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Nestle presentation

  1. 1. Nestlé Presentation Aslı Bildik Melih Zeren Hanife Armut İlkan Genç Deniz Niyazi
  2. 2. Industry Analysis Food Processing Industry Cannery Meat Processing Packaging etc. From raw to processed foods Lengthening shelf life Hygiene and health standards Big market with major rivals •Intense competition Dieting & Obesity Allergens Quality Ingredients Increasing demand for Organic/Health Products
  3. 3. Nestlé Products are sold to wholesalers or retailers for distribution End consumers aimed(Individuals) Economics of scale is a good advantage Core competency for Nestlé: Health, Nutrition & Wellness “Good food good life” Largest food company in the world
  4. 4. Nestlé Corporate and organizational culture
  5. 5. - Different stakeholders’ expectations and interactions with the company and with each other shape the culture of Nestlé. - Fairness, honesty and concern for people - Respect for diverse cultures, and developing long term relationships with suppliers and customers. - Commitment to a strong work ethic,integrity, honesty and quality
  6. 6. NESTLE CULTURE Flexibility Clan- family type (collaborative) Internal focus Adhocracy (creative) External focus Hierarchy (controlling) Market (competitive) Stability
  7. 7. Creative Culture : -less functional barriers -team working -risk taking -encouraging innovation and flexibility - employee can take initiative - opennes and curiosity for market trends Market Comptitive: - profit-priented business - expanding market share -result-oriented and competition - market research to reduce uncertainty
  8. 8. Nestlé Corpoarte Strategy - Expectations and needs of consumers affect business strategy and operations - Strengthening their leadership in the global market is key element of their corporate straregy - series of strategic business units based around geography and product. -‘CREATING SHARED VALUE’ -
  9. 9. Differentiation Strategy -renovation and innovation of the Nestlé product line ex: FIRST infant formula, Farine Lactée spread chocolate, Chokella instant coffee, Nescafé chocolate powder drink, Nesquik coffee creamer, Coffee Mate coffee mix, Nescafé 3 in 1
  10. 10. the largest R&D network of any food company in the world; with 32 R&D centers and over 5,000 people directly involved in R&D - - market resarch to provide deep consumer understanding to create and deliver products, systems and services that its competitors cannot -Nestlé uses product differentiation strategy rather than cost-leaderhip. Why? Product Quality and Reputation
  11. 11. - the largest R&D network of any food company in the world; with 32 R&D centers and over 5,000 people directly involved in R&D - market resarch to provide deep consumer understanding to create and deliver products, systems and services that its competitors cannot -Nestlé uses product differentiation strategy rather than cost-leaderhip. Why? PRODUCT QUALITY AND REPUTATION
  12. 12. Acquisitions and joint ventures • With the increase in competition, Nestlé has had to both acquire other companies and be prepared to enter into joint venture ex: - alliances with Coca Cola and two Chinese companies(1993) - Nestlé and L'Oréal have two successful joint ventures(2009) -Nestlé and Colgate-Palmolive Company(2003)
  13. 13. MISSION AND VISION • Mission : The mission of Nestlé nowadays – “Good Food, Good Life” – is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions and to put a strong emphasize that leadership is not just about size; it is also about behavior and trust earned over a long period of time by consistently delivering on promises .
  14. 14. Vision : Whether it is in terms of convenience, health or pleasure, it is committed to create trustworthy products, systems and services that contribute to improving the quality of consumers’ lives.
