Executive Summary on Nestle

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Executive Summary
Nestle was founded in 1866 by Henri Nestle. It started off with one man’s initiative to produce infant formula (for infants who are intolerant to their mothers’ milk) and grew into a multi- national cooperation worldwide. Nestle has more than 250,000 employees worldwide and factories all around globally.

The infant product was so successful that it created demand all over Europe. Eventually this success brought in many business joint ventures and the company underwent many name changes along the way. Nestle started to enhance its product varieties and started to introduce baby cereals, breakfast cereals, chocolates, bottled drinks, beverages, ice creams, dairy products, food seasoning , pet food and many more. The product growth was encouraged by aggressive R&D (Research & Development).

Nestle aims to be the leader in the food and beverage industry and to meet the everyday needs of the people. This report is to analyse Nestle in the following context. * The Global Market Place

* Global Marketing Environment
* Economic Development
* Decision for International Entry
* International Environment
* Political Legal Environment
* Cultural Environment
* Competitive Environment
* The future of Nestle

Table of Contents

1.0 Introduction.......................................................................................... Page 4 1.1 The Global Market Place ……………………………………………….. Page 5 1.2 Global Marketing Environment ………………………………………….. Page 5 2.0 Economic Environment …………………………………………………… Page 6 3.0 Decision for International Entry…………………………………………… Page 6 3.1 International Environment…………………………………………………. Page 7 4.0 Political Legal Environment ………………………………………………. Page 9 5.0 Cultural Environment………………………………………………………. Page 10 6.0 Competitive Environment …………………………………………………. Page 10 7.0 The future of Nestle ……………………………………………………….. Page 11

1.0 Introduction
Nestle was founded in 1866 by Henri Nestle in Vevey, Switzerland. Today it is the world’s leading nutrition, health and wellness company with factories and companies worldwide. Sales for 2008 were CHF 109.0 billion, with a net profit of CHF 18.0 billion. Available from: http://www.ask.com/bar?q=introduction+on+nestle+&page=1&qsrc=0&ab=0&u=http%3A%2F%2Fwww.nestle.com%2FAllAbout%2FAtGlance%2FIntroduction%2FIntroduction.htm Henri Nestle first started with infant formula in 1866. After the success of the infant formula, 10 years later, in 1877, he went into Nestle baby cereal. In 1905, he merged with Anglo-Swiss who was producing condensed milk. In 1929, the company joined ventured with Peter, Cailler, Kohler chocolates. Nestle was then named as Nestle and Anglo Swiss Holding Co Ltd. In 1934, Nestle went to launch Milo and subsequently Nescafe in 1938.

Nestle continue to produce more innovative products along the years, namely Carnation, Coffee Mate, Friskies (pet food), Family cereals for the family, Perrier, Uncle Toby’s, Movenpick, Dreyers, PowerBar, etc

In recent years, Nestle has gone to venture into wellness. It has started to focus on nutrition, health and wellness in support of healthy lifestyles. Probity Yoghurts is one of Nestle development in support of healthy and nutrition products. Nestle also holds 26.4% share in L’Oreal’s, one of the world leading company in cosmetics and beauty. It’s a joint venture for nutritional cosmetics.

Nestle success has not been without downsides. The company was subject to some criticism as well. The most prominent criticism was on infant formula, the invention that actually was the reason for Nestle success. There was a worldwide boycott in 1977 because of it aggressive advertising on infant formula whereby many mothers stopped breastfeeding their infants and substitute with to bottle feeds instead. It caused concern, especially among the less developed countries.

In spite of some of the setbacks, Nestle continue to strive to be a...
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