Hoang Ngoc Minh

CONTENT
Vision & Mission
General environment
5 forces model
SWOT
Business strategy
Competitors
Problems and Solution
Stake holders
Acquisition Strategy
Organizational Structure
Strategic Leadership
Strategic Entrepreneurship
Vision
Nestl's aim is to meet the various needs
of the consumer everyday by marketing
and selling foods of a consistently high
quality.
Mission
We strive to bring consumers foods that
are safe, of high quality and provide
optimal nutrient to meet physiological
needs. Nestle helps provide selections for
all individual taste and lifestyle
preferences.
General environment
Demographic trends:
- Nearly all age from young to old people.
- All six continents (customers)
Economic trends:
- Most countries all over the world are
affected by the global economic crisis.
General environment
Political/Legal trends:
- More countries join WTO: allow more
free trade across the nations
Sociocultural trends:
- The world people care more about their
health, especially with foods and
beverages.
General environment
Technological trends:
- Use most of latest technology( in researching,
producing)
- Try to find new way of create new product
- Improve the quality of products.
Global trends:
- Improve operational efficiency by integrating
the companys businesses on a global scale.
- Were now transitioning to become a
genuinely global food company, to behave as
one
Five forces model
New entrants
Multinational
companies
More companies
joint in domestic
market
High pressure
Substitute products
Diversity products
Confectionery,
instant foods
Not many firms
focus on pet foods
Average pressure
Five forces model
Suppliers
Sign contracts with
farmers
Stable suppliers
Trust to the big firm
Low pressure
Buyers
Variety demands
Different tastes
Need to attract
customers
High pressure
SWOT analysis
Strengths:
- Very long history (over 140 years)
- Operated factories in 77 countries (all six continents), a
truly global company.
- Considered the innovation leader in the global food and
nutrition sector(3500 scientist in company R&D network)
- Low cost operators (beat the competition by producing
low cost products, edging ahead with low operating
costs)
- Offering thousands of local products.
- Have a great CEO, Peter Brabeck, and a very strong
workforces.
SWOT analysis
Weaknesses:
- Not as successful as they thought they
would be in some market (i.e. France)
- Some of their product were positioned as
too scientific, and consumers didnt quite
understand (i.e. LC-1 was a food and not a
drug)
SWOT analysis
Opportunities:
- Well-known company and strong brandname
- Health-based products are becoming more
popular in the world, including in the United
States
- Ranked first in nearly all the product
segments in which it operated (market leader)
- Unaffected by current economic conditions
(its share of the UK confectionery market rise to
15.6 per cent with a 0.5 per cent growth this
year)
SWOT analysis
Threats:
- Some markets they are entering are
already mature
- Global competitors.
- There are intense competitions in the
United States, especially yogurt market
(General Mills)
Business-level strategy
Nestl business-level strategy is
integrated cost leadership/differentiation
- Wide range of products (over 20
categories: coffee, milk, mineral water, pet
foods, cereals)
- Low cost operators.
Competitors
Many competitors
The same qualities
The same prices
Unilever, Kraft, Master foods
High pressure
Problem
High market share
Low growth
Competitive pressure
Want to expand
Dont have enough resources
Solution
Cut investment budgets, overheads, frill
Maximizing existing assets, capacity,
distribution
Target internal growth rate
Improve supply chain, productivity,
optimize planning
PROBLEMS TO NESTLE
Storm of Melamine in 2008
+ Melamine: increasing high protein
affectedly
=> kidney stone, cancer
Relate with Nestle ???
2/10/2008 : Finding Melamine in Nestle
powdered milk at Taiwan
=> 6 kinds of Nestle milk products :
having Melamine poisoned chemical
substance ( little percent)
Nestle in Switzerland :force to take back
baby milk products in France, Spain, Italy
However
42 Nestle samples tested in Measured
Quality Standard Technique Center: No
Melamine
Nestle products at Vietnam or imported
from America, Europe, New Zealand,
absolutely not from China
Stakeholders
Shareholders:
profits
Employees: stable
job, promotion
Consumers: high
quality products,
reasonable price
Business partners:
long-term, trusted
relationships
Local environment:
need Nestle has
responsibilities
Acquisition Strategy
90s year: Baby products of Nestle were
not concerned
1998: Peter Brabeck became Director
=> Begin biggest A&M cases:
+ Drerers Grand ice-cream Company
+ Rlaston Purina- Pet food biggest North-
American : 11 billion USD
Why acquisition???
Diversifying size of economic:
+ Baby milk
+ Nutrition
+ Cafe
+ Food product
Expanding the size of company
The most successful A&M
Buy Gerber, Baby food brand name from
Novartis corporation : 5.5 billion $
=> No.1 in Baby food largest market,
America.
----->
Not only buy but sell
Selling the Milk manufacturing Industry in
BaVi to Anco Company ( during 1 year)
Are they right when selling ???
+ The truth : spend money to focus on
different field
Invest 4 million$ ( maybe money from
selling Milk industry 1 year) to Maggi
produce industry
Organizational Structure
Zonal Sales Manager
Regional Sales Manager
National Sales Manager
Area Managers
System Support
Executive
System support
Officers
Territory in-
charge
Event
Management
Officer
Loader DSR
Sales Associates
Event Management
Chiller
Technician
Customer Service
Manager
Customer Service
Officer
Strategic Leadership
To force the businesses to become more
efficient.
To create a regional manufacturing
network.
To integrate the companys business on a
global scale.
To reduce marketing expenditures by
exploiting the synergies between brands.
Nestle strategic entrepreneurship
Develop R&D network
Acquisition
Develop R&D network
>3,500 scientists work on improving
existing products and creating tomorrows
nourishments
Two thirds of companys R&D activities
are dedicated to renovating existing
products, the remaining third is reserved
for radical product innovations.
Improve on operational level
A number of organizational changes.
Acquisition
Reaching a critical mass in terms of market
share
+ the acquisition of Dreyers
+ the acquisition of Ralson Purina
+ the acquisition of Jenny Craig
Gain expert knowledge for further expansion into
new product segments.
+ Life Ventures fund
+ The Nestle Growth fund
THANK YOU FOR LISTENING!!!!