Executive Summary:

This report is prepared to analyse the strategy of the Nestle Company and
comprehend how the company develop strategic intent for their business
organisations following the analysis of external and internal business
environments. I will analyse the strategic management process as firm used to
achieve strategic competitiveness and earn above-average returns. I will discuss
the strategy formulation that includes business-level strategy and corporate-
level strategy.

It also aims to identify market place opportunities and threats in the external
environment and to decide how to use their resources, capabilities and core
competencies in the firm’s internal environment to pursue opportunities and
overcome threats. In order to strengthen this assignment about Nestle, there are
several methods of gathering data has been conducted, such as PESTLED
analysis, Porter’s 5 forces model and SWOT analysis.

By the end of this assignment, future strategy and my recommendations are

mentioned about Nestle that will fit into strategic orientation in order to perform
better in their business world.

1. Introduction:
Nestle has been serving this world for over one hundred and thirty years. It has
differentiated itself through its high quality product mix and positioned itself as
health and Nutrition Company while targeting the health conscious people
throughout the world.

The most important thing for a business company is an understanding of their

successful performance among the other competitors in market place. For some
parties, like shareholders, it is essential for company to make a profit and gain
above-average returns. In this assignment, I will discuss furthermore about
Nestlé’s external environment in all aspects such as their general environment,
industry environment, competitive environment, and scan the opportunities and
threats of the company. And also I am going to explain briefly about their
internal environment includes their resources, type of their resources,
company’s capabilities, evaluate their core competencies and so on.

2.1 Company Profile:

Nestlé - the world's largest nutrition, health and wellness company, not only in
terms of its sales but also in terms of its product range and its geographical
presence: Nestlé covers nearly every field of nutrition and food business : infant
formula, baby food, milk products, chocolate and confectionery, instant coffee,
ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestle
is also a major producer of pet food. In most of these product groups and in most

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markets, Nestlé is the leader or at least a strong number two. Nestle is a much
focused Company, with more than 94 percent of the sales coming from the food
and beverage sector.

Nestlé is present around the globe, on all continents, with around 230,000
people working in more than in 84 countries with 466 factories and with sales
representatives in at least another 70 countries. Many of their brand names are
familiar to almost everyone: NESCAFE, NIDO, MAGGI, POLO, MILO, KITKAT,
KOKO KRUNCH….Some of their products have broken records: 3,000 cups of
Nescafe are consumed every second. And Kit Kat merited an entry in the
Guinness Book of World Records as the world's best-selling chocolate bar with
418 Kit Kat fingers eaten every second around the world!

2.2 History of Nestle:

1866-1905

In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were
unable to breastfeed. His first success was a premature infant who could not
tolerate his mother's milk or any of the usual substitutes. People quickly
recognized the value of the new product, after Nestlé's new formula saved the
child's life, and soon, FarineLactée Henri Nestlé was being sold in much of
Europe.

1905-1918

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the
early 1900s, the company was operating factories in the United States, Britain,
Germany and Spain. World War I created new demand for dairy products in the
form of government contracts. By the end of the war, Nestlé's production had
been doubled.

1918-1938

After the war Government contracts dried up and consumers switched back to
fresh milk. However, Nestlé's management responded quickly, streamlining
operations and reducing debt. The 1920s saw Nestlé's first expansion into new
products, with chocolate the Company's second most important activity.

1938-1944

Nestlé felt the effects of World War II immediately. Profits dropped from $20
million in 1938 to $6 million in 1939. Factories were established in developing
countries, particularly Latin America. Ironically, the war helped with the
introduction of the Company's newest product, Nescafe, which was a staple drink
of the US military. Nestlé's production and sales rose in the wartime economy.

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1944-1975

The end of World War II was the beginning of a dynamic phase for Nestlé.
Growth accelerated and companies were acquired. In 1947 came the merger
with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did
Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a
shareholding in L'Oréal in 1974.

1975-1981

Nestlé's growth in the developing world partially offset a slowdown in the

Company's traditional markets. Nestlé made its second venture outside the food
industry by acquiring Alcon Laboratories Inc.

1981-1995

Nestlé divested a number of businesses 1980 / 1984. In 1984, Nestlé's improved

bottom line allowed the Company to launch a new round of acquisitions, the
most important being American food giant Carnation.

