Nestle

SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL

NESTLE AND DRIVERS OF

INTERNATIONAL BUSINESS

PRESENTATION OVERVIEW

GROUP 9 GROUP 10GAURAV KUMAR VIKRANT ARORARAVINDRA VISHVAKARMA YATISH MITTALRAHUL SINGH ARUN JOSHIRAHUL CHAWLA AMIT KUMAY

YADAVSUMIT KUMAR SUDHIR KUMARMANISH KUMAR RAJNISH KUMAR

Definition and Meaning •To move about in one's place, like a bird when shaping the interior of her nest or a young bird getting close to the parent; as, a child nestles

•To cherish, as a bird to her young.

INTRODUCTION

• It is like when a mother bird provide food and care of her babies in her nest, in the same way nestle take care the babies just like their mothers.

• In the second definition CHERISH means to be attached , mother always to be with their babies just the same way nestle to be with us.

• Nestle was founded in 1866 by Henri nestle.• It’s headquater is in “vevey” Switzerland.• It is the largest food and nutrition company in

the world.• It’s first product was for babies and it also

deals in many products like coffee, dairy product, breakfast cereals, confectionary, bottled water, ice-cream, etc.

History

• In the 1860s, Henri Nestle developed a food for babies who were unable to breastfeed.

• By the early 1900s the company was operating factories in US, UK, Germany and Spain

• After the 1st world war the production had become doubled

History

• After the 2nd world war company’s profit dropped

• The end of 2nd world war was the beginning of a dynamic phase for Nestle

• After the war, The company launched its newest product Nescafe(“Nestle Coffee”) which became the staple drink of the US military.

Mergers and Acquisition

• 1947 :- Maggie• 1950 :- Croose and Blackwell• 1963 :- Findus• 1977 :- Alcon Laboratories Inc• 2005 :- Bought the Greek company Delta Ice

Cream for 240 million• Jan 2006 :- Took full ownership of Dreyer’s. Thus

it became the world’s largest Ice Cream maker

Mergers and Acquisition

Nov 2006 :- Purchased the medical nutrition division of Novartis Pharmaceutical for $ 2.5 billion

2007 :- Acquired milk flavoring product Known as OvaltineApril 2007 :- Returning to its root Nestle bought US

baby food manufacturer ‘Gerber’ for $ 5.5 billionDec 2007 :- Partnership with Belgian chocolate

maker ‘Pierre Marcolini’.

BUSINESS PRINCIPLE

• Value Of Goodwill• Wide Focus• Absolute Customerisation• Corporate Convergence• Appropriate Man Power Planning• Observes The Legal And Regulatory

Framework

GENE TECHNOLOGY

•Responsible Application OfG.M.O•Improve Nutrient Value Of Food•Confirm Positive Effect On Health•Enhance Sustainable AgriculturalPractice

COMMITMENT TO SOUTH AFRICA

• Good Food Good Life • Localization • PPP Strategy• First Factory Was Established In 1927 In South

Africa And Has Been Operating For The Past 94 Years.

• To Succeed It Requires Patience , Dedication , Perseverance.

CONTRIBUTION TO ECONOMIC GROWTH AND DEVELOPMENT

• Job Opportunity• The Millennium Development Goals• Innovation• Partnership With UNHCR.

CONTEMPRARY SCENARIO

The current status of the company can be explained by the following heads :-

• Brands• Services

BRANDS OF NESTLE

• Baby Products• Milk Products And Nutrients• Beverages• Chocolates• Prepared Dishes And Cooking Aids

SERVICES

• Nestle Family

• Nestle Start Healthy Stay Healthy

NESTLE DONATIONS

• Lip service on ethics• Voluntary sector• Water donation• Financial donation• Cultural activity• Contributes to program

STRENGTH

•Parent support•Brand strength•Product innovation•Strong financial position

STRENGTH

•Model operation facility•Compensate losses•Own distribution network

WEAKNESS

•Raw material• Packaging•Export•Supply chain

OPPORTUNITY

•Backward Integration•Expansion•Product Offering•Global Hub

THREAT

•Competition•Changing Consumer Trend•Sectoral Woes•Political Scenario

CONTROVERSY AND CRITICISM

• Marketing Of Formulas• Ethiopian Debt• Chinese Milk Scandal• Green Washing Advertising Campaign• Child Labor - Dark Side

WHY DID NESTLE FOLLOWED A VARIETY OF STRATEGY OF MERGER AND EXMANSION

• To expand business beyond its home country• To overcome competition• To overcome the fluctuation in demand

WHY DID NESTLE DIVERSIFY ITS PRODUCT BASED ON RELATED DIVERCIFICATION STRATEGY

• They had rich experience in the field• Nestle is based in innovation and renovation• To use their technical expertise

HOW DID THE DRIVERS OF GLOBALISATION HELP NESTLE TO GROW AT A FAST RATE

• In 1990 trade barriers crumbled thus allowed company to use less costly import and export duties.

• World market developed into more or less integrated trade areas.

WHY DID NESTLE CONCENTRATE ON RESPONSIBILITY TO THE COMMUNITY

• The aim of company is to build business based on sound human values and principles.

• Basic foundation of company remains to reflect the basic ideas of fairness , honesty and general concern for people.

THANK YOU

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