...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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...Case Analysis Carvel Ice Cream – Developing the Beijing Market Problem (Monica) How to increase sale in Beijing with limited budget while rivals, such as Haagen-Dazs and Baskin-Robbins, are better known in Beijing? Issues: How to introduce cold dairy products to lactose—intolerance customer base who believes that cold food is bad to consume in general? How to increase primary demand of dairy products especially their flagship product, ice cream cake? How to implement purposeful strategies with limited budget? Marketing Mix (Zehra) Product Carvel Beijing has 3 categories of products; fountain ice cream that includes soft and hard ice cream, ice cream novelties that is single serving size ice cream and ice cream cakes. The manager Wang is thinking to bring 2 new types of ice cream cakes from the US; they are Little Love and Piece of Cake since Chinese people eat small size cakes. Price Carvel ice cream cakes are more expensive than local ice cream but cheaper than the main competitors. Flour-based cake that Chinese people prefer for their special days is cheaper than ice cream cake. In order to decrease the cost, Wang plans to change the level of over-run from 30 to 40 per cent to 45 to 50 per cent so he will be able to lower costs by five per cent. Increasing the percentage means people eat less ice cream and more air and it would reduce the quality, however, Chinese people like the ice cream that has more air. Place (Distribution) Carvel Beijing...
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...culminating module in which students are expected to integrate, apply, extend and critique the knowledge gained within core modules of the Business & Management Single Honours. It is conceptualised as a retrospective, integrative and reflective academic experience. It aims to help students develop an appreciation of how key pieces of the business and management curriculum come together (synoptic capacity), and expects them to demonstrate in-depth understanding and application of integrated business management concepts, intellectual and research skills. Alongside its integration mandate, the module aims to foster independent learning through conditions conducive to the development of a proficient learner, master of his or her own learning strategy. The module, therefore, requires students to show initiative and personal responsibility. It is worth emphasising that this is a unique and innovative module in that it is a non-taught module! 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...
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...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: With the dawn of globalization, international business is becoming increasingly popular. Multinational organizations are among the most...
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...Branding of Unilever and Nestle | Report Analysis | ] | Global Branding of Unilever and Nestle | Report Analysis | | 1. Executive summary 4 2. Introduction 4 3. Overview of Unilever and Nestle 4 3.1. Company Facts-Vision and Mission 5 3.2. Company Facts-Core Business Sectors 5 3.3. Company Facts- Business Strategy 5 4. Global branding 6 4.1. Standardization vs. regional adaptation 6 4.1.1. Language 6 4.1.2. Cultural differences 7 4.2. Advertisement 8 4.2.1. Religious issues ...
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...the nutrition, health and wellbeing company and delivering a competitive return to the company’s shareholders at the same time. Key Acquisition: 1990 – Nestle opened its first factory in The United States of America. 1938 – Nestle introduced a coffee band called the Nescafe – Nescafe is one of the few brands that nestle has developed all over the world. Nescafe is the most successful of all the brands that Nestle manufacture. 1974 – Nestle enters non food business, by acquiring major stakes on L’Oreal. 1998 – Nestle acquires Spillers pet food business, making it the largest pet food maker in Europe. 2002 – Nestle acquires Ralston-Purina to become global leaders in pet food business. 2003 – Nestle acquires Dreyer’s Grand Ice Cream. Nestle Projects: Nestle for their business development tried to create values for people in many countries in which nestle operates. Different project were implemented in different countries depending upon the necessities. Some of the projects that Nestle...
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...1990s, Nestle joint venture with the dairy business to Hong Kong market. Hong Kong Nestlé has always attached importance an improvement and innovation, brands and products more living center. Advantages of brand building consumer trust, management as people orientation, Research & development of consumers delicious, nutrition, health and enjoyment, it has always been our goal to create value for society. It has expanded and reinvented itself become one of Asia’s most dynamic and reputable companies in Hong Kong. Uniqueness of the Hong Kong Culture As the undoubtedly unique culture in the world, the Hong Kong culture is an amalgamation of traditional Chinese value - Taoism, Buddhism and Confucianism, as well as the contemporary culture cultivated by the British colonial history and the capitalist economy. Core HK Cultural Dimension – Hierarchical Like other Chinese Societies, Hong Kong has been strongly influenced by traditional Confucian values that emphasize family socialization (Redding and Wong 1986) as mostly of last generation of Hong Kong were immigrants from China Mainland during 60s & 70s. Chinese accents that one’s conduct should always be within the norms of propriety (Li) and conformity to a rigid hierarchy of social relations (Wu-Lun). According to Hofstede’s theory of cultural dimension, Power distance is the extent that people expect and accept power is distributed unequally. Hong Kong Chinese is characterized by a high level of power distance based on traditional...
