Nestlé’s lineage dates back to 1867 when Henri Nestle founded the company Ste Henri Nestle and was responsible for producing infant food composed of milk, grain, and carbohydrates. Before Nestle even knew it, the company grew substantially and was required to build plants in each major market it was located in, so that to ensure efficient production and distribution. This way the company could gain sustainability within its home market, as well as in its European-based markets. The gain in Nestlé’s rapid popularity was mainly accounted towards large numbers of doctors all over Europe highly recommending the company’s product for malnourished infants. Subsequently, Nestle also engaged in mergers, geographical expansions, and diversification of its product portfolio early in its life cycle.
With headquarters in Vevey, Switzerland, Nestle is today the world’s largest food and beverage company. In 2007, the company recorded sales of CHF 107.6billion, with a net profit of CHF 10.6billion (Nestle, 2008). The company’s strategy revolves around several base guidelines; * current existing products grow in their life-cycle through innovation and renovation while maintaining a balance in geographic activities and product lines * potential in the long-run is never sacrificed for short-term performance * highest priority lies with bringing the best and most relevant products to people, wherever they are, whatever their needs
Nestle S.A., through its subsidiaries, manufactures various food and beverage products on a global scale. Its products include bottled water, baby foods, dairy products, breakfast cereals, ice cream, nutrition products, beverages, chocolate and confectionary products, prepared foods, and pet care products. The company offers these products under various brands consisting of Cerelac, Kit Kat, Friskies, Nescafe, Stouffer’s LeanCuisine, Nesquik, Nestea, Nestle Nutrition, Dreyer’s, Nespresso, Carnation, Purina, Hot Pockets, MILO, Coffeemate, Maggi, NIDO, DOG CHOW, and Poland Spring. In addition, it also manufactures pharmaceutical and surgical products (BusinessWeek, 2008).
Nestle S.A. has over the years been a perfect example of how a multinational company doing business in many countries can present a deep understanding of cultural differences - that people are different across nations - and therefore products should be managed to meet the tastes and needs of local cultures. Nestle S.A. SWOT analysis:
SWOT analysis is a basic model that provides a guideline for developing marketing plans. It aids organizations in analyzing their strengths and weaknesses, in addition to opportunities and threats. Its role is to receive information from environmental analysis and separate it into internal and external issues. The result of the SWOT analysis should provide an indication of what will help the firm in accomplishing its objectives, or indicate an obstacle that must be overcome in order to achieve desired results (Marketing Strategy, 1998). The importance of a SWOT analysis for Nestle S.A. lies within its functionality of providing instant review for each company personality. It would be accurate to say that it is a basic instinct of every individual - or a firm -to be measured and evaluated, and SWOT analyses provide a wonderful tool for assessment purposes. The following outlines Nestlé’s SWOT analysis: Strengths:
* Decentralized organizational structure – Nestle undertook a major internal realignment in its organizational structure with an objective to make it a company with multiple focus areas. It did this by implementing Strategic Business Units (SBUs) and processes that helped to further strengthen its wide portfolio of brands. By doing so, Nestle S.A. subsidiaries could take advantage of its sales and distribution channels so as to make them more efficient; as a result, subsidiaries could then effectively address the emerging channel opportunities that would...
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