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BUSINESS STRATEGY OF NESTLE
INTRODUCTION TO NESTLE Today. Nestle is the world leading Food Company Nestle headquarters is in Switzerland Its international R&D network supports the products made in more than 500factories in 86 countries Nestle factories are operating in the region of: Africa America Asia Europe Oceania .
security and sense of family that are so essential to life .MEANING OF NESTLE Henri Nestlé endowed his company with the symbol derived from his name. the nest with a mother bird protecting her young. The Nestlé nest represents the nourishment. His family coat of arms. became the Company's logo and a symbol of the Company's care and attitude to life-long nutrition.
culinary products and pet foods) and more recently Row tree Mackintosh in York (chocolate and confectionery). mainly abroad this enabled it to broaden its range of products and diversify its operations.DYNAMIC EXPANSION Nestlé's history includes development of many different products as well as acquisitions. Biotin in Perigee (pasta) as well as Perrier in France (mineral water) . mergers and the purchasing of shares in companies. while at the same time strengthening the economic foundations of the company Amongst the most important acquisitions were Carnation in Los Angeles (milk.
in cosmetics (a large share holding in L'Oreal) and ophthalmic products (acquisition of Alcon Laboratories Inc.DYNAMIC EXPANSION Nestle. which does 98% of its business outside Switzerland. also has interests in non-food sectors.)while continuing to give priority to food products .
INTERNATIONAL STRATEGY Nestlé is a global organization Nestlé’s competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses Nestlé aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets Nestlé recognizes the profitability possibilities in these high-risk countries. but pledges not to take unnecessary risks for the sake of growth .
Nestlé strives to grow and gain economies of scale through foreign direct investment in big companies In the developing markets. Nestlé grows by manipulating ingredients or processing technology for local conditions.INTERNATIONAL STRATEGY 1. When operating in a developed market. and employ the appropriate brand .
INTERNATIONAL STRATEGY 2. Another strategy that has been successful for Nestlé involves striking strategic partnerships with other large companies .
Nestlé is setting its sights on new markets and new business for growth. Therefore.INTERNATIONAL STRATEGY European and American food markets are seen by Nestlé to be flat and fiercely competitive. .
Their focus will be primarily on expanding sales in the Indonesian market.INTERNATIONAL STRATEGY 3. Nestlé acquired Indofood. In Asia. Indonesia’s largest noodle producer. and in time will look to export Indonesian food products to other countries . Nestlé’s strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans.
and cereal in the Philippines. all for regional distribution.INTERNATIONAL STRATEGY 4. Nestlé produces soy milk in Indonesia. Nestlé has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country. soybean flour in Singapore. . coffee creamers in Thailand. candy in Malaysia.
.END OF PRESENTATION THANK YOU.