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...LIST………………………………………………………………………………..2 INTRODUCTION……………………………………...…………………………………3 HISTORY……………………………………………..…………………………………..4 * TIMELINE……………………………………………….………………………..7 BUSINESS MODEL AND FRAMEWORK…………………………...…………………8 QUESTION AND ANSWER………………………………………………..……………9 * QUESTION 1……………………………………………………………………...9 * QUESTION 2………………………………………………………….…………14 * QUESTION 3………………………………….…………………………………17 * QUESTION 4……………………………………………….……………………19 * QUESTION 5…………………………………………………………….………20 ANALYSIS………………………………………………………………………………22 * SWOT……………………………………………………………………………23 * PORTER’S 5 FORCES……………….…………………………………………30 * PORTER’S VALUE CHAIN……………………………………………………36 * BCG MATRIX…………………………………………..………………………39 * PORTER’S GENERIC STRATEGIES……………………….…………………41 FINANCIAL STATEMENT……………………………………………….……………44 CONCLUSION……………………………………………………..……………………49 RECOMMENDATION……………………………………………………….…………51 CITATIONS…………………………………………..…………………………………53 INTRODUCTION Nestlé is the largest food and beverage company in the world. It is also well on its way to becoming world leader in nutrition, health and wellness. Nestlé is a Swiss company, founded in 1866 by Henri Nestle. Henri Nestlé, the founder of Nestlé, was a life-saving chemist but also an innovative marketer. He used scientific knowledge to develop products that met consumer needs. He used his name to brand his products in a distinctive way. And he set up systems to distribute his products quickly and effectively. ...
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...Report 2012 Inside 2 5 6 7 8 10 12 14 16 20 46 58 70 72 Message to Stakeholders Fast Facts The Nestlé Legacy Organisation Structure The Nestlé Creating Shared Value Strategy Engaging Our Stakeholders Governance Summary of Key Performance Data Our Respect and Care for the Community Our Commitment to the Environment Our People and the Workplace Our Consumers and the Marketplace Awards & Achievements GRI Standard Disclosures COVER: One of Nestlé Malaysia’s key successful rural development programmes has been its contract farming initiatives, where farmers are actively engaged to be part of the Nestlé supply chain. In February 2012, the Nestlé Paddy Club was introduced with the aim of increasing field productivity and lowering production costs, whilst reducing rice-farming’s environmental footprint, as well as enhancing overall farming safety aspects at the contract farms in Kedah. Nestlé (Malaysia) Berhad 110925-W 16 1 Our Respect and Care for the Community 46 Our People and the Workplace 20 Our Commitment to the Environment At Nestlé, we believe that in order to create long-term value for our shareholders, we have to create value for society, subscribing to the view that corporate success and social development go hand in hand. 58 Our Consumers and the Marketplace 2 Nestlé (Malaysia) Berhad 110925-W Message to Stakeholders Creating Shared Value (CSV) is at the core of our business. That is how our company started off, with our...
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...Marketing in China Before the reforms, under the command economy, Chinese companies took order from the state in production and push the products through state-controlled distribution systems. They never had to advertise, to do consumer research, and to think about marketing strategies. For years, even after the opening and reforms, many Chinese still consider marketing western concept of a dubious practice, something that may be not valid or applicable in China. Marketing proves to be one of the most challenging parts of China operations, perhaps more so than other areas such as accounting, finance, or research & development. For several reasons, First, infrastructure in marketing is underdeveloped, including transportation systems, media development, labyrinth of multi-tier distribution channels, and the severe shortage of qualified marketing personnel. Firms attracted to the longterm potential of this vast country must remember to pay sufficient attention to the basics of producing, distribution and marketing a successful product (Country Commercial Guide 1998), Marketing Strategies In the early 1980s when MNCs first came to China, many thought of China as a huge market with a homogeneous culture and felt standardized global marketing would be effective in capturing the opportunities and improving efficiency. These feelings were confirmed by the desire of Chinese to acquire western technologies and their fascination with products from the West. After living in an economy of...
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...Marketing in China Before the reforms, under the command economy, Chinese companies took order from the state in production and push the products through state-controlled distribution systems. They never had to advertise, to do consumer research, and to think about marketing strategies. For years, even after the opening and reforms, many Chinese still consider marketing western concept of a dubious practice, something that may be not valid or applicable in China. Marketing proves to be one of the most challenging parts of China operations, perhaps more so than other areas such as accounting, finance, or research & development. For several reasons, First, infrastructure in marketing is underdeveloped, including transportation systems, media development, labyrinth of multi-tier distribution channels, and the severe shortage of qualified marketing personnel. Firms attracted to the longterm potential of this vast country must remember to pay sufficient attention to the basics of producing, distribution and marketing a successful product (Country Commercial Guide 1998), Marketing Strategies In the early 1980s when MNCs first came to China, many thought of China as a huge market with a homogeneous culture and felt standardized global marketing would be effective in capturing the opportunities and improving efficiency. These feelings were confirmed by the desire of Chinese to acquire western technologies and their fascination with products from the West. After living in an economy...
