...Friday, May 21, 2010 NESTLE PROJECT TABLE OF CONTENTS SERIAL # PARTICULARS PAGE # 01 TABLE OF CONTENTS 02 02 ACKNOWLEDGMENT 03 03 INTRODUCTION TO NESTLE 04 04 HISTORY OF NESTLE 05 05 VISION OF NESTLE 07 06 MISSION STATEMENT & OBJECTIVES OF NESTLE 08 07 ORGANIZATIONAL CHART 09 08 BRANDS 11 09 EARNINGS 12 10 SWOT ANALYSIS 13 11 MARKETING 14 12 STRATEGIES ADOPTED BY NESTLE 15 13 COMPANY ENVIORNMENT 20 14 CO-OPERATE GOVERNANCE 21 15 PORTER FIVE FORCES ANALYSIS OF NESTLE 22 16 APPENDIX 23 ACKNOWLEDGEMENT First and foremost, we would like to thank Almighty Allah for giving us the ability and strength to complete this project. Secondly, we are also thankful to our respective parents for providing us with the opportunity to receive higher education in such an accomplished institution that required us to carry out such projects that expand the dimensions of our mind. We are definitely not forgetting to recognize the efforts and support of our teacher SIR S.M FAHEEM, without whom this project would not have been possible. Who give us the opportunity to work on a project, which not only enlarged our vision but also show, us the real picture of the market Management? Our special thanks to the group members, who have whole-heartedly work for the completion of this report. All of us have earned a valuable and worthy experience during the project. INTRODUCTION Nestlé was founded in 1867 by pharmacist Henri Nestlé on the shores of...
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...Ans-1 Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created Nestlé Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumer’s primary motivation for a purchase is the claims made by the product based on nutritional content. In order to reinforce their competitive advantage in this area, Nestlé created Nestlé Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services. The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and beverage businesses.. It encompasses a major communication effort, both internally and externally, and strives to closely align Nestlé’s scientific and R&D expertise with consumer benefits. International Strategy Nestlé is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestlé’s competitive strategies are associated mainly with foreign direct investment in dairy...
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...comes to managing in a global environment, Nestlé is extremely successful. Henry Nestlé showed an early understanding of the importance of global operations and the company has been making business decisions with a global perspective since they first developed in 1866. Preceding the First World War, Nestlé started to expand its horizons into Europe and the United States and ever since World War II they have been expanding until today where they now have over 10,000 different products and are located in 130 countries (Nestle). Switzerland-based Nestlé is a multidomestic corporation with operations in almost every country in the world. Because tastes are different amongst different cultures, the company’s managers match the products to their local consumers. For example, there are products sold in Europe that are not available in the United States or Latin America (Robbins). This displays an effective global perspective and has proved to be successful. Nestlé exhibits a geocentric attitude as they are very world-oriented and consider the varying preferences of their diverse customers. Nestlé also employs a global supply chain. They operate one of the largest supply chain networks in the Oceania region. From national supermarket chains in Australia and New Zealand, to small outposts in Papua New Guinea, Nestlé has over 2,000 Stock Keeping Units and 10,000 customer orders per month delivered to over 3,500 locations (“Supply Chain”). Nestlé is a leading global company and a good example...
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...of Trans-national Corporations (TNCs) in many economies today has sped up the process of globalization and the impacts of TNCs is a hotly debated issue now. From an economic viewpoint, TNCs bring about more benefits than negatives to host nations and I will be illustrating this in the remaining part of my essay by bringing in TNCs like Nestlé, Nike, Monsanto and Walmart, just to name a few. One undisputed economic benefit that TNCs brings is that it creates jobs and helps to alleviate the problem of unemployment in developing countries. TNCs actively exploit the principle of comparative advantage and often produce in a country or a region with lower costs of production input, for example, labour costs or material costs. Due to the cheaper labour costs that can be found in less economically developed countries, many TNCs choose to set up their manufacturing plants in these countries and it has opened up more jobs for the locals, especially for the low skilled workers. Nestlé, for example, operates 28 factories in the African continent today and provide direct employment to 14000 Africans and indirect employment to more than 50,000 (Nestlé, 2012). In addition, there are 70 factories and 312,828 workers in Vietnam producing apparels for Nike which can be found on their website (Nike, 2013). These TNCs provide low-skilled workers with job opportunities, a steady source of income and helps to alleviate part of the high unemployment rate that are faced by developing countries...
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...of Trans-national Corporations (TNCs) in many economies today has sped up the process of globalization and the impacts of TNCs is a hotly debated issue now. From an economic viewpoint, TNCs bring about more benefits than negatives to host nations and I will be illustrating this in the remaining part of my essay by bringing in TNCs like Nestlé, Nike, Monsanto and Walmart, just to name a few. One undisputed economic benefit that TNCs brings is that it creates jobs and helps to alleviate the problem of unemployment in developing countries. TNCs actively exploit the principle of comparative advantage and often produce in a country or a region with lower costs of production input, for example, labour costs or material costs. Due to the cheaper labour costs that can be found in less economically developed countries, many TNCs choose to set up their manufacturing plants in these countries and it has opened up more jobs for the locals, especially for the low skilled workers. Nestlé, for example, operates 28 factories in the African continent today and provide direct employment to 14000 Africans and indirect employment to more than 50,000 (Nestlé, 2012). In addition, there are 70 factories and 312,828 workers in Vietnam producing apparels for Nike which can be found on their website (Nike, 2013). These TNCs provide low-skilled workers with job opportunities, a steady source of income and helps to alleviate part of the high unemployment rate that are faced by developing countries...
