INTRODUCTIONDefinition and Meaning•To move about in ones place, like a bird whenshaping the interior of her nest or a young birdgetting close to the parent; as, a child nestles•To cherish, as a bird to her young.
• 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 Ovaltine April 2007 :- Returning to its root Nestle bought US baby food manufacturer ‘Gerber’ for $ 5.5 billion Dec 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 Of G.M.O •Improve Nutrient Value Of Food •Confirm Positive Effect On Health •Enhance Sustainable Agricultural Practice
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
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 ONRESPONSIBILITY 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.