1996-2002

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 acquisitions including San Pellegrino (1997),
Spillers Pet foods (1998) and Ralston Purina (2002). There were two major
acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice
cream business into Dreyer's, and in August, a USD 2.6bn acquisition was
announced of Chef America, Inc.

2003 +

The year 2003 started well with the acquisition of Mövenpick Ice Cream,
enhancing Nestlé's position as one of the world market leaders in this product
category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestlé
portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join the
Company.

2.3 Nestle’s Mission & Vision

Corporate Mission:

At Nestlé, we believe that research can help us make better food so that people
live a better life. As consumers continue to make choices regarding foods and
beverages they consume, Nestlé helps provide selections for all individual taste
and lifestyle preferences. Research is a key part of our heritage at Nestlé and an
essential element of our future. We know there is still much to discover about
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health, wellness and the role of food in our lives, and we continue to search for
answers to bring consumers Good Food for Good Life.

Corporate Vision:

Nestlé has an aim to meet the various needs of the consumer every day by
marketing and selling food of a consistently high quality.

Good Food is the primary source of Good Health throughout life. We strive to
bring consumers foods that are safe, of high quality and provide optimal
nutrition to meet physiological needs. In addition to Nutrition, Health and
Wellness, Nestlé products bring consumers the vital ingredients of taste and
pleasure. Confidence that consumers have in our respected brands, is a result of
our company’s many years of knowledge in marketing, research and
development, as well as continuity – consumers relate to this and feel they can
trust our products. The objectives are to deliver the very best quality in
everything we do, from primary produce, choice of suppliers and transport, to
recipes and packaging materials.

3. Macro Environmental Analysis:

Political/Legal Environment:

Political factors are important especially in food industry. The company policies
are affected and its budget is also affected. Nestlé provide food assurance to
provide assurance to the consumers that Nestlé’s products are manufactured,
imported and distributed under the strictest hygienic and sanitary condition.
Besides that, to ensure that consumers do not buy any fake products, Nestlé’s
products are always come with the seal of guarantee. By having the seal of
guarantees, consumers are now more confident and trust of Nestlé’s products.
Strict quality control played a role in political factor too. It means that Nestlé’s
products quality will not be different with other countries. Consumers are
guarantees with full satisfaction of the products all over the world.

Economic Environment:

Although Nestlé is leading food industry, it shares its knowledge and expertise
with local small and medium companies. It helps entrepreneurs to compete in
the new free trade environment which will ultimately benefit the industry and
the economy by making the market growth. Besides that, Nestlé also collaborates
with local government to provide technical assistance to farmers in planting and
harvesting crops. The farmer will get income and Nestlé will get to purchase
good and fresh raw materials to produce their food. By having own local
productions, Nestlé should no longer needs to import any raw materials from
other country where they will save much more money. It will also benefit the

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consumers whereby consumers could enjoy the local productions with low price.
More consumers will use this product and therefore Nestlé will gain more profit
from that.

Socio-Cultural Environment:

A good diet and adequate food supply, the central for promoting health and well-
being is the focus of every person even these days; whether people tend to value
products that incorporate with them healthy benefits. Obviously, these types of
goods are preferred more than that of junk foods and its relative products.
Moreover, generation Y cohorts, those born from 1980s-2000s, possess
characteristics such as acceptance to change and being technologically savvy.
These kinds of characteristics should coincide to the firms’ aggressiveness of
using technology especially that this is also the tie of the influx of technology in
the Europe.

Technological Environment:

Internet and Mobile Technology is currently growing so rapidly in the market

where almost all of the people nowadays will get contact with it. Nestlé could use
this advantage to benefit them by using technology to promote their products
over those advanced technology. Customer could get any information from their
site. Nestlé’s employees could use this internet service to connect to its industry
in other country such as Australia, Singapore, U.K and more. They did research
and development by using the technology to find more information to satisfy the
local tastes and cultural flavours in each country market. By understanding what
each country asks for, Nestlé could market difference product according to the
customer demand in difference country. It is already proven that the technology
factors are important for Nestlé Company.

