PRESENTERS

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SAGNIK BHADRA (ROLL NO. – 080) SAGNIK MUKHERJEE (ROLL NO. – 081) SREEMANTA KUMAR RAY (ROLL NO. – 108) SUBHADIP GHOSH (ROLL NO. – 112) SUMAN BISWAS (ROLL NO. – 115) SUMAN KUMAR SAMANTA (ROLL NO. – 116) SUVOJIT CHAKRABORTY (ROLL NO. – 120)

CONTENTS
1. COMPANY OVERVIEW 2. MISSION STATEMENT 3. NESTLE’S GROWTH 4. MANAGEMENT STRUCTURE 5. SWOT ANALYSIS 6. GROWTH STRATEGIES 7. BRANDS 8. CONCLUSION

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1. COMPANY OVERVIEW
 Nestlé´ is a Swiss-German word which means ‘Little Nest’ which is its trademark.  Nestlé is the world's leading Nutrition, Health and Wellness company. Their mission of "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, from morning to night.  The Company was founded in 1866 by Heinrich Nestlé in Vevey, Switzerland, where the headquarters are still located today. Nestlé employs around 2,80,000 people and have factories or operations in almost every country in the world.  Nestlé's relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

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2. MISSION STATEMENT
Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers’ needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life.

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3. NESTLE’S GROWTH
1866
• The company was founded in Switzerland in 1866 by Heinrich Nestle, who established Nestle to distribute “milk food,” a type of infant food he had invented that was made from powdered milk, baked food, and sugar.

1868
• From its very early days, the company looked to other countries for growth opportunities, establishing its first foreign offices in London

1905
• The company merged with the Anglo-Swiss Condensed Milk, thereby broadening the company’s product line to include both condensed milk and infant formulas.

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NESTLE’S GROWTH (CONTD…)
Late 19th century
• Forced by Switzerland’s small size, to look outside its borders for growth opportunities, Nestle established condensed milk and infant food processing plants in the United States and Britain.

Early 20th Century
• Nestle established its food processing plants in Australia, South America, Africa, and Asia.

1929
• Nestle moved into the chocolate business when it acquired a Swiss chocolate maker.

1938
• Nestle developed its most revolutionary product, Nescafe, the world’s first soluble coffee drink.

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NESTLE’S GROWTH (CONTD…)
1947 1960
After World War II
• Nestle continued to expand into other areas of the food business, primarily through a series of acquisitions that included:

Maggi Cross & Blackwell Findus Libby’s Stouffer’s

1962
1970 1973

1985
1988 1992

Carnation
Rowntree Perrier

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NESTLE’S GROWTH (CONTD…)
Late 1990s
• Nestle had 500 factories in 76 countries and sold its products in a staggering 193 nations-almost every country in the world.

1998
• he company generated sales of close to SWF 72 billion ($51 billion), only 1 percent of which occurred in its home country. Similarly, only 3 percent of its- 210,000 employees were located in Switzerland.

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4. MANAGEMENT STRUCTURE
 Nestlé is a decentralized organization.  The company is organized into seven worldwide strategic business units (SBUs) that have responsibility for high-level strategic decisions and business development. In recent years, two-thirds of Nestlé’s growth has come from acquisitions, so this is a critical function.  Nestle has a regional organization that divides the world into five major geographical zones, such as Europe, North America and Asia.  Although Nestlé makes intensive use of local managers to knit its diverse worldwide operations together, the company relies on its “expatriate army” of about 700 managers, who spend the bulk of their careers on foreign assignments, moving from one country to the next.

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5.

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STRENGTHS TO BUILD ON
BRAND STRENGTH : Nestle has some very strong brands like Nescafe. These brands are almost generic to their product categories. PRODUCT INNOVATION : The company has been continuously introducing new products on frequent basis, thus expanding its product offerings. RESEARCH & DEVELOPMENT : Nestle has a worldwide network of centres in 11 locations on four continents. A huge international staff is engaged in the search for innovative new products and the renovation of existing ones. MARKET SHARE : Another thing is high level of market share and that people all over the world trust and recognize Nestle as a big brand name. LOW COST : They are low cost operators which allow them to not only beat competition but also edging ahead operating excellence, innovation, renovation, product availability and communication are major strengths.

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WEAKNESSES TO COVER ON
MATURE MARKETS : One major weakness of Nestle is that it is entering into markets that are already mature and can give a tough competition to new entrants. CONSUMER RESEARCH : Less consumer research in few areas. EXPORTS : The company had huge quantities of exports and a major portion of this comprise of Coffee (around 67% of the exports were that of Nescafe Instant to Russia). SUPPLY CHAIN : The company has a complex supply Chain.

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OPPORTUNITIES TO CAPTURE
EXPANSION : Potential to expand to smaller towns and other geographies, which its parents are famed for like breakfast cereals, chocolates, carnations, etc. PRODUCT OFFERINGS : The company has the option to expand its product folio by introducing more brands. Hence it has a huge potential for the growth of FMCG products. GLOBAL HUB : Since manufacturing of some products is cheaper in Asia than in any other continents, countries like Pakistan, etc. could become an export hub for the parent in certain product categories.

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THREATS TO DEFEND ON
COMPETITION : Immense competition from the organized as well as the unorganized sectors. CHANGING CONSUMER TRENDS : Increased consumer spending on consumer durables resulting in lower spending on FMCG products. INTERNATIONAL MARKET STANDARDS : Nestle is facing the threats by worldwide community due to its violation of international marketing standards. Many conferences and campaigns have been held against Nestle in this regard which can damage the name and trust of its customers. SECTORAL WOES : Rising prices of raw materials and fuels, and intern, increasing packaging and manufacturing costs. But the companies may not be able to pass on the full burden of these onto the customers.

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6. GROWTH STRATEGIES
 Nestlé created Nestlé Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claimbased business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition.  The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and beverage businesses. This unit will drive the nutrition, health and wellness organization across all their food and beverage businesses.  In Asia, 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.

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GROWTH STRATEGIES (CONTD…)
 Another strategy that has been successful for Nestlé involves striking strategic partnerships with other large companies. In the early 1990s, Nestlé entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Cola’s worldwide bottling system and expertise in prepared beverages.  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. For example, Nestlé produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution.

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7. BRANDS

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8. CONCLUSION - CELEBRATING 100 YEARS

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CELEBRATING 100 YEARS (CONTD…)

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CELEBRATING 100 YEARS (CONTD…)

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