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Strategic Management Nestle

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Strategic Management Nestle
Introduction
This report will focus on Nestle SA and will look into the industry the company is competing in. Based on various strategic analysis models the report will evaluate why the company has been so successful over the past century and how is Nestle managing to sustain constant growth and achieve great performance in the food and beverage industry.

Company Background

The Nestle Company started in 1866 with a one man’s idea and then it turned into one of the world’s biggest corporations. Henri Nestle was a pharmacist and he decided to develop a formula for a substitute of the mothers’ milk. The formula was so successful that there was a demand for it on different markets and it was attracting interests from different companies that wanted to merge or participate in Nestlé’s business. Throughout the years the company has gone trough many different stages, mergers and name changes to come to the name Nestle SA at the end and to become the world’s biggest beverage and food company.
The Nestle headquarters are located in Switzerland in the relatively small city called Vevey, but the company had manufacturing units all over the world in almost every country they operate in. There is a Nestle case that has been published in 1996 that states the company employed 230,000 people with $71.7 billion in sales (Rodgers, 2000). Going into 2012, nestle has increased their employees 328,000 people worldwide and reporting just over $83.3 billion in sales for 2011.
The Nestle Company is expanding and developing year after year. They are expanding the wide range of products and brands they are offering on the market. They are participating in different industries by offering variety of products as ready foods, soft drinks, chocolates and ice creams, breakfast cereals, bottled water, pet care, dairy and pharmaceutical products.
Nestle’s main business strategy is to achieve growth through product innovation and renovation. This particular strategy has enabled Nestle to be a



References: Deans Foods Company. (2004). Annual Report. Annual Report. 1 (1). General Mills. (2005). Health And Wellness. Available: http://www.generalmills.com/corporate/health_wellness/index.aspx. Last accessed 12 June 2012. Hitt, Michael A., R. Duane Ireland, and Robert E. Hoskisson. (2005). Competitiveness and Globalization. In: South Western Strategic Management. Ohaio: South Western. Nestlé, Management Report, 2004 Nestlé Management Report, 2011 Templeton, J., S. Toy, and D. Lindorff, “Nestle: A Giant in a Hurry,” Business Week, March 22, 1993, p 50. Yoplait Food for your Health, 2005. http://www.yoplait.com/health_spotlight.aspx Nestlé financial overview by product groups http://www.nestle.com/INVESTORS/FINANCIALOVERVIEW/PRODUCTGROUPS/Pages/ProductGroups.aspx

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