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Getting to Know Nestlé

NESTLE: HOW TO KEEP THE MAGIC

GOING....

BY Priyanka Gaherwar

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Nestlé – An Overview

Nestlé – The World Food Company

Henri Nestlé. 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

Nestlé grew from a small company producing powderedmilk and cereal products for infants into a global foodcompany feeding much of the world’s population.

Nutrition and Wellness are at the core of Nestlé’s productsand manufacturing.

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Swiss company - global reach.

Peter Brabeck CEO of the company-1997.

approximately 254,000 people working for us

Operating in more than 70 countries.

World´s leading food & beverage company.

People, brands & products are key.

Our Global Organization

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Environment Infant Formula Policy

Quality Coffee Prices UN GlobalCompact

Sustainability GeneTechnology

Nestlé Donations

Water Nestlé in the Community

Our Responsibility

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BUSINESS STRATEGY

1 Grow existing businesses • focus on priority groups with growth and profit

potential • achieve 60/40 • improve brand positioning and communication 2 Develop new businesses • improve innovation & renovation • select acquisition candidates 3 Reduce cost • reduce structure cost • reduce production cost • restructure business portfolio

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1. Operational efficiency.

2. Innovation & renovation.

3. “whenever wherever &

however.

4. Customer communication.

1.Nestle 4 part strategy comprised of -

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2.How can Nestle effectively coordinate to diverse SBUs?

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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)

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4.PROS & CONS of internal growth rate

PROSReduction of CostInnovationStrengthen sales of related productsAdmires people of different tastes.

CONSBudget InvolvedLow ProfitsTime Consuming

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Swot analysis- strengths

History

1.Nestlé is adapting its industrial base to the changing requirements of the business environment.

Nestlé's industrial set-up is largely based on the economic andpolitical realities of the60'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,- Nestlé is striving for an optimized,-industrial base to ensure long-term competitiveness.

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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.

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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.

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Opportunities

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

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Threats

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

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RECOMMENDATIONS

1“Win All Without Fighting” or to prioritize markets and determine competitor focus.

2“Avoid Strength/ Attack Weakness” or to develop attacks against competitor’s weakness. 3“Deception and Foreknowledge” or war gaming and planning for surprise. 4“Shape Your Competition” or integrate best attacks to unbalance the competition, to

throw competitors off.

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5 “Speed and Preparation” or ready your attacks and release them.

6 Leadership, reinforcing success and starving failure.