Professional Documents
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International Economics Assingments
International Economics Assingments
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I declare that all material in this assessment is my own work except where there is clear
acknowledgement and appropriate reference to the work of others. I fully understand that the
unacknowledged inclusion of another person’s writings or ideas or works in this work may be
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be subject to the penalties associated with plagiarism, as per GISMA Business School, University of
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Signed……………….......... Date ……………………
Contents
Overview of Nestlé's International Operations:.....................................................................................3
KEY FACTORS OF SUCCESS.....................................................................................................................3
CULTURAL UNDERSTANDING AND LOCAL ADAPTATION.............................................................3
Regulatory Compliance and Adaptability...................................................................................4
GLOBAL TALENT MANAGEMENT................................................................................................4
STRATEGIC ACQUISITIONS AND PARTNERSHIPS.........................................................................4
Brand Portfolio and Innovation..................................................................................................4
Supply Chain Efficiency..............................................................................................................4
Corporate social responsibility...................................................................................................5
Factors Influencing Nestlé's Sourcing Decisions:...................................................................................5
Cost Considerations...................................................................................................................5
Proximity to markets..................................................................................................................5
Quality and Availability of Raw Materials..................................................................................5
Political and economic stability..................................................................................................5
Regulatory environment............................................................................................................5
Potential Benefits of Nestlé's Global Supply Chain................................................................................5
Economics of scale.....................................................................................................................5
Risk diversification.....................................................................................................................6
Responsiveness of market demand...........................................................................................6
Access to specialized resources.................................................................................................6
Global brand consistency...........................................................................................................6
Challenges Associated with Nestlé's Global Supply Chain.....................................................................6
Geopolitical risk.........................................................................................................................6
Supply Chain Disruptions...........................................................................................................7
Environmental Sustainability Concerns......................................................................................7
Currency fluctuations.................................................................................................................7
Complexity of coordination........................................................................................................7
Summarized...............................................................................................................................7
Challenges and Risks Faced by Nestlé in the Context of the Russia-Ukraine Conflict:...........................8
Global Geopolitics and Economic Impact..............................................................................................9
Recommendations for Nestlé to Gain Long-Term Competitive Advantage:.........................................10
Conclusion...........................................................................................................................................10
REFERENCING......................................................................................................................................11
Overview of Nestlé's International Operations:
Nestle with operations in 186 countries, the Swiss multinational food and
beverage corporation Nestlé has made a name for itself as a worldwide leader
since its founding in 1866. The company's skillful handling of a variety of
markets, which reflects a strategic commitment to comprehending and adjusting
to local cultures, is a key factor in its global success. Nestlé's broad product line,
which includes everything from food and drink to skin care and health research,
demonstrates its capacity to satisfy a broad range of customer tastes.
Multinational corporations (MNCs) exhibit exceptional proficiency in handling
the intricacies of many regulatory frameworks, showcasing a profound
comprehension of local statutes and compliance obligations. The deliberately
assembled and developed worldwide workforce of Nestlé is a reflection of the
company's focus on talent acquisition and development, which encourages
creativity and adaptability in the face of shifting market conditions.
Furthermore, strategic alliances and acquisitions have been essential to Nestlé's
global growth, enabling the corporation to enter new markets and include
important companies into its portfolio. Nestlé's endurance and success in the
global marketplace may be attributed to this all-encompassing strategy, which
has helped to establish the company as a major participant in the dynamic and
interrelated world of worldwide commerce.
With operations spanning across 186 countries, Nestlé, the food and beverage
corporation has gained global recognition since its establishment, in 1866. The
companys effective approach in markets driven by a commitment to understand
and adapt to local cultures plays a pivotal role in its worldwide success. Nestlés
extensive range of products encompassing food, beverages, skincare and
healthcare research demonstrates its ability to cater to customer preferences.
