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Nestle International Business Strategy

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Nestle International Business Strategy
Table of Contents
Company Introduction: 3
Vision and Values: 3
Company Objectives: 3
Strategic Analysis: 4
PESTEL Analysis 4
SWOT Analysis: 6
Porters 5 forces: 7
Porter’s diamond and competitive advantage: 9
Ansoff Matrix: 10
Boston Matrix: 11
Value Chain Analysis 13
Recommendation: 14
Evaluation & Conclusion: 14
List of References: 15

Company Introduction:
Nestle is one of the world’s largest and most known companies. It is a Swiss company with its headquarters located in Vevey, Switzerland. The company was inaugurated in 1866 (Nestle 2012) and since its inception has grown through leaps and bounds to become the world’s largest food and nutrition company (Cnn money 2011). The company is also a major stakeholder in the cosmetic company, L’Oreal.
For a company to start from a small domestic town and then expand internationally, the strategic vision of the company plays a central and key role. The subsequent chapters shall discuss the company’s internal goals and strategy and how that strategy paves way for Nestle to build its competitive advantage in all the markets it operates in.
Vision and Values:
The vision of Nestle reflects ideas of fairness, honesty and long-term thinking. These ideas are reflected in the company’s corporate business principles that have shaped the company culture and strategy for the past nearly 140 years. The core values that the company has are its people, the quality of its people and brand, the company’s brand portfolio, their consumers, their customers and the company’s sustainable performance. (Nestle, 2012)
Company Objectives:
The main objective of Nestle can be appropriately summed up by the phrase ‘Creating Shared Value’ (Nestle, 2012) This principle at Nestle can be described as having a conviction to build long term and beneficial relationships with their stakeholders, comply with all legal requirements and ensure all activities that the business undertakes are sustainable and result in value creation for both the



References: 1. bbc.co.uk (2012) the world of technology. [online] Available at: http://www.bbc.co.uk/news/technology/ [Accessed: 5th august 2012]. 2. Belch, G & Belch, M. 2003. Advertising and Promotion; an Integrated Marketing Perspective, 6th edition, Mc-H Companies. 3 4. Boston Consulting Group. (2011), About BCG. [Online]. Available at < http://www.bcg.com/about_bcg/history/history_1968.aspx>. [Accessed 6th August, 2012]. 5 7. Dictionary.Cambridge (2012) PESTLE analysis. [online] Available at: http://dictionary.cambridge.org/dictionar0y/business-english/pestle-analysis?q=pestle+analysis [Accessed: 6th august 2012]. 9. Europa.eu (2012) Policies and activities of the European Union. [online] Available at: http://europa.eu/policies-activities/index_en.htm [Accessed: 6th august 2012]. 10. Hill, T. & R. Westbrook (1997). "SWOT Analysis: It’s Time for a Product Recall". Long Range Planning 30 (1). 12. International Labor Rights Forum. 2005. The 14 Worst Corporate Evildoers. [ONLINE] Available at:http://www.laborrights.org/creating-a-sweatfree-world/ethical-consumerism/news/11434. [Accessed 04 August 12]. 15. Lin, J.N, 2007. SUSTAINABLE SUPPLY CHAINS IN THE FOOD AND BEVERAGE INDUSTRY. Masters. Michigan: University of Michigan. 16. Mayareynoldswriter (2008) Applying the Boston Matrix to Publishing. [online] Available at: http://mayareynoldswriter.blogspot.co.uk/2008/12/applying-boston-matrix-to-publishing.html [Accessed: 6th august 2012]. 17. Michael, Kathleen, Goold, Sommers Luchs, 1996. Managing the Multibusiness Company: Strategic Issues for Diversified Group. 1st ed. London: Routledge. 18. Michael, Porter, 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review, 15 January 2011. 20. Porter, M.E. 1985. Competitive Advantage, Free Press, New York, 1985. 21. Reuters. 2012. China 's moms key to Nestle baby milk deal. [ONLINE] Available at:http://www.reuters.com/article/2012/04/24/us-nestle-babymilk-idUSBRE83N0PD20120424. [Accessed 04 August 12]. 22. The New York Times. 2010. Nestlé Plans a Research Center to Focus on Indian Foods.[ONLINE]Available at: http://www.nytimes.com/2010/09/23/business/global/23nestle.html. [Accessed 04 August 12]. 23. The telegraph. 2012. Nestlé serves up 'cracking ' results. Available: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8331655/Nestle-serves-up-cracking-results.html. [Accessed 6th Aug 2012].

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