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...CHAPTER ONE Introduction 1 1.1 INTRODUCTION INTRODUCTION TO NESTLÉ S.A. Nestlé began in Switzerland in the mid 1860s when founder Henri Nestlé created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henri’s product was a carefully formulated mixture of cow’s milk, flour and sugar. Nestlé’s first product was called Farine Lactée (“cornflour gruel” in French) Henri Nestlé. The product was first used on a premature baby who could not tolerate his mother’s milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henri’s new formula and it provided the nourishment that saved his life. Within a few years the first Nestlé product was marketed in Europe. In 1874, Jules Monnerat purchased the Nestlé Company. Nestlé developed its own condensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. The Anglo-Swiss Condensed Milk Company made products like cheese and instant formulas. The two companies merged in 1905, the year after Nestlé added chocolate to its line of foods. The newly formed Nestlé and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong and...
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...Introduction Nestlé, founded in 1866 by Henri Nestlé, is the world’s largest food company, producing products such as chocolates, soups, coffee, cereals, baby formula, and a host of other items (Nestlé, 2006). In the late 1960’s and 1970’s, Nestlé found itself in the centre of a scandal (Krasny, 2012). It was accused of encouraging mothers in Asia, Africa, and Latin America to use baby formula instead of breast milk, a healthier and less expensive alternative (Krasny, 2012). The allegations of non-ethical marketing practices led to boycotts of Nestlé products, beginning in 1977, in the United States and Europe: some boycotts continue to this day (Facebook, 2012). The criticisms, public outcry, and attention from social activists resulted in Senate Hearings in the United States and meetings by the World Health Organization (WHO, 1981). The result was a new set of marketing rules, introduced in 1981,that restricted the promotion of baby formula (WHO, 1981). These restrictions are outlined in the International Code of Marketing of Breast-Milk Substitutes (WHO, 1981). The aim of the code is to “ensure the proper use of breast milk substitutes, when these are necessary, on the basis of adequate information and through appropriate marketing and distribution” (International Lactation Consultant Association, 2001). When you consider the corporate marketing practices uncovered in the Nestlé scandal, one can see that a corporation’s vision must go beyond profits, and consider...
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...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 critics questioning...
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...28 38 40 42 44 46 48 Letter to our shareholders Board of Directors of Nestlé S.A. Executive Board of Nestlé S.A. Creating value for society UN Global Compact – Communication on Progress The Nestlé Roadmap to Good Food, Good Life Competitive advantages Growth drivers Operational pillars Financial review Principal key figures (illustrative) Overview Management responsibilities: Food and Beverages Leading positions in dynamic categories Geographic data: people, factories and sales Corporate Governance and Compliance Creating Shared Value Key Performance Indicators Shareholder information Accompanying reports Creating Shared Value and Rural Development Summary Report 2010 Corporate Governance Report 2010; 2010 Financial Statements The brands in italics are registered trademarks of the Nestlé Group. Key figures (consolidated) E I 1 1 1 In millions of CHF (except per share data) Sales EBIT (Group) Earnings Before Interest, Taxes, restructuring and impairments as % of sales EBIT (Continuing operations) Earnings Before Interest, Taxes, restructuring and impairments as % of sales (Continuing operations) Profit for the year attributable to shareholders of the parent Net profit (a) as % of sales as % of average equity attributable to shareholders of the parent Capital expenditure as % of sales Equity attributable to shareholders of the parent before proposed appropriation of profit of Nestlé S.A. Market capitalisation, end December Operating cash flow Free cash...
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...and Industry Dynamics 18 6 Lindt & Spruengli Company Overview 22 7 Business System 24 7.1 Resource Base of Lindt & Spruengli 24 7.2 Activity System (Value Chain) of Lindt & Spruengli 26 7.3 Product Offering 28 7.4 Lindt’s positioning in comparison to Competitors 33 8 Organizational Structure 34 8.1 Organisational Process 35 8.2 Organisational Culture 36 9 SWOT Analysis 37 10 Recommendations 38 10.1 Exposing the Corporate Social Responsibility 38 10.2 Product Development to meet upcoming consumption trends 38 10.3 Market penetration in Spain 40 10.4 Penetration of Emerging Markets 41 10.4.1 Asia Pacific 41 10.5 Entering new Segments 43 10.6 Pushing profitable Product Lines 45 11 Bibliography 47 11.1 Books 47 11.2 Documents from Databases 48 11.3 Journals 50 11.4 Websites 51 II List of Figures Figure 1: Confectionery industry segmentation 5 Figure 2: Market value of the confectionery market in the period 2004-2009 and the expected growth until 2013 6 Figure 3: Stage of industry life cycle mature markets (Western Europe, North America) and immature markets (Middle East and Africa, Eastern Europe, India, China, Russia) 10 Figure 4: Growth rate of the global confectionery sales by region in the period 11 2007/2008 and forecast for the period 2008-2013. 11 Figure 5: Global confectionery market share by value 12 Figure 6: Strategic groups of the confectionery industry 13 Figure 7: Sales in million CHF and change in % in the period 2005-2008 14 Figure...
