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NESTLE AND DRIVERS
        OF
  INTERNATIONAL
     BUSINESS
     SHRI RAM MURTI SMARAK INTERNATIONAL
               BUSINESS SCHOOL
PRESENTATION OVERVIEW
GROUP 9                             GROUP 10
GAURAV KUMAR                        VIKRANT ARORA
RAVINDRA VISHVAKARMA                YATISH MITTAL
RAHUL SINGH                         ARUN JOSHI
RAHUL CHAWLA                        AMIT KUMAY YADAV
SUMIT KUMAR                         SUDHIR KUMAR
MANISH KUMAR                        RAJNISH KUMAR

            SHRI RAM MURTI SMARAK INTERNATIONAL
                      BUSINESS SCHOOL
INTRODUCTION
Definition and Meaning
•To move about in one's place, like a bird when
shaping the interior of her nest or a young bird
getting close to the parent; as, a child nestles

•To cherish, as a bird to her young.




                SHRI RAM MURTI SMARAK INTERNATIONAL
                          BUSINESS SCHOOL
• It is like when a mother bird provide food and
  care of her babies in her nest, in the same way
  nestle take care the babies just like their
  mothers.
• In the second definition CHERISH means to be
  attached , mother always to be with their
  babies just the same way nestle to be with us.




                SHRI RAM MURTI SMARAK INTERNATIONAL
                          BUSINESS SCHOOL
• Nestle was founded in 1866 by Henri nestle.
• It’s headquater is in “vevey” Switzerland.
• It is the largest food and nutrition company in
  the world.
• It’s first product was for babies and it also
  deals in many products like coffee, dairy
  product, breakfast cereals, confectionary,
  bottled water, ice-cream, etc.




                SHRI RAM MURTI SMARAK INTERNATIONAL
                          BUSINESS SCHOOL
History
• In the 1860s, Henri Nestle developed a food
  for babies who were unable to breastfeed.
• By the early 1900s the company was
  operating factories in US, UK, Germany and
  Spain
• After the 1st world war the production had
  become doubled


               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
History
• After the 2nd world war company’s profit
  dropped
• The end of 2nd world war was the beginning of
  a dynamic phase for Nestle
• After the war, The company launched its
  newest product Nescafe(“Nestle Coffee”)
  which became the staple drink of the US
  military.

               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
Mergers and Acquisition
• 1947 :- Maggie
• 1950 :- Croose and Blackwell
• 1963 :- Findus
• 1977 :- Alcon Laboratories Inc
• 2005 :- Bought the Greek company Delta Ice
  Cream for 240 million
• Jan 2006 :- Took full ownership of Dreyer’s. Thus
  it became the world’s largest Ice Cream maker

                 SHRI RAM MURTI SMARAK INTERNATIONAL
                           BUSINESS SCHOOL
Mergers and Acquisition
 Nov 2006 :- Purchased the medical nutrition
  division of Novartis Pharmaceutical for $ 2.5
  billion
 2007 :- Acquired milk flavoring product
 Known as Ovaltine
 April 2007 :- Returning to its root Nestle bought
  US baby food manufacturer ‘Gerber’ for $ 5.5
  billion
 Dec 2007 :- Partnership with Belgian chocolate
  maker ‘Pierre Marcolini’.

                 SHRI RAM MURTI SMARAK INTERNATIONAL
                           BUSINESS SCHOOL
BUSINESS PRINCIPLE
•   Value Of Goodwill
•   Wide Focus
•   Absolute Customerisation
•   Corporate Convergence
•   Appropriate Man Power Planning
•   Observes The Legal And Regulatory
    Framework

                 SHRI RAM MURTI SMARAK INTERNATIONAL
                           BUSINESS SCHOOL
GENE TECHNOLOGY

       •Responsible Application Of
       G.M.O
       •Improve Nutrient Value Of
        Food
       •Confirm Positive Effect On
       Health
       •Enhance Sustainable Agricultural
       Practice
   SHRI RAM MURTI SMARAK INTERNATIONAL
             BUSINESS SCHOOL
COMMITMENT TO SOUTH AFRICA
• Good Food Good Life
• Localization
• PPP Strategy
• First Factory Was Established In 1927 In South
  Africa And Has Been Operating For The Past 94
  Years.
• To Succeed It Requires Patience , Dedication ,
  Perseverance.
               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
CONTRIBUTION TO ECONOMIC
      GROWTH AND DEVELOPMENT
•   Job Opportunity
•   The Millennium Development Goals
•   Innovation
•   Partnership With UNHCR.




