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Nestle; how to keep magic going

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swot analysis of Nestle

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Nestle; how to keep magic going

  1. 1. Getting to Know Nestlé NESTLE: HOW TO KEEP THE MAGIC GOING.... BY Priyanka Gaherwar
  2. 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. 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. 4. Environment Infant Formula Policy Quality Coffee Prices UN Global Compact Sustainability Gene Technology Nestlé Donations Water Nestlé in the Community Our Responsibility
  5. 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. 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. 7. 2.How can Nestle effectively coordinate to diverse SBUs?
  8. 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. 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. 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. 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. 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. 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. 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. 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. 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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