Our group survey and research on Nestlé Company in this Management Principles assignment has definitely benefit us of the advantages and knowledge. Nestle is the largest company which is in the world’s leading food manufacturer and the market leader in both coffee and mineral water, produces a wide range of products including prepared dishes and cooking aids, milk-based products, cereals, instant coffee and baby foods.
Besides, Nestle is a organic model of organizational design. It is flexible and highly adaptive to the competitive external environment and also decentralized decision authority.
Although Nestle company has achieved their mission and objectives, Besides, after we know the theories of Microeconomic and Macroeconomic, we know that some of the theories can apply in our real life such as law of demand. According to the law of demand, when the price of the product falls, the quantity demand of the product will increase, vice versa. In real life, customers will prefer to purchase the product which is the lowest price rather than highest price. However, most of people are poor economic capacity, so they cannot purchase the product. Therefore, the sellers decrease the price of product, same as other company product such as VICO and other else. With this condition, it gives more choice to the consumer to choose their goods. There are some theories of Microeconomic and Macroeconomic are suitable to apply in our real life. According to the law of supply, other things equal, the quantity supplied will vary directly with the price of the good. In Kampar, there are many supplies and the average price is RM18.80 and in Teluk Intan, there are few supplies and the average price is RM17.65. It is because the factors are supplier input prices and prices of related products. On the other hands, there are some theories of Microeconomic and Macroeconomic that should differentiate on the market structure. Like Nestlé Company, it is a monopolistic competition in...
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