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Nestle is the world's leadingnutrition, health and wellness

company today

and was founded in 1866 byHenri Nestl.

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Nestle is the world's leading nutrition, healthand wellness company today

and was founded in 1866 by Henri Nestl

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PESTLE analysis is a powerful tools to visualize your externalsurroundings, which enables you to understand the external

factors such asPolitical, Economical, Social, technological, Legal &environmental affecting your business

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1866 -1905

In the 1860s Henri Nestl, a pharmacist, developed a food for babies who were unable tobreastfeed. His first success was a premature infant who could

not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the valueof the new product, after Nestl's new formula saved

the child's life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe.

1905-1918

In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, thecompany was operating factories in the United States,

Britain, Germany and Spain. World War I created new demand for dairy products in the form ofgovernment contracts. By the end of the war, Nestl's

production had more than doubled.

1918 -1938

After the war Government contracts dried up and consumers switched back to fresh milk.However, Nestl's management responded quickly,

streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new

products, with chocolate the Company's second most important activity

1938 -1944

Nestl felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6million in 1939. Factories were established in

developing countries, particularly Latin America. Ironically, the war helped with the introductionof the Company's newest product, Nescafe, which was a

staple drink of the US military. Nestl's production and sales rose in the wartime economy

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1944 -1975The end of World War II was the beginning of a dynamic phase for Nestl. Growthaccelerated and companies were acquired. In 1947 came the mergerwith Magiseasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963),Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding inL'Oral in 1974.

1975 -1981

Nestl's growth in the developing world partially offset a slowdown in the Company'straditional markets. Nestl made its second venture outside the food industry byacquiring Alcon Laboratories Inc..

1981 -1996Nestl divested a number of businesses1980 / 1984. In 1984, Nestl's improved bottom

line allowed the Company to launch a new round of acquisitions, the most importantbeing American food giant Carnation.

1996+The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled

and world markets developed into more or less integrated trading

areas. Since 1996 there have been acquisitions including San Pellegrino (1997), SpillersPet foods (1998) and Ralston Purina (2002). There were two

major acquisitions in North America, both in 2002: in July, Nestl merged its U.S. icecream business into Dreyer's, and in August, a USD 2.6bn acquisition was announcedof Chef America, Inc.

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Threat of New Entrants

Suppliers

COMPETITORS

Threat of Substitutes

Customers

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Suppliers Threat of Substitutes

Threat of New Entrants

Customers

COMPETITORS

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Nestle is dedicated to providing the bestfoods to people throughout their day,throughout their lives, throughout the

world. With our unique experience ofanticipating consumers' needs andCreating solutions, Nestle contributes toyour well-being and enhances your qualityof life.

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We never compromise on quality and

quantity

Our extensive milk collection system ensures

that the Milk you get is of the finest quality. Our products are available in every city and

town

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StarsMilkpak

Nesvita

Everyday

Yogurt

Question MarksCream

Raita

Fruit yogurt

Cash CowsNidoNeslac

DogsDesi Ghee

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Strong Brand image

Quality Milk

Milkpak is known as the best UHT milk

in Pakistan due to consistency in quality. Focus on research and development

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Milkpak brand may get entire or about entiremarket share by availing opportunities inMarket that includes

Health Conscious people Increased knowledge of health

Competitors are not having any Ad campaignright now

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Competitors may get better time and space in different Media

There is no loyalty for as far as milk is considered.

Quality is not being satisfied and taste as well by new comers.

They can start their marketing Campaign and Milkpak may loose marketshare

Nestle is facing the problem that is regarding the quality of milk. It is

being perceive that infant or child belonging to poor family who use lowquantity of milk then required in daily use are getting affected.

Price is also a factor. Milkpak comprises 50% of profit of firm. Thats whyprice compromise can not be done.

Firm is not advertising the milkpak on its official web site in first viewalthough it is giving highest profit to firm.

High collection of milk is required along with the presence of

competitors. Credit system is not possible for firm as being given by local loose milk

producer.

Nestle is operating in a number of dairy products and milk allocation isfirst settled for other brand and then for milkpak

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The Nestl global vision is to be the leadinghealth, wellness, and Nutrition Company inthe world. Nestl Pakistan subscribes fullyto this vision. In particular, we envision to:

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