Premium Essay

Nestle’s Sustainable Growth in Mature Market

In: Business and Management

Submitted By djintokyo
Words 1525
Pages 7
Nestle’s sustainable growth in mature market
The company establishment
Nestle was first founded by Henri Neslte in the 1860s by developing and producing food products for babies who could not adapt mother’s milk. Following the success in baby food products, Henri incorporated with an Anglo-Swiss condensed milk company to develop dairy products, especially for government supply in World War I. High sensitive and quick responding to the demand of consumer, Nestle continued to create and develop new product mix to canned food, beverage, pet care products, to maximize its scope of business in food segment.
Nestle had been incurring high success during its operation in food industry, proved by production many creative product portfolio, double sales and tripled profits, globally brand recognition, offices and factories around the world with the management of previous CEO Helmut Maucher. Maucher successfully promoted Nestle to higher position in market as a global company and has been operating beyond its original Europe boundary. Nestle seems not still happy with what it had obtained. Under leadership of current CEO Peter Brabeck, Nestle is now experiencing a more significant growth and synergies as the top nutrition and food company with strategic management of Brabeck since he took over Nestle in 1997.
In today, Nestle has developed another core business to Research and Development sector to support its traditional food and beverage business.
Vision and Mission
Vision
According to Chief Technology Officer, Bauer, of Nestle in his presentation, Nestle has two visions classified for its two core sectors. For the Nestle’s operation vision, it indicates Nestle’s ambition to be the world’s largest Nutrition, Health, and Wellness company that innovate and distribute nutritious products that satisfy consumers’ nutritional and emotional needs. Additionally, to have...

Similar Documents

Free Essay

Nestle

...Nestle: Sustaining Growth in Mature Markets Describe the characteristics of each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool. Nestle’ recognizes that increasing globalization is leading to the development of more and more international recommendations. Although, as a general rule, these recommendations are addressed to governments they inevitably impact on business practices. [ (Brabeck-Letmathe, 2004) ]. The internet is changing the way of doing business. It concerns business-to-business relations and also the Company’s interaction with consumers. In this respect nestle’ S.A. has an Internet Privacy Policy which is available on the Corporate Website. This policy aims to protect the privacy of the users; it covers, for instance, the accessing, deleting or correcting of information, the security of information, and relates also to tracking technologies [ (Brabeck-Letmathe, 2004) ]. Nestlé’s broad known of their products and laws that are required in order to design different product are impeccable. Needless to say one company has to know about water, using raw materials, nutrition for not only infants but everyone including animals. Nestlé’s knowledge of human rights gives them a strong understanding of strategic flexibility. Nestle’ recognizes that governments are ultimately responsible for the establishment of a legal framework for protecting human......

Words: 1293 - Pages: 6

Premium Essay

Nestle Business Policy

...than 140 brands under the umbrella of Nestlé. One of Nestlé’s cash cow product lines is the ice cream. Popular household ice cream brands under Nestlé include Häagen-Dazs, Movenpick and Dreyer’s. Nestlé acquired its financial prowess and brand equity from a few sources. Firstly, Nestlé possesses an unmatched R&D capability enabling them to research on new ice cream products to satisfy consumers’ needs and retain their loyalty. In addition, Nestlé also has a huge resource pool, which they can utilize to expand their product lineup and business portfolio through various merger and acquisitions. Nestlé entered into the US premium ice cream market in 2002 through the acquisition of Dreyer’s ice cream followed shortly by Movenpick in Switzerland and Häagen-Dazs. This acquisition allowed Nestlé to venture into highly desirable niche premium market and expand their global coverage. It was not long before Nestlé overtook Unilever as the biggest ice cream manufacturer in 2011, in terms of both sales volume and market share (Nestlé: 17.5% vs Unilever: 16%). Switzerland, despite being Nestlé’s home market, did not provide a significant inflow of revenue. On the other hand, Nestlé derived most of its revenue from foreign markets which it has penetrated into, for example the USA and Europe. When news of the booming financial market in Asia went viral, Nestlé did not lack to expand its influence into emerging markets in Asia, especially China whereby they sell ice cream......