                SHRI RAM MURTI SMARAK INTERNATIONAL
                          BUSINESS SCHOOL
CONTEMPRARY SCENARIO
  The current status of the company can be
  explained by the following heads :-
• Brands
• Services




              SHRI RAM MURTI SMARAK INTERNATIONAL
                        BUSINESS SCHOOL
BRANDS OF NESTLE
•   Baby Products
•   Milk Products And Nutrients
•   Beverages
•   Chocolates
•   Prepared Dishes And Cooking Aids




                 SHRI RAM MURTI SMARAK INTERNATIONAL
                           BUSINESS SCHOOL
SHRI RAM MURTI SMARAK INTERNATIONAL
          BUSINESS SCHOOL
SHRI RAM MURTI SMARAK INTERNATIONAL
          BUSINESS SCHOOL
SERVICES
         • Nestle Family




• Nestle Start Healthy Stay Healthy




         SHRI RAM MURTI SMARAK INTERNATIONAL
                   BUSINESS SCHOOL
NESTLE DONATIONS
•   Lip service on ethics
•   Voluntary sector
•   Water donation
•   Financial donation
•   Cultural activity
•   Contributes to program

               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
SHRI RAM MURTI SMARAK INTERNATIONAL
          BUSINESS SCHOOL
STRENGTH

•Parent support
•Brand strength
•Product innovation
•Strong financial
 position



            SHRI RAM MURTI SMARAK INTERNATIONAL
                      BUSINESS SCHOOL
STRENGTH

•Model operation facility
•Compensate losses
•Own distribution
 network




               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
WEAKNESS

                         •Raw material
                         • Packaging
                         •Export
                         •Supply chain



SHRI RAM MURTI SMARAK INTERNATIONAL
          BUSINESS SCHOOL
OPPORTUNITY


•Backward Integration
•Expansion
•Product Offering
•Global Hub



              SHRI RAM MURTI SMARAK INTERNATIONAL
                        BUSINESS SCHOOL
THREAT

                 •Competition
                 •Changing Consumer
                  Trend
                 •Sectoral Woes
                 •Political Scenario


SHRI RAM MURTI SMARAK INTERNATIONAL
          BUSINESS SCHOOL
CONTROVERSY AND CRITICISM
•   Marketing Of Formulas
•   Ethiopian Debt
•   Chinese Milk Scandal
•   Green Washing Advertising Campaign
•   Child Labor - Dark Side




                SHRI RAM MURTI SMARAK INTERNATIONAL
                          BUSINESS SCHOOL
SHRI RAM MURTI SMARAK INTERNATIONAL
          BUSINESS SCHOOL
WHY DID NESTLE FOLLOWED A
  VARIETY OF STRATEGY OF MERGER
         AND EXMANSION
• To expand business beyond its home country
• To overcome competition
• To overcome the fluctuation in demand




               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
WHY DID NESTLE DIVERSIFY ITS
    PRODUCT BASED ON RELATED
     DIVERCIFICATION STRATEGY
• They had rich experience in the field
• Nestle is based in innovation and renovation
• To use their technical expertise




                SHRI RAM MURTI SMARAK INTERNATIONAL
                          BUSINESS SCHOOL
HOW DID THE DRIVERS OF
   GLOBALISATION HELP NESTLE TO
       GROW AT A FAST RATE
• In 1990 trade barriers crumbled thus allowed
  company to use less costly import and export
  duties.
• World market developed into more or less
  integrated trade areas.



               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
WHY DID NESTLE CONCENTRATE ON
RESPONSIBILITY TO THE COMMUNITY
• The aim of company is to build business based
  on sound human values and principles.
• Basic foundation of company remains to
  reflect the basic ideas of fairness , honesty
  and general concern for people.




               SHRI RAM MURTI SMARAK INTERNATIONAL
                         BUSINESS SCHOOL
SHRI RAM MURTI SMARAK INTERNATIONAL
          BUSINESS SCHOOL

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Nestle

  • 1. NESTLE AND DRIVERS OF INTERNATIONAL BUSINESS SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 2. PRESENTATION OVERVIEW GROUP 9 GROUP 10 GAURAV KUMAR VIKRANT ARORA RAVINDRA VISHVAKARMA YATISH MITTAL RAHUL SINGH ARUN JOSHI RAHUL CHAWLA AMIT KUMAY YADAV SUMIT KUMAR SUDHIR KUMAR MANISH KUMAR RAJNISH KUMAR SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 3. INTRODUCTION Definition and Meaning •To move about in one's place, like a bird when shaping the interior of her nest or a young bird getting close to the parent; as, a child nestles •To cherish, as a bird to her young. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 4. • It is like when a mother bird provide food and care of her babies in her nest, in the same way nestle take care the babies just like their mothers. • In the second definition CHERISH means to be attached , mother always to be with their babies just the same way nestle to be with us. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 5. • Nestle was founded in 1866 by Henri nestle. • It’s headquater is in “vevey” Switzerland. • It is the largest food and nutrition company in the world. • It’s first product was for babies and it also deals in many products like coffee, dairy product, breakfast cereals, confectionary, bottled water, ice-cream, etc. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 6. History • In the 1860s, Henri Nestle developed a food for babies who were unable to breastfeed. • By the early 1900s the company was operating factories in US, UK, Germany and Spain • After the 1st world war the production had become doubled SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 7. History • After the 2nd world war company’s profit dropped • The end of 2nd world war was the beginning of a dynamic phase for Nestle • After the war, The company launched its newest product Nescafe(“Nestle Coffee”) which became the staple drink of the US military. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 8. Mergers and Acquisition • 1947 :- Maggie • 1950 :- Croose and Blackwell • 1963 :- Findus • 1977 :- Alcon Laboratories Inc • 2005 :- Bought the Greek company Delta Ice Cream for 240 million • Jan 2006 :- Took full ownership of Dreyer’s. Thus it became the world’s largest Ice Cream maker SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 9. Mergers and Acquisition  Nov 2006 :- Purchased the medical nutrition division of Novartis Pharmaceutical for $ 2.5 billion  2007 :- Acquