Nestle: Operating in a Global Economy Essay examples

1698 Words7 Pages
Nestle is a large company with over 150 years of history. The company deals with global production and competes around the world in an effort to achieve steady growth and profit. Competing in the global economy requires dealing with many challenges to meet production goals and market products to different cultures. Nestle also markets to third world countries that need nutritious food at a reasonable price. The company is a market leader in numerous product lines that have provided a solid foundation for sales and profit. Nestle has strong brand recognition that provides a competitive advantage to get into new markets and expand in existing markets. Operating in the global market means embracing numerous opportunities while…show more content…
Acquiring raw material and product distribution were difficult during this time period, but the war also created a new demand for dairy products. The company purchased several factories in the United States and world production had more than doubled since 1914 (Nestle). As customers returned to fresh milk rather than condensed or powered milk, Nestle recorded its first loss and was impacted by the economic slowdown following the war. Management responded quickly by streamlining operations and reducing the company’s outstanding debt. They also expanded the production line and chocolate became the company’s second most important activity (Nestle). World War II also had a significant impact on the development of the company. Profits dropped from $20 million in 1938 to $6 million in 1939. Neutral Switzerland became increasingly isolated through the war in Europe and the company transferred many of its executives to Stamford, Connecticut (Nestle). Although initially hurt by the war, sales dramatically increased to support the war effort and sales more than doubled from 1938 to 1945. The company continued to mature through the remainder of the 20th century and expanded beyond its typical food product line. Nestle took the first step outside the food industry through a venture into cosmetics and an agreement with L’Oreal. Other acquisitions included ice

More about Nestle: Operating in a Global Economy Essay examples

Open Document