Internal Analysis : Nestle 's Resources, Tangible And Intangible Product

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

Here are some the common challenges which all the organizations face around the world and Nestle Bangladesh Ltd is also facing all of these challenges more or less.

The resource-based view emphasizes the internal accumulation of firms’ resources and capabilities that contribute to firms’ development (Peteraf, 1993). Resources include all assets, attributes, knowledge, etc. (Barney, 1991), which enables the firm to implement

The organization that has been chosen for this assignment is Nestle. Nestle or Nestle S.A., French pronunciation which is the Swiss biggest multinational food and beverage organization. Nestle is in the food processing industry where it produces raw food products and finished processed product that includes cannery, meat processing and food packaging that compliance with the Safety Health Awareness and Recognition Program (SHARP). Nestle is an organizatio that produces pet foods such as Friskies, Fancy Feast, Dog Chow and Beneful, breakfast cereals such as Cookie Crisp, Chocopic, and Honey Stars , coffee and tea such as Nescafe, Coffee Mate and Nestea, confenctionery and chocolates such as Kit Kat,

Corporate level strategy is the most essential part of the company. The company provides the unique product and due to which the purchasing power has increased. The company tries to cut off it unnecessary cost. There is a huge amount of bargaining power of the product. In current years, Nestle has mainly paying attention on the health of the customer. The company has got the advantage of its brand name. The company research and development team also try to bring some new and innovative product in the market.

Nestlé is a Swiss multinational food and beverage company headquarter in Vevey Switzerland; the company product include beverages, milk products, ice cream, nutrition and healthcare, dishes and cooking aids, confectionery last but not least pet care. Nestlé has factories in 86 countries and its products are sold in 196 countries around the world (Nestlé 2013 annual report). The macro environment in 2013 was one of the soft growths in developed and developing countries, Nestlé response was to increase brand support, innovation and ensure price sensitively matching consumer needs. Nestlé sales have significantly growth 2.7% from CHF 89.7 billion in year 2012 to CHF 92.2 billion in year 2013.

I will be focusing on the transnational food company ‘Nestle’ for my project in International Marketing MN313. Nestle is a Swiss food and drinks company that operates in over 195 countries supplying food, drinks and more products every single day. Nestle operates from a central headquarters based in Vevey, Switzerland where it was founded in 1905. I find it remarkable that they still operate and run their business from the same location it was founded over 100 years ago. Most business grow too large and need to move out of the area they were founded in as it can no longer offer them the required sustainability they need to expand and enter into new markets and become bigger players

The biggest problem facing Nestlé is declining growth due to increasing competition in the food and beverage markets it serves. Competition from new, healthier food options, increasing pressure from generics, and smaller food companies have pressured margins and top line growth. Many of Nestlé’s brands are centered around processed food products which have been falling out of favor with consumers seeking healthier choices. Coffee, a business where Nestlé is a clear global leader, is experiencing tremendous competitive pressure, especially in the United States. These challenges have initiated growing pressure from investors for Nestlé to find ways to increase margins and growth. The below chart demonstrates the stagnant sales volume for Nestlé since 2010.

Nestlé is a pubic liability company in Switzerland. It is in tertiary production. According to the annual report (2014), it provide people with a wide range of food and beverages, throughout people’s life. It arms to help people having a more joyful and healthy life. Also, what the company promise of is: “Good Food, Good Life”.

Nestlé is one of the largest food company in the world and operates in 70 countries. It has a turnover of €100 billion per anum. With a total of 250000 employees, there are 400 factories of Nestlé divided into three zones namely,

The resources of an organisation are those assets that deliver value added in the organisation (Lynch, 2015). According to the resource-based view, firm performance is achieved through competitive advantage that derives from the application of resources that are valuable, rare, difficult to imitate and unable to substitute (Barney, 1991).

Nestle was founded by Henri Nestle in 1866 and is the largest food and beverage company in the world nowadays. Nestle employ around 339,000 people from about 194countries and has 447 factories in almost every country in the world.

The resources of an organisation are those assets that deliver value added in the organisation (Lynch, 2015). According to the resource-based view, firm performance is achieved through competitive advantage that derives from the application of resources that are valuable, rare, difficult to imitate and unable to substitute (Barney, 1991).

III. CAPABILITY IS FORMED BY THE INTEGRATION OF RESOURCES Table I shows that competitive advantage is gained by the strategic deployment of some resources, capabilities, and/or competencies. Literature review suggests that concepts such as resources, capabilities, competencies, and core competencies are not clearly defined. We have found that only the resource itself is defined with a wide range of meanings. On one hand, resources are defined as “anything which could be thought of as a strength or weakness of a firm” [9]. This “anything” may include physical resources (e.g., raw materials, equipment, financial endowment, etc.), human resources (e.g., training, experience, skills, etc.), as well as organizational resources (e.g., firm image, process, routines, etc.) [4], [14]. Note that with this definition, capabilities are considered as part of resource. On the other hand, capabilities are not part of resource because of their dynamic “doing” nature. Many authors argue that capabilities are the result of resource deployment and organizational processes. Capabilities use resources and, therefore, are more dynamic and complex entity and should be treated independent to resources [15]. We feel more comfortable with Grant [5] definition who argues: “Resources are inputs into the

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.