NESTLE
Nestle has been originated from Switzerland, to date there are over 281,000 employees. Nestle first started in the mid 1860 by Henri Nestle (1814-1890), a trained pharmacist who began experimenting with cow’s milk, wheat flour and sugar in an attempt to develop the alternative source of nutrition for mothers who were unable to breastfeed. Nestle is one of the world’s largest food producers. The company has been in existence for over 140 years and continue to thrive on ideas of fairness, honesty and long-term thinking.
Nestle’s main objectives are to be recognised as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry (source www.nestle.com). Nestle’s vision is to be the leading Food and Beverage Company in the world, providing customers with high quality products and services with added value at competitive prices, simultaneously ensuring the long term viability and profitability of the organization. Their mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. With their unique experience of anticipating consumer needs and creating solutions Nestle contributes to your well being and enhances your quality of life (source www.nestle.com). So according to their logo and mission statement it is fair to say that they are following the societal marketing concept which is a product mix.
Nestle’s Pestle Analysis. Factors | Impact | Opportunities | Threats | P - Political | * Business decisions which are influenced by political and legal decisions. * Complying with The Food Safety Act in countries. | * If taxes decrease the likelihood is that consumers will buy more. * Consumers will be able to trust the product and the brand. | * Increase in taxes can lead to a decrease in consumer as well as a decrease in sales of stock. * Products being criticised as unhealthy with high levels of sugar and launching an advertising campaign for health eating. | E - Economical | * Capital loss of organisations and purchasing power of customers. * Interest rates and exchange rates. | * Higher national income growth can boost the demands of Nestle’s products. * More job opportunities around the world | * Inflation is another factor which may provoke higher wage demands from employees and raise costs. * Exporting to other countries may be costly depending on the rates set in that particular country. | S - Social | * Cultural aspects and demographic variables which are closely linked to the market potential and customer needs. | * Social trends impact the demand for products and the availability of willingness to work. | * Nestle companies in the USA & UK labour markets are growing rapidly, so more pension has to be paid to employees which increase costs. | T - Technological | * Technology drives the phenomena of globalization. It provides competitive advantages for Nestle. | * Nestle’s technological innovation has made the company the number one leader in nutrition, health & wellness in the food industry. | * Always have to be exceeding customer’s expectations. | E -Environment | * Factors relating to global warming, the weather and climate change. | * Nestle took into consideration the desire to protect the environment by using environmentally friendly products and processes. E.g. the green label. | * Most of Nestle’s products are based on health conscious raw materials so a change in the climate can affect the company greatly and the cost of these materials will be increased. | L - Legal | * Factors related to the legal environment of an organisation and the impact on the demand and cost. | * Laws are created to protect the company as well as the consumer. | * Nestle has to comply with all laws such as consumer laws, employment laws as well as health and safety laws. |

Table showing Neslte’s S.W.O.T Analysis Strengths | Weakness | Opportunities | Threats | * Nestle is a Global food producer, located in over 100 countries. Consistently one of the world’s largest producers of food products, with sales in the USA in 2008of $10 billion even in a downturned economy global sales in 2008 topped $101 billion. | * Some of there products were not successful in the market. In the Late 1980’s, Dannon entered the market with a health-based yougurt, and became the top selling brand of yougurt; Nestle’s 1994 launch was behind the product life cycle curve in an already mature market and could not compete against a strong, established brand. | * In today's health conscious societies, they can introduce more health-based products, and because they are a market leader, they would likely be more successful. * Provide allergen free food items, such as gluten free and peanut free. | * Any contamination of the food supply, especially e-coli. Their Toll House brand cookie dough was recalled in March of 2009 because of e-coli. Outbreaks were linked to 28 states and the product had to be recalled globally. Nestlé has yet to find out how this happened, and is still investigating. | * Repeatedly ranked as the world's largest bottled water company and have set up facilities to operate water resources in a responsible manner. | * Growth in their organic food sales division was flat in 2008, even though the industry grew 8.9%. | * They launched a new premium line of higher cacao content chocolates dubbed Nestlé Treasures Gold, in order to cash in on the "recession economy" in which consumers cut back on luxury goods, but regularly indulge in candy and chocolate. Americans want luxury chocolates, and high-end chocolate is immune to the recession (so far), because it is an inexpensive indulgence. | * They were affected by the pet food recall in 2007, in which 95 different brands of dog and cat food were recalled due to contamination with rat poison. Also in 2007, FDA learned that certain pet foods were sickening and killing cats and dogs. FDA found contaminants in vegetable proteins imported into the United States from China and used as ingredients in pet food. | * Nestlé provides quality brands and products and line extensions that are well-known, top-selling brands including: * Lean Cuisine, Yoplait, Maggi, Dryer's/Edy's, Haagen-Dazs, Stouffer's, Boost, Dibs, Hot Pockets. * Chocolate and Candy: Kit Kat, Toll House, Butterfinger, Baby Ruth, Crunch Bar, the Willy Wonka Candy line. * Pet Products: Purina, Alpo, Cat Chow, Fancy Feast, Friskies, Tidy Cat. * Drinks: Carnation, Perrier, Nesquik, S. Pellegrino, Nescafe, CoffeeMate, Taster's Choice, Juicy Juice. * General Mills: subsidiary which makes Betty Crocker, Bisquick, Hamburger Helper, Pillsbury, Old El Paso, cereals, fruit snacks, frozen pizza, canned soups, frozen vegetables, ready-made frozen meals. *  Gerber: baby formula, prepared baby foods, baby cereals, water, juice, yogurt, foods for infants, toddlers and preschoolers. | * Since 2004 the breakfast cereal industry has been under fire from the FDA and the American Medical Association, both of which say that false claims of "heart healthy" and "lower cholesterol" need to be removed from packaging and advertising. They have also been forced to reduce the amount of sugar in their products, as parent's advocates groups claimed they were contributing to the diabetes epidemic among American children. | * Open Nestlé Café's in major cities to feature Nestlé products. | * Raw chocolate ingredient prices are soaring; dairy costs alone rose 50% in 2008, this cuts heavily into their profit margins and often gets passed on to consumers, by shrinking the packaging in a way that is almost unnoticeable-therefore the consumer is paying the same prices for less product. * They have major competitors, like Hershey's, Cadbury-Schweppes (owned by Pepsi), Lindt and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, Del-Monte, Iams, Earth's Best, Heinz, Frito-Lay (owned by Pepsi). | * Successful due in part to their unquestionable ability to keep major brands consistently in the forefront of consumer's minds (and in their shopping carts) by renovating existing product lines, keeping major brands from slipping into saturation/decline and having superior access to distribution channels. | * General Mills is an experienced, established brand and are the market leader in the USA, however, they have been lacking in innovation, have not cashed in on the booming health food craze and have been behind in creating new, niche products, especially in their yogurt division, where Yoplait is the only brand making a profit. | | | | * In 2008, although their products did not carry the recalled pistachios, several of their ice cream brands, Dryer's, Edy's and Haagen-Dazs, were still plagued with bad PR and loss of sales. | | |

The above table shows a SWOT analysis of Nestle it can be said that Nestle is truly the largest food producer in the world because the strategic management team of Nestle did their proper research, as you can see in the table above the company has executed more strengths than weakness and threats which indicates the organization is very well structured. Nestle combined Sheth’s Model of strategic thinking with their own to drive the company to many years of success. Part of the company global corporate strategy is ‘Customer is king’, this motto has lead the company to succeeding on the crowded and fiercely competitive market. Let us now, look at how Nestle has managed to stay on top of their competitors through Porter’s Five Forces Model.