Preview

Nestle International Business Strategy

Best Essays
Open Document
Open Document
3917 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Nestle International Business Strategy
Table of Contents
Company Introduction: 3
Vision and Values: 3
Company Objectives: 3
Strategic Analysis: 4
PESTEL Analysis 4
SWOT Analysis: 6
Porters 5 forces: 7
Porter’s diamond and competitive advantage: 9
Ansoff Matrix: 10
Boston Matrix: 11
Value Chain Analysis 13
Recommendation: 14
Evaluation & Conclusion: 14
List of References: 15

Company Introduction:
Nestle is one of the world’s largest and most known companies. It is a Swiss company with its headquarters located in Vevey, Switzerland. The company was inaugurated in 1866 (Nestle 2012) and since its inception has grown through leaps and bounds to become the world’s largest food and nutrition company (Cnn money 2011). The company is also a major stakeholder in the cosmetic company, L’Oreal.
For a company to start from a small domestic town and then expand internationally, the strategic vision of the company plays a central and key role. The subsequent chapters shall discuss the company’s internal goals and strategy and how that strategy paves way for Nestle to build its competitive advantage in all the markets it operates in.
Vision and Values:
The vision of Nestle reflects ideas of fairness, honesty and long-term thinking. These ideas are reflected in the company’s corporate business principles that have shaped the company culture and strategy for the past nearly 140 years. The core values that the company has are its people, the quality of its people and brand, the company’s brand portfolio, their consumers, their customers and the company’s sustainable performance. (Nestle, 2012)
Company Objectives:
The main objective of Nestle can be appropriately summed up by the phrase ‘Creating Shared Value’ (Nestle, 2012) This principle at Nestle can be described as having a conviction to build long term and beneficial relationships with their stakeholders, comply with all legal requirements and ensure all activities that the business undertakes are sustainable and result in value creation for both the


References: 1. bbc.co.uk (2012) the world of technology. [online] Available at: http://www.bbc.co.uk/news/technology/ [Accessed: 5th august 2012]. 2. Belch, G & Belch, M. 2003. Advertising and Promotion; an Integrated Marketing Perspective, 6th edition, Mc-H Companies. 3 4. Boston Consulting Group. (2011), About BCG. [Online]. Available at < http://www.bcg.com/about_bcg/history/history_1968.aspx>. [Accessed 6th August, 2012]. 5 7. Dictionary.Cambridge (2012) PESTLE analysis. [online] Available at: http://dictionary.cambridge.org/dictionar0y/business-english/pestle-analysis?q=pestle+analysis [Accessed: 6th august 2012]. 9. Europa.eu (2012) Policies and activities of the European Union. [online] Available at: http://europa.eu/policies-activities/index_en.htm [Accessed: 6th august 2012]. 10. Hill, T. & R. Westbrook (1997). "SWOT Analysis: It’s Time for a Product Recall". Long Range Planning 30 (1). 12. International Labor Rights Forum. 2005. The 14 Worst Corporate Evildoers. [ONLINE] Available at:http://www.laborrights.org/creating-a-sweatfree-world/ethical-consumerism/news/11434. [Accessed 04 August 12]. 15. Lin, J.N, 2007. SUSTAINABLE SUPPLY CHAINS IN THE FOOD AND BEVERAGE INDUSTRY. Masters. Michigan: University of Michigan. 16. Mayareynoldswriter (2008) Applying the Boston Matrix to Publishing. [online] Available at: http://mayareynoldswriter.blogspot.co.uk/2008/12/applying-boston-matrix-to-publishing.html [Accessed: 6th august 2012]. 17. Michael, Kathleen, Goold, Sommers Luchs, 1996. Managing the Multibusiness Company: Strategic Issues for Diversified Group. 1st ed. London: Routledge. 18. Michael, Porter, 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review, 15 January 2011. 20. Porter, M.E. 1985. Competitive Advantage, Free Press, New York, 1985. 21. Reuters. 2012. China 's moms key to Nestle baby milk deal. [ONLINE] Available at:http://www.reuters.com/article/2012/04/24/us-nestle-babymilk-idUSBRE83N0PD20120424. [Accessed 04 August 12]. 22. The New York Times. 2010. Nestlé Plans a Research Center to Focus on Indian Foods.[ONLINE]Available at: http://www.nytimes.com/2010/09/23/business/global/23nestle.html. [Accessed 04 August 12]. 23. The telegraph. 2012. Nestlé serves up 'cracking ' results. Available: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8331655/Nestle-serves-up-cracking-results.html. [Accessed 6th Aug 2012].
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Competitor Analysis: Hershey's
    • 1191 Words
    • 6 Pages