Global Environment:

Nestlé Company improves their operational efficiency by integrating the

company’s businesses on a global scale. They are now transitioning to become a
genuinely global food company, to behave as one. Nestlé has a dynamic global
network of Nestlé R&D centres working on scientific research and product
development. They have the world’s largest food and nutrition research
organisation, with about 5000 involve in R&D. Nestlé’s global R&D is applied
locally to meet different consumer needs and preferences through over 300
Application Groups worldwide.

Demographic Environment:

Nestlé’s product is for everyone. People from any area, any culture, any age, and
income will drink water. It is not any luxury item which is used by a specific

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people. Nearly all age from young to old people can produce Nestlé. And all six
continents are their customer. For instance, Nestlé segment into different of age.
For baby, they have Nestlé baby foods while young people can drink Milo,
Nescafe or eat ice cream, chocolate and cookies. In Vietnam, Nestle has the Maggi
brand with many kinds of Asia sauce, but Maggi do not exist in England because
of the different in the geographical taste.

4. Industry Analysis: Porter’s Five Forces Model:

The intensity of industry competition and an industry’s profit potential are
functions of five forces of competition. Porter’s Five Forces Model was created to
act as a framework for industry analysis and business strategy development.
Porter singled out five different forces that impact competitive intensity which
portrays an image of the overall attractiveness and profitability of a market.

Threats of New Entrants:

The food processing industry is very large and competitive. It is uncommon for
firms within the industry to do quite well. As a result, many companies enter into
the market every year in an attempt to gain a portion of the profitable market.
For Nestle, the company luckily has been around for over a century and boasts a
long history of quality products and consumer satisfaction, which has allowed
the company to obtain a considerable share of the market. As a result, new
entrants into the industry must attempt to seize a portion of Nestlé’s market
share in order to survive. Essentially, Nestlé is constantly a target, and so the
threat of new entrants is moderate.

Threats of Substitute Products:

Due to the nature of the industry, Nestlé is afflicted with the threat of substitute
goods. Ranging from ice cream, frozen foods and confectionaries to pet food,
there are arrays of similar products that compete directly with Nestlé. It is vital
for Nestlé to continuously find new ways to improve its products and generate
new sources of growth for the company’s future expansion because competition
is so violent. In recent years, Nestlé has focused on the health and wellness
aspects of its products to maintain its edge in the market.

Bargaining Power of Supplier:

Nestlé prides itself on creating and maintaining positive relationships with its
suppliers all over the world. Due to the large purchasing power of Nestlé, and
because the suppliers of agricultural commodities offer a product that is far from
unique, Nestlé holds more bargaining power than its suppliers. Aside from this,
Nestlé prefers to create and preserve long term relationships with its suppliers

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as this helps to ensure the quality of the raw materials being purchased. In
addition, Nestlé also offers useful advice to its suppliers on how to perform more
efficiently to minimize unnecessary costs.

Bargaining Power of Buyer:

Customers have a large amount of bargaining power regarding to their

consumption of Nestlé products. There are close substitutes for Nestlé products
which allows for the preferences of the customer to be very influential. Nestlé
understands the power of the customer and has taken specific steps to meet the
needs of its products consumers. Specifically, Nestlé’ is incorporating health and
wellness into the creation of its products as society has started becoming more
health conscious.

Intensity of Rivalry Among Competitors:

Nestle is powerhouse in the food processing industry but so are Kraft,

Masterfoods, and Unilever, Nestle was also facing strong competition at the
national and regional level. These companies, among others, are in a constant
and continuous battle to outperform one another. Nestle was increasingly facing
fierce competition as many food producing rivals had achieved significant
improvements in their operating efficiency. Rivalry is fierce in the food
processing industry, and this is a good thing for consumers. As long as these
companies continue striving to one up one another, consumers will continue to
enjoy ever-improving product lines.

5. SWOT Analysis:
Strengths:

 Have a very long history over 140 years

 Company’s name Nestlé” signifies the quality image high standard
and quality product.
 Loyalty from customers is also the major strength for the company
 Operated factories in 77 countries in all six continents, a truly global
company
 Considered the innovation leader in the global food and nutrition
sector with 3500 scientists in company R&D network
 Offering thousands of local products, research and development
capabilities.
 Company has the ability to compete in a dynamic environment.
 Company always adapts the new technology.
 Has a very strong workforce.

