A CASE STUDY ON

TRANSNATIONAL COMPANIES:
NESTLE & UNIVERSAL ROBINA CORPORATION

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1. Background information of the TNC
Nestlé is a Swiss multinational food and drink processing conglomerate corporation
headquartered in Vevy, Vaud, Switzerland. It is the largest food company in the world, measured
by revenues and other metrics, since 2014. Truth be told, it ranked no. 64 on the Fortune Global
500 in 2017 and no. 33 on the 2016 edition of the Forbes Global 2000 list of largest public
companies.
Nestlé company had started off from a single man’s idea, and developed into a giant
corporation. In 1866, founder Henri Nestlé, a pharmacist, created one of the first baby formulas.
He developed a milk food formula for infants who were unable to tolerate their mother milk. He
realized the need for a healthy and economical product to serve as an alternative for mothers
could not breastfeed their babies—to which often lost their infants to malnutrition. Miraculously,
a baby tolerated Henri’s new formula and it provided the nourishment that saved his life. Within
a few years, the first Nestlé product was marketed in Europe. As Nestlé’s popularity grew, more
businesses wanted to merge and become partners with Henri Nestle’s business. That is why in
the early 20th century, the company merged with former competitor Anglo-Swiss Milk Company,
making its first entry into the U.S. market. The company survived Word War I, and its coffee
was a staple for U.S. servicemen serving in Europe during World War II. After the war ended,
Nestlé began an aggressive expansions strategy, making many acquisitions and diversifying its
portfolio of products.
Being the leading in the food industry, Nestlé brings in
$81 billion in overall sales and has 470 factories, operating
in 189 countries, and employs around 339,000 people.
Lastly, it has become one of the main shareholders of L
‘Oreal, the world’s largest cosmetics company.
Next transnational company on this study is the Universal Robina Corporation (URC). It is
one of the largest brand consumer food and beverage product companies in the Philippines and
has a significant and growing presence in the ASEAN markets. Primary it is based in Quezon
City, and has production sites in china, Myanmar, Thailand, Vietnam, Malaysia, and Indonesia;
also, an exclusive distributor in Laos and Cambodia, as well as sales offices in Hong Kong and
Singapore. In fact, URC has built three strong regional brands over the years; “Jack N’ Jill” for
snack foods, “C2” for ready to drink tea, and “Great Taste” for coffee, with these brands
becoming popular across the ASEAN region.
The pioneer to URC was founded in 1954 by John Gokongwei, Jr. when he decided to
construct a corn milling plant to produce glucose and cornstarch, Universal Corn Products
(UCP). Later, to diversify by producing and marketing his own branded consumer foods, in
1961 Consolidated Corporation was born. Their first ‘home run’ product was Blend 45, the first
locally manufactured coffee blend, dubbed as the “Pinoy coffee”. This became the largest-selling
coffee brand in the Philippine market, even beating
market leaders Café Puro and Nescafe. Meanwhile, in
1963, Robina Farms began operations beginning with
poultry products. This was also the beginning of the
vertical integration of the Gokongwei businesses, as the
farms would be able to purchase feeds from UCP in the
future. Furthermore, 1966 saw the establishment of Universal Robina Corporation, which
pioneered the savory snacks industry in the Philippines with its Jack ‘n Jill snacks.
In the Philippines, URC enjoys the no. 1 market share in the snacks, candies, chocolates,
canned beans, and ready-to-drink tea segments and the no. 2 position in cup noodles and instant
coffee sectors.

