Nestle : The Largest Food And Beverage Multi National Corporation

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Globalization is the dominant force by which the world has become interconnected significantly as a result of extremely increased trade and decreased cultural differences. Globalization has made crucial changes in the production and trade of goods and services. The giant companies are now multinational corporations with subsidiaries in many countries. They are no longer national firms with their operations limited to the boundary of just one country. Such companies’ growth and operations are not constrained by any geographical, economical or cultural boundary. One of these multinational corporations is “Nestle”; that has gained world-class recognition in recent times. Nestle has made significant use of globalization in the last decade in …show more content…

As the time is passing by, the number of mergers and acquisitions annually by Nestle has increased tremendously; that lead to the rise of economic and geographical globalization.
Economic Globalization: Because of the geographical expansion of the company, its focal point shifted from the national market to the global market. This shift was driven by important changes in their management team that leads to new and different practices of managing and organizing production and distribution processes of goods globally.
Geographical Globalization: Geographical expansion of the company was a result of “Mergers and Acquisitions”. Nestle has made over 50 acquisitions since 1985. Initially, Nestles’ growth strategy used acquisitions to diversify the company’s product offering. Then, in the early 1990s, it used acquisitions to expand geographically. More recently, it has focused its acquisitions on growing a selective number of very attractive businesses in different geographical markets where it can achieve leadership positions. Since the year 2003, it has made 31 acquisitions. Some of them are extremely crucial to Nestles’ growth.
It is really important to trace the pattern of Nestles’ M&A. The company was losing market share in the developed countries at a fast pace due to increasing competition.

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