Rishabh Arora

BBE VI sem
2036
 CONTENT
• Vision & Mission
• General environment
• 5 forces model
• SWOT
• Business strategy
• Competitors
• Problems and Solution
• Stake holders
• Acquisition Strategy
• Organizational Structure
• Strategic Leadership
• Strategic Entrepreneurship
 Vision

“Nestlé's aim is to meet the various needs

of the consumer everyday by marketing
and selling foods of a consistently high
quality.”
 Mission

“We strive to bring consumers foods that

are safe, of high quality and provide
optimal nutrient to meet physiological
needs. Nestle helps provide selections for
all individual taste and lifestyle
preferences.”
 General environment
• Demographic trends:
- Nearly all age from young to old people.
- All six continents (customers)
• Economic trends:
- Most countries all over the world are
affected by the global economic crisis.
 General environment
• Political/Legal trends:
- More countries join WTO: allow more
free trade across the nations
• Sociocultural trends:
- The world people care more about their
health, especially with foods and
beverages.
 General environment
• Technological trends:
- Use most of latest technology( in researching,
producing…)
- Try to find new way of create new product
- Improve the quality of products.
• Global trends:
- Improve operational efficiency by integrating
the company’s businesses on a global scale.
- “We’re now transitioning to become a
genuinely global food company, to behave as
one”
 Five forces model
New entrants Substitute products
• Multinational • Diversity products
companies • Confectionery,
• More companies instant foods
joint in domestic • Not many firms
market focus on pet foods
• High pressure • Average pressure
 Five forces model
Suppliers Buyers
• Sign contracts with • Variety demands
farmers • Different tastes
• Stable suppliers • Need to attract
• Trust to the big firm customers
• Low pressure • High pressure
 SWOT analysis
• Strengths:
- Very long history (over 140 years)
- Operated factories in 77 countries (all six continents), a
truly global company.
- Considered the innovation leader in the global food and
nutrition sector(3500 scientist in company R&D network)
- Low cost operators (beat the competition by producing
low cost products, edging ahead with low operating
costs)
- Offering thousands of local products.
- Have a great CEO, Peter Brabeck, and a very strong
workforces.
 SWOT analysis
• Weaknesses:
- Not as successful as they thought they
would be in some market (i.e. France)
- Some of their product were positioned as
too scientific, and consumers didn’t quite
understand (i.e. LC-1 was a food and not a
drug)
 SWOT analysis
• Opportunities:
- Well-known company and strong brandname
- Health-based products are becoming more
popular in the world, including in the United
States
- Ranked first in nearly all the product
segments in which it operated (market leader)
- Unaffected by current economic conditions
(its share of the UK confectionery market rise to
15.6 per cent with a 0.5 per cent growth this
year)
 SWOT analysis
• Threats:
- Some markets they are entering are
already mature
- Global competitors.
- There are intense competitions in the
United States, especially yogurt market
(General Mills)
 Business-level strategy
• Nestlé business-level strategy is
integrated cost leadership/differentiation
- Wide range of products (over 20
categories: coffee, milk, mineral water, pet
foods, cereals…)
- Low cost operators.
 Competitors
• Many competitors
• The same qualities
• The same prices
• Unilever, Kraft, Master foods…
• High pressure
 Problem
• High market share
• Low growth
• Competitive pressure
• Want to expand
• Don’t have enough resources
 Solution
• Cut investment budgets, overheads, frill
• Maximizing existing assets, capacity,
distribution
• Target internal growth rate
• Improve supply chain, productivity,
optimize planning
 PROBLEMS TO NESTLE
• Storm of Melamine in 2008
+ Melamine: increasing high protein
affectedly
=> kidney stone, cancer
• Relate with Nestle ???
• 2/10/2008 : Finding Melamine in Nestle
powdered milk at Taiwan
=> 6 kinds of Nestle milk products :
having Melamine poisoned chemical
substance ( little percent)
• Nestle in Switzerland :force to take back
baby milk products in France, Spain, Italy
 However
• 42 Nestle samples tested in Measured
Quality Standard Technique Center: No
Melamine

• Nestle products at Vietnam or imported

from America, Europe, New Zealand,
absolutely not from China
 Stakeholders
• Shareholders: • Business partners:
profits long-term, trusted
• Employees: stable relationships
job, promotion • Local environment:
• Consumers: high need Nestle has
quality products, responsibilities
reasonable price
 Acquisition Strategy
• 90’s year: Baby product’s of Nestle were
not concerned
• 1998: Peter Brabeck became Director
=> Begin biggest A&M cases:
+ Drerer’s Grand ice-cream Company
+ Rlaston Purina- Pet food biggest North-
American : 11 billion USD
 Why acquisition???
• Diversifying size of economic:
+ Baby milk
+ Nutrition
+ Cafe
+ Food product
• Expanding the size of company
 The most successful A&M
• Buy Gerber, Baby food brand name from
Novartis corporation : 5.5 billion $
=> No.1 in Baby food largest market,
America.

----->
 Not only buy but sell
• Selling the Milk manufacturing Industry in
BaVi to Anco Company ( during 1 year)
• Are they right when selling ???
+ The truth : spend money to focus on
different field
Invest 4 million$ ( maybe money from
selling Milk industry 1 year) to Maggi
produce industry
 Organizational Structure
National Sales Manager

Zonal Sales Manager

Regional Sales Manager

Customer Service System Support Event Management

Manager Area Managers Executive

Customer Service Territory in- System support

Officer charge Officers

Event Chiller
Sales Associates Management Technician
Officer

DSR Loader
 Strategic Leadership
• To force the businesses to become more
efficient.
• To create a regional manufacturing
network.
• To integrate the company’s business on a
global scale.
• To reduce marketing expenditures by
exploiting the synergies between brands.
 Nestle’ strategic entrepreneurship

• Develop R&D network

• Acquisition
 Develop R&D network
• >3,500 scientists work on improving
existing products and creating tomorrow’s
nourishments
• Two thirds of company’s R&D activities
are dedicated to renovating existing
products, the remaining third is reserved
for radical product innovations.
• Improve on operational level
• A number of organizational changes.
 Acquisition
• Reaching a critical mass in terms of market
share
+ the acquisition of Dreyer’s
+ the acquisition of Ralson Purina
+ the acquisition of Jenny Craig
• Gain expert knowledge for further expansion into
new product segments.
+ Life Ventures fund
+ The Nestle Growth fund
THANK YOU FOR LISTENING!!!!