2. Revenue-generating Activities
Nestlé has maintained its status as one of the most successful food and beverage companies
in the world thanks in large part of its acquisitions and subsidiary brands. In addition, to the
increase in the size of the Nestlé Company, Nestlé also has increased the variety in the different
products they offer. In Nestlé’s business strategy, they encourage product growth through
innovation and renovation. This strategy has allowed Nestlé to develop many different products
in the various fields: baby foods, dairy products, breakfast cereals, ice creams, chocolates and
confectionery, prepared foods, beverages, food services, bottle water, and pet care.
Upon studying and analyzing the growth track record, it is a known fact that this company
involves and have developed a very wise and concrete plan of strategy. Nestlé’s growth strategy
can be classified into:
 Transnational & Acquisition Strategy
By using the transnational strategy, Nestlé enjoys the low cost through economies of scale
and offers different product to different markets with high local responsiveness in order to
defend its old markets in the developed markets and look for potential growth in emerging
markets. As was said earlier, Nestlé has the largest and most important subsidiaries to which
creates a strong geographical presence, with one of the best geographically diversified revenue
sources like:
o Nestlé Purina PetCare is a wholly owned subsidiary based in
St. Louis, Missouri. Today, it is considered a leader in global
pet care sales. In 2018, pet care represented a whopping 28.4%
of Nestlé’s sales, accounting for CHF8.8 billion. Nestlé has
positioned itself as a market leader in this space, with popular brands such as Friskies,
Fancy Feast, Mighty Dog, and Alpo.

o Nestlé merged its U.S. ice cream business with Dreyer’s Grand Ice Cream in 2002.
The deal was valued at $2.4 billion and gave Nestlé control of the new company. In
2017, Nestlé remained the market share leader in the super
premium, frozen snacks and premium categories despite losing
market share in each category since 2011. The company
continues to invest heavily in its ice cream marketing to
maintain market share and appeal to changing consumer tastes.
 o Nestlé Waters is one of the leading bottled water manufacturers in the world.
Including dozens of popular brands like Nestlé Pure Life, Poland Spring, Arrowhead
and San Pellegrino, this segment saw sales of CHF7.9 billion in 2018, representing
organic growth of 2.1%.
So, we could derive that, one of the primary ways that Nestlé has expanded and has become a
behemoth of the food and beverage world is through its aggressive expansion policy. It’s likely
that Nestlé will continue to explore options for acquisitions and new subsidiaries so long as these
prove to be profitable into the future.
Nestlé operates and sells its products in 189 countries, reaching almost the entire world. The
company has divided its operating segments into 3 geographic areas: The Americas (AMS),
Europe, Middle East and North Africa (EMENA) and Asia, Oceania and sub-Saharan Africa
(AOA). None of the regions earn over 50% of the total revenue. Unlike most of its rivals, Nestlé
does not rely on any single country or a few different countries to generate most of its revenue.
The U.S., which is the single largest company’s market only generate CHF25.293 billion or
28.5% of the total revenue. The next largest market, China, generates CHF7.06 billion or 8% of
the total revenue. In comparison, PepsiCo and The Coca Cola Company earns 56% and 46$ of
their revenue from the U.S. alone, respectively. This proves that Nestlé’s strong and diverse
geographic presence, gives it a competitive advantage over its rivals, especially when the U.S.
market is negatively affected.
 Localization Strategy
It is when the brand name resonates locally as the cultural habits difference in different
nations. One relevant example is when Swiss food and nutrition giant Nestlé dedicated to
localization in China to meet the country’s unique
consumption habits and to woo them as the company’s
second-largest global market, amid looming threats of
global trade war initiated by the U.S. “We are strongly
in favor of open trade and open exchange,” said Mark
Schneider, chief executive officer of Nestlé at the
company’s headquarters in Vevey, Switzerland on a late-
November morning as he discussed the potential
impacts of the China-US trade situation. Figure 1- A carton of Nescafe instant coffee
seen at a supermarket in Fuzhou, East China's
The multinational has taken the strategy of Fujian Province
localization to cater to local customers in every market
it operates in, which has helped itself avoid impacts
from international trade uncertainties.
 Customization Strategy
Delivering goods that are modified to satisfy a specific customer need. 85 percent of the
market for instant coffee in Mexico while 66 percent of the market for powdered milk in the
Philippines. Moreover, their unrivaled product and brand portfolio is of big help for them to
generate revenues or income. The company offers over 2000 different product choices in seven
main categories:
 - Powdered and liquid beverages. Brands include: Nescafé, Nescafé Dolce Gusto,
Nespresso, Nestea.
- Milk products and ice cream. Brands include: Nestlé, Dreyer’s, Movenpick.
- Prepared dishes and cooking aids. Brands include: Maggi, Chef, Buitoni, Stouffer’s,
Wagner.
- Nestlé Nutrition. Brands include: Wyeth, Nan, S-26 Gold, Beba, Lactogen.
- PetCare. Brands include: Purina, Friskies, Pro Plan, Felix, Gourmet.
- Confectionary. Brands include: Nestlé, KitKat, Cailler.
- Water. Brands include: Pure Life, S.Pellegrino, Vittel, Perrier.

