Strategic Management Nestle

Topics: Marketing, Nestlé, Strategic management Pages: 13 (3627 words) Published: October 26, 2012
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 step ahead of the competition and to meet consumers’ expectation through delivering affordable healthy products (NESTLE.COM).

Nestlé’s Corporate Mission

Nestlé’s brand and products are the focus of continual innovation and renovation so that they meet and exceed our consumers’ expectations. We seek to ensure that our products are available whenever, wherever and however our consumers want them. (NESTLE.COM)

Nestlé’s Objectives

Nestlé’s main objectives are to offer convenient, tasty, and nutritious and safety products to help consumers’ all over the world and from all ages to improve their health and well-being. As well as to meet the needs and desires of today and tomorrow’s consumers, Nestlé is strongly committed to Research and Development to improve existing products and develop new foods with specific health benefits. (NESTLE.COM)

SWOT Analysis:
External Exhibit 1


The sales of Nestle are showing that the company is one of the largest food and beverage companies. Having and established and strong brand name the products are easily accepted on the market. Therefore reducing the risk of investments and pushing the strong brand awareness as one of the major competitive advantages for Nestle. The company had set a transparent manufacturing process in order to promote nutrition and consumers’ satisfaction and well-being. On the other hand Nestle has a very strong distribution channels ad very good suppliers relations, which leads them toward growth in sales year after year. Further strengths of the company are the skilled and educated labour they are employing. The wide range of products Nestle has on the market is also a very big strength because anything a consumer might need they can find in the face of Nestle. Other strength of the company is the product innovation,...
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