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Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
Nestle; how to keep magic going
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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  • 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. <ul><li>Swiss company - global reach. </li></ul><ul><li>Peter Brabeck CEO of the company-1997. </li></ul><ul><li>approximately 254,000 people working for us </li></ul><ul><li>Operating in more than 70 countries. </li></ul><ul><li>World´s leading food & beverage company. </li></ul><ul><li>People, brands & products are key. </li></ul>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 <ul><li>1 Grow existing businesses </li></ul><ul><li>• focus on priority groups with growth and profit potential </li></ul><ul><li>• achieve 60/40 </li></ul><ul><li>• improve brand positioning and communication </li></ul><ul><li>2 Develop new businesses </li></ul><ul><li>• improve innovation & renovation </li></ul><ul><li>• select acquisition candidates </li></ul><ul><li>3 Reduce cost </li></ul><ul><li>• reduce structure cost </li></ul><ul><li>• reduce production cost </li></ul><ul><li>• restructure business portfolio </li></ul>
  • 6. <ul><li>Operational efficiency. </li></ul><ul><li>Innovation & renovation. </li></ul><ul><li>“ whenever wherever & </li></ul><ul><li>however. </li></ul><ul><li>Customer communication. </li></ul>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? <ul><li>How well are Nestle is performing </li></ul><ul><li>compared to other companies? </li></ul><ul><li>( competitors ). </li></ul><ul><li>What are the best practices? ( technology ) </li></ul><ul><li>What improvement opportunities should </li></ul><ul><li>Nestle focus on? ( future ) </li></ul><ul><li>Internal growth rate? ( performance ) </li></ul>
  • 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 <ul><li>- operating with a modern </li></ul><ul><li>manufacturing base, </li></ul><ul><li>– economies of scale, </li></ul><ul><li>– flexibility, </li></ul><ul><li>– appropriate technology </li></ul><ul><li>& design, </li></ul><ul><li>– low cost operation & </li></ul><ul><li>location, </li></ul><ul><li>- Nestlé is striving for an </li></ul><ul><li>optimized, </li></ul><ul><li>industrial base to ensure </li></ul><ul><li>long-term </li></ul><ul><li>competitiveness. </li></ul>
  • 11. <ul><li>strong brand name </li></ul><ul><li>dedicated & focused company </li></ul><ul><li>experience & competences </li></ul><ul><li>consumer insight </li></ul><ul><li>constant renovation + innovation </li></ul><ul><li>consistent sales & marketing support </li></ul><ul><li>focused assortment </li></ul><ul><li>specialist brand </li></ul><ul><li>HQ + Factory + strong R&D team. </li></ul>
  • 12. Weakness <ul><li>LC1 positioning not up to the mark. </li></ul><ul><li>Subsidiaries difficult to manage. </li></ul><ul><li>Rising products of raw materials. </li></ul><ul><li>Too much products distract from </li></ul><ul><li>core business. </li></ul><ul><li>Slow growth rate of Chocolate & Dairy </li></ul><ul><li>products . </li></ul>
  • 13. Opportunities <ul><li>Further development of global brands. </li></ul><ul><li>Partnerships & farmer support. </li></ul><ul><li>Emerging market penetration. </li></ul><ul><li>More health based products in </li></ul><ul><li>Germany & US. </li></ul>
  • 14. Threats <ul><li>Global image may harm all brands if </li></ul><ul><li>One brand fails. </li></ul><ul><li>New diet trends. </li></ul><ul><li>Competitors like HUL, DANONE, </li></ul><ul><li>HERSHEY FOODS, CADBURY </li></ul><ul><li>SCHWEPPERS. </li></ul>
  • 15. RECOMMENDATIONS <ul><li>1“ Win All Without Fighting” or to prioritize </li></ul><ul><li>markets and determine competitor focus. </li></ul><ul><li>2 “Avoid Strength/ Attack Weakness” or </li></ul><ul><li>to develop attacks against competitor’s </li></ul><ul><li>weakness. </li></ul><ul><li>3“Deception and Foreknowledge” or war </li></ul><ul><li>gaming and planning for surprise. </li></ul><ul><li>4 “Shape Your Competition” or integrate best </li></ul><ul><li>attacks to unbalance the competition, to </li></ul><ul><li>throw competitors off. </li></ul>
  • 16. “ <ul><li>5 “Speed and Preparation” or ready your attacks and release them. </li></ul><ul><li>6 Leadership, reinforcing success and starving failure. </li></ul>

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