Case Study on Nestle(Final)

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To Prof.Dr.A.K.M Salahuddin

From:
MD. REZAUL KARIM ID: 2010-2-95-051
MD. SHAHRIAR ASHRAF ID: 2010-3-95-051
A.S.M.NASIM HASSAN ID: 2010-2-95-038

Topic: CASE STUDY on National or Multinational Company
Saturday
Section: 02
April 7, 2012

East West University
-------------------------------------------------
LETTER OF TRANSMITTAL

To
Prof. Dr. A.K.M Salahuddin
School of Business,
MBA Program,
East West University.

Subject: Submission of CASE STUDY on “NESTLE COMPANY”

Dear Sir,
It is immeasurable glee that we are submitting the case study on “Unethical issues of Nestle and how to solve the problem”.

We have enjoyed much in preparing the case study on the basis of available practical aspect of the dealing in company and industry. It has broadened our knowledge and experience, which will help us in the near future in many ways.

We hope that you will consider our shortcoming while evaluating the case study for unexpected mistakes and errors.

Sincerely yours,

_____________________ ________________________ _________________________ MD. Rezaul Karim MD. Shahriar Ashraf A.S.M. Nasim Hassan (ID: 2010-2-95-051) (ID: 2010-3-95-051) (ID: 2010-2-95-038)

TABLE OF CONTENTS

Chapter No.| Serial No.| Topics| Page No|
1| | Introduction| |
| 1.1| Company Overview| 5|
| 1.2| History| 6|
| 1.3| Production| 7|
| 1.4| Current Status | 8|
| 1.5| Nestle Brands| 8|
| 1.6| Objective| 9|
| 1.7| Our Policies| 9|
| 1.8| Our Ethical Approach| 10|
2| | Ethical Policy on Nestle| |
| 2.1| Preamble| 11|
| 2.2| Application of Food Safety Policy Statement and Other Ethical Precedents| 12| | 2.3| Unethical business practices are not unusual among large international corporations. And Nestle is no exception!| 13| | 2.4| Nestlé and baby formula in underdeveloped nations| 13| | 2.5| Overcharged price | 14|

| 2.6| Unfair labor practice | 14|
| 2.7| Recommendation| 15|
3| | Conclusion & References| |
| 3.1| Conclusion| 16|
| 3.2| References| 17|

Chapter-1

EXECUTIVE SUMMARY

Nestlé is the largest food and drinks manufacturer based in Switzerland. It has 479 factories operating in 81 different countries. The year 2000 displayed Nestlé's best sales figures at 81.4 billion, which was an increase of 9.1%. The profit was at 5763 million being an increase of 22% compared to previous years. Nescafe holds a majority market share of 56% in the instant coffee market. This share has continued to rise over the years. Even though overproduction of coffee beans has led to a fall in prices, consumption of instant coffee has not fallen so much as price.

Nescafe faces immense competition from rival coffee, tea and hot chocolate manufacturers. It has also had to compete with the soft drinks market in attracting younger consumers. It has continued to target health conscious people with its decaffeinated and organic products. The sector finds it difficult to attract younger consumers markets 15-24 years old. It has therefore carried out continuous innovations concentrating around the idea of immediate consumption this has led to the developments of the self-heating can of coffee 'Hot When You Want' and also Nescafe Ice coffee. The largest consumers of instant coffee are the age group 35-54 year olds. An ageing trend in the population shows that the instant coffee market will continue to benefit as it can be seen that the older the consumer the greater the consumption of coffee. In 1998 the Nescafe instant coffee sector accounted for 62.2% of the advertisements. It has launched major advertisement campaigns over the decade with the famous one being the 'Gold Blend romance'.

This campaign that lasted for 10 years and News at ten announced when it...
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