An assignment by Alejandra Gutiérrez Galarza | Student number:100184697
TABLE OF CONTENTS
* Executive Summary…………………………………..3 * Brief History……………………………………………4 * Evaluation………………………………………………5,6,7,8,9 * References……………………………………………..10
1. EXECUTIVE SUMMARY
This assignment is the company Nestlé, and based on the theories given during the course will analyze the synergies in the case of Nestlé and its types at the same time, highlight the management mechanisms used by Nestlé to take advantage of synergies, will also discuss the different directions of corporate growth that the company has had throughout its history. Finally, the assignment will talk about the future scenario for Nestlé at institutional level and give a conclusion.
2. BRIEF HISTORY
For starters, the international company Nestlé is the largest food company in the world. The Nestlé product range includes everything from mineral water to pet food, like chocolate and dairy products. The headquarter is in Vevey, Switzerland. Nestlé's story begins in the 1860's, when a pharmacist named Henri Nestlé developed a meal for chelating agents unable to suckle his mother, immediately, this food called Farine Lactée spread throughout Europe. In early 1900, had factories in the United States, Britain, Germany and Spain. And a few years later, in Brazil. In 1905, Nestlé has partnered with Anglo-Swiss Condensed Milk Company, a condensed milk. Later, Nestlé profits fell because of World War II, but also introduced one of its most popular products (Nescafé). When the war ended, he began a great period for Nestlé since acquired many other companies such as Maggi soups, bought shares of L'Oréal in 1974 and later acquired Alcon Laboratories. In mid-1980, Nestlé acquired more companies, such as an American company called Carnation, which is the greatest moment in the food industry. In the 1990's proved to be very good for Nestlé. Since 1996 it has become to acquire more companies, such as Ralston Purina, a large pet food brand which was acquired in 2002. In 2003 started well with Mövenpick Ice Cream. In 2006 he added to the portfolio of Nestlé Jenny Craig and only 3 years were also added to this portfolio Novartis Medical, Gerber and Henniez. Available at: www.nestle.com/ (Accessed: 20 November)
Nestlé over its history has had several CEOs who have helped the company become a world leader in the food industry and thanks to them, Nestlé has reached our days. Were critical years and the mandate of Maucher and years in which Nestlé profits increased as was the mandate Brabeck. Henri Nestlé the founder of Nestlé, was the one who created Farine Lactée for infants in 1867 and in 1905 the company merged with Anglo-Swiss Condensed Milk, this was good as this company was his great rival. Here the assignment developed the first synergy found in the case of Nestlé that is when Nestlé decided to merge with rival firm called Anglo – Swiss condensed Milk Company, this synergy is done by aligning positions and within this is to improving the competitive position in this case is when Nestlé and Anglo-Swiss Condensed Milk Company business units come together to help each other. This too is usually done several times to support each other and attacking a third. This synergy control mechanism used to give a formal power to enforce the company to centralize and standardize and so these two companies to merge have force and be market leaders, the company can exercise control in various ways, one by one for direct supervision and indirect supervision, often by indirect supervision is usually. A few years later, Nestlé began opening factories, also created new products to the market, such as Nescafe, Nestea and Nesquik, with the same drying process of Nescafé was used to make Nestea and the fact that Nestlé uses the same process of drying to the Nestea is by leveraging resources and within this to achieving resource...
References: (Bob De Wit and Ron Meyer, Strategy process, content, context and international perspective, chapter 6)
(Bob De Wit and Ron Meyer, Strategy process, content, context and international perspective, case study 11 Nestle 2008).
(Bob De Wit and Ron Meyer, Strategy process, content, context and international perspective, case study 11 Nestlé in 2008).
* Bell, D. & Shelman, M. (2007) Nestlé in 2008: Case Study
* De Wit, B
* Milligan.J, (2008), Strategic Management, Great Britain, Mc Graw Hill.
Hoback.R, (2006) The use of synergy in business [Online]
(Accessed: 26 November)
Nestlé, S.A (2010) Nestlé [Online]
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