From its very early days, the company looked to other countries for growth opportunities, establishing its first foreign offices in London in InNestle moved into the chocolate business when it acquired a Swiss chocolate maker. By the late s, Nestle had factories in 76 countries and sold its products in a staggering nations-almost every country in the world.
Term Papers Tagged With: Marketing 6 pages, words Nestle is one of the oldest multinational businesses in the world. It was founded by Heinrich Nestle in in Switzerland. Due to the size of Switzerland and the limited opportunities, Nestle was forced to look at other countries for growth opportunities.
In they merged with Anglo Swiss and added condensed milk and baby formulas to their product line. In they acquired a Swiss chocolate maker and expanded into the chocolate business. After World War 2, further acquisitions were made in the food business which cemented Nestle as a major player in the food production industry.
They have factories in 76 countries and their products are sold in countries — which is nearly every country in the world. Nestle was the leading manufacturer of infant formula, powdered milk, chocolates, instant coffee, soups and mineral waters and number two in ice-cream, breakfast cereals and pet food.
Nestle was found by Henri Nestle in had become the world's largest food New markets needed to found and more innovative products needed to be developed to suit these markets.
Nestle also employed novel approaches in their staffing policy and management structure and elevated the importance of its sustainability priorities. The following Nestle s growth strategy will describe the journey taken by Nestle and more importantly whether, the new strategies and innovations have been successful.
Introduction Although Nestle was successful, they were concerned with maintaining their growth rates. The developed markets of Europe and North America were saturated and Nestle knew that they would soon lose their market share due to increased competition from other multi-nationals with diverse but similar product lines such as Heinz, Kraft and ConAgra.
Price wars would diminish profits as retailers would play manufactures off against one another thus driving prices down.
Consumers were also moving away from larger scale manufactured brands and moving towards nationwide supermarkets and discount stores who introduced their own private brands.
In response Nestle began to focus on the emerging markets of Eastern Europe, Asia and Latin America to sustain and increase their growth rates. The governments of these developing nations adopted market oriented policies which presented attractive business opportunities which a multinational company like Nestle could not ignore.
There was also an economic and population growth in these developing nations that Nestle could exploit. Although these countries were still poor their economies were growing rapidly, which in turn would increase consumer income.
Historical precedence has shown that once consumers start to earn more they tend to substitute their basic foodstuffs for branded items such as those manufactured by Nestle. This was the market opportunity that Nestle was interested in.
Nestle also decided that long term investments with innovative advertising were worth the effort and financial outlay as the rewards were going to be substantial. They also decided to use local skills and ingredients to customize products for their local markets.
The Canadian market potential For the EU market, we will find distributors who are familiar Their management structure was also innovative as they focused on a decentralized organisation where the local units were responsible for most of the day to day decision making.
Nestle supplemented these local units by sending experienced managers to provide operational assistance.
The company is further organised into 7 strategic business units SBU that are responsible for certain products and all the high level strategic decisions and business developments for that product.
Nestle also has 5 regional organisations representing five major geographical zones that assist with the overall development process. The responses in the following pages, to the 4 posed questions, illustrate that the strategy used by Nestle was indeed successful for its growth.
Question 1 Does it make sense for Nestle to focus its growth on emerging markets? Why Yes it does make sense for the reasons listed below.Nestle’s Growth Strategy From regardbouddhiste.coml Customization rather than globalization is the key to Nestle's strategy in emerging. For example, Nestle has taken as much as 85 percent of the market for instant coffee in Mexico, 66 percent of the market for powdered milk in the Philippines, and 70 percent of the market for soups in Chile.
Nestle is one of the oldest of all multinational business company. Its operate food basis business around the world. In order to satisfy both developed markets and developing markets.
Also, the increasing standards of living, the familiarity of the brand due to globalization and due to the lack of large nationwide supermarkets with generic brands in developing economies make them the ideal targets for Nestle’s growth prospects. Nestlé’s financial strategy aims at striking the right balance between growth in earnings per share, competitive shareholder returns, flexibility for external growth and access to financial markets.
Nestlé’s success is built on its Nutrition, Health and Wellness strategy. Our founder, Henri Nestlé, believed that good nutrition was the key to a healthy life. Today, food and beverages remain core to our strategy.
Check out the Nestlé Roadmap to Good Food, Good Life: our strategy to becoming a trusted leader in Nutrition, Health, and Wellness. We’re always working to improve regardbouddhiste.com What could we do better? Submit. Nestlé’s portfolio is well‑positioned for growth.
The key to our long‑term success continues to be understanding and.