This just means that wide product portfolio allows Nestlé to better satisfy various consumers’
needs and target wider consumer segment. The company is also less affected by the changing
consumer tastes or consumer backlash against one of its brands since they offer various of it.
Their advantage of having ownership among some of the most recognizable brands in the world,
brand awareness helps the company to introduce new products and sell the current products more
easily.

In the other hand, Universal Robina Corporation is continuously expanding its product
portfolio. From its performance for the past years, it could also derive that it is expanding
partnerships and investments, like in 2014 alone, the company struck at least three deals as part
of its effort:

March. URC teamed up with Calbee for the local production and sale of the Japanese snack
market’s products in the Philippines.

July. Universal Robina took over New Zealand’s NZ Snack Food Holdings for 700 million
New Zealand dollars ($500 million), marking its first expansion outside Southeast Asia and
China.

October. The company announced a joint venture with Danone Asia Holdings in a bid to
expand its beverage portfolio.

In addition, URC is engaged in the manufacture and distribution of consumer food products.
It operates through the following segments: Branded Consumer Foods, Agro-Industrial Products,
Commodity Food Products, and Corporate Business.

o The Branded Consumer Foods manufactures and distributes salty snacks, chocolates,
candies, biscuits, bakery products, beverages, instant noodles, pasta and tomato-based
products.

o The Agro-Industrial Products segment produces and distributes animal health products,
animal feeds, glucose and soya bean products; and operates hog and poultry farm.

o The Commodity food Products segment refines sugar and flour as well as manufactures
pasta. Its products include savory snacks, biscuits, cakes, candies, chocolates, ready-to-
drink tea and coffee; juices, bottled water, energy drinks, pure and blended coffee;
 creamer, instant coffee and chocolate mixes; pouch and cup noodles; canned beans,
sauces and tomato paste.

o The Corporate Business segment engages in bonds and securities investment and fund
sourcing activities.
3. Unethical profit-making practices

Being the largest food company in the world attracts lots of attention. Most of that attention
is criticism over the companies’ practices and Nestle is no exception to that. Over the years, the
company has seen various controversies, even facing criticism and boycotts for a number of its
practices: over its marketing of baby formula as an alternative to breastfeeding in developing
countries, its reliance on child labor in cocoa production, and its production and promotion of
bottled water, anti-unionism, misleading labeling, and inquiring for a debt payment from a
famine struck country. These negative publicity results in damaged brand reputation, lost
consumer confidence and declined sales.

Many organized groups began boycotting all of Nestle’s products because they disapproved
of Nestle marketing its baby formula in developing countries. Problems like illiteracy and
poverty caused some mothers to use less formula than recommended. In a watered-down
formula, vital nutrients are lessoned. Contaminated water presented another problem, since the
formulas had to me mixed with water. The organizations
argued that the misuse of formula resulted in the
malnutrition or death of many infants in less economically
developed countries.

