NESTLE: HOW TO KEEP THE MAGIC GOING....

Getting to Know Nestl

BY Priyanka Gaherwar
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Nestl An Overview
Nestl The World Food Company
Henri Nestl. Born in 1814. Trained to be a pharmacist. Created the first milk and cereal based infant food Farine Lactee Henri Nestle. Founded the Company in 1867

Nestl grew from a small company producing powdered milk and cereal products for infants into a global food company feeding much of the worlds population. Nutrition and Wellness are at the core of Nestls products and manufacturing.

Our Global Organization

Swiss company - global reach.

Peter Brabeck CEO of the company-1997.

approximately 254,000 people working for us Operating in more than 70 countries. Worlds leading food & beverage company. People, brands & products are key.
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Our Responsibility

Environment

Infant Formula Policy

Quality

Coffee Prices

UN Global Compact

Sustainability

Gene Technology

Nestl Donations

Water

Nestl in the Community

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BUSINESS STRATEGY

2 Develop new businesses improve innovation & renovation select acquisition candidates 3

Grow existing businesses

focus on priority groups with growth and profit potential achieve 60/40 improve brand positioning and communication

Reduce cost

reduce structure cost reduce production cost restructure business portfolio

1.Nestle 4 part strategy comprised of -

1. Operational efficiency. 2. Innovation & renovation. 3. whenever wherever & however. 4. Customer communication.

2.How can Nestle effectively coordinate to diverse SBUs?

3.How can Nestle effectively utilize benchmarking?

How well are Nestle is performing compared to other companies? (competitors). What are the best practices? (technology) What improvement opportunities should Nestle focus on? (future) Internal growth rate? (performance)

4.PROS & CONS of internal growth rate

PROS

Reduction of Cost Innovation Strengthen sales of related products Admires people of different tastes.

CONS

Budget Involved Low Profits Time Consuming

Swot analysis- strengths

1.Nestl is adapting its industrial base to the changing requirements of the business environment. History
Nestl's industrial setup is largely based on the economic and political realities of the 60's, 70's and 80's: Local markets Local production
. Falling trade barriers. Decreasing transportation cost. Importance of IT. Etc.

Present
- operating with a modern

manufacturing base, economies of scale, flexibility, appropriate technology & design, low cost operation & location, - Nestl is striving for an optimized, -industrial base to ensure long-term competitiveness.

strong brand name dedicated & focused company experience & competences consumer insight constant renovation + innovation consistent sales & marketing support focused assortment specialist brand HQ + Factory + strong R&D team.

Weakness

LC1 positioning not up to the mark. Subsidiaries difficult to manage. Rising products of raw materials. Too much products distract from core business. Slow growth rate of Chocolate & Dairy products.

Opportunities

Further development of global brands. Partnerships & farmer support. Emerging market penetration. More health based products in Germany & US.

Threats

Global image may harm all brands if One brand fails. New diet trends. Competitors like HUL, DANONE, HERSHEY FOODS, CADBURY SCHWEPPERS.

RECOMMENDATIONS

1Win All Without Fighting or to prioritize

2Avoid Strength/ Attack Weakness or

markets and determine competitor focus.

to develop attacks against competitors weakness. 3Deception and Foreknowledge or war gaming and planning for surprise. 4Shape Your Competition or integrate best attacks to unbalance the competition, to

throw competitors off.

5 Speed and Preparation or ready your attacks and release them. 6 Leadership, reinforcing success and starving failure.