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Weaknesses:

 Less consumer research in few areas.

 Increasing instances of product recalls hampering brand equity
 Entering into markets that are already mature and can give a tough
competition to new entrants.
 The distribution cost is high as compared to the competition in the local
market.

Opportunities:

 Well-known company and strong brand name

 Health based on products are becoming more popular in the world,
including United States
 Ranked first in nearly all the product segments in which it operated
(market leader)
 Company is trying to open stores in universities.
 They can provide incentives to retailers to increase sales volume.

Threats:

 Some markets they are entering are already mature

 Global competitors
 Increasing prices of raw materials
 Highly competitive market, multinational companies are very organized
and financially strong
 Company like Cadbury is giving more discounts to retailers as compared
to distributors due to which retailers prefer its products for sale.
 Existing companies are increasing their product lines that can prove to be
a threat in the coming years.

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6. Critical Success Factors of Nestle:

Localization amidst globalization:

Successfully achieving localization in the increasingly globalized food industry

Product planning, production, marketing and services form a strategy of
successful localization of a global company. Nestle has 2 organizations that
focused on leveraging its global reach to achieve operational efficiencies: GLOBE
and GNBS provide the process, organization and technology infrastructure to
allow Nestlé to leverage its global size GNBS will enable Nestlé to leverage its
scale to increase the efficiency and effectiveness of its "back office" whilst
enabling the markets and businesses to focus on demand generation and
profitable growth. Nestlé’s Swiss sales is only 2% of their total global sales

Global brand strategy

Nestle has products that resonate all over the world under a unified brand.
These brands are unified under the Nestle banner, which delivered a value and
reputation of a “global food company” while the products delivered Its own
specific attributes. The global corporate brand was the brand platform for
delivering localized products and brand. Nestle has built global brands such as
Nescafe, Nesquik, Nestea, Taster’s Choice, Haagen-Dazs.

Successful M&A

Nestle has grown thru organic growth but really thru successful M&A. Nestle has
acquired to enter both emerging and developed markets, and new product
categories. Clear strategic focus: Food & Beverages, Nutrition, Health & Wellness,
adjacencies to existing core businesses. Within these strategic focuses, 12 of their
brands represent 70% of sales, most are #1 or #2 in Market Share (4 of these
brands are billion dollar brands) Clear criteria for transactions: Enhancing key
metrics, strong market positions, brands, capabilities, ease of integration
(culture) Global scope but focus on bolt-ons: both emerging and developed
markets. M&A drives profitable growth thru competitive advantages, growth
drivers, and operational pillars.

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7.1 Evaluation of Business Strategy:
Nestlé Roadmap to Good Food, Good Life

Nestlé has around 468 factories, operates in 86 countries around the world, and
employs around 330,000 people. It is one of the main shareholders of L’Oréal,
the world’s largest cosmetics company (Nestlé). The mission of Nestlé nowadays
– “Good Food, Good Life” – is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions and to put a strong emphasize that leadership is not just about size; it
is also about behavior and trust earned over a long period of time by consistently
delivering on promises.

It is quite important to present Nestlé’s internal resources when analyzing

company’s strategic position – the key strengths and weaknesses. Nestlé’s
Chairman and CEO Paul Bulcke had set Nestlé on the path of achieving
worldwide sustainable competitiveness through the following strategic “pillars”
such as low-cost, highly efficient operations; renovation and innovation of the
Nestlé product line; universal availability and ability to customize products to
the local market conditions; improved communication with consumers through
better branding; research and development capabilities with a focus on meeting
today’s needs without compromising the ability of future generations to meet
their needs, and to do so in a way which will ensure profitable growth year after
year and a high level of returns for shareholders and society at large over the
long-term. The company has the largest R&D network of any food company in
the world; with 32 R&D centers and over 5,000 people directly involved in R&D.

Nestlé’s long-term corporate objectives are to be recognized as the world’s

largest and best branded food manufacturer and leader in Nutrition, Health and
Wellness, trusted by all its stakeholders, whilst ensuring that the Nestlé name is
synonymous with products of the highest quality as well as achieving the status
of “Nestlé Model”, a term which referred to Nestlé’s objectives of “organic growth
between 4% and 6% each year; continued year-after-hear improvements in
earnings before interest and tax. In recent years, the company has pursued a
policy of expansion and diversification (brands diversified into specific product
groups like baby foods, bottled water, coffee, drinks, food service, sport nutrition
and weight management etc.) through acquisition and divestment to achieve a
more balanced structure to the business (as an example, Nestlé‘s 2012
acquisition of Pfizer Nutrition, enhancing its position in global infant nutrition).