Also, the product’s nutritional content and instructions

are often incomprehensible to the consumer. For instance,
in 1999, comedian and TV journalist Mark Thomas
brought to wider Western attention that Nestle baby milk
tins sold in Mozambique were labeled solely in English.
Portuguese is the country’s official language. However,
it’s associated with the academic elite. The rest of the population speaks over 60 different
dialects of Bantu languages. English is rarely used except within the tourism industry. So,
mothers have no idea what they’re giving their babies or how much to give them. Instead, these
women have to rely on the often-spotty, self-serving advice of doctors and nurses.

This also leads to hygiene problems. Not only are mothers in economically deprived areas
less likely to know the correct way to sterilize bottles, they’re also less likely to have the
appropriate cooking equipment. Diarrhea is a common result. Sources of medicine and good
nutrition aren’t always available. As a result, babies often die.

Next, the public right to water. The company Nestle mined water in a manner often deemed
unethical. Once it’s mined, the water becomes
the property of Nestle. This takes on a sinister
tone when you consider the increasing water
shortage around the world, especially when
combined with Nestle’s continuous politicking for water to be reclassified as a “need” rather than
a “right.” Through the subtle shifting of water’s classification, Nestle can become even more
possessive over the natural resource. There is however, a latest criticism over the company’s
uncontrolled water usage in California, where prolonged drought is hurting the state. California
state has experienced water shortages over the last few years and many restrictions have been
placed on businesses and residents to reduce their water consumption. On the other hand, Nestlé,
which drains the water from aquifers in reservations’ areas, isn’t controlled by state laws and
does not have to restrict its water usage.[6] Nestlé’s inability to address the communities’ needs
and problems in California, but instead increasing the problems even more, draws lots of
criticism.

Another issue is the forced labor in the Thai Fishing Industry, specifically Nestle’s use of
slave labor in Thailand. For the privilege of a Thai job, they are charged an illegal fee and
trapped into working within the fishing industry to pay off heavy debt. A Burmese worker
describes their working conditions: “Sometimes, the net is too heavy and workers get pulled into
the water and just disappear. When someone dies, he gets thrown into the water.”

Aside from the aforementioned issues, the Chinese Milk Scandal also spooked out. In 2008,
all Chinese milk-based products came under scrutiny when it was discovered that a broad range
of companies, including Nestle, had melamine in their
products made in China. Melamine can easily be
mistaken for protein. Thus, Chinese dairy manufacturers
illegally claimed higher levels of protein in their
products through the use of cheaper melamine. In baby
formulas, where protein amounts are so important, this
led to severe deficiencies.

The toxic contamination became apparent after a

clear pattern of illness emerged in Gansu Province.
During a short span of time, 16 babies there were diagnosed with kidney stones.

Lastly, Nestle uses child labor especially in cocoa production. In 2001, it was discovered
that a large part of the cocoa Nestle uses to make that lovely cheap chocolate came from farms in
the Ivory Coast. Farms that don’t exactly have much in the way of governmental oversight—
which is our polite way of saying they keep over 600,00 children in conditions that of bit harsh.
They carried right on buying from those same farms up until 2012, when an internal
audit revealed the extent of their collusion. This report, by the way, included information on
indentured children with obvious machete wounds, and entire families being forced to work
without pay. Now, Nestle has since pledged to eradicate child labor from its supply chain.

In the other hand, Universal Robina Corporation shows minimal and least unethical
practices so far. Generally, URC faced challenges in terms of regulatory requirements.

First, URC failed to comply with the Philippine Clean Air Act of 1999. This law provides the
policy framework for the country’s air quality management program. It seeks to uphold the right
of every Filipino to breathe clean air by addressing air pollution from mobile and stationary
sources. It also believes in the principle that “polluters must pay,” because a clean and healthy
environment is the good of all and should, therefore be the concern of all.

Moreover, a case was filed by Laguna Lake Development Authority (LLDA) after
conducting on 14 March, 2000 a laboratory analysis of URC’s corn oil refinery plant’s
wastewater, found that it failed to comply with government standards provided under
Department of Environment and Natural Resources (DENR) Administrative Orders (DAOs)
Nos. 34 and 35, series of 1990.

