Nestle Case Study
Week 3: Internal Environment Assignment # 1 Assignment # 1 – Nestle: Sustaining Growth in Mature Markets
Assignment # 1 – Nestle: Sustaining Growth in Mature Markets Describe each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool. The Nestlé Food Company has been part of the global community since it was first founded in 1866 marketing its products in 130 countries across the world. “Over the previous 130 years, Nestlé had acquired profound knowledge of markets all over the world, and enjoyed great success in adapting its products to local tastes” (Hitt, Ireland, & Hoskisson, 2009). In doing this Nestlé has retained the reputation as a heroine company who “thinks globally but acts locally” (Hitt, Ireland, & Hoskisson, 2009). Nestlé has not just succeeded in the food industry but is taking strong leads to impact nutrition, health, and wellness. The Nestlé Company continues to stay competitive within the global market while continually working with a failing economy; according to Barbara Kollmeyer of Market Watch (2009) "It 's still a good defensive stock. Its international profile, combined with presence in 25 businesses provides good resilience in a downturn. The development of the product mix towards Nutrition and Health should have increased the group 's defensive profile. This strategy is based on a price positioning that should remain competitive.” The knowledge that Brabeck introduced in 1997 brought many new strategies to Nestlé the first was to force the business to become more efficient by cutting back on their investment budgets by maximizing existing assets, maximizing capacity utilization and maximizing distribution logistics. Releasing his efficiency programs MH97 and Target 2004+ Braback was able to generate savings to the Nestlé Food Company of approximately 7 billion dollars creating the foundation to expand in strong investments
Assignment # 1 – Nestle: Sustaining Growth in Mature Markets Describe each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool. The Nestlé Food Company has been part of the global community since it was first founded in 1866 marketing its products in 130 countries across the world. “Over the previous 130 years, Nestlé had acquired profound knowledge of markets all over the world, and enjoyed great success in adapting its products to local tastes” (Hitt, Ireland, & Hoskisson, 2009). In doing this Nestlé has retained the reputation as a heroine company who “thinks globally but acts locally” (Hitt, Ireland, & Hoskisson, 2009). Nestlé has not just succeeded in the food industry but is taking strong leads to impact nutrition, health, and wellness. The Nestlé Company continues to stay competitive within the global market while continually working with a failing economy; according to Barbara Kollmeyer of Market Watch (2009) "It 's still a good defensive stock. Its international profile, combined with presence in 25 businesses provides good resilience in a downturn. The development of the product mix towards Nutrition and Health should have increased the group 's defensive profile. This strategy is based on a price positioning that should remain competitive.” The knowledge that Brabeck introduced in 1997 brought many new strategies to Nestlé the first was to force the business to become more efficient by cutting back on their investment budgets by maximizing existing assets, maximizing capacity utilization and maximizing distribution logistics. Releasing his efficiency programs MH97 and Target 2004+ Braback was able to generate savings to the Nestlé Food Company of approximately 7 billion dollars creating the foundation to expand in strong investments
References: Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2009)._Strategic management: competitiveness and globalization, concepts and cases_. Masion, OH, USA: Cengage Learning. Kollmeyer, B. (2009, February 12). Still a top pick?._Market__ Watch_, Retrieved from http://www.marketwatch.com/story/come-global-market-fury-nestle-still Nestlé (2010). Mission statement, research. Retrieved from http://www.research.nestle.com/tools/mission_statement.htm Nestlé (2004, September). Nestlé corporate business principles. Retrieved from http://www.nestle.com/Resource.axd?Id=70014B84-A4FC-4F82-BFA0-23939DC52E9D Nestlé, . (2010). Our Vision. Retrieved from http://www.nestle-nordic.com/corporate/no/nestle+_nordic/vision/ Nestle, . (2004). Business focus and organization. Proceedings of the Nestle investor seminar (pp. 9). St Louis: http://www.nestle.com/Resource.axd?Id=3C3FCE4D-53C4-428E-9741-FB99BE63F429. Neslte (2010). Nestle pure life - faq. Retrieved from http://www.nestle-purelife.us/about/faq.asp Nestlé (2010, March). Stakeholders_ partnerships_. Retrieved from http://www2.nestle.com/CSV/CreatingSharedValueAtNestle/StakeHoldersEngagement/Pages/StakeholdersPartnership.aspx Parsons, Andrew (1996). "Nestlé: The Visions of Local Managers," McKinsey Quarterly, No. 3.