NESTLE AND DRIVERS OF INTERNATIONAL BUSINESS

PRESENTATION OVERVIEW
GROUP 9 GAURAV KUMAR RAVINDRA VISHVAKARMA RAHUL SINGH RAHUL CHAWLA SUMIT KUMAR MANISH KUMAR GROUP 10 VIKRANT ARORA YATISH MITTAL ARUN JOSHI AMIT KUMAY YADAV SUDHIR KUMAR RAJNISH KUMAR

INTRODUCTION
Definition and Meaning
To move about in one's place, like a bird when shaping the interior of her nest or a young bird getting close to the parent; as, a child nestles To cherish, as a bird to her young.

 It is like when a mother bird provide food and care of her babies in her nest, in the same way nestle take care the babies just like their mothers. In the second definition CHERISH means to be attached , mother always to be with their babies just the same way nestle to be with us.

 Nestle was founded in 1866 by Henri nestle. Its headquater is in vevey Switzerland. It is the largest food and nutrition company in the world. Its first product was for babies and it also deals in many products like coffee, dairy product, breakfast cereals, confectionary, bottled water, ice-cream, etc.

History
In the 1860s, Henri Nestle developed a food for babies who were unable to breastfeed. By the early 1900s the company was operating factories in US, UK, Germany and Spain After the 1st world war the production had become doubled

History
After the 2nd world war companys profit dropped The end of 2nd world war was the beginning of a dynamic phase for Nestle After the war, The company launched its newest product Nescafe(Nestle Coffee) which became the staple drink of the US military.

Mergers and Acquisition

1947 :- Maggie 1950 :- Croose and Blackwell 1963 :- Findus 1977 :- Alcon Laboratories Inc 2005 :- Bought the Greek company Delta Ice Cream for 240 million Jan 2006 :- Took full ownership of Dreyers. Thus it became the worlds largest Ice Cream maker

Mergers and Acquisition

Nov 2006 :- Purchased the medical nutrition division of Novartis Pharmaceutical for $ 2.5 billion 2007 :- Acquired milk flavoring product Known as Ovaltine April 2007 :- Returning to its root Nestle bought US baby food manufacturer Gerber for $ 5.5 billion Dec 2007 :- Partnership with Belgian chocolate maker Pierre Marcolini.

BUSINESS PRINCIPLE
Value Of Goodwill Wide Focus Absolute Customerisation Corporate Convergence Appropriate Man Power Planning Observes The Legal And Regulatory Framework

GENE TECHNOLOGY
Responsible Application Of G.M.O Improve Nutrient Value Of Food Confirm Positive Effect On Health Enhance Sustainable Agricultural Practice

COMMITMENT TO SOUTH AFRICA

Good Food Good Life Localization PPP Strategy First Factory Was Established In 1927 In South Africa And Has Been Operating For The Past 94 Years. To Succeed It Requires Patience , Dedication , Perseverance.

CONTRIBUTION TO ECONOMIC GROWTH AND DEVELOPMENT

Job Opportunity The Millennium Development Goals Innovation Partnership With UNHCR.

CONTEMPRARY SCENARIO
The current status of the company can be explained by the following heads : Brands Services

BRANDS OF NESTLE
Baby Products Milk Products And Nutrients Beverages Chocolates Prepared Dishes And Cooking Aids

SERVICES
Nestle Family

Nestle Start Healthy Stay Healthy

NESTLE DONATIONS
Lip service on ethics Voluntary sector Water donation Financial donation Cultural activity Contributes to program

STRENGTH
Parent support Brand strength Product innovation Strong financial position Model operation facility Compensate losses

WEAKNESS
Raw material Packaging Export Supply chain

OPPORTUNITY
Backward Integration Expansion Product Offering Global Hub

THREAT
Competition Changing Consumer Trend Sectoral Woes Political Scenario

CONTROVERSY AND CRITICISM

Marketing Of Formulas Ethiopian Debt Chinese Milk Scandal Green Washing Advertising Campaign Child Labor - Dark Side

WHY DID NESTLE FOLLOWED A VARIETY OF STRATEGY OF MERGER AND EXMANSION

To expand business beyond its home country To overcome competition To overcome the fluctuation in demand

WHY DID NESTLE DIVERSIFY ITS PRODUCT BASED ON RELATED DIVERCIFICATION STRATEGY
They had rich experience in the field Nestle is based in innovation and renovation To use their technical expertise

HOW DID THE DRIVERS OF GLOBALISATION HELP NESTLE TO GROW AT A FAST RATE
In 1990 trade barriers crumbled thus allowed company to use less costly import and export duties. World market developed into more or less integrated trade areas.

WHY DID NESTLE CONCENTRATE ON RESPONSIBILITY TO THE COMMUNITY

The aim of company is to build business based on sound human values and principles. Basic foundation of company remains to reflect the basic ideas of fairness , honesty and general concern for people.