Entrepreneurship

Assignment

500 Fortune companies

SUBMITTED BY:

Ammarah Urooj Aftab Sp15-BCS-006

SUBMITTED TO:

Ms. Saleema Hafiz

SUBMISION DATE:

20th Dec ,2018

Department of Computer Science

Nestlé
Introduction:
Industry: Food Consumer Products
HQ Location: Vevey, Switzerland
Sector: Food, Beverages & Tobacco
CEO: Ulf Mark Schneider
Website: www.nestle.com
Years on Global 500 List: 24
Employees: 323,000

Nestlé S.A. is a Swiss transnational food and drink company headquartered in Vevey, Vaud, Switzerland.

It is the largest food company in the world, measured by revenues and other metrics, since 2014. It
ranked No. 64 on the Fortune Global 500 in 2017 and No. 33 on the 2016 edition of the Forbes Global
2000 list of largest public companies.
Nestlé's products include baby food, medical food, bottled water, breakfast cereals, coffee and tea,
confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestlé's
brands have annual sales of over CHF1 billion (about US$1.1 billion), including Nespresso, Nescafé, Kit
Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestlé has 447 factories, operates in 189 countries,
and employs around 339,000 people.It is one of the main shareholders of L'Oreal, the world's largest
cosmetics company.

The pioneer years:

Nestlé’s history begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk Company. Henri
Nestlé develops a breakthrough infant food in 1867, and in 1905 the company he founded merges with
Anglo-Swiss, to form what is now known as the Nestlé Group. During this period cities grow and railways
and steamships bring down commodity costs, spurring international trade in consumer goods.
Highlights:
1866: US brothers Charles and George Page help establish Anglo-Swiss Condensed Milk Company. Using
abundant supplies of fresh milk in Switzerland, they apply knowledge gained in their homeland to
establish Europe’s first production facility for condensed milk in Cham. They start supplying Europe’s
industrial towns with the product under the Milkmaid brand, marketing it as a safe, long-life alternative
to fresh milk.
1867: Nestlé’s founder, German-born pharmacist Henri Nestlé, launches his ‘farine lactée’ (‘flour with
milk’) in Vevey, Switzerland. It combines cow’s milk, wheat flour and sugar, and Nestlé develops it for
consumption by infants who cannot be breastfed, to tackle high mortality rates. Around this time he
starts using the now iconic ‘Nest’ logo.
1875: Henri Nestlé sells his company and factory in Vevey to three local businessmen. They employ
chemists and skilled workers to help expand production and sales.
1878: Fierce competition develops between Nestlé and Anglo-Swiss, when both companies start selling
rival versions of the other’s original products: condensed milk and infant cereal. Both firms expand sales
and production abroad.
1882-1902: In 1882 Anglo-Swiss expands into the US, but the death of George Page frustrates its plans.
In 1902 it sells its US-based operations, which paves the way for an eventual merger with Nestlé.
1904: Nestlé begins selling chocolate for the first time when it takes over export sales for Peter &
Kohler. The Nestlé company also plays a role in the development of milk chocolate from 1875, when it
supplies his Vevey neighbor Daniel Peter with condensed milk, which Peter uses to develop the first such
commercial product in the 1880s.
1905–2011: In earlier, the era was of mergers and it grows internationally. The first half of the 1990s
proved to be favorable for Nestlé. Trade barriers crumbled, and world markets developed into more or
less integrated trading areas. Since 1996, there have been various acquisitions, including San
Pellegrino (1997), D'Onofrio (1997), Spillers Petfoods (1998), and Ralston Purina (2002). In the same
time-frame, Nestlé entered in a joint bid with Cadbury and came close to purchasing the iconic American
company Hershey's, one of its fiercest confectionery competitors, but the deal eventually fell through.
2012–present: In recent years, Nestlé Health Science has made several acquisitions. It acquired Vitaflo,
which makes clinical nutritional products for people with genetic disorders; CM&D Pharma Ltd., a
company that specializes in the development of products for patients with chronic conditions like kidney
disease; and Prometheus Laboratories, a firm specializing in treatments for gastrointestinal diseases and
cancer. It also holds a minority stake in Vital Foods, a New Zealand-based company that develops
kiwifruit-based solutions for gastrointestinal conditions as of 2012.

