Nestle; how to keep magic going
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Nestle; how to keep magic going

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swot analysis of Nestle

swot analysis of Nestle

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Nestle; how to keep magic going Presentation Transcript

  • 1. Getting to Know Nestlé NESTLE: HOW TO KEEP THE MAGIC GOING.... BY Priyanka Gaherwar
  • 2. Nestlé – An Overview Nestlé – The World Food Company Henri Nestlé. Born in 1814. Trained to be a pharmacist. Created the first milk and cereal based infant food Farine Lactee Henri Nestle. Founded the Company in 1867 Nestlé grew from a small company producing powdered milk and cereal products for infants into a global food company feeding much of the world’s population. Nutrition and Wellness are at the core of Nestlé’s products and manufacturing.
  • 3.
    • Swiss company - global reach.
    • Peter Brabeck CEO of the company-1997.
    • approximately 254,000 people working for us
    • Operating in more than 70 countries.
    • World´s leading food & beverage company.
    • People, brands & products are key.
    Our Global Organization
  • 4. Environment Infant Formula Policy Quality Coffee Prices UN Global Compact Sustainability Gene Technology Nestlé Donations Water Nestlé in the Community Our Responsibility
  • 5. BUSINESS STRATEGY
    • 1 Grow existing businesses
    • • focus on priority groups with growth and profit potential
    • • achieve 60/40
    • • improve brand positioning and communication
    • 2 Develop new businesses
    • • improve innovation & renovation
    • • select acquisition candidates
    • 3 Reduce cost
    • • reduce structure cost
    • • reduce production cost
    • • restructure business portfolio
  • 6.
    • Operational efficiency.
    • Innovation & renovation.
    • “ whenever wherever &
    • however.
    • Customer communication.
    1.Nestle 4 part strategy comprised of -
  • 7. 2.How can Nestle effectively coordinate to diverse SBUs?
  • 8. 3.How can Nestle effectively utilize benchmarking?
    • How well are Nestle is performing
    • compared to other companies?
    • ( competitors ).
    • What are the best practices? ( technology )
    • What improvement opportunities should
    • Nestle focus on? ( future )
    • Internal growth rate? ( performance )
  • 9. 4.PROS & CONS of internal growth rate PROS Reduction of Cost Innovation Strengthen sales of related products Admires people of different tastes. CONS Budget Involved Low Profits Time Consuming
  • 10. Swot analysis- strengths History 1.Nestlé is adapting its industrial base to the changing requirements of the business environment. Nestlé's industrial set-up is largely based on the economic and political realities of the 60's, 70's and 80's: • Local markets • Local production . Falling trade barriers. • Decreasing transportation cost. • Importance of IT. Etc. Present
    • - operating with a modern
    • manufacturing base,
    • – economies of scale,
    • – flexibility,
    • – appropriate technology
    • & design,
    • – low cost operation &
    • location,
    • - Nestlé is striving for an
    • optimized,
    • industrial base to ensure
    • long-term
    • competitiveness.
  • 11.
    • strong brand name
    • dedicated & focused company
    • experience & competences
    • consumer insight
    • constant renovation + innovation
    • consistent sales & marketing support
    • focused assortment
    • specialist brand
    • HQ + Factory + strong R&D team.
  • 12. Weakness
    • LC1 positioning not up to the mark.
    • Subsidiaries difficult to manage.
    • Rising products of raw materials.
    • Too much products distract from
    • core business.
    • Slow growth rate of Chocolate & Dairy
    • products .
  • 13. Opportunities
    • Further development of global brands.
    • Partnerships & farmer support.
    • Emerging market penetration.
    • More health based products in
    • Germany & US.
  • 14. Threats
    • Global image may harm all brands if
    • One brand fails.
    • New diet trends.
    • Competitors like HUL, DANONE,
    • HERSHEY FOODS, CADBURY
    • SCHWEPPERS.
  • 15. RECOMMENDATIONS
    • 1“ Win All Without Fighting” or to prioritize
    • markets and determine competitor focus.
    • 2 “Avoid Strength/ Attack Weakness” or
    • to develop attacks against competitor’s
    • weakness.
    • 3“Deception and Foreknowledge” or war
    • gaming and planning for surprise.
    • 4 “Shape Your Competition” or integrate best
    • attacks to unbalance the competition, to
    • throw competitors off.
  • 16. “
    • 5 “Speed and Preparation” or ready your attacks and release them.
    • 6 Leadership, reinforcing success and starving failure.