Environmental Factor for Nestle
Andrea Trahan
MKT 421
July 30, 2012
Kenneth Peter

Environmental Factor for Nestle
Global Marketing has advantages that allow for centralize management and coordination of critical business functions, such as human resources, finance, and product development, according to Hammond (2012). Domestic Marketing strategy assumes consumers in different countries or geographic regions differ from one another and are ideal for highly differentiated products, according to Hammond (2012). Because it is on a local level, domestic marketing is decentralized because management responds on a local level.
Potential barriers in domestic marketing are legal, political, and cultural. Culture is the biggest barrier. With global marketing some of the barriers are language barriers, market differences, no market for products and inaction.
Nestle is a company that is global as well as domestic. Nestle first started in 1866 in Cham, Switzerland by Anglo Swiss condensed Milk Company, according to Nestle.com (2012). In 1867 Henri Nestle a pharmacist created one of the world’s first infant cereals in Vevey, Switzerland. The two companies merged in 1905 to become Nestle. Headquarters are still In Vevey and employ around 330,000 in 150 countries and 461 factories or operations in 83 countries.
“Switzerland is a country that can be regarded as one having a Strong regionalism kind of culture which thus makes it quite difficult to refer to Swiss culture as being homogeneous,” (37articles.com, 2012, Para 1). Switzerland has been recognized internationally due because to its geopolitical neutrality besides taking a non-participatory approach in most of its domestic affairs, according to 37articles.com/?p=619 (2012). Nestle has built their business on the conviction that to have long-term success for shareholders, they not only have to comply with all applicable legal requirements and ensure that all activities are sustainable, but additionally have to create significant value for society, according to Nestle.com (2012).
Cultural differences can affect a company globally. It is important to understand the cultural that a company is doing business with. ”Understanding cultural differences is important to achieve success in any market, let alone on the world business stage,” (Welch, 2005, Para 2). It is necessary to consider political and business cultures as well as local and national.
“The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. ("FCPA"), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business,” (www.justice.gov/criminal/fraud/fcpa/, 2012, Para 1). The anti-bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. It requires companies whose securities are listed in the United States to meet its accounting provisions. “These accounting provisions, which were designed to operate in tandem with the anti-bribery provisions of the FCPA, require corporations covered by the provisions to (a) make and keep books and records that accurately and fairly reflect the transactions of the corporation and (b) devise and maintain an adequate system of internal accounting controls,” (www.justice.gov/criminal/fraud/fcpa/, 2012, Para 3).
Nestlé's unmatched geographic presence is one of its competitive advantages, according to Nestle.com (2012). From its Swiss beginnings, the company has grown to establish a presence in almost every country in the world. “Today, Nestlé's presence in most markets, including emerging markets, dates back many generations, and in some cases more than a century,” (Nestle.com, 2012, Para 1).

References
Hammond, M. 2012. Global Marketing vs. Multi-Domestic Marketing. mallbusiness.chron.com › Advertising & Marketing › Marketing
Implications of Cultural Differences between Switzerland and India on Nestle 37articles.com/?p=619
Welsh, R. 2005. How Cultural Differences Affect Your Global Marketing Message www.rawpowerwriting.com/article.asp?id=9 www.justice.gov/criminal/fraud/fcpa/ www.nestle.com