Multinational corporations (MNCs) showcase proficiency in navigating
regulatory frameworks by deeply understanding local laws and compliance
obligations. Nestlés built and nurtured workforce reflects the companys
emphasis on talent acquisition and development fostering creativity and
adaptability amidst evolving market dynamics. Additionally strategic
partnerships and acquisitions have played a role in Nestlés global expansion
journey by facilitating entry into markets and incorporating significant
businesses into its portfolio. This holistic approach can be credited for Nestlés
resilience and prosperity, in the world of global commerce where
interconnectedness prevails.
The secret to Nestlé's success is its ability to customize its goods to suit regional
tastes and inclinations. Nestlé engages in learning about other cultures and
customizes its products appropriately, as opposed to taking a one-size-fits-all
strategy. The company's ability to forge solid relationships with customers all
around the world thanks to this localization approach has increased brand
loyalty.
The secret to Nestlé's success is its ability to customize its goods to suit regional
tastes and inclinations. Nestlé engages in learning about other cultures and
customizes its products appropriately, as opposed to taking a one-size-fits-all
strategy. The company's ability to forge solid relationships with customers all
around the world thanks to this localization approach has increased brand
loyalty.
Talent development and acquisition are top priorities for Nestlé. Nestlé makes
sure that its teams have the cultural intelligence and experience necessary to
successfully negotiate challenging foreign markets by constructing a diverse
and competent workforce. This strategy promotes creativity, flexibility, and
effective problem-solving on a worldwide level.
Strategic alliances and acquisitions have aided Nestlé's expansion. The business
has a track record of locating important players in various markets and
incorporating them into its holdings. Using this strategy, Nestlé may reach new
markets, increase the range of products it offers, and capitalize on the
advantages of acquired businesses.
Brand Portfolio and Innovation
Nestlé offers a vast array of items under its many brands, ranging from drinks
and candies to beauty care and health sciences. The effects of market swings in
any one area are reduced by this diversification. Nestlé's dedication to
innovation, demonstrated by its numerous R&D facilities across the world,
guarantees that its products remain current and satisfy changing consumer
demands.
Proximity to markets
For Nestlé, being geographically close to important consumer markets is essential. A more agile
supply chain is ensured by placing production facilities closer to these markets, which also helps to
lower lead times, cut down on transportation costs, and react faster to changes in demand.
Quality and Availability of Raw Materials
Nestlé gives preference to areas with a consistent and excellent source of raw materials. This is
especially crucial because of the wide variety of products it offers; all of them need consistent access
to components that satisfy exacting quality requirements.
Regulatory environment
Adherence to regional laws and ordinances is an essential factor. In order to guarantee compliance
with regulations and steer clear of legal issues that can impair business operations, Nestlé thoroughly
assesses the regulatory landscape in possible sourcing regions.
Economics of scale
The impact of regional threats is lessened by the diverse global supply chain.
Due to its capacity to source from several areas, Nestlé's supply chain is
resilient and risk-mitigated, preventing disturbances in one area from destroying
the entire system.
Responsiveness of market demand
With a worldwide supply chain, Nestlé can react swiftly to shifting consumer
preferences. The corporation can remain ahead of trends by strategically
positioning its manufacturing facilities to cater to distinct consumer tastes in
various locations and customize its product offerings accordingly.
Access to specialized resources
Due to its global presence, Nestlé has access to specialized resources across
many geographical areas. This adds to the originality and distinctiveness of its
product offerings with specialization, cutting-edge technologies, and unusual
ingredients.
Global brand consistency
The uniformity of Nestlé's product quality and brand image in various markets
is guaranteed by an international supply chain. This promotes consumer loyalty
and trust while helping to establish and preserve a powerful worldwide brand.
Geopolitical risk
Conclusion
REFERENCING
Harvey, S. (2023) 'Nestlé latest FMCG major to feature on Ukraine’s ‘sponsors of war’ list,' Just Food,
2 November. https://www.just-food.com/news/nestle-latest-fmcg-major-to-feature-on-ukraines-
sponsors-of-war-list/?cf-view.