    Competitor Analysis: Hershey's

    Goals: Nestlé’s primary objective is to be the leader in nutrition, health and wellness, committed to enhancing people’s lives, and the industry reference for financial performance, trusted by all stakeholders. Additionally, Nestlé is committed in driving performance in line with the Nestle Model of profitable growth and resource efficiency, with growth around 5% and improvements in margins, underlying earnings per share in constant currencies and capital efficiency.ii…

    • 1191 Words
    • 6 Pages
    Better Essays
    Read More
  • Best Essays

    Nestle Market Research
    • 3338 Words
    • 14 Pages

    Nestle Market Research

    All over the planet, people know Nestlé. Nestlé is a Swiss multinational nutritional and health-related consumer goods company headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues among the world's 40 largest corporations. Nestlé was founded in 1867 by Henri Nestlé. Its international R&D network supports the products made in more than 500 factories in 86 countries. The Nestlé factories are operating in the region of:…

    • 3338 Words
    • 14 Pages
    Best Essays
    Read More
  • Powerful Essays

    Globalization Nestle
    • 3801 Words
    • 16 Pages

    Globalization Nestle

    Initially, the globalisation phenomenon and its dominant factors will be described. Subsequently, the Nestle multinational corporation will be introduced. The report will then delve into the means by which globalisation has developed in recent history and how this influenced Nestle. It will also discuss how Nestle has responded to these influences and how it has come to be the global entrepreneurial giant that it is today. Ultimately, the corporation’s current and future prospects will be analysed via SWOT and PESTLE analyses…

    • 3801 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    how to implement chosen strategies for Nestle by comparing the roles and responsibilities for strategy implementation between Nestle and Starbucks,
    • 4673 Words
    • 30 Pages

    how to implement chosen strategies for Nestle by comparing the roles and responsibilities for strategy implementation between Nestle and Starbucks,

    I would like to express the deepest appreciation to our lecturer, Mr. Pham Quoc Khanh, who has the attitude and the substance of a genius: he continually and convincingly conveyed a spirit of adventure in regard to research and scholarship, and an excitement in regard to teaching. Without his guidance and persistent help this dissertation would not have been possible. Thank you for giving me various necessary documents to help me understand how to do a research effectively.…

    • 4673 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Good Essays

    Nestle - Global Strategy Case
    • 1636 Words
    • 7 Pages

    Nestle - Global Strategy Case

    From the NESTLE : GLOBAL STRATEGY case, it can be seen that Nestle generally operates worldwide with the strategy of customization rather than globalization. It moves into consumer markets by using Niche market strategy to become the market leader in each of the niches. It mainly focuses on European markets, which make up 70 percent of its sales. As mentioned, these markets are in the mature state of the life cycle of that industry and also demographic changes such as the stagnation of population growth rate and slight decline in the food consumption have made it very challenging for companies like Nestle to generate higher profits through higher sales. Factually, the western economies are slumping in output and growth, thereby influencing the consumption patterns of customers, especially in the retail business. Consumers are becoming more aware of price and tend to spend less while they demand for customization, product differentiation and specialization at the same time. Another trend is the shifting away from branded food and beverages towards cheap non-branded foods and beverages. Nevertheless, the introduction of non-brand own labeled products such as Food Lion or encouraging private labeled products only makes sense in a large scale, in order to achieve economies of scale. As a result of increasing non-brand cheap products offered by rivals, Nestle has found itself in an even more problematic position in the market and needs to develop a new strategy either away from branding or towards a higher degree of international market penetration. Since Nestle prioritizes high quality and has distinctive competencies in producing higher quality food, it would be unwise to change the strategic group, because it would most likely lose its smooth operation. The right strategy is to expand into new markets such as Asia, Eastern Europe and South America.…

    • 1636 Words
    • 7 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Recommendation to Nestle Company
    • 365 Words
    • 2 Pages

    Recommendation to Nestle Company

    Nestle should concentrate on that in order to come up with new products. Since the company started out to serve infants in need for nutrition, Nestle should enhance and find way to enrich their product with substances and vitamins that will provide children their daily needs of calcium and even mothers. Because they should start from mothers’ health in order to provide infants’ health. Especially now when children suffer diabetes amongst other things, they need more care than before.…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Nestle
    • 10764 Words
    • 44 Pages