Words: 7384 - Pages: 30

Premium Essay

Bus 499

...“Nestle: Sustaining Growth in Mature Markets” Bus 499 Summer Quarter 2010 Describe each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool. The Nestlé Food Company has been part of the global community since it was first founded in 1866 marketing its products in 130 countries across the world. “Over the previous 130 years, Nestlé had acquired profound knowledge of markets all over the world, and enjoyed great success in adapting its products to local tastes” (Hitt, Ireland, & Hoskisson, 2009). In doing this Nestlé has retained the reputation as a heroine company who “thinks globally but acts locally” (Hitt, Ireland, & Hoskisson, 2009). Nestlé has not just succeeded in the food industry but is taking strong leads to impact nutrition, health, and wellness. The Nestlé Company continues to stay competitive within the global market while continually working with a failing economy; according to Barbara Kollmeyer of Market Watch (2009) "It's still a good defensive stock. Its international profile, combined with presence in 25 businesses provides good resilience in a downturn. The development of the product mix towards Nutrition and Health should have increased the group's defensive profile. This strategy is based on a price positioning that should remain competitive.” The knowledge that Brabeck introduced in 1997 brought many new strategies to Nestlé......

Words: 1835 - Pages: 8

Premium Essay

Report

...TERM PAPER MARKETTING PLANNING OF AHSANULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY TERM PAPER MARKETING PLANNIG OF NESTLE Submitted To: Prof. Sirajuddaula Shaheen Dean, Faculty of Business & Social Science Submitted By: Jesmin Akter Juthi (ID no. 10.01.02.020) Farah Tasneem (ID no. 10.01.02.023) Sharika Nahid (ID no. 10.01.02.039) Date of Submission:02 .02.2012 2nd Feb, 2012 Prof. Sirajuddaula Shaheen Dean, Faculty of Business and Social Sciences Ahsanullah University of Science and Technology. Dear Sir, I would like to thank you for giving us a term paper to prepare a realistic paper work about Marketing Plan of an organization and we chose Nestle. Without your help and advice it was quite impossible for us to prepare this term Paper. Your help and advice make us work much easier. While preparing this term Paper we got to know various things of the marketing plan of an organization which have increased our analytical skills. Though, as a member of group, I’m proud to say that our term Paper is a result of team work and we are really......

Words: 7169 - Pages: 29

Free Essay

Enterprice

...Introduction This is a culminating module in which students are expected to integrate, apply, extend and critique the knowledge gained within core modules of the Business & Management Single Honours. It is conceptualised as a retrospective, integrative and reflective academic experience. It aims to help students develop an appreciation of how key pieces of the business and management curriculum come together (synoptic capacity), and expects them to demonstrate in-depth understanding and application of integrated business management concepts, intellectual and research skills. Alongside its integration mandate, the module aims to foster independent learning through conditions conducive to the development of a proficient learner, master of his or her own learning strategy. The module, therefore, requires students to show initiative and personal responsibility. It is worth emphasising that this is a unique and innovative module in that it is a non-taught module! Some guidance, however, will be provided by the tutor during the four workshops (so it is really essential you attend and participate to these workshops!). Additionally, the tutor will be available at pre-specified times for one-to-one or small group tutorials. By successfully completing this module, students will have demonstrated the ability to exercise initiative and personal responsibility, and the possession of the following Graduate Attributes: (i) ability to work independently within a relevant ethos;......

Words: 3252 - Pages: 14

Premium Essay

Assignment 2 - Diversification Strategies.

...Brief Overview of Nestle Over the previous 130 years Nestle Company has been able to acquire great amount of knowledge of almost all the varied markets of the world since 1866. This is the reason why Nestle has been able to gain a leading position in the global food operations as it has factories operation in 77 countries and it is selling its gamut of products in all the six continents. The best part so Nestle is that it occupies the leading market shares  along with a  broad and diversified  business portfolio in varied and many product categories which include  nutrition and baby food, coffee, dairy products, ice creams, mineral water, confectionary, chocolate and pet food and many more.  Nestle has been committed to provide top quality products and brands which are essential for good health for all age groups. That is why it incorporated nutritional elements in its vast array of product categories so that they can be promoted into the markets as high quality products and safe too (Raisch & Ferlic, 2006).  In June 1997 Peter Brabeck –Letmathe was appointed the CEO of Nestle and the critical challenge in front of him was to enhance the profitability of the company which already had mature markets. A suite of process innovation initiatives were being launched by Brabeck so that financial means can be generated to be invested in growth initiates which would result in maximization of existing assets, maximise distribution logistics as well as enhance the capacity......

Words: 3296 - Pages: 14

Premium Essay

Cases

...Executive Summary The aim of this report is to focus on the major decision that the management team of Nestlé had to take in determining whether to introduce the Partners’ Blend Coffee into the UK market with their own Nestlé Initiative or to introduce the coffee into the market with Fairtrade certification. This decision was prompted by the feedback they received from their customers to introduce a coffee line that has Fairtrade certification. The main idea of the Fairtrade movement is to address issues of unfair conventional trade practices that discriminate against the poorest and weakest producers in order to empower them to improve their position and have more control over their lives. In the course of analyzing where to introduce Partners’ Blend, the management decided to incorporate it with Nestlé UK because the UK has a natural desire to donate to other less fortunate nations especially as they are a relatively wealthy nation. As a result, many charity organizations have their headquarters in UK. This report would analyze the challenges and opportunities that Nestlé should consider in making the final decision to introduce the coffee either with or without the Fairtrade logo. It includes analyzing the power of suppliers, consumers, the competitive rivalry, the threat of substitute goods and the threat of new entrants when they want to take advantage of the opportunity to position Nestlé in a positive light with ethical coffee line. This report......

