...Acquisitions and the emerging market strategy Since Nestlé is a global organization, the strategy of acquisitions and mergers is widely and frequently followed by it. Its competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestlé aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa, Latin America and Asia. Nestlé recognizes the profitability possibilities in these high-risk countries, but pledges not to take unnecessary risks for the sake of growth. This process of hedging keeps growth steady and shareholders happy. In Asia, Nestlé’s strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans. Nestlé’s strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently, Nestlé acquired Indofood, Indonesia’s largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries. A flurry of acquisitions which has made Nestle the biggest food company on Earth In the 1920s, Peter, Cailler, Kohler Swiss Chocolate Company was acquired and with it chocolate became an integral part of Nestlé’s business. This sparked further variety in the products offered – including a powdered...
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...establishment Nestle was first founded by Henri Neslte in the 1860s by developing and producing food products for babies who could not adapt mother’s milk. Following the success in baby food products, Henri incorporated with an Anglo-Swiss condensed milk company to develop dairy products, especially for government supply in World War I. High sensitive and quick responding to the demand of consumer, Nestle continued to create and develop new product mix to canned food, beverage, pet care products, to maximize its scope of business in food segment. Nestle had been incurring high success during its operation in food industry, proved by production many creative product portfolio, double sales and tripled profits, globally brand recognition, offices and factories around the world with the management of previous CEO Helmut Maucher. Maucher successfully promoted Nestle to higher position in market as a global company and has been operating beyond its original Europe boundary. Nestle seems not still happy with what it had obtained. Under leadership of current CEO Peter Brabeck, Nestle is now experiencing a more significant growth and synergies as the top nutrition and food company with strategic management of Brabeck since he took over Nestle in 1997. In today, Nestle has developed another core business to Research and Development sector to support its traditional food and beverage business. Vision and Mission Vision According to Chief Technology Officer, Bauer, of Nestle in his presentation...
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...STRATEGIC PROFILE ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field researching and developing alternative fuels. The company is currently recognized as the “Best Oil and Gas Company in Asia”, by the ‘Global Finance’ magazine. In 2007 it was ranked 369th by the Fortune Global 500 list of largest corporations by turnover. This is only a small measure of their performance thus far. By looking at this and many other achievements it is obvious that ONGC is not slowing down any time soon. When taking into account that it is doing business in what will soon be the most populated country in the world, they will only be growing from here. Our analysis will look at the internal and external factors that affect the business. It will show how strong they are in the Oil Industry but also focus on what they need to do to stay competitive. Strategic Profile ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field...
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...African Journal of Basic & Applied Sciences 4 (3): 95-105, 2012 ISSN 2079-2034 © IDOSI Publications, 2012 DOI: 10.5829/idosi.ajbas.2012.4.3.1593 Corporate Social Responsibility Initiatives of Major Companies of India with Focus on Health, Education and Environment Anupam Sharma and Ravi Kiran School of Behavioral Sciences and Business Studies, Thapar University, Patiala, India Abstract: Corporate social responsibility (CSR) is emerging as a new field in the management research. In India, many firms have taken the initiatives of CSR practices which have met with varying needs of the society. The present study has made an attempt to understand the status and progress and initiatives made by large firms of India in context to CSR policy framing and implementation. Data has been collected from the official websites of the firms, in-person interviews and through structured questionnaire. The CSR initiatives in context to health, education and environment sector to be rated by the interviewee were identified from the literature. Based on the information and discussions mentioned a matrix of various policy factors has been prepared. All initiatives factors have been rated on the scale of 1 to 5. Results of the study depicts that IT and Auto industry is more going for taking up CSR initiatives while FMCG sector has focused yet not too much into the social responsibility initiatives. Although India has entered or taken a transformational change by involving into new CSR initiatives, but...
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...Business Analysis Part III: The Coca-Cola Company Karen Mace MGT 521 June 11, 2012 Elaine Nissley Business Analysis Part III: The Coca-Cola Company The Coca-Cola Company is a successful global food and beverage organization. In 2012, The Coca-Cola Company was ranked 59 by Fortune 500 magazine [ (CNNMoney) ]. This was an increase from the previous ranking of 70. DiversityInc magazines ranked the organization as number 12 on the magazine’s top 50 companies for diversity in 2011 [ (The Coca-Cola Company) ]. The Coca-Cola Company has been the dominant leader in the global soft-drink industry through the 20th century [ (The Coca-Cola Company) ]. The Coca-Cola Company has been influenced by different economic trends, such as lower disposable consumer income and the importance of conservation. In a recession, consumers will often reduce their spending on non-essential items such as carbonated beverages so that their disposable income can be used to cover the essential household expenses. Carbonated beverages have been viewed as non-essential items because they lack any nutritional value. Coca-Cola has positioned the company to sustain this economic trend by offering products focused on a nutritional aspect such as flavored waters and reduced sodium sports drinks. Consumers can validate their spending on these items because they are healthy and “good for them”. Coca-Cola has addressed the importance of conservation by reducing the size of the bottle. The reduction in size...
