II. a) Company Background
NESTLE WORLWIDE
Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle).
Nestlé has a big range of products across markets, this including coffee, baby food, medical food, bottled water, milkshake, breakfast cereals, infant foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food. Nestlé has 447 factories, operates in 194 countries, and have around 339,000 employ under Nestle.
Nestle company strategy has few basic principles. Product of Nestle produce through Innovation and transformation, at the same time balanced local production line and activities. As the leading Food, Nutrition, Health and Wellness Company, Nestlé is the provider of the best food for whatever time of day and for whatever time of your life. The main mission of Nestle company is to bring the best product to people, no matter where they are, what they need for their life and their slogan is Good Food, Good Life "
NESTLE MALAYSIA
Nestlé 's commits to give quality products to Malaysians since 100 years ago. Nestlé began in Malaysia in 1912 in Penang and later expand to Kuala Lumpur in 1939.
The first factory established in Petaling Jaya since 1962, Nestlé Malaysia now manufactures its products in 7 factories and operate by its head office in Mutiara
Firm History: As stated in the case study, “Loblaw Grocetariaswas founded in 1919 by Theodore Pringle Loblaw J, Milton Crok. In 1947, George Weston, acquired a small stake in the company. Eventually, Loblaw companies limited became a part of George Weston limited, Canadian based company. Now it is controlled by third generation of Weston family.
The strategy recommended would match both external and internal fit that help Ice-Fili to increase its current market share (5%), maximise its long term profits and to achieve a sustainable competitive advantage. To dominate the Russian ice cream market and maintain its market leader position, it has to brand itself as the top historical Russian ice cream producer and strengthen its core product in the impulse segment. Due to little product differentiation, there is low brand loyalty for consumers. Ice-Fili could distinguish itself from creating high brand awareness via marketing and advertising.
A multinational as big as Nestlé plans on the long term, which is why they put a great deal of research into finding out how a business is successful. They have experienced that to achieve success like they have there has to
1) Evaluate how Nestlé 's approach to corporate responsibility was good for their business. Corporate businesses generally have to meet ethical, legal, commercial and public expectations. That is what is expected of the business world today. This is known as the Corporate Social Responsibility (CSR). However, businesses with short-term goal will rarely practice CSR since practicing it does not bring any benefit.
In order for a business to find out their customers interests and thoughts about their business, they carry out the appropriate marketing research to ensure that the business has 100% customer satisfaction. In relation to Kellogg’s, they have carried out a number of market research, which has ultimately led them to becoming the leading cereal brand. The company has developed a range of products for the segments within this market, targeted at all age groups over three years old. This includes 39 brands of cereals as well as different types of cereal bars. Consumers of cereal products perceive Kellogg 's to be a high quality manufacturer.
In 1905 Nestle mergered with another company called Anglo –Swiss Milk Company which was established in 1866 by George and Charles who were brothers but retained its original name. The new Nestle company started new factories in many countries like Britain, Spain, Germany united states and Australia. During the First and the second world war the company grew significantly and started manufacturing variety of products. The Nestle company has made a good number of acquisitions which includes, Findus in
Kraft Heinz Case Study Executive Summary Problem Statement The focal problem that Kraft Heinz Company (KHC) faces is the decrease in demand of packaged-foods, while trying to increase revenue. Analysis This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials.
Nestle is considered one of the largest food and beverage company worldwide. Nestle first opened its factory in 1866 in New Zealand and have successfully grow and recognize all over the world. Today, nestle own branches almost in every country in Europe, South America, Asia and other continents. The products that they produce are coffee, bottled water, milk products, tea, breakfast cereals, biscuits, baby food and many more. Looking at their annual report, their revenues clearly state that they are the most preferred food and beverage.
First an overview of its ethical issues shall be presented, followed by the company’s attitude toward corporate governance and its CSR activities shall be discussed. For a brief introduction of the company, Nestle is a Swiss-based, food and beverage producer that is known worldwide. Nestle has existed for more than 140 years. As to this date, with more than 8,000 brands and global sales of over $100 billion the company is the largest food and beverage manufacturer around the world.
Nestle believes that size and attitude contribute to leadership in the industry, and thus demands a continuous development of the organization and its functioning. In order to support these goals, Nestle is committed to encourage their people to deliver a high level of performance to achieve its goal and motive. The eventual aim is to produce the products of such quality so that they can create value for shareholders and consumers, business partners and employees, and the local communities in which Nestle operates. So what basically sets this multinational company apart from its competitors is that its primary agenda is not to focus on short term profits, but to develop business for long term with customer and quality being the top
In fact, some families had used Nestle products for a long period. In addition, Nestle has a vigorous relationship with retailers and occupied large amount of market share in some national economies especially in Europe and United States. This is to ensure the brands will continuously stable in the market competitive. Therefore, a strong research and development (R&D) of this company needed to commercial a new products and improve the existing products. WEAKNESSES
The health food drinks market is highly competitive with various heavy players like GSK, Cadbury, Nestle, Heinz etc. The health food drinks market is divided into white beverages and brown beverages. Horlicks with 36.2 % market share leads 5500 crore health food drinks market. Bournvita is leader is brown beverage category followed by Boost. Nestle Milo a relative new entrant to the market was launched in India in 1996.
A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that
is a Swiss multinational food and beverage company headquartered in Vevey, Switzerland. The founder of Nestlé is Henri Nestlé who is a trained pharmacist. Nestlé began in Malaysia in 1912 and the Anglo-Swiss Condensed Milk Company was built in Penang after move to Kuala Lumpur in 1939. Today, Nestle Malaysia is the biggest halal producer in the Nestlé world and the Halal Centre of Excellence for the Nestlé Group. It employs more than 5000 people and has a range of over 500 products, with locally made leading household brand names, such as MILO, MAGGI and KIT-KAT.
Nestlé’s products include baby food, bottled water, coffee and tea, dairy products, ice cream etc. Nestle setup its first factory in India in the year 1961 in Moga, Punjab. The other factories are located in Karnataka, Goa, Haryana and Tamil Nadu. In India, the first factory was setup in order to sell ‘Nescafe’, their coffee product which was well known in other parts of the globe by then. Nestlé now has nearly 150 factories in 195 countries.