South University Online
Summary
For this final project the goal over the course was to examine several topics in regards to the economic analysis of Nestlé Global and its working environment. Quantitative and qualitative analysis’s are use to evaluate Nestlé Global success. The past and present history of Nestlé Global was analyzed. The nature and cost structure of Nestlé Global as well as the market structure in which Nestlé competes is examined. Recommendations are given regarding decision making on international trade and comparative advantage. Risk measurements are advised while examining and discussing Nestlé’s long-term decision making.
Nestlé Global
In 1867 Henri Nestlé launched Farine lactée, a mixture of sugar, flour, and milk from a cow in Vevy, Switzerland. The ultimate birth of Nestlé Global began in 1905, when brothers Charles and George Page owners of Anglo-Swiss Condensed Milk Co. in America merged business with Henri Nestlé. Existing now for over 107 years Nestle Global is one of the largest companies worldwide, with approximately 32% percent of sales coming out of Europe, 26 % from the United States, 16 % from Asia. Nestlé Global is one of the biggest food producing companies remaining around the world.
Following both World Wars a high demand for dairy led to the creation of a larger market. Nestlé has an A-Z market list in approximately eighty six countries and over four hundred factories. To name a few: Africa, Asia, Europe, the Americas, and the Oceania. Nestlé Global is known for over 8,000 brands with approximately 29 of which bring in annual sales over 1 billon CFH (Swiss Francs).
In 1977, Nestlé Global made their second venture outside the food industry by acquiring Alcon Laboratories Inc., a U.S. manufacturer of pharmaceutical and ophthalmic products but by 2011, Nestlé Global would be known more for being a part of the food processing industry and topping the fortune 500 lists as the highest in