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Case Study: Nestle

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Case Study: Nestle
Nestlé
Company Name and Logo
The transnational corporation Nestlé was founded in 1867 by German pharmacist Henri Nestlé in Vevey, Switzerland in response to the high level of infant mortality as well as his vision to save lives. He invented a milk-based substitute for babies unable to breastfeed which enabled many to live beyond infancy. With good health and nutrition as their company foundation, the slogan ‘Good Food, Good Life’ was created, as the company saw that it was fundamental for their continuing global success. 145 years since launching its first product, Nestlé has become the world’s largest food company in the world, employing over 250,000 people from more than 86 countries with 511 factories operating in almost every country in the world.
Henri Nestlé used his surname which means ‘little nest’ in both the company name and logo with the nest symbolising security, family and nourishment-characteristics the company prides itself as playing a central role in its profile and what it stands for.

When did the company become a TNC?
Nestlé first expanded into Norway during 1898, purchasing a factory located on the Cape called Viking Milk factory for the popularity of its coffee cream. Seeing as the consumption of coffee in both Norway and other countries abroad was enormous, the company saw the factory as an investment that held much potential for its future. Also, during those years, majority of coffee drinkers used milk or cream in their beverages; Nestlé understood that by buying the factory, it could become bigger in the market as well as help advertise its products that needed to be in the international limelight. By 1905, Nestlé had merged with one of its greatest competitor in the industry, the Anglo-Swiss Condensed Milk Company. The merge between companies led to the expansion and operation of factories in the United States, Britain, Germany and Spain. Soon after, Nestlé was full-scale manufacturing in Australia with warehouses in Singapore,

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