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Nestle Case Study

Nestle Case Study

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Published by: Mieder van Loggerenberg on May 20, 2012
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 Course : Master of Science (M.S.) in ManagementSubject : Marketing ManagementAssignment : Group case 3 (Nestlé)Due Date : 13 March, 2011Submitted by: Submitted to:
 
 Page | 2
Contents
Instructions for case study ……………………………………………………………………………………………………….
2Introduction
………………………………………………………………………………………………………...………………….
3An analysis of Nestlé
case issues …….………….……………………………………………………………………………
4
Alternatives in solving these issues ………………………………………………………………………………………….
7
Choosing the best alternative …………………………………………………………………………………………………..
9Discussion questions1.
 
What have been the key success factors for Nestlé
? …………………………………………………..
102.
 
Where is Nestlé
vulnerable? What should it watch out for? ……………………………………….
103.
 
What recommendations would you make to senior marketing executives going
forward? What should the company be sure to do with its marketing? ………………………
11
Bibliography and References ……………………………………………………………………………………………………
12
 
 Page | 3
Introduction
Nestlé began in Switzerland in 1867 when Henri Nestlé, a pharmacist launched his product FarineLactée
Nestlé, a nutritious gruel for children. Nestlé, which means ’little nest’, is used in both the company
name and the logotype and symbolizes security, family and nourishment. Nestlé is today the world'sbiggest food and beverage company and employs roughly 280,000 people in over 86 countries and havefactories or operations in nearly every country in the world. The Nestlé family has grown to produceproducts that include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water andother
food products. Nestlé has continued to expand its product portfolio in the early 70’s to include pet
foods, pharmaceutical products and cosmetics.Nestlé's strategy is directed by several fundamental principles such as innovation and renovationwhich ensures that the existing products grow and maintain a balance in geographic activities and productlines. Long-term potential is never sacrificed for short-term performance or profit. The Company's priorityis to bring the best and most relevant products to people, wherever they are, whatever their needs,throughout their lives.
The company’s
business principles are vital to its framework for corporate responsibility. Thisframework also enables it to create shared value with suppliers, partners, customers and consumers acrossthe world. Nestlé
’s
corporate responsibility involves more than what the regulations and laws require,ensuring greater trust from individuals and organizations that does business with them.Nestlé
’s
main business principle is based on decentralization, meaning headquarters sets the overallstrategy and ensures that it is carried out by each country but they are responsible for the running of itsbusiness. This approach is best summed up as: 'centralize what you must, decentralize what you can'.Nestlé believes that they should think about their organizations globally but they deal with people by
interacting with them locally. “Thinking globally
-
acting locally”
 

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