    Nestle

    Nestlé was founded in 1866 by Henri Nestlé and is today the world 's biggest food and beverage company. Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestlé employ around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world. The history of Nestlé began in Switzerland in 1867 when Henri Nestlé, the pharmacist, launched his product Farine Lactée Nestlé, a nutritious gruel for children. Henri used his surname, which means ’little nest’, in both the company name and the logotype. The nest, which symbolizes security, family and nourishment, still plays a central role in Nestlé’s profile. Since it began over 130 years ago, Nestlé’s success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestlé family has grown to include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other food products. Beginning in the 70s, Nestlé has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too. Today, Nestlé markets a great number of products, all with one thing in common: the high quality for which Nestlé has become renowned throughout the world. The Company 's strategy is guided by several fundamental principles. Nestlé 's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company 's priority is to bring the best and most relevant productsto people, wherever they are, whatever their needs, throughout their lives.Taste of Nestlé in each of the countries where Nestlé sell products. Nestlé is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff.…

    • 10764 Words
    • 44 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    The Business of Water
    • 914 Words
    • 4 Pages

    The Business of Water

    * Think of the role of Nestle in this case in terms of Carroll’s pyramid of CSR. Which responsibilities does it live up to and where would you see space for improvement?…

    • 914 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Nestle: Coffee Preparation and National Brands
    • 4099 Words
    • 17 Pages

    Nestle: Coffee Preparation and National Brands

    Background: Nestlé is the world's largest food and beverage company (http://www.nestle.co.za/about_us/about_us.asp). At the end of 2004 Nestle sales amounted to over R86 billion and the company today employs more than 250 000 people around the world (http://www.nestle.co.za/about_us/about_us.asp). In South Africa, Nestle employs nearly 4000 people and operates over 12 factories (http://www.nestle.co.za/). Nestlé’s main objective is to manufacture the best quality and most innovative products for consumers, hence their logo “Good Food, Good Life” (http://www.nestle.co.za/about_us/about_us.asp).…

    • 4099 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    THE STRATEGIES USED BY NESTLE’S COMPETITORS IN MANAGING THE ENVIRONMENT
    • 5461 Words
    • 14 Pages

    THE STRATEGIES USED BY NESTLE’S COMPETITORS IN MANAGING THE ENVIRONMENT

    Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created Nestl Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumers primary motivation for a purchase is the claims made by the product based on nutritional content. In order to reinforce their competitive advantage in this area, Nestl created Nestl Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services. The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and beverage businesses. This unit will drive the nutrition, health and wellness organization across all their food and beverage businesses. It encompasses a major communication effort, both internally and externally, and strives to closely align Nestls scientific and RD expertise with consumer benefits. This unit is responsible for coordinating horizontal, cross-business projects that address current customer concerns as well as anticipating future consumer trends. International Strategy Nestl is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America. Nestl recognizes the profitability…

    • 5461 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Good Essays

    Maggi Final Project
    • 626 Words
    • 3 Pages

    Maggi Final Project

    Nestlé India’s objective is to manufacture and market the company’s productsin such a way so as to create value that can be sustained over the long term for consumers, shareholders, employees and business partners.…

    • 626 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Traffic Jam
    • 2334 Words
    • 10 Pages

    Traffic Jam

    Nestle is worlds largest and leading food and beverages company. It started its journey in 1866 in Switzerland and till then it has come a long way. For our report we are focusing on Nestle Bangladesh Ltd. Nestle Bangladesh Ltd had started its operation in Bangladesh in 1994 and its factory is situated in Sreepur, Gazipur. Nestle Bangladesh directly employs more than 650 people and more than 1000 people are employed by suppliers and distributors in connection to Nestle.…

    • 2334 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    asdasd
    • 5714 Words
    • 23 Pages

    asdasd

    The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develop strategic intent for their business organisations following the analysis of external and internal business environments. I will analyse the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will discuss the strategy formulation that includes business-level strategy and corporate-level strategy.…

    • 5714 Words
    • 23 Pages
    Powerful Essays
    Read More
  • Good Essays

    Nestle
    • 28492 Words
    • 114 Pages

    Nestle

    Management Report 2002 Nestlé’s strategic priorities are focused on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long-term growth.…

    • 28492 Words
    • 114 Pages
    Good Essays
    Read More
  • Good Essays

    Assignment
    • 6361 Words
    • 17 Pages

    Assignment

    Belch, E.G. and Belch, A.M. (2001), Advertising and Promotion, 5th edn, New York: McGraw Hill Irwin…

    • 6361 Words
    • 17 Pages
    Good Essays
    Read More

Related Topics