Presented By:

Priya GoyalSwati Gupta

Shefali Panwar

Overview

Introduction

Mission

Brands

Internal Assessment

Global Market

SWOT Analysis

Competitors

Questions

Introduction

Founded: In 1866 by Henri Nestle

Head Quarters: Vevey, Switzerland

Areas served: World wide

Key People: Peter Brabeck(Chairman)

Paul Bulcke(CEO)

Industry: Food processing

Sales: Approx. 44710.6 million

Profit: Approx. $3.41 billion

Employees: over 265000 Employees

Mission...

“Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives,

throughout the world. With our experience of anticipating consumer's needs and creating

solutions, nestle contributes to your well being and enhances your quality of life.”

Brands

Internal Assessment

Today Nestle is the world's leading Nutrition, health & wellness company It is spread over 100 countries with 480 factories, having an

experience of 148 years in the industry. It offers over 8000 products to millions of consumers universally.

Reported a 22% rise in full year earnings with 4.4% internal

growth this year as compared to 3.6% last year. Profit margins are improved from 6.3% to 7.1%

Global Market

Nestle leads the global milk market with a 3.2% share. Leaders of bottled water in North America, Europe, Middle East Africa Ranks third in the soft drinks global market with 3.4 percent in total sales

SWOT Analysis

Strengths

The world's largest processed food & beverage company. Diversified products

Joint Ventures

Influencing Consumer's decision

Established brand across the globe

Weaknesses

Storage and transportation problems Complex supply chain management

Opportunities

Expansion – Potential to expand to smaller towns and

other geographies

Product offerings – The company has the option to

expand its product folio by introducing more brands

Low labour cost in developing countries – Cheaper

manufacturing facility at India than in others parts of the world

Threats

Liberalization of trade & investment policies –

Immense competition from the organized and unorganized

sectors

Export to a single location – Major exports to Russia

Indians perception towards fresh foods – emphasis on

fresh food instead of ready-to-eat products

Competitors

Major Competitors:

Amul Ltd.

Danone Group

Unilever Group

Cadbury Ltd.

Questions

Questions for Discussions:

1) What are emerging markets?

2) Suggest why agribusiness is a slow growing sector while nutrition and well being is a fast growing field?

3) Explain why the shift from agribusiness to nutrition and well being has improved growth performance?

4) How would profit margins be influenced by efficiency improvements in purchasing and supply chain management?