Nestle Corporate Strategy Analysis

Andrews, K., 2010. The Concept of Corporate Strategy, 3rd Edition. Financial Times Prentice Hall. [Accessed 13 April 2014]

Before we can talk about the Strategy Hudson Bay uses we must first answer the the question of what a Corporate and Business Strategy is and how The Bay inaugurates this into their company;

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.

Nestlé is the global leading nutrition, health and wellness company based in Switzerland. Its product line includes baby food, breakfast cereals, coffee, confectionery, dairy products, frozen food, pet foods, yoghurt and snacks with high revenues making it the world’s largest food company. Nestlé operates in 197 countries with over 340,000 employees, in 2014 its group sales account CHF 91.6 billion (USD 99.9 billion), whereas its trading operating profit is CHF 14 billion (USD 15 billion). “The Group’s net debt fell from CHF 14.7 billion to CHF 12.3 billion reflecting strong free cash flow during the year at CHF 14.1 billion more than offsetting the payment of the dividend of CHF 6.9 billion and the initial phase of the current share buy-back programme” (Nestle, 2014).

The symbol, “Good Food Good Life”, which is always enclosed in its products, guides every activity within the company. Nestlé believes that good food is the primary source of good health throughout life thus it always puts nutrition, health and wellness at the core of its business. The firm tries to further develop and emphasize these aspects in all its economic activity. These three goals- Nutrition, Health and Wellness can therefore also be found in all Nestlé products as well as its mission statement. Nestlé’s strategic purpose mission is therefore to make better food in order for consumers to live a better life creating an apparent relationship between the firms mission statement and logo as it strives to make safe, high quality and nutritional food that meet physiological needs. Due to the complexity of products and services Nestlé offers, the firm must target numerous different groups of customers. Hence, market segmentation plays an important role for Nestlé as it has to know the target customers each product or service markets towards. Therefore the business conducts consumer and market segmentation according to age, geographic situation, income and gender, whilst maintaining their, “Good Food Good Life”

Nestle is a swiss multinational food and beverages company. Its headquarters is located at vevey, Switzerland. In terms of revenue it is largest food company in world. Nestle produces the portified products such as baby food ,bottled water ,breakfast cereals ,coffee ,tea ,dairy products ,ice cream ,frozen food ,pet foods ,and snacks .Nestle provided 167 billion servings of fortified products .Among them 29 brands of Nestle are getting turnover of $US1.1 billions. Nestle is one of main shareholders of L’OREAL company, the worlds largest cosmetic company.

estlé is the largest food and beverage company in the world. Headquartered in Vevey, Switzerland, the company has annual revenues in excess of $70 billion and nearly 250,000 employees at 500 facilities in 200 countries. Best known for its chocolate, coffee (it invented instant coffee), and milk products, Nestlé sells hundreds of thousands of other items, most of which are adapted to fit local markets and cultures. Traditionally, this huge firm allowed each local organization to conduct business as it saw fit, taking into account the local conditions and business cultures. To support this decentralized strategy, it had 80

Abstract- In this report NESTLE international corporation will be a subjected of depth analysis. Main part of this report will be based on explaining with the Corporate Social Report of Nestle and the aim will be highlighting main issues considered by the company.

My rationale: Nestle transformed the nature of its organization Nestle fine tuned its organization and transferred its executive offices from Switzerland to the United States which allowed an improved and enhanced organizational stability.

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.

For a business company like Nestle the important thing is understanding their successful work among the other companies and competitors in present market. Nestle was founded in 1867 by a German pharmacist Henry Nestle, who launched his product Farine lactee a mixture of wheat flour, sugar and cow’s milk to save the neighbour’s child. They concentrated on nutrition from the beginning. Nestle merged an Anglo-Swiss Condensed Milk Company , founded by Americans Charles and George Page to form a Nestle and Anglo-Swiss Milk Company. Nestle started organising several training programmes regarding various important components of corporate business principles since 2011. These programmes were held in order to teach the employees about the material they use and how they function, and also many efforts were made to know about management and leadership skills.

Porter, M (Harvard business News) searched 17:01:2013 says Creating Shared Value is a concept that recognizes the society needs, economic needs all define the market. For nestle, creating shared value connects the needs of its shareholders and the needs of its consumers to the need to respect people and the environment. Nestle believes that creating shared value is to enhance and protect its business and believes it must go beyond compliance and sustainability and create new and greater value for its people, or shareholders and society as a whole.(CSV At Nestle 2011)

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.

Thomas M. Idzorek, CFA Director of Research Ibbotson Associates 225 North Michigan Avenue Suite 700 Chicago, Illinois 60601-7676 312-616-1620 (Main) 312-616-0404 (Fax) tidzorek@ibbotson.com

And we are willing and capable to find solutions. One of our big advantages is our brand. Today, NESCAFÉ is the world’s leading coffee brand. With great heritage, size, expertise, people and passion come great responsibilities, but also the power to initiate change.