To stay ahead of the competition, Nestlé centralizes expertise in the system

technology. Nestlé has marked recently the official opening of a new System
Technology Centre (STC) in Switzerland that brings together on one site the
expertise used to combine products, capsules and machines such as those used
in its Nespresso and Nescafé Dolce Gusto beverage systems what will
significantly affect the company’s profits in the future.

The company has also set up a new institute to combine nutritional and
biomedical research, in the hope of creating foods that provide a medicinal
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benefit. Nestlé is examining its entire portfolio to make sure its products are
healthier and tastier than those of its direct competitors.

7.2 Business Principles:

Nestlé is committed to the following Business Principles in all countries, taking
into account local legislation, cultural and religious practices:

1. Nutrition, Health and Wellness

Our core aim is to enhance the quality of consumers lives every day, everywhere
by offering tastier and healthier food and beverage choices and encouraging a
healthy lifestyle. We express this via our corporate proposition ‘Good Food, Good
Life’. Nestlé Nutritional Profiling System

2. Quality Assurance and product safety

Everywhere in the world, the Nestlé name represents a promise to the consumer
that the product is safe and of high standard. Nestlé Quality Policy

3. Consumer Communication
We are committed to responsible, reliable consumer communication that
empowers consumers to exercise their right to informed choice and promotes
healthier diets. We respect consumer privacy. Nestlé Consumer Communications
Principles Nestlé Policy and Instructions for Implementation of the WHO
International Code of Marketing of Breast-milk Substitutes

4. Human rights in our business activities

We fully support the United Nations Global Compact’s (UNGC) guiding principles
on human rights and labour and aim to provide an example of good human
rights’ and labour practices throughout our business activities. International
Labour Organisation

5. Leadership and personal responsibility

Our success is based on our people. We treat each other with respect and dignity
and expect everyone to promote a sense of personal responsibility. We recruit
competent and motivated people who respect our values, provide equal
opportunities for their development and advancement, protect their privacy and
do not tolerate any form of harassment or discrimination. Nestlé Management
and Leadership Principles and Nestlé Code of Business Conduct

6. Safety and health at work

We are committed to preventing accidents, injuries and illness related to work,
and to protect employees, contractors and others involved along the value chain.
Nestlé Policy on Health and Safety at Work

7. Supplier and customer relations

We require our suppliers, agents, subcontractors and their employees to
demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable

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standards. In the same way, we are committed towards our own customers.
Nestlé Supplier Code
8. Agriculture and rural development
We contribute to improvements in agricultural production, the social and
economic status of farmers, rural communities and in production systems to
make them more environmentally sustainable. Nestlé Policy on Environmental
Sustainability

9. Environmental sustainability
We commit ourselves to environmentally sustainable business practices. At all
stages of the product life cycle we strive to use natural resources efficiently,
favour the use of sustainably-managed renewable resources, and target zero
waste. Nestlé Policy on Environmental Sustainability

10. Water
We are committed to the sustainable use of water and continuous improvement
in water management. We recognise that the world faces a growing water
challenge and that responsible management of the world’s resources by all water
users is an absolute necessity. Nestlé Water report
Nestlé continues to maintain its commitment to follow and respect all applicable
local laws in each of its markets.

7.3 Sustainability of Competitive Advantage:

Nestle’s Competitive advantages:

 Unmatched product and brand portfolio

 Unmatched R&D capability
 Unmatched geographic presence
 People, culture, values and attitude

True competitive advantage comes from a combination of hard-to-copy

advantages throughout the value chain, built up over decades.
There are inherent links between great products and strong R&D, between the
broadest geographic presence and an entrepreneurial spirit, between great
people and strong values.
According to Porter, a country can create competitive advantage for itself rather
than merely relying on natural endowments. Keeping Nestle in mind,
Switzerland has created a global recognition for itself based on this huge
multinational giant‟s image. Factor conditions talk about the country creating its
own factors of production. Japan for instance does not have any local metal or
steel however it has become synonymous with the manufacturing of metal cars.
Similarly, factor conditions include building up ona country‟s skilled resources
and putting them to best use such as Nestle has done by acquiring raw materials
from other parts of the world and treating them through innovative processes to
suit its own needs.

