CCGL 9069 – Summary of the reading materials

Ng Ka Hei Miki (3036224535)

Article 1: Nestlé: A Brief History of the Marketing Strategies of the First Multinational
Company in the Ottoman Empire

This article provides a brief history and explores the role of Western companies,
specifically Nestlé, in shaping the late Ottoman Empire's economy, society, and
culture through modern marketing strategies. The article focuses on Nestlé's
marketing activities in the Ottoman Empire between 1870 and 1921 and examines
the interaction between Western firms and Ottoman consumers.
The author emphasizes the significant role played by private companies, such as
Nestlé, in facilitating the integration of the Ottoman Empire into the capitalist global
economy. Nestlé's marketing efforts were instrumental in penetrating the urban
Ottoman market and enticing Ottoman consumers. To achieve success, the company
had to adapt its strategies to local conditions and leverage the specific characteristics
of the host society.
There is an inspiration related to the history of marketing strategies of
multinational companies in the Ottoman Empire. The Complex Relationship between
Foreign Companies and Local Consumers. The article acknowledges that the
relationship between foreign companies, such as Nestlé, and local consumers in the
Ottoman Empire was complex and mutually negotiated. It emphasizes that the
existence and availability of Western goods in the Ottoman market did not
automatically guarantee their purchase. Local choices and alternatives also existed,
and consumers had to be convinced to choose foreign products over competing
brands or local alternatives. The article emphasizes that understanding the market
realities and cultural dispositions of the host society was crucial for foreign
companies to bridge the gap between their foreignness and the needs of the target
consumer. Companies like Nestlé had to adapt their marketing strategies to the local
context, learning, and utilizing the specific characteristics of the Ottoman society to
achieve success.
Overall, the article sheds light on the role of marketing in facilitating the
integration of the late Ottoman Empire into the global capitalist economy. It
underscores the importance of consumer behavior and cultural adaptation in the
implementation of effective marketing strategies.
Article 2: The Impact of Multinational Investment on Alcohol consumption Since the
1960s
 This article examines the influence of multinational enterprises (MNEs) on the
alcoholic beverages industry during the period from 1961 to 1997. The author
emphasizes the role of MNE resources, international diversification, and branding in
the alcoholic beverages industry. The study focuses on the five largest MNEs in 1997:
Allicd Domecq, Bacardi-Martini, Diageo, Moét-Hennessy Louis Vuitton, and Seagram,
which held a significant share of the world trade in alcoholic beverages. The analysis
is based on business history literature, interviews with industry specialists, and
secondary data.
This study illustrates the specific companies that were analyzed in the study,
highlighting their importance and influence in the global alcoholic beverages
industry. The analysis of these MNEs provides insights into their strategies, resources,
and branding efforts, shedding light on their role in shaping alcohol consumption
patterns worldwide.
Besides, the research highlights the importance of internationalization strategies
and branding in the growth of MNEs in the alcoholic beverages industry. It
contributes to the literature by focusing on industries where brands and distribution
services play a crucial role in value addition by MNEs. The period of analysis spans
from 1961 to 1997, during which there was a significant increase in total
consumption of alcoholic beverages globally. However, per-capita consumption
showed a general decrease over time.
There is an inspiration related to the text which is about Internationalization and
Branding. It highlights the significance of these strategies in the growth and success
of multinational enterprises (MNEs) in the alcoholic beverages industry.
Understanding how companies expand their global operations and establish strong
brands in various markets is crucial. The article draws on business history literature
and international business theory to explore MNE resources, international
diversification, and branding issues. It suggests that these factors play a pivotal role
in the growth and success of MNEs in the alcoholic beverages sector.
In summary, this article explores the impact of multinational enterprises (MNEs)
on global alcohol consumption from the 1960s to the late 1990s. By analyzing the
strategies and influence of major MNEs in the alcoholic beverages industry, such as
Allicd Domecq, Bacardi-Martini, Diageo, Moét-Hennessy Louis Vuitton, and Seagram,
the study emphasizes the significance of internationalization and branding for their
growth. It also highlights factors contributing to changes in alcohol consumption
patterns, including income levels, lifestyles, legislation, fiscal policies, and education.
Although there are data limitations, this analysis provides valuable insights into the
relationship between MNEs and the global alcohol market, encouraging further
research in this area.