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17495022 nestle-business-presentation

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17495022 nestle-business-presentation

  1. 1. Hemant,Phillip,Nitin & Munaf
  2. 2. CONTENT <ul><li>Vision & Mission </li></ul><ul><li>General environment </li></ul><ul><li>5 forces model </li></ul><ul><li>SWOT </li></ul><ul><li>Business strategy </li></ul><ul><li>Competitors </li></ul><ul><li>Problems and Solution </li></ul><ul><li>Stake holders </li></ul><ul><li>Acquisition Strategy </li></ul><ul><li>Organizational Structure </li></ul><ul><li>Strategic Leadership </li></ul><ul><li>Strategic Entrepreneurship </li></ul>
  3. 3. Vision <ul><li>“ Nestlé's aim is to meet the various needs of the consumer everyday by marketing and selling foods of a consistently high quality.” </li></ul>
  4. 4. Mission <ul><li>“ We strive to bring consumers foods that are safe, of high quality and provide optimal nutrient to meet physiological needs. Nestle helps provide selections for all individual taste and lifestyle preferences.” </li></ul>
  5. 5. General environment <ul><li>Demographic trends: </li></ul><ul><li>- Nearly all age from young to old people. </li></ul><ul><li>- All six continents (customers) </li></ul><ul><li>Economic trends: </li></ul><ul><li>- Most countries all over the world are affected by the global economic crisis. </li></ul>
  6. 6. General environment <ul><li>Political/Legal trends: </li></ul><ul><li>- More countries join WTO: allow more free trade across the nations </li></ul><ul><li>Sociocultural trends: </li></ul><ul><li>- The world people care more about their health, especially with foods and beverages. </li></ul>
  7. 7. General environment <ul><li>Technological trends: </li></ul><ul><li>- Use most of latest technology( in researching, producing…) </li></ul><ul><li>- Try to find new way of create new product </li></ul><ul><li>- Improve the quality of products. </li></ul><ul><li>Global trends: </li></ul><ul><li>- Improve operational efficiency by integrating the company’s businesses on a global scale. </li></ul><ul><li>- “We’re now transitioning to become a genuinely global food company, to behave as one” </li></ul>
  8. 8. Five forces model <ul><li>New entrants </li></ul><ul><li>Multinational companies </li></ul><ul><li>More companies joint in domestic market </li></ul><ul><li>High pressure </li></ul><ul><li>Substitute products </li></ul><ul><li>Diversity products </li></ul><ul><li>Confectionery, instant foods </li></ul><ul><li>Not many firms focus on pet foods </li></ul><ul><li>Average pressure </li></ul>
  9. 9. Five forces model <ul><li>Suppliers </li></ul><ul><li>Sign contracts with farmers </li></ul><ul><li>Stable suppliers </li></ul><ul><li>Trust to the big firm </li></ul><ul><li>Low pressure </li></ul><ul><li>Buyers </li></ul><ul><li>Variety demands </li></ul><ul><li>Different tastes </li></ul><ul><li>Need to attract customers </li></ul><ul><li>High pressure </li></ul>
  10. 10. SWOT analysis <ul><li>Strengths: </li></ul><ul><li>- Very long history (over 140 years) </li></ul><ul><li>- Operated factories in 77 countries (all six continents), a truly global company. </li></ul><ul><li>- Considered the innovation leader in the global food and nutrition sector(3500 scientist in company R&D network) </li></ul><ul><li>- Low cost operators (beat the competition by producing low cost products, edging ahead with low operating costs) </li></ul><ul><li>- Offering thousands of local products. </li></ul><ul><li>- Have a great CEO, Peter Brabeck, and a very strong workforces. </li></ul>
  11. 11. SWOT analysis <ul><li>Weaknesses: </li></ul><ul><li>- Not as successful as they thought they would be in some market (i.e. France) </li></ul><ul><li>- Some of their product were positioned as too scientific, and consumers didn’t quite understand (i.e. LC-1 was a food and not a drug) </li></ul>
  12. 12. SWOT analysis <ul><li>Opportunities: </li></ul><ul><li>- Well-known company and strong brandname </li></ul><ul><li>- Health-based products are becoming more popular in the world, including in the United States </li></ul><ul><li>- Ranked first in nearly all the product segments in which it operated (market leader) </li></ul><ul><li>- Unaffected by current economic conditions (its share of the UK confectionery market rise to 15.6 per cent with a 0.5 per cent growth this year) </li></ul>
  13. 13. SWOT analysis <ul><li>Threats: </li></ul><ul><li>- Some markets they are entering are already mature </li></ul><ul><li>- Global competitors. </li></ul><ul><li>- There are intense competitions in the United States, especially yogurt market (General Mills) </li></ul>