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Demand conditions mean that when the demand of a certain product is high
locally, the company can focus on it and build that as its competitive advantage.
The demand for healthy food was very high In Switzerland and taking that
demand Nestle build its company and has now succeeded in creating such a
global giant. Because Nestles related and supporting industries are also thriving
and are competition with each other, this gives Nestle the opportunity to build
on its cost advantage and focus on its innovation so that it can continue its
differentiation strategy in the market. The local conditions affect the firm
strategy and culture. Within Switzerland there was high focus on doing things
after thorough research and therefore the same Ideas were inherent since the
inception of Nestle.

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8. Major Strategic Issues Faced by Nestle:

Nestlé boycott:
A boycott was launched in the United States on July 7, 1977, against the Swiss-
based Nestlé corporation. It spread in the United States, and expanded into
Europe in the early 1980s. It was prompted by concern about Nestlé's
"aggressive marketing" of breast milk substitutes, particularly in less
economically developed countries (LEDCs), largely among the poor. The boycott
has been canceled and renewed based upon scrutiny of the business practices of
Nestlé and other substitute manufacturers monitored by the International Baby
Food Action Network (IBFAN). Organizers of the boycott claim that use of the
substitutes represent a health risk for infants and encourage the practice of new
born nutrition via natural breast milk. As of 2013, the Nestlé boycott is
coordinated by the International Nestlé Boycott Committee, the secretariat for
which is the UK group Baby Milk Action.

Palm Oil Controversy:

Nestlé is fighting a PR battle with Greenpeace over claims that it is continuing to

source palm oil from Sinar Mas, the Indonesian company accused of illegal
deforestation and peatland clearance. Nestlé, maker of Kit Kat, uses palm oil
from companies that are trashing Indonesian rainforests, threatening the
livelihoods of local people and pushing orang-utans towards extinction.

Raw Materials Problem:

Nestle is facing an unexpected customer demand for their products which lead to
increased demand for raw materials. But suppliers fail to deliver the raw
materials timely due to bad weather, natural disaster, political instability and for
many other reasons. Inaccuracy of orders received in inventory or stocks in
hands also contribute to this problem.

Restructuring The Organization:

Nestlé identified significant problems with the pyramidal model and developed
the “Nestlé on the Move” program . Nestlé had to change the way managers seek
out contributions from their staff, Change the way managers led their people.
top-down approach may serve an organization well but not suitable for
uneducated and uninformed employees who need supervisors to manage them
carefully.

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Child Labour Issue:

A significant number of children work in the cocoa production sector in Nestle.

This act violates the child labour law. Human rights organizations are continually
protesting against the use of child labour by Nestle.

9. Recommendation:
Nestle has a very established setup of both its operations and marketing. What
the company should however invest in is building its public image as a
corporately responsible company as well. As it has already been pointed out
above Nestle is one of the world’s most boycotted companies because of a certain
perception that it commits corporate crimes when coming to environmental
practices. The company needs to make sure that that particular image is altered.
Also, the products of Nestle which are not doing so well in certain markets
should be pulled out rather than constantly spending more on them to turn their
value around. Some products are difficult to sail because of the culture of the
market that Nestle operates in and therefore should be avoided to ensure sunk
costs do not occur.

10. Conclusion:
In conclusion it is safe to say that Nestle has a lot of positive attributes backing
its larger than life product portfolio and therefore the company has managed to
sustain its position in the list of the fortune five hundred companies. The
company through the use of efficient management procedures, innovation,
capital infusion and research and development continues to expand its portfolio
and also serves as an example of not just a an exceptional food and nutrition
providing company but also a real multinational corporation. There are many
lawsuits against the company and it is also generally considered to be one of the
world‟s most boycotted companies and despite all off that the revenues of the
company have hardly slumped since its inception. That is a testament to their
value chain creation and streamlined processes that ensure that nestle becomes
a part of the livelihood of the people of the 130 countries it serves.

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