Words: 2684 - Pages: 11

Premium Essay

Nestle

...INTRODUCTION The most important thing for most of business company is an understanding their successful performance among the other competitors in market place. For some parties, like shareholders, it is essential for company to make a profit and gain above-average returns. In this assignment, we will discuss furthermore about Nestlé’s external environment in all aspects such as their general environment, industry environment, competitive environment, and scan the opportunities and threats of the company. And also we are going to explain briefly about their internal environment includes their resources, type of their resources, company’s capabilities, evaluate their core competencies and so on. PROFILE OF THE COMPANY Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Sales at the end of 2004 were CHF 87 bn, with a net profit of CHF 6.7 bn. We employ around 247,000 people and have factories or operations in almost every country in 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 products to people, wherever they are, whatever their needs, throughout their......

Words: 13382 - Pages: 54

Premium Essay

Nestle Expanding Globally

...CHAPTER ONE Introduction 1 1.1 INTRODUCTION INTRODUCTION TO NESTLÉ S.A. Nestlé began in Switzerland in the mid 1860s when founder Henri Nestlé created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henri’s product was a carefully formulated mixture of cow’s milk, flour and sugar. Nestlé’s first product was called Farine Lactée (“cornflour gruel” in French) Henri Nestlé. The product was first used on a premature baby who could not tolerate his mother’s milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henri’s new formula and it provided the nourishment that saved his life. Within a few years the first Nestlé product was marketed in Europe. In 1874, Jules Monnerat purchased the Nestlé Company. Nestlé developed its own condensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. The Anglo-Swiss Condensed Milk Company made products like cheese and instant formulas. The two companies merged in 1905, the year after Nestlé added chocolate to its line of foods. The newly formed Nestlé and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong......

Words: 12626 - Pages: 51

Premium Essay

Strategic Management

...1. [BUMGT 3702 STRATEGIC MANAGEMENT] September 24, 2012Nestlé Company 41.0 IntroductionThe most important thing for most of business company is an understanding theirsuccessful performance among the other competitors in market place.For some parties, likeshareholders, it is essential for company to make a profit and gain above-average returns. Inthis assignment, I will discuss furthermore about Nestlé’s external environment in all aspectssuch as their general environment, industry environment, competitive environment, and scanthe opportunities and threats of the company. And also I am going to explain briefly abouttheir internal environment includes their resources, type of their resources, company’scapabilities, evaluate their core competencies and so on.1.1 Industry and Nestle summaryNestlé S.A. is a Swiss multinational nutritional and health-related consumer goodscompany headquartered in Vevey, Switzerland. It is the largest food company in the worldmeasured by revenues. Nestlé’s products include baby food, bottled water, breakfast cereals,coffee, confectionary, dairy products, ice cream, pet foods and snacks. Nestlé employ around330,000 people in over 150 countries and have 461 factories or operations in 86 countries.Nestlé sales for 2011 were almost CHF 83.7 billion. It is one of the main shareholders ofL’Oreal, the world’s largest cosmetics company. Nestlé history begins back in 1866, whenthe first European condensed milk factory was opened in Cham, Switzerland, by the......

Words: 5300 - Pages: 22

Free Essay

Nestle

...Nestlé in 2008 PAGE LIST COURSEWORK COVER COVER……………………………………………………………………………………1 PAGE LIST………………………………………………………………………………..2 INTRODUCTION……………………………………...…………………………………3 HISTORY……………………………………………..…………………………………..4 * TIMELINE……………………………………………….………………………..7 BUSINESS MODEL AND FRAMEWORK…………………………...…………………8 QUESTION AND ANSWER………………………………………………..……………9 * QUESTION 1……………………………………………………………………...9 * QUESTION 2………………………………………………………….…………14 * QUESTION 3………………………………….…………………………………17 * QUESTION 4……………………………………………….……………………19 * QUESTION 5…………………………………………………………….………20 ANALYSIS………………………………………………………………………………22 * SWOT……………………………………………………………………………23 * PORTER’S 5 FORCES……………….…………………………………………30 * PORTER’S VALUE CHAIN……………………………………………………36 * BCG MATRIX…………………………………………..………………………39 * PORTER’S GENERIC STRATEGIES……………………….…………………41 FINANCIAL STATEMENT……………………………………………….……………44 CONCLUSION……………………………………………………..……………………49 RECOMMENDATION……………………………………………………….…………51 CITATIONS…………………………………………..…………………………………53 INTRODUCTION Nestlé is the largest food and beverage company in the world. It is also well on its way to becoming world leader in nutrition, health and wellness. Nestlé is a Swiss company, founded in 1866 by Henri Nestle. Henri Nestlé, the founder of Nestlé, was a life-saving chemist but also an innovative marketer. He used scientific knowledge to develop products that met consumer needs. He used his name to brand his products in a......

