of the major weakness that the company has to work in the middle east as well.

Opportunities :

Consumers in the middle east are becoming more conscious about the kind of food they are consuming also on the whereabouts of different foods. This is a huge opportunity for nestle pertaining to their longest history and global presence with a sustainable quality being maintained over the last few decades. Also middle east has a diverse humn resource availability which can help nestle in idenifying and creating global employees for it's future.

Threats :

Water is scarce and is becoming even more scarce due to the factors such as climate change, growing populations, overexploitation of resources, the increasing demand for food products, increasing pollution and the poor management of waste water. Demand for water is increasing, and it will likely become more difficult for Nestle to access both clean and inexpensive supplies of drinking water, resulting in potentially increased production costs and therefore lower profitability. Also, there is huge increase in the number of start ups that are actually looking to disrupt the food industry in the middle east. There is an increased competition in the food and beverages industry in the Middle East as many Global companies started their business over the last 5 years.

b) As a company with an employer staff of 3,00,000 and more globally it is a huge challenge for nestle to unify all the employees. There needs to be a spirit and set of values which should be visible commonly all across the globe. Un employed youth in the middle east is very high this should be utilised by Nestle as a huge opportunity. Recruiting more number of local youth and providing them sustained employement will enhance the brand value of the company in multi folds. Youth should be a major focus. Nestle Should look at smarter way of reaching out to different schools, colleges and universities also in supermarkets and malls where the public gathering is generally is high. There's a huge potential for engaging through social media. Saudi Arabia is the biggest market for Snapchat in terms of users per population if nestle is not using social platforms then will be a real challenge. It should focus on launching a common social campaign across all the social media platforms dominant in the middle east. This will help to increase the brand value and will increase the reach of the company in a shorter time.