After launching URC Hanoi in 2003, the company has gradually become one of Vietnam’s
leading beverage companies. Unfortunately, there was a suspicion of lead beyond standard levels
in Vietnam. It was, also, confirmed by the Ministry of Health (MOH) who tested these samples
and ruled that two specific batches had lead beyond permissible levels. However, police have
launched an investigation into this company after conflicting reports were released regarding
excess lead content in its products that prompted accusations it had paid off the National Institute
for Food Control.

At the beginning of May, test results of C2 green tea and the Red Dragon energy drink,
produced by URC Hanoi, were leaked on Facebook.
Some of the results showed excess lead
content. Shortly afterwards, the National Institute for
Food Control published a new set of results saying
that the lead content in C2 and Red Dragon was
within the permitted limit. This prompted suspicion
that a $45,000 bribe was handed to the national
institute to fix the test results, forcing the police to
launch an investigation on May 12. To date, no
official result of the inquiry has been announced.

In response to the case, on May 10, both the Vietnam

Food Administration and yet again, the Ministry of Health's Inspectorate jumped in to collect
sample tests of the two drinks. While the former said its samples contained the permitted levels
of lead, the latter delivered the opposite result.

It was not until May 20 that the inspectorate decided to suspend the circulation of three batches
of C2 and Red Dragon and instructed the company to recall its products. However, two of the
batches worth $170,000 had already been sold.

The company itself claimed to had stopped the circulation of two other batches on May 23. At
the end of May, the ministry fined the company VND5.8 billion ($260,000) for selling products
with excess lead content, and destroyed 10,000 tons of contaminated drinks.

This isn’t the first time Vietnamese authorities have fined the company. Last year, URC Hanoi
faced a penalty of $12,500 for violating environmental regulations.
4. Economic, Sociocultural, political, and environmental impacts of their unethical profit-
making practices

Nestle

 Economic Impacts

- Since child labor is a common practice in Nestle, it often results and encourages to
economic inefficiency by increasing the supply of low-skilled workers.
- Also, assuming that child labor and education are largely substitutable, households
engage in a cost-benefit analysis to choose between human capital investment (education)
and maintenance of a stable income.
- World’s access to higher quality food.
- With numerous scandals, it led to declined sales.

 Sociocultural Impacts

- Safety and health of the consumers are at risk due to the unethical cases of the company.
With the aforementioned examples given above, there were Chinese babies that were
hospitalized and worse, died. Moreover, Nestlé is a huge food company selling tens of
thousands of different food products daily. Even with strict quality control measures the
company often has to recall its products in various markets due to some form of
contamination. In 2014, Nestlé recalled and destroyed 37,000 tons of contaminated
Maggi noodles in India. This resulted in hundreds of millions in lost sales and damaged
brand reputation. Recently, the company had to recall various prepared dishes in the U.S.,
which may have contained pieces of glass. The company has to recall some of its
products almost monthly. Such negative publicity heavily affects Nestlé’s business.
- Raised unethical business practices, however, lead to improved and responsible sourcing.
- Although food is adored, since they offer healthy variety of products, yet the company is
held less favorably. Over the last couple of years, Nestlé ran into controversy regarding
the extraction and usage of drinking water. Nestlé takes spring water from the land,
leaving nothing or polluted water behind in its wake. This has affected indigenous
Canadian land, and locations like Flint, Mich. When the company does pay to take this
water, the price is next to nothing. Combine this with what previous Nestlé CEO Peter
Brabeck-Letmathe said about the rights to water being “extreme”, people have become
weary of Nestlé.
- Results to boycotts and backlash, although this can be difficult since Nestlé owns so
many food products.

