Go the Nestlé’s corporate website as well as the www.finance.yahoo.

com
website. Locate information about Nestlé’s recent strategic actions.
Nestle main success is built upon the strategy of promoting nutrition, health and wellness. It has
identified five high growth categories which includes coffee, pet care, nutrition, water and nestle
health science. Due to their huge contribution to sales (57%) they will receive particular emphasis
regarding capital expenditure, research and development. They are allocating resources behind the
businesses which create highest economic benefit.

In 2018, Nestle health sciences and Galderma invested CHF 150 million to open two new factories
in china medical city Taizhou, Jiangsu province in order to meet the long-term organizational
goals, and consumer desires for food for special purposes and as well as skin care products.

Nestle has taken major step towards the corporate social responsibility of not to source various
ingredients that it uses for production such as palm oil, cocoa, meat and soy from brazil which
favors to deforestation of amazon. And corrective actions will be taken against the suppliers found
to be in violation. After receiving tremendous criticism from green peace and other environmental
organizations for producing huge amounts of plastic waste which is polluting land and sea, Nestle
has setup a research institute to develop more ecofriendly packaging for their products.

Daniel Loeb a billionaire investor who has taken on giants such as Yahoo and Sony, has argued
that even though Nestle has exposure to promising categories such as coffee and pet food, its shares
have underperformed rivals in recent years as it has “remained stuck in its old ways”. In 2017,
Nestle announced share buyback plan over the course of next three years, and they repurchased
CHF 6.8 billion worth of shares in 2018.