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...1. Behind the Scenes: Nestlé Carola Trinkle • Andrea Restrepo • Christine Lee Jason Schron • Jesse C. Vaughan May 2, 2011 2. 3. Strategic Analysis 4. SWOT Analysis Internal Environment Strengths : Strong reputation, largest global food company, brand equity, historical expertise Weaknesses : labor condition controversy, coordination and communication problems External Environment Opportunities : health conscious consumers, organic markets, new technology Threats : rising commodity prices, many strong competitors for each brand product, government regulation 5. General Strategy Product Differentiation Strategy “ Renovation and Innovation” of products and brands. Their portfolio ranges from baby foods, bottled water, coffee, chocolate, drinks, ice cream, and petcare Mergers and Acquisitions with Peter, Cailler, Kohler Chocolats Suisses S.A and joint ventures with L’Oreal, Coca-Cola, and General Mills Low Cost Strategy Majority of products are produced in-house Operational Effectiveness Nestlé Continuous Excellence (NCE) program addresses increasing efficiency in standard operating procedures, consistency and manufacturing management 6. Current Strategy Premiumisation Promoting premium products like high-end coffee and chocolate brands Launched a new tea-brewing system called Tpresso Emerging Markets 45% of sales by 2020, $7 billion over 2 years Asia, Latin America and Africa Growing population, rising disposable income 7. (Cont.) Health Science & Nutrition Concerned...
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...0 Executive Summary The Company for analysis is the Coca-Cola Company. It operates in the soft drinks industry. This company is known to be among the oldest companies that manufacture non-alcoholic beverages. Among the main competitors of Coca-Cola is Pepsi. Coca-Cola is a multinational that has subsidiaries in almost every corner of the globe. It is a publicly traded company with a current market price for its stock at 46.39 % as at 31st March 2016 which translates to a deviation of 0.41%.An analysis of Coca-Cola Company reveals that Coca-Cola is currently grappling with issues related to its market share, quality of its soft drinks and production processes. These problems have in turn decreased their market share and its competitive advantage. Competitors have taken this as the advantage to increase their sales and revenue. The notable competitors for Coca-Cola Company are Pepsi, Nestle S.A, Dr. Pepper Snapple group inc., and Nestle Waters France. This study undertakes an analysis of Coca-Cola's industry with an aim of finding the root causes of these problems and how Coca-Cola can overcome them. Michael Porter’s five forces model, ratio analysis, analysis of market capitalization, business model, and strategy are some of the main approaches that this study applies in analyzing the Coca-Cola Company. Nevertheless, the Coca-Cola Company remains competitive, and investors should not avoid from investing in Coca-Cola. Coca-Cola produces several brands of non-alcoholic beverages...
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...Global Strategist Beverages Mr. Colbert joined Rabobank in January 2011 and is responsible for developing FAR’s research portfolio and Rabobank’s global view toward the beverage sector. Rabobank’s FAR team provides information and analysis covering all of the major sectors throughout the food chain. The seven-member FAR Beverage team is part of Rabobank’s global FAR group, which is comprised of Rabobank s approximately 70 analysts around the world. Colbert joined Rabobank following an extensive career in the beverage industry. Most recently he was Managing Director of M&A Americas for Zenith International, which is one of the world’s leading consulting, market intelligence and financial advisory firms focused on the global food and beverage industry. Prior to that, he was Managing Director and Chief Operating Officer for eight years at Beverage Marketing Corporation, which provides market intelligence and financial advisory services to the global beverage industry. Over his career he has served as an advisor to Pepsico, Coca-Cola Enterprises, Heineken, Nestle Waters, Snapple Beverages, and Seagram's as well as many independent, private beverage companies. Additionally, he began his career at Coca-Cola Bottling of Miami, then moved to Beverage Canners International and Cadbury Schweppes. He has his undergraduate degree in political science from the University of Hawaii, and a Masters in Business Administration from the University of New Haven. Additionally, Colbert completed an Executive...
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...34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.The growing incline of rural and semi-urban folks for FMCG products will be mainly responsible for the growth in this sector, as manufacturers will have to deepen their concentration for higher sales volumes. Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestlé...
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...Chauhan (PGP05077) ABSTRACT Nestle is the world’s largest food company, and among the world's 40 largest corporations. It operates in approximately 500 factories in 83 countries and employ over 230,000 people. In spite of its global reach, what makes Nestlé special is that each of its national companies has the flexibility to make their own decisions – in order to best meet the needs of their own people and communities. Each region can choose to sell the brands that satisfy their own consumers’ unique needs. And yet, as part of the larger organization, all benefit from access to global resources, decades of experience and our large chain of research and development centres. This makes it multidomestic in nature. The company has a history of various successful strategies which has helped Nestle each to a level which we see it today. This study is done to understand its various entry strategies in multiple geographies around the globe and also to understand its differentiating factor which make it the leading brand. Nestle has first mover and competitive advantage over its peers. It is known for its innovations, successful marketing strategies, R&D , CSR activities and localization across geographies. This study gives comprehensive information about Nestlé’s strategies which make them the market leader and stave off the competition. It also cites various examples of various innovations and disruptive strategies used by Nestle across the globe. INTRODUCTION: ...
