Nestle Case Study

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Topic: Nestlé Bends Under Activist Pressure Explanation of issues The articles have 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 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 articles, the investors are arguing for a change of their investment for nestling in which the new CEO Mark Schneider must act…show more content…
Schneider said Tuesday, that the L 'Oréal stake has delivered a 12% annual return on investment over the 42 years Nestlé has held it. 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 nestle 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. Therefore, Nestle is focusing on increasing the same of "mid-single-digit organic" by 2020 when it required a balanced in the performance when Mr. Schneider pointed that "going for a run and going for a dive at the same time". Although the company concentrates on trying to increase the sales of the struggling products such as " Ying peanut milk" brand in China, while the main focus was for 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

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