Case Study Model Of Nestle

Consumers around the world, from village squares in Nigeria to the sky crappers of New York and Chicago, are united by the Nestle promise of quality, taste, nutrition and convenience. Nestle’s headquarters are located in Vevey, Switzerland but the Nestle Company has factories or operation in almost every country in the world. Since 1998, Nestle had employed 230,000 people worldwide, with RM71.7 billion in sales. Now moving forward to 2003, Nestle has increased the amount of employees to 253,000 people, with RM88 billion in sales. Nestle is increasing the size of their company year by year. In addition, Nestle also has increased the variety in the different products they offer. In December 2014, Nestle announced that they were opening 10 skin care research centres worldwide, deepening its investment in a faster-growing market for healthcare

The “Nestlé way” is to dominate its markets. Its overall strategy can be summarized in four points:

Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material

Structure:Operations:Performance:Financial Analysis:3.identify alternatives to increase market share:Offensive Strategies1.attack nestle head-onmove to a broad cost-leadership approach (session 3, page 4 & 6)cut costs structure to compete2.Invest to improve competitive position:Focusing on their core competencies - differentiation strategy.

Nestle’s Kit Kat is one of the major chocolate confectionery products in Australia. In 2014, the Kit Kat brand held 5.31% of the chocolate confectionery segment (Euromonitor International, 2014). According to Roy Morgan Research (2013) it was also Australia’s fourth most consumed chocolate bar with 6% of the total population consuming it an average four-week period. In terms of affordability, Kit Kat is a lower priced product that is affordable for a wider range of consumers. Kit Kat is a low-involvement product that is generally purchased on impulse, therefore availability of the product is very high with the vast majority of supermarkets, convenience stores and other non-store outlets such as vending machines sell it. Kit Kat’s differentiates itself from other products within the industry through its use of 100 per cent fair-trade certified cocoa beans and sustainable palm oil. Nestle Australia is the first major chocolate manufacturer in Australia to source all the cocoa

In the long run, Nestlé can gain momentum in this segment if they are able to diversify the kind

This gave Nestlé global control over the brand, except in North America,[6] and production and distribution increased with new facilities in Japan and additional manufacturing operations set up in Malaysia, India and China.[2]

At the end of May 2015, India’s Food safety administration (FDA) ordered Nestlé India to recall its popular 2-minute Maggi noodles after tests showed that the product

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

Technology gives many opportunities for the development of new products or improvement of existing ones. New techniques of marketing such as internet and e-commerce are important to focus in this modern era. Therefore Nestle uses technology in several business operations like to maintain the databases with the help of software. Nestle should follow such a maxim that accelerate innovation with the help of technological advancements. Nestle is already using the state of the art technology for the production of various products, they are meeting the global standards by installing the contemporary

The article has been focused on Nestlé’s performance for its different kinds of products that have been declined its target profits. Therefore, Nestle has set up a margin goal that will help the world’s largest food package company to regain its expecting profits. It is mentioned in the article that, the company has slowed down its growth in the different marketplace in which some products need to improve its performance according to analysis from various sources, such as RBC analyst James Edwardes Jones, and UBS analyst Pinar Ergun. According to the article, the activist investor Dan Loeb arguing for a change of their investment for Nestle in which the new CEO Mark Schneider must act immediately to fulfill the profit margin

According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.

Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created Nestlé 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 consumer’s primary motivation for a purchase is the claims made by the product based on nutritional content.

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.

Nestlé’s 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. They believe that leadership is not just about size, it is also about their behaviour. They recognise trust is earned only over a long periods of time by consistently delivering on their promises. These objectives and behaviour are encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up their corporate ambition. The Nestlé Roadmap is intended to create alignment for their people behind a cohesive set of strategic priorities that will accelerate the achievement of their objectives. These objectives demand