Nestle Case Study

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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…show more content…
So, their approach to this kind of investment will not change the current situation. On the other hand, “Third Point declined" has been declined for nestling in which improvement is required to reach the margin goal. Therefore, RBC analyst James Edwardes Jones said: "Nestlé 's new margin target was already baked into his estimates, leaving his target price unchanged". At the same time, UBS analyst Pinar Ergun has argued that the targets can be achieved if a rise of the per-share by 2020 if Nestle can ensure the skepticism of changes that have been in the process. Although the company concentrates on trying to increase the sales of the struggling products such as "Ying peanut milk" brand in China, while the focus was on the high performing business. Investment for the Frozen foods such big market like the US is another plan which clarified that 90% of household have a microwave and freezer for preserving food for a long time. Meanwhile, an investment focusing on ready-to-drink cold coffee and out of home coffee could another possible way to increase the sales of the Nestle products in China, India, and Africa, a statement by Mr. Schneider. To achieve the profit margin target, nestle will restrict the expenses within 2.5 million (($2.59 billion) which will cut the costs of manufacturing, procurement and general and

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