 Political Impacts

- Laws were not being followed, and even human rights may be affected.
- Company’s ability to impact the government. Since Nestlé operates in more than 190
countries, any shift in regulatory environments can massively impact operations.
Multinational firms like Nestlé have a greater risk of production bottlenecks because of
government policies and changes. Basically, the more countries a business operation in,
 the greater the chance of policy changes that may interrupt operations. For example, the
Brexit situation threw a wrench in Nestlé’s plans. The change threatens the livelihood of
production and food workers. Europe is an important market for Nestlé production and
profits. And the instability of Brexit has disrupted the entirety of the UK food supply
chain. The Brexit change has been so catastrophic that Nestlé discussed replacing
production in Newcastle and York to Poland. Since, even now, Brexit is still in the air,
the company doesn’t have faith in the future of the country. For that reasoning, it’s
smarter to move operations out of this volatile landscape. Although political changes
often affect the company, moving operations out of the country affects the unstable
environment of Britain. Losing Nestlé means a loss of over 300 jobs, impacting the
already controversial political British climate. Keep in mind, not many companies can
impact political stability, but Nestlé can.

 Environmental Impacts

- Moreover, with a huge workforce available worldwide, Nestle has been systematically
reducing weight of packaging since 1991, with a reduction of over 500 million kg to date.
- Excessive use of natural resources due to increased consumption habits.
- Deforestation in Ghana and Ivory Coast. According to some critics, Nestle’s chocolate
production is an ugly affair, littered with allegations of malfeasance. In September 2017,
environmental group Mighty Earth conducted an investigation that found industry
practices in Ivory Coast and Ghana contributed heavily to the countries’ deforestation
crises. As reported by Mighty Earth, large cocoa traders buy beans that have been grown
illegally in protected regions. Then the traders sell these cocoa beans to large chocolate
producers like Nestle, Hershey, and Mars. Rain forest now makes up less than 4 percent
of Ivory Coast’s landmass. Combined with the popularity of poaching, this has caused
extreme problems for wildlife. The elephant population has been reduced to less than
400. Chimps, one of our closest living relatives, have also suffered tremendous losses.
According to Mighty Earth, approximately 90 percent of the space in some national parks
has been converted for cocoa production. Mighty Earth’s study concluded that if the
demand for unethically manufactured chocolate continues at its current rate, there will be
no forest left by 2030 in these countries.

Universal Robina Corporation

 Economic Impact

- With the issue raised in Vietnam last 2016, it somehow led decline in revenues. With the
Annual Summit report released by the URC Hanoi, it decreased 2% of its gross profit.
- Consumer debt.
- With the URC group operating across multiple countries, it becomes a mandate to create
various economic policies, relating to the economic conditions prevailing in that country.
With affordability being a major factor, providing quality foods for all in a market where
the prices of the raw materials keep fluctuating due to various political and environmental
factors is a major challenge. The cost of the raw materials for URC has been increasing,
 with trade wars continuing between China and the US and other Southeast Asian markets
alike, creating further unrest between suppliers.

 Sociocultural Impacts

- Could lead to enhanced strong moral and work ethic.

- Workers have environmental stewardship
- Prone to health risks.

 Political Impacts

- It could result to bribery among politicians, to grant them exemption against current laws.
- Often regulation and inspection of authorities on production sites to secure that it won’t
happen again.

 Environmental Impacts

- It could lead to considerable drain on resources, such as nutrients, land area, and water.
- Unnecessary biodiversity loss due to pulling out of batches of C2 and Rong Do Energy
drink.
- However, A major project that they have undertaken is to promote water efficiency and
sustainability across the various operations as well as promote these policies and
stewardship.

5. Similarities of the two transnational companies

Nestle and Universal Robina Corporation both transnational companies and are one of the
largest food and beverage processing conglomerate corporation. One has entered the worldwide
market and the latter has a growing presence and influence in neighboring ASEAN markets. The
longevity and continuous success of these two companies has been seen over the years with their
expanding customer base on an international scale.

