Page 4: Ensuring strategic fit
An Environment, Value and Resources (EVR) fit is a simple but useful business tool to decide whether a proposed strategy is appropriate. The strategy the business chooses must match these three elements.
For example, Nestlé's Wellness strategy must:
Match the strategy to the prevailing Environment, in which the business operates. In this case, it is a social environment, in which consumers are seeking nutritional products to complement a healthy lifestyle.
Ensure the strategy is consistent with the organisation's Values. Nestlé worldwide adheres to a set of business principles that have long underpinned the way the company operates. One key principle is that of meeting consumers' needs for nutrition, enjoyment and quality they can trust. This is why the company places so much emphasis on market research and on the best ways to communicate with customers. Principles that underpin consumer communication include:
- stressing moderation in food consumption
- depicting children in healthy, energetic pursuits.
Nestlé is clear, for example, that its advertising must not look to encourage children to eat snack foods instead of meals.
Ensure the company has the necessary Resources to support the strategy. With its science and technology base, Nestlé is well equipped to develop the required science-based improvements to existing products. It can also handle the development of new products that contribute to Wellness.
Personal health and Wellness are powerful, universal, human needs. With its strong brands, wide product portfolioand R&D competence, Nestlé is well positioned to benefit from a growing market. It has the values and the resources to meet customer requirements in an environment in which more and more people are seeking health and Wellness.