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...Shared Value Creation; Revolution or Rhetoric? Abstract The concept of Creating Shared Value(CSV), was made popular in a Harvard Business Review(2011)by M. Porter and R Kramer defines as, policies and operational practices that enhance the competitiveness of the company while transforming social problems which is related to the corporation into business opportunities and simultaneously yield greater profitability(Porter, Kramer,2011). As it sounds, it is a seductive promiseand has so far received obscene attention in the business markets and among business educators. Both authors seeks to regain trust in “business and society who has pitted against each other so long” …”Learning how to create shared value is our best chance to legitimize business”(Porter, Kramer, 2011) is how companies were viewed as prospering at the expense of the community. With both aims of evaluating and analysing the concept of creating shared value, in this paper, we suggest how CSV can help businesses harness its full potential by simply creating economic value while simultaneously creating value for society. Focusing on making the right kind profits, companies should look beyond just merely maximum profits but also integrates social benefits at the same time; starting a positive cycle which reconnects business with society. In CSV, it represents a new approach for businesses moving beyond CSR approaches in the past. However promising this bold new approach is, it has also created polarized...
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...FAST MOVING CONSUMER GOODS www.ibef.org FAST MOVING CONSUMER GOODS WHY INDIA INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS POLICY TRENDS AND PLAYERS MARKET OPPORTUNITIES FOR INVESTMENT ANNEX: APEX CONTACTS AGENCIES 3 7 9 12 32 38 A report by PricewaterhouseCoopers for IBEF Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a wellestablished distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. FAST MOVING CONSUMER...
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... Some guidance, however, will be provided by the tutor during the four workshops (so it is really essential you attend and participate to these workshops!). Additionally, the tutor will be available at pre-specified times for one-to-one or small group tutorials. By successfully completing this module, students will have demonstrated the ability to exercise initiative and personal responsibility, and the possession of the following Graduate Attributes: (i) ability to work independently within a relevant ethos; (ii) have a critical and questioning approach especially through exploring the boundaries of the discipline. I hope you’ll enjoy learning through this module as much as I enjoyed developing it. SYNOPSIS OF THE NESTLE CASE Nestle is one of the world's largest global food companies. It has over 500 factories in over 70 countries, and sells its products in approximately 200 nations. Only...
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... 4. External analysis 5. Internal analysis 6. resource based view 7. Value Chain Analysis 8. SWOT 9. Six Strategic Objectives 10. Financial analysis 11. Recommendations 12. Conclusions 13. Bibliography A brief Walkthrough Coca Cola is a well-known brand and the world’s leading beverage producer. The company is over 100 years old and enjoys patrons in over 200 countries. The company till date remains true to its vision and mission which has permeated through to all levels of the company. Coca Cola has a product of more than 3,500 beverages. These include * Energy drinks and Sports Drinks * Fruit and Fruit juices * Soft Drinks * Tea and coffee * Water * Other drinks The external environment analysis shows that coca cola enjoys a competitive position across the industry due to high capital requirements and exit costs. It has an intense but healthy rivalry with Pepsi. The Pestel analysis shows a growing demand for healthier alternatives to carbonated drinks which Coca-Cola is now addressing. Through the internal analysis of the company, we understand that the company has a competitive advantage in terms of its brand reputation and value chain process which it should continue to further use to its advantage. The value chain is perfectly aligned to ensure maximum efficiency. As the financial analysis, will show, Coca Cola has an extremely competitive share value and performance making it one of the most profitable...
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...assess the competitive position of the world's leading nutrition, health and wellness company, Nestle. A company with 140 years of experience, founded in 1866 and started out with a product for kids, a combination of cow's milk, flour and sugar. It soon started diversifying its products with the launch of all sorts of chocolate, milk and coffee products as well as drink/juices and tapping into the wellness area with the acquisition of l'oreal. A company that has been in continues mutation, adapting to the necessity of difficult times and being quicker than others to launch new products on the market. With the boom or organic food industries even Nestle jumped on the bandwagon and started acquiring smaller organic firms and releasing a huge array of so called healthy foods. As you are well aware their brand is one of the most recognized in the world because they are creating value for different communities, for their partners and obviously for their consumers. Or as they call it, they are creating shared value. Below a graph taken from their websites that enlists their strategy: . Industry analysis: Demographic Trends Cultural Influences *Ageing population that can afford higher costs *Increased consumption of healthier food and is more aware of health issues. *More concern about the environment and *Younger population more prone to diversify their the supply chain diets and meals and switch to healthier food Technological developments Political-Legal...
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