These two offers a wide array of portfolio of delightful brands of exceptional quality and
value, and equipped with efficient systems and engaged human capital. The continued
rebranding, improvement and advertisement of their products have made them a household name
in almost every country in the world.

Nestle corporation is a company that specializes in foods and nutrition products. The
company has diversified in the food processing industry by producing a cornucopia of
products.Their products include baby food, bottled water, dairy products, ice cream,
confectionery, breakfast cereals, coffee and pet foods. Nestle is however a 26.4 % stakeholder in
the world largest producer of beauty and cosmetic products known as L’Oreal. Nestle is involved
in joint ventures with other companies in Cereals with General Mills, beverages with Coca-cola,
dairy products with Fonterra dermatology with Galderma and finally Laboratories with L’Oreal.
It is therefore indirectly involved in the production of non-food products. On the converse, URC
is a more diversified corporation that has a range of market environment where it classifies as:
Commodities (raw materials used by virtually everyone), agro-industrial (an enterprise that
process materials of plant or animal origin), and consumer goods (products that are purchased for
consumption by the average consumer).

A financial projection of the purchasing power in Asia predicts and two-fold increase in the
purchasing power of the opulent populace in five years’ time. The two companies have a lot of
prospects in Asia especially in the ice cream business and food snacks, respectively. 

However, Nestle has demonstrated slightly more aggressiveness and innovative

characteristics when it comes to venturing into the Asian market than URC. Nestle does this by
holistically bestowing certain responsibilities to its subsidiaries. This facilitates the seamless
blending of its products in such a market by being in tandem with the taste profile in the that
foreign market. The company has business units numbering to severe. These are charged with the
responsibility of laying out global marketing strategies as well as research and development,
systems control and production expertise. This perspective is instrumental in fashioning a
regional strategy that automatically avails a business strategy that will serve the local market.

Since both of them are in the food production industry, competitive rivalry is one of the key
threats affecting the company. The beverage and food industries are highly competitive and
consist of numerous small, large and multinational companies. Beverage, food and snack
products compete primarily on the basis of brand recognition, taste, price, quality, product
variety, distribution, advertising, packaging, convenience, service, marketing and promotional
activity, as well as the ability to anticipate and respond to consumer trends. Food and beverage
markets are growing very slowly and with so many new startups, Nestlé and URC might find it
hard to compete in the future.

6. Insights and learning gained from the case study

From the data I’ve gathered in this case study and the whole process I took in by analyzing
the information written above here, I could say that the advent of consumer food products has
brought an immense change in the field of consumers food habit. Nestle, along with Universal
Robina Corporation, has done well to enhance its customer loyalty operating as a market
challenger in its industry. These two transnational companies are one of the largest food
processing company. Their products and quality mainly depends on their experience and
efficiency, though it is a known fact that issues and controversies are inevitable when it comes to
business but over the years of building and gaining the trust of the consumer markets, they have
strived to improve and mastering excellence in order to bring satisfaction among consumers.

There’s no perfect business or industry. However, as their issues have revealed to me now, I
realized that indeed no one is above the law. It doesn’t matter if you are the most powerful and
influential person, it’s doesn’t matter if you’re the owner of one of the largest company in the
world, but if you’ve wrong the majority and already is affecting the rights of the people, it is just
rightful to face its consequences. Reading a lot of online resources regarding their unethical
practices keeps me frustrated. I know that most of their brands or products are widely used not
just in our family but majority of the households but it doesn’t give them the excuse to bypassed
the law. All those child labor issues, environmental regulations, suspicion of lead content, and
etc. that sometimes they just kept mum about.

On the brighter side, these companies really exert a great deal of power in the globalized
world economy. With their international production of goods and services, foreign investments,
or income and asset management in more than one country, they have indeed sustained high
levels of local responsiveness. It’s just a fruit of their labor for the years that they have
endeavored to bring forth their mission and vision to the people. It is not an easy process, and
success is not an overnight method as proven by these two. They have learned the art of creating
connections and relationships among others.