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...Report 2008 © 2009, Nestlé S.A., Cham and Vevey (Switzerland) The Management Report contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. The World’s leading Nutrition, Health and Wellness Company Photography Nicole Bachmann, Gaëtan Bally/Keystone, Nathan Beck, Patrick Brown/Panos Pictures, Markus Bühler-Rasom, Goh Seng Chong/Keystone, Douglas Engle/Panos Pictures, Sam Faulkner/NB Pictures, Jonathan Fong, Peter Ginter, Georgina Goodwin, Marcel Grubenmann, Alain Herzog/EPFL, Harmen Hoogland/Nestec, Wollodja Jentsch, Marc Latzel, George Osodi/Panos Pictures, Philippe Prêtre/APG Image, Sergio Santorio, Qilai Shen/Panos Pictures, Christian Vogt, Cédric Widmer Printing Entreprise d’arts graphiques Jean Genoud SA (Switzerland) Paper This report is printed on Consort Royal, a paper produced from well-managed forests and other controlled sources certified by the Forest Stewardship Council (FSC) Management Report 2008 Letter to our shareholders Board of Directors of Nestlé S.A. Executive Board of Nestlé S.A. Corporate Governance and Compliance ...
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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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...Table of Content Executive Summary 5 Situation Analysis 6 Company 6 Organizational Structure 6 Corporate Goals 12 Internal SWOT Analysis 12 External SWOT Analysis 13 Internal Processes and Capabilities 14 Industry Financial Structure 14 Customers and Current Situation 15 Value Proposition 15 Current Core Target Market 15 Change in behavior, attitudes or buying trends 16 What are they purchasing from our company? 19 Why are the customers buying our products/services? 19 What differentiates our products/services 20 External Environment 21 Industry 21 Economic 22 Technical 22 Societal 23 Legal 23 Competitors 24 Nestle 24 Pepsi 26 Tyson Foods Inc 28 Kewpie 30 Financial Ratio Analysis 31 Growth Strategy 34 Our new Idea 34 Goals & Objectives 34 Description of Growth Strategy 35 Market Selection 37 Segmentation 37 Targeted Customer Segments 38 Positioning 38 Product 39 Goals 39 Product Description 39 Processes 40 Outsourcing 42 Life Cycle Stage 43 Services 43 Place 43 Goals 43 Distribution Plan 44 Channel Responsibilities 45 Supply Chain System 46 Promotion 48 Goals 48 Promotional Blend 49 Web Based Promotion 49 Social Media Promotion 50 Billboard Promotion 50 Promotional Budget 51 Price 51 Value Proposition & Customer price sensitivity 51 Pricing Strategy 52 Breakeven Analysis 53 Expected Financial Analysis 54 Internal/Sustainable...
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...research for our brand audit, but we will use primary sources whenever possible. Additionally, a marketing research project was undertaken by the group to assess the brand equity locally within the Washington Metropolitan area. Background about Brand The idea to create soluble coffee originated in 1930 when the Brazilian government approached the Nestlé brand with a proposition. (Nescafé 2011) The Brazilian Coffee Institute wanted to create a coffee that was soluble in hot water in order to increase the use of coffee and thus help increase Brazil’s exports. A Nestle executive named Max Morgenthaler set up a team, and it began experimenting different ways to meet that request while still maintaining the coffee flavors that everyone loved. After seven years of research in Switzerland, Nescafé was born.(Nescafé 2011) The name stems from a combination of Nestlé and café, the Italian word for coffee. It was introduced in Switzerland on April 1st, 1938 as the world’s first commercially successful soluble coffee; hugely popular with Allied forces during WW2, it became a runaway success thereafter. (Nescafé 2011 ) In the 1960s Nestle introduced a new brand, Taster’s Choice, in the United States instead of Nescafé. In 2003, the company reintroduced the Nescafé brand to the United States in the form of Nescafé Taster’s...
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...Chapter 15 Managing International Information Systems Teaching Objectives Students should be able to answer the following questions: 1. What are the major factors driving the internationalization of business? 2. What strategies are available for developing international business? 3. How can information systems support the various international business strategies? 4. What issues should managers address when developing international information systems? 5. What technical alternatives are available for developing global systems? Key Terms The following alphabetical list identifies the key terms discussed in this chapter. The page number for each key term is provided. |Business driver, 499 |International information systems architecture, 499 | |Cooptation, 508 |Legitimacy, 510 | |Core systems, 506 |Multinational, 504 | |Domestic exporter, 503 |Particularism, 502 | |Franchiser, 504 |Transborder data flow, 502 | |Global culture, 500 |Transnational, 504...
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