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...brand founded in 1866 by Henri Nestlé, a German pharmacist. Henri was a very enthusiastic person to globalise his company and advocates pragmatism, flexibility, learning initiatives, respect towards foreign cultures and many other key attitudes and values to stake a corporate culture that lasts until today. (Nestle, 2012) In 1912, Nestle was introduced as the Anglo Swiss Condensed Milk Company to Malaysia. Today, more than 140 years after born, the world’s leading nutrition, health and wellness company continue to improve human lives with nutritious food products. (Nestle, 2013) 1.0 PESTEC 1.0.1 Political, Legal & Governmental Forces [Religion Distribution (Department of Statistics, 2011)] To cater the major ethnic of Muslim market in Malaysia, Nestle has to restrict the process of food productions to ingratiate the Trade Description Order 1957 bound by the Syariah Law (Islamic Law). Under the Act, Nestle is prohibited to produce any food items which contain any parts from haram prohibited animals. During the process and preparation of product, Nestle must not use or touch any ingredients or equipments which are deemed to be unclean. (Malaysian Government, 2013) 1.0.2 Economic Forces [Gross Domestic Product 2007-2012 (MIER, 2013)] [Employment Index for 2007-2012 (MIER, 2013)] Based on Malaysian Institute of Economic Research (MIER), Gross Domestic Product (GDP) of Malaysia grew moderately 5.2% with strong driven domestic demand. Meanwhile, net exports had contracted...
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...DIRECTION DE L'ENSEIGNEMENT RESSOURCES PEDAGOGIQUES 79-81 avenue de la République 75543 PARIS Cedex 11 Tél: 01 49 23 57 24 Fax : 01 49 23 57 41 E-mail : ccmp@ccip.fr Internet : www.ccmp.fr NESTLE - DANONE and the bottled water sector G1329(GB) Par Franck BRULHART & Tim WHITE Faculté des Sciences Economiques et de Gestion Marseille - EUROMED Université Aix-Marseille II Intégration CCMP : 2004 Licence d'utilisation accordée à : _Euromed Marseille Ecole de Management Pour ce produit, l'établissement acquéreur est autorisé à : • Diffuser le produit à l'ensemble du corps professoral de l'établissement dans le but d’utiliser ce produit pédagogique pour son enseignement. • Reproduire le produit sans limitation de quantité, ni de durée. S'il s'agit d'un document au format numérique, celui-ci peut être diffusé par tout moyen et support (intranets et extranets dûment autorisés par l'établissement acquéreur) à l'exclusion de sites web librement accessibles au public extérieur à l'établissement acquéreur L’établissement acquéreur du produit s'engage à : • ne pas communiquer ou céder tout ou partie du produit à un tiers n'enseignant pas dans l'établissement acquéreur • conserver une version originale intégrale et datée du produit telle qu'elle a été livrée par la CCMP lors de l'achat, • conserver le logo de la CCMP et le logo de l'établissement créateur ainsi que les logos ou marques des entreprises citées dans le produit, Cette étude de cas est un...
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...PART II INSTRUCTOR’S NOTES ON TEXT CASES CASE GUIDE CHAPTER CASE | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 1–1 Starbucks – Going Global Fast | X | X | | X | X | | | | | | X | X | | | | | | | | 1–2 Nestlé – The Infant Formula Incident | | X | X | X | X | | | X | | | X | X | | | | | | | | 1–3 Coke and Pepsi Learn to Compete in India | | | | X | X | X | | | | | X | X | | | | | | | | 1-4 Marketing Microwave Ovens to a New Market Segment | | | | X | X | | | | | | X | X | | | | | | X | | 2–1 The Not-So-Wonderful World of EuroDisney | | | | X | | X | X | X | | | X | | | | | | | X | | 2-2 Cultural Norms, Fair and Lovely, and Advertising | | | | X | X | | | X | | | X | X | | | | | | | | 2–3 Starnes-Brenner Machine Tool Company – To Bribe or Not to Bribe | | | | | X | | X | | | | | | | | | | X | | | 2-4 Ethics and Airbus* | | | | X | X | X | X | | | | | | X | | | | | | | 2–5 Coping with Corruption in Trading with China | | | | | X | X | X | | | | | | | | | | | | | 2–6 When International Buyers and Sellers Disagree | | | | | | | X | | | | | | | | X | | | | | 2-7 McDonald’s and Obesity | ...
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...PURPOSE OF CHAPTER Consumers’ perceptions are highly subjective, and consumers can be quite unpredictable.The complex nature of consumers makes the study and understanding of consumer behavior imperative. Sweden and Colombia have both attempted to affect consumer perceptions. The Juan Valdez campaign of the Federation of Colombian Coffee Growers has been successful in creating a desirable image for its product and using it to communicate with consumers. Volvo, likewise, has successfully nurtured an image of safety. Because the influence of culture has already been discussed in depth in Chapter 6, this chapter covers other relevant concepts. The focus is on the major approaches used to study consumer behavior. The basic purpose of this chapter is to acknowledge the role that determinants other than culture play in influencing consumer behavior. The chapter thus examines the psychological and social dimensions, and these include motivation, learning, personality, psychographics, perception, attitude, social class, group, family, opinion leadership, and the diffusion process of innovations. PERSPECTIVES ON CONSUMER BEHAVIOR Consumer behavior may be defined as a study of human behavior within the consumer role and includes all the steps in the decision-making process. The study must go beyond the explicit act of purchase to include an examination of less observable processes, as well as a discussion of why, where, and how a particular purchase occurs. Domestically, marketing...
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