  14. 14. Business-level strategy <ul><li>Nestlé business-level strategy is integrated cost leadership/differentiation </li></ul><ul><li>- Wide range of products (over 20 categories: coffee, milk, mineral water, pet foods, cereals…) </li></ul><ul><li>- Low cost operators. </li></ul>
  15. 15. Competitors <ul><li>Many competitors </li></ul><ul><li>The same qualities </li></ul><ul><li>The same prices </li></ul><ul><li>Unilever, Kraft, Master foods… </li></ul><ul><li>High pressure </li></ul>
  16. 16. Problem <ul><li>High market share </li></ul><ul><li>Low growth </li></ul><ul><li>Competitive pressure </li></ul><ul><li>Want to expand </li></ul><ul><li>Don’t have enough resources </li></ul>
  17. 17. Solution <ul><li>Cut investment budgets, overheads, frill </li></ul><ul><li>Maximizing existing assets, capacity, distribution </li></ul><ul><li>Target internal growth rate </li></ul><ul><li>Improve supply chain, productivity, optimize planning </li></ul>
  18. 18. PROBLEMS TO NESTLE <ul><li>Storm of Melamine in 2008 </li></ul><ul><li>+ Melamine: increasing high protein affectedly </li></ul><ul><li>=> kidney stone, cancer </li></ul><ul><li>Relate with Nestle ??? </li></ul>
  19. 19. <ul><li>2/10/2008 : Finding Melamine in Nestle powdered milk at Taiwan </li></ul><ul><li>=> 6 kinds of Nestle milk products : having Melamine poisoned chemical substance ( little percent) </li></ul><ul><li>Nestle in Switzerland :force to take back baby milk products in France, Spain, Italy </li></ul>
  20. 20. However <ul><li>42 Nestle samples tested in Measured Quality Standard Technique Center: No Melamine </li></ul><ul><li>Nestle products at Vietnam or imported from America, Europe, New Zealand, absolutely not from China </li></ul>
  21. 21. Stakeholders <ul><li>Shareholders: profits </li></ul><ul><li>Employees: stable job, promotion </li></ul><ul><li>Consumers: high quality products, reasonable price </li></ul><ul><li>Business partners: long-term, trusted relationships </li></ul><ul><li>Local environment: need Nestle has responsibilities </li></ul>
  22. 22. Acquisition Strategy <ul><li>90’s year: Baby product’s of Nestle were not concerned </li></ul><ul><li>1998: Peter Brabeck became Director </li></ul><ul><li>=> Begin biggest A&M cases: </li></ul><ul><li>+ Drerer’s Grand ice-cream Company </li></ul><ul><li>+ Rlaston Purina- Pet food biggest North-American : 11 billion USD </li></ul>
  23. 23. Why acquisition??? <ul><li>Diversifying size of economic: </li></ul><ul><li>+ Baby milk </li></ul><ul><li>+ Nutrition </li></ul><ul><li>+ Cafe </li></ul><ul><li>+ Food product </li></ul><ul><li>Expanding the size of company </li></ul>
  24. 24. The most successful A&M <ul><li>Buy Gerber, Baby food brand name from Novartis corporation : 5.5 billion $ </li></ul><ul><li>=> No.1 in Baby food largest market, America. </li></ul>----->
  25. 25. Not only buy but sell <ul><li>Selling the Milk manufacturing Industry in BaVi to Anco Company ( during 1 year) </li></ul><ul><li>Are they right when selling ??? </li></ul><ul><li>+ The truth : spend money to focus on different field </li></ul><ul><li>Invest 4 million$ ( maybe money from selling Milk industry 1 year) to Maggi produce industry </li></ul>
  26. 26. Organizational Structure Zonal Sales Manager Regional Sales Manager National Sales Manager Area Managers System Support Executive System support Officers Territory in- charge Event Management Officer Loader DSR Sales Associates Event Management Chiller Technician Customer Service Manager Customer Service Officer
  27. 27. Strategic Leadership <ul><li>To force the businesses to become more efficient. </li></ul><ul><li>To create a regional manufacturing network. </li></ul><ul><li>To integrate the company’s business on a global scale. </li></ul><ul><li>To reduce marketing expenditures by exploiting the synergies between brands. </li></ul>
  28. 28. Nestle’ strategic entrepreneurship <ul><li>Develop R&D network </li></ul><ul><li>Acquisition </li></ul>
  29. 29. Develop R&D network <ul><li>>3,500 scientists work on improving existing products and creating tomorrow’s nourishments </li></ul><ul><li>Two thirds of company’s R&D activities are dedicated to renovating existing products, the remaining third is reserved for radical product innovations. </li></ul><ul><li>Improve on operational level </li></ul><ul><li>A number of organizational changes. </li></ul>
  30. 30. Acquisition <ul><li>Reaching a critical mass in terms of market share </li></ul><ul><li>+ the acquisition of Dreyer’s </li></ul><ul><li>+ the acquisition of Ralson Purina </li></ul><ul><li>+ the acquisition of Jenny Craig </li></ul><ul><li>Gain expert knowledge for further expansion into new product segments. </li></ul><ul><li>+ Life Ventures fund </li></ul><ul><li>+ The Nestle Growth fund </li></ul>
  31. 31. <ul><li>THANK YOU FOR LISTENING!!!! </li></ul>

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