Case Study: Nestle

Topics: Milk, Sustainability, Employment Pages: 7 (2440 words) Published: October 10, 2012
Company Name and Logo
The transnational corporation Nestlé was founded in 1867 by German pharmacist Henri Nestlé in Vevey, Switzerland in response to the high level of infant mortality as well as his vision to save lives. He invented a milk-based substitute for babies unable to breastfeed which enabled many to live beyond infancy. With good health and nutrition as their company foundation, the slogan ‘Good Food, Good Life’ was created, as the company saw that it was fundamental for their continuing global success.

145 years since launching its first product, Nestlé has become the world’s largest food company in the world, employing over 250,000 people from more than 86 countries with 511 factories operating in almost every country in the world. Henri Nestlé used his surname which means ‘little nest’ in both the company name and logo with the nest symbolising security, family and nourishment-characteristics the company prides itself as playing a central role in its profile and what it stands for.

When did the company become a TNC?
Nestlé first expanded into Norway during 1898, purchasing a factory located on the Cape called Viking Milk factory for the popularity of its coffee cream. Seeing as the consumption of coffee in both Norway and other countries abroad was enormous, the company saw the factory as an investment that held much potential for its future. Also, during those years, majority of coffee drinkers used milk or cream in their beverages; Nestlé understood that by buying the factory, it could become bigger in the market as well as help advertise its products that needed to be in the international limelight.

By 1905, Nestlé had merged with one of its greatest competitor in the industry, the Anglo-Swiss Condensed Milk Company. The merge between companies led to the expansion and operation of factories in the United States, Britain, Germany and Spain. Soon after, Nestlé was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong and Bombay however most of the production still took place in Europe.

Company type and products sold
Nestlé is a food, beverage and cosmetics company that started out on solely selling baby formulas but great changes have been made since then. Many products have been developed over time and have become very well known internationally as they have come up with many firsts like the first milk powder for babies, the first milk chocolate, the first pre-soup, and the first instant coffee. The company has come a long way since Henri Nestlé’s first product and this can be seen through the variety of what they sell. Nestlé offers: breakfast cereals; hot and cold beverages; instant coffee; foods and culinary; snacks; instant food; baby nutrition; healthcare nutrition; sports nutrition; milk; baking ingredients; ice cream; confectionary; pet products; Nespresso coffee machines; and cosmetics with L’Oreal and Maybeline. Location

Nestlé manufactures in over 86 countries but most predominantly in Switzerland, Germany, the United Kingdom, Austria and Ireland. Nestlé has branched out and expanded to over 87 countries making it a huge company. It can be said that the company doesn’t have a lone market that it mainly targets its products to. The wide range of variety of also enables it to reach a larger market as it caters for several people for different situations. With numerous products and numerous geographic targets, it’s not easy to identify where it is aiming at directly but Nestlé can be described as a company that produces brands to provide a moment of enjoyment to millions without restriction. Reason for expansion

Nestlé’s claims that its priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives however nice that idea may seem, like any other business their reason for further expansion is profit. The company has achieved globalisation through merging as well...
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