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Agrimano, Shebel Marie C.

11447443
IPOLECO A55

In 1905 Nestlé was made after a merger between the Farine Lactee Henri Nestlé
Company and Anglo Swiss Milk and was broadened into an extensive variety of products
amid the post war period. Then in 1930’s Nestle went to the Philippine as a trading
company. They are the biggest producer and advertiser of nourishment items
worldwide who converged with San Miguel Corporation. Nestle is the main
multinational enterprise that delivered coffee in the Philippines and no other remote
brand names created under permit. Nestle was additionally the most transitional
company worldwide with billions of offers, resources and benefits. In spite of the fact
that coffee utilization in the Philippines has expanded double so as the market share
gaining from 52% to 66%. Their position in the market has been rising and falling
because of the constant entry of foreign competitors and the increasing production cost
of raw materials. In terms of employment, Nestle ranked as tenth and was brand as the
most transitional company in the world.

Nestle Philippines has produce and sold items from ice cream to tetra pack juices,
pastas and sauces, seasonings and dressings, confections and milks. Additionally, they
also sold Nescafe, Nestea, Milo, Coffee mate and other powdered milk. Together, these
items spoke to seventy five percent of Nestle Sales. In the mean time, Nescafe alone has
spoken to fifty three percent of the division deals making the Nestle Philippines
positioned tenth among Nestle subsidiaries worldwide and third in the Asia Pacific
district. The Philippines government had committed under GATT and WTO to remove
many of its import prohibitions generally in agricultural products. Overtime the
government had committed to increase Minimum access volume (MAV), reduce tariff
on imports within MAV, and reduce tariff on import outside MAV. This has given Nestle
a dilemma on facing a threat of imports especially that awareness of foreign brand was
very high in the Philippines With the objective of Nestle of selling coffee at best price,
size and taste in all segments of market, they have took several initiatives to retain and
reinforce their market position. But on the other hand, because of the fast growing
international brands of Nestle’s competitors who are entering in the markets are
capturing the curiosity of consumers. This influences the market of Nestle since Nescafe
struck as a local brand and Filipinos will probably have the “imported mentality” that
prefer imported items than those of Filipino made. Nestle made the Philippines’
economic growth accelerate and it helped small stored boosts business. Providing and
proving us Filipino citizens that they offer premium products for an affordable price.
Basically, Nestle never believed in price competitions because they can withstand others
and retain their position in the market through their strong brand name and reputation.

My advice to our President Duterte about the multinational companies matter is


to give a set rundown of what segments of the economy in need of foreign investment
companies. This would encourage make an impression on investors everywhere that
they could have the opportunity to contribute in our sectors of the economy. Regardless
of the possibility that the companies do not specifically want to invest an association
with the Philippines then they would in any case realize that there are possibilities and
opportunities. Our president should also impose a stern system on handling the
contracts and deals being made with the multinational corporations. On the off chance
that a share is to be forced on what products and enterprises we need then we can
augment our similar and total preferences instead of simply letting in each companies
that demonstrates an enthusiasm for our nation. Each multinational corporation could
profit by submerging their representatives in the way of life of its host nations since it
would help them see how to function its market. Customers could be encouraged to be
more aware and cautious about some foreign companies since some are more
exploitative. We should be aware that foreign companies shouldn’t blind us because
they provide this and that but in the end it is better to be make wise decisions so that
future problems would be avoided.
References

Nestle Philippines. (n.d.). Nestle Philippines Inc. History.

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