  15. 15. ORGANAZITIONAL STRUCTURE OF NESTLE
  16. 16. GLOBAL NESTLE • Nestlé has a Board of Directors, led by Chairman Peter Brabeck-Letmathe, who was the former Nestlé CEO. • The Nestlé Group is managed by geographies (Zones Europe, Americas and Asia/Oceania/Africa) for most of the food and beverage business.Globally managed businesses • Vertical oraganazition structure
  17. 17. - Its global center office is in Switzerland but it is not Swish company but it is a worldwide company in a sense that Nestlé has about 250 000 shareholders, none of whom individually own more than 3% of the shares
  18. 18. NESTLE TURKEY • the center of Nestle Turkey is in Maslak,İstanbul. • Gebze: distributing center • Karacabey ,Bursa: manufacturing center • Horizontal oraganazition structure
  19. 19. SWOT Chart Strengths Weaknesses Unmatched product and brand portfolio Inability to provide consistent quality in food products R&D capabilities Weak implementation of CSR Distribution channels and geographic presence Competency in mergers and acquisitions Brand reputation valued at $7 billion Opportunities Increasing demand for healthier food products Threats Food contamination Acquiring startups specializing in producing well-being products Trend towards healthy eating Establishing new joint ventures Growth of private labels Rising raw food prices
  20. 20. High Many buyers Substitutes High High Competitive market Loyalty expected but prices with quality important Low Major Rivals Huge industry/market High costs Strong brand name Medium Global firm/Easy to access local suppiers Quality hard to achieve
  21. 21. Suppliers all over the world Shareholders Customers Distributors (global-local) Advertising Partners Governments Quality products for food-processing markets all over the world. Loyalty: 1st End Consumers Focused on Chocolate Factory in Quality seekers “Quality” and Turkey, Private Not children “Convenience names(Chokella, oriented Damak),Brands in market” Health(Nescafe, Nesquick) concious 5th most loved Shareholders New Focus: “Health Conciousness” Producers  Dairy, grains, palmoil, cacao, peanut, nuts, pistachio, etc. Main costs: Distribution Production with quality Advertisement Reailers/ Wholesale “Bim” issue Distribution throughout country/world Pricing higher than rivals but not extreme due to industy and substitutes Payments from wholesales to retailers/shopping malls, etc.
  22. 22. Nestlé first major multi-national to launch human rights white paper
  23. 23. Social Responsibility • Nestle’s education programs have reached 9 million people •Nestle India supports local schools, themaintenance of public parks and green belts. •By changing the recipes of its products, it has eliminated •75,000 tons of trans fat, •15,000 tons of salt, •638,000 tons of sugar
  24. 24. • Water Education Programme in India, informed the farmers on the proper use of water. • Nestle provides rural farmers with technical support via Chilli Farming Project. A proud farmer from Kelantan, Malaysia, whose chillies are used in Maggi chilli sauce.
  25. 25. Continual improvement of the environmental performance along the value chain
  26. 26. Packaging Source Reduction Program Shift from corrugated container to shrink film From twin to single sachet Reduced cut off length
  27. 27. Nestlé tops global corporate responsibility survey ‘Transparency helps us address problems, and there’s no doubt it contributes to better interactions with external stakeholders.’ Janet Voûte, Global Head of Public Affairs at Nestlé
  28. 28. Challenges of Nestlé
  29. 29. Large Company • Has issues about flexibility • Time lost through decision periods Solutions: • Regional management empowerment • Glocalization
  30. 30. Supplier Issues • Cacao going exstinct in the world • Natural diseasters such as flood • Primitive agricultural methods Solutions: • Education to farmers • R&D about seeds and agricultural methods • Being prepared to crisis
  31. 31. Image Problems • Child Labor Issue • Suggestion of privatization of water sources • Working conditions All above creating a very bad image Solution: • Legal issues • Charity and Social Projects • PR projects • Better working conditions througout the world
  32. 32. Social Media Usage • Not much effective in social media • Losing a channel for customer relationships • Even not having social media pages is better(!) Solution: • Having more appropriate social media usage
  33. 33. Sources • • • • • • • • • http://blsciblogs.baruch.cuny.edu/mgt4880nestle/2013/04/03/nestle-industryanalysis/ http://www.slideshare.net/arif587/management-of-change-a-study-of-problemand-challenges-in-nestle http://blogs.position2.com/nestles-pr-crisis-management-nightmare articles.castelarhost.comhttp://www.nestle.co.uk/ manuscriptservices.co.uk/extras/examples/nestle.pdf http://www.nestle.com/ http://www.rankia.com/blog/mundodelaempresa/1110186-empresas-nestlefeeds-the-world-in-english http://en.wikipedia.org/wiki/Nestl%C3%A9 http://businesscasestudies.co.uk/nestle/doing-better-by-the-environment/waysin-which-nestle-is-doing-better-by-the-environment.html#axzz2oQrqLiZX
  34. 34. Thanks for Watching!

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