Nestle final

Topics: International economics, Foreign direct investment, Emerging markets, Corporation, Subsidiary, Developing country / Pages: 11 (3347 words) / Published: May 6th, 2015
International analysis of nestle

Nestlé is the leading nutrition, health and wellness company in the world. Their mission is „Good Food, Good Life” and they provide consumers with nutritious and tasty food and beverages.
The history of Nestlé starts in 1866, when the Anglo-Swiss Condensed Milk Company opened the first European condensed milk factory in Switzerland. One year later, Henri Nestlé launched one of the world’s first prepared infant cereals-„Farine lactee”. The Anglo-Swiss Condensed Milk Company merged with Farine Lactee Henri Nestlé in 1905 and became the today’s Nestlé.
From its Swiss beginnings, Nestlé grew to establish a presence in almost every country of the world. The company operates in 86 countries and employs more than 328,000 people. In 2011, it was chosen the world’s most profitable corporation by the Fortune Global 500.
Because of its overwhelming dimension, Nestlé is currently divided into SBUs (Small Business Units) which are specialized in diverse categories, for example Coffee and Beverages, PetCare, or Chocolate and Confectionery.
The multinational currently has over 6,000 brands with a wide range of products across more markets. Coffee, bottled water, milkshakes and other beverages, chocolate, ice cream, breakfast cereals, infant foods, performance and healthcare nutrition, seasonings , soups and sauces, frozen and refrigerated foods, confectionery and pet food are produced under the name of Nestlé.
In 2009, the company’s net profit was CHF 10.43 billion, which means about EUR 8.68 billion. The most profitable products are the drinks (27%) and the most profitable geographic area is Europe.

Question 1a)
Hofstede model had demonstrated that there are national and cultural groupings that affect the behavior of societies and organizations. This model found five dimensions of culture values related to power distance, uncertainity avoidance, individualism/ collectivism, masculinity/ feminity, short term/ long term orientation.

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