Q.1 A:
Impact of Globalization and technology change on Nestle:
Globalization means the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment.
Pestle analysis is a useful analysis to understand the impact of Globalization on a company.
Political analysis:
Taken advantage of globalization Nestle considers political stability of a country to build a plant that can operate. Considering th country’s political stability , good tax incentives as well as skilled work force nestle chooses Malaysia o be the site of regional manufacturing centre for Nescafe.
Economic Analysis:
The economic factors lead to the strength of Consumer spending. During recession people stop to spend on the stuff like chocolates Americans likes luxury chocolates, a new line of cacao called Nestle Treasures God has been launched to encash in the recession period.
Social analysis:
Nestle as a multinational corporate which operates their business in many countries, they do respect to people 's culture and traditional which means that nestle is corporate that thinks global. Kit-Kat 's formula is not same everywhere. A Russian Kit-Kat is smaller than a Bulgarian, but less sweet than Kit Kat in Germany and all this is possible because of globalization.
Technological analysis:
In order to reach end consumer Nestle uses advertising to attract people to purchase their products Nestle Policy and Environmental sustainable (2008) reports shown that during the manufacturing process, Nestle uses technologies to ensure that there is no wasted energy. In addition, they also controls Green house gas emmisiion.
Legal analysis:
In 1996,Nestle s the first multinational company that uses Halal Certification for its products. As a global food company like Nestle, the most important thing is Hygene. Since Nestle has the Halal certification and hygiene is the procedure to get this
References: http://www.nestle.com/media/newsandfeatures/annual-report-2012 http://www.marketingminefield.co.uk/marketing-plan/pestle-analysis