Words: 14085 - Pages: 57

Premium Essay

About Hcl Tech

...Chocolate SLIDE 1 Good morning friends !! Please take your chocolates from the basket. Thank you. Myself and nithya will share on Chocalates……………… SLIDE 2 So Where Chocolates come from? Yes!! It comes from most of the tropical parts of the world like Africa, Ghana the number one producer, then Indonesia, Brazil, Mexico etc etc… This is a Cacoa Tree which bears the Cocoa pods. The tree takes 5-6 years to mature and bear a fruit. The ripe cocoa pod has about 30 usable pods each year ie rougly 1000 cocoa beans a year Around 500 beans make 1 pound only ie 2 pound of bittersweet cocoa per tree in a year. Cacao farming is very labor intensive. Every part of cacao farming, from planting to harvesting to fermenting, is best done by hand, not machines. Pods must be removed from the trees individually, by hand, because not all ripen at the same time. Farmers generally use machetes or large knives attached to poles to slice down the ripe pods, taking care not to hurt nearby buds. The pods are split open by hand. The beans are scooped out and the outer shell is discarded. If you tasted a bean at this point you would notice a sweet, lemony flavor from the pulp. The actual bean would be bitter and hard to eat. SLIDE 3 Fermentation Once the cacao beans are scooped from the pods, they are fermented and dried in the two-step curing process that sets in motion the development of the flavor nuances which maketasting chocolate so exciting. Fermentation is the first critical process to......

Words: 4444 - Pages: 18

Premium Essay

Hnd Assignment

...needs of the consumer every day by marketing and selling food of a consistently high quality. The confidences that consumers have in our brands is a result of our company’s many years of knowledge in marketing, research and development, as well as continuity – consumers relate to this and feel they can trust our products”. In particular, we envision to Lead a dynamic, motivated and professional workforce – proud of our heritage and positive about the future Meet the nutrition needs of consumers of all ages – from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality. significance of stakeholders Deliver shareholder value through profitable long term growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan. Effective dialogue with our stakeholders is central to Creating Shared Value, both in terms of understanding opinions and concerns, and in delivering our commitments. Our stakeholder engagement programme helps us to shape responses to shared challenges, drive performance improvements, and ultimately strengthen collective action. While we encourage our businesses to identify key stakeholders at a...

Words: 4427 - Pages: 18

Premium Essay

Unilever vs Nestle Analysis

...Global Branding of Unilever and Nestle | Report Analysis | ] | Global Branding of Unilever and Nestle | Report Analysis | | 1. Executive summary 4 2. Introduction 4 3. Overview of Unilever and Nestle 4 3.1. Company Facts-Vision and Mission 5 3.2. Company Facts-Core Business Sectors 5 3.3. Company Facts- Business Strategy 5 4. Global branding 6 4.1. Standardization vs. regional adaptation 6 4.1.1. Language 6 4.1.2. Cultural differences 7 4.2. Advertisement 8 4.2.1. Religious issues ...

Words: 3373 - Pages: 14

Premium Essay

Financial Analysis of Nestle Lanka Plc

... Investment - both long-term investment in non-current assets and short-term investment in working capital; * Finance - from what sources should funds be raised? * Dividends - how should cash funds be allocated to shareholders and how will the value of the business are affected by this? Efficient financial management requires the existence of some objective or goal, because judgment as to whether or not a financial decision is efficient must be made in light of some standard. Although various objectives are possible, we assume in this book that the goal of the firm is to maximize the wealth of the firm’s present owners. Shares of common stock give evidence of ownership in a corporation. Shareholder wealth is represented by the market price per share of the firm’s common stock, which, in turn, is a reflection of the firm’s investment, financing, and asset management decisions. The idea is that the success of a business decision should be judged by the effect that it ultimately has on share price. Whether your business career takes you in the direction of manufacturing, marketing, finance, or accounting, it is important for you to understand the role that financial management plays in the operations of the firm. In this assignment, our group is analysed the prospects of...

Words: 7992 - Pages: 32