Swot Analysis: SWOT Analysis Of Nestle

This is more than any other food company – both as a percentage of sales, as well as absolute terms (Nestle, The world of Nestlé - (n.d.). Retrieved from http://www.nestle-family.com/our-company/english/assets/downloads/The-World-of-Nestle.pdf), p. 16, para. 6). Nestle has established a rigorous process of product testing which includes scientific nutritional assessment. Each product has a measurable nutritional value to prove its superiority in delivering nutritional benefits. Research and development has given the organization the capability of forming innovative partnerships and collaborations at each stage of the product development process (Nestle, The world of Nestlé - (n.d.)., p. 19, para. 2). The company’s ability to bring together all of its global R&D resources enables Nestle to provide efficient, innovative, and high quality products while adhering to a strict regulatory compliance. Nestlé’s R&D has been influential in the global food market and beneficial for large companies to duplicate their success in creating value and sustainability through research and development.

Nestlé has to face huge competition from broad range of product categories. The competition, all the rougher as, Nestlé has to deal with multinational organizations competitors with similar range of products. Moreover, the company

Nestlé’s products are categorized as business and convenience products. They different variation of products and they have a 12 product lines. Besides, they have products which are in the introduction stage, growth stage and maturity stage. Nestlé (Malaysia) Berhad are their trade name while Nestlé is their brand name. They are using mixed branding. They also provide different kind of packaging for different type of product. They are using demand-oriented, cost-oriented, profit-oriented, competition-oriented, and special adjustment approaches. Their headquarters is in Switzerland and they has 114 outlets across the world. They 7 factories in Malaysia. They are using multichannel marketing. Furthermore, they promote their products through advertising, personal selling, public relations, sales promotion and social

Nestlé also established 16 factories in Mainland China in the following years (1990-2006). Up to 2012, Nestlé had partnership with Yinlu, Hsu Fu Chi, Totole, Dashan, Haoji and Wyeth Nutrition to operate 33 factories in Greater China (Mainland China, Hong Kong, Macao and Taiwan) (Nestlé China CSV Report 2012, 2012).

Nestle is one of the huge multinational company, their business practices manage by integrity, honesty, fair dealing and full compliance with all applicable laws. Nestle has their own code of conduct, all employees need to committee it every day. This Code

Nestlé has ten principles of business operations that everything they do in their business revolve around; Nutrition Health Wellness, Quality assurance and products safety, Consumer communication, Human Rights in business activities, Leadership and personal responsibility, Supplier and customer relations, Agriculture products, Environmental sustainability, and Water. Under each of these topics is a set of things Nestlé follows such as, making it their core aim to enhance the quality of consumer’s lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. Another is Nestlé, promises that everywhere in the world their products are safe and of high standard.

Nestle is the world's biggest food manufacturer, with well over 500 factories in 85 countries, and a portfolio that ranges from baby foods to pet care, from chocolate to mineral water. Its world-famous brands include Nescafe and Perrier, among many others. The group also owns a large shareholding in cosmetics company L'Oreal. As with other food companies, recent years have seen a greater concentration on a focused food and beverage business, its most successful line is its confectionery section.

Nestlé has formed a well-defined roadmap to achieve its global mission statement "Good Food, Good Life" (Nestlé, 2013). Nestlé chief goals and objective is creating shared value for shareholders while at the same time also create value for society (Nestlé, 2013). Nestlé also take a long-term view, to develop principles and values that are based on respect for people, environment and the world we live in (Nestlé, 2013). Besides that, it has developed to mark their achievement that is become the benchmark of nutrition, health and wellness, sustainable financial performance and trust by all stakeholders (Nestlé, 2013). In order to maintain its goals and objective, Nestlé apply three different corporate strategies which included operational pillars, growth drivers, and competitive advantage (Nestlé, 2013). In the operational pillars strategy, there are a sub strategy is innovation and renovation. Nestlé want to be a leader in innovation and renovation no matter in products, systems or processes. They wish there are some products will be entirely new and refreshed aspect (Nestlé, 2013). Therefore, Nestlé has using their creation of Nestlé Health Science to forge a major therapeutic role for

Nestle is the world’s leading nutrition, health and wellness company. From Henri Nestlé’s humble beginnings with the first product, Farine Lactée, which revolutionized infant feeding, the company’s priorities have remained the same -about bringing high quality, safe and nutritious foods and beverages to people through all stages of life. In Nestle’s pursuit of delighting and satisfying the customers, Nestle’s products are adapted to meet local, regional taste preferences, religious and cultural sentiments and disparities in purchasing power.

Economic -Nestlé is leading company in the food industry, they share their knowledge and expertise with local small and medium companies. It helps entrepreneurs to contend in the new free trade environment which will ultimately benefit the business and the economy by making the market grow. Other than that, Nestlé also collaborates with local government to give technical assistance to farmers in planting and gathering crops. The farmers will get higher income and Nestlé will get the chance to buy good and fresh raw materials to create their products. So the company would no longer need to import raw materials where as the can buy them at a very cheap price from the locals. (Kumar et al, 2013,

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).

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

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.

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.

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.