Products:
Nestlé has over 2000 brands with a wide range of products across a number of markets, including
coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods, performance and
healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food. Details
of some products are as follows.
Milk products and baby food:
Nestlé affirmed that all its products were safe and were not made from milk adulterated with melamine.
On 2 October 2008, the Taiwan Health ministry announced that six types of milk powders produced in
China by Nestlé contained low-level traces of melamine, and were "removed from the shelves". As of
2013, Nestlé has implemented initiatives to prevent contamination and utilizes what it calls a "factory
and farmers" model that eliminates the middleman. Farmers bring milk directly to a network of Nestlé-
owned collection centers, where a computerized system samples, tests, and tags each batch of milk. To
reduce further the risk of contamination at the source, the company provides farmers with continuous
training and assistance in cow selection, feed quality, storage, and other areas. In 2014, the company
opened the Nestlé Food Safety Institute (NFSI) in Beijing that will help meet China's growing demand for
healthy and safe food, one of the top three concerns among Chinese consumers. The NFSI announced it
would work closely with authorities to help provide a scientific foundation for food-safety policies and
standards, with support to include early management of food-safety issues and collaboration with local
universities, research institutes and government agencies on food-safety.
Maggi noodles:
In May 2015, Food Safety Regulators from the Uttar Pradesh, India found that samples of Nestlé's
noodles Maggi had up to 17 times beyond permissible safe limits of lead in addition to monosodium
glutamate. On 3 June 2015, New Delhi Government banned the sale of Maggi in New Delhi stores for 15
days because it found lead and monosodium glutamate in the eatable beyond permissible limit. 
The Success Story:

Nestle is the world’s leading company for nutrition, health and wellness for more than 140 years
now with the mission of “Good Food, Good Life”. The company was founded in 1866 by Henri
Nestle in Vevey, which is the headquarters of Nestle even today. Nestle has 447 equipped
factories and operations in almost every country in the world. It is one of the main shareholders
of the L’Oreal.
Nestle has been ranked as No.1 in the Fortune 500 Global List of Companies in the world as the
most profitable company. It is the biggest food company in the world with a market capitalization
of around 210 billion Swiss Francs. It has a primary listing on the Swiss Exchange and secondary
listing on Euronext. Nestle has more
than 8000 brands of products.
The wide range of Nestle include baby
food, dairy products, breakfast cereals,
frozen food, pet food, snacks, beverages
like tea and coffee and mineral water.
Some of the highest selling products of
Nestle are Nescafe, Kit Kat, Nesquik,
Maggi and Smarties.

The chairman of Nestle is Peter Brabeck-

Letmathe who leads the 14 Board of Directors. The CEO of the company is Paul Bulcke.The
organization has approximately 3,30,000 employees all over the world. Nestle is always known for
its diversity, work ethics, food safety and compliance. The company’s Corporate business
principles have been made available to every employee in over 50 languages.

Nestle also received a prestigious award from the World Environment Center in 2013.The Quality
Management System of Nestle provides food safety and compliance with quality standards. The
organization applies internationally recognized Good manufacturing Practices (GMP) to ensure
quality and food safety. Few of the major competitors of Nestle are PepsiCo, Kraft
Foods, Unilever, Cadbury and Danone.

In June, 2014 Nestle has won the International Coaching Federation’s Prism award in Switzerland
for outstanding organization coaching. In 2012, it was listed as number 18 in the annual supply
chain top 25 organizations in the world. Nestle also received several prestigious awards such as
Global Food Industry Award, Great Place to work Award.

Nestle had been ranked at significant position in the list of 10 most admired companies in the
world for four consecutive years, making it the only food giant to hold such a place. Nestle
believes in the branding that connects with the masses and their needs in everyday life. A simple
idea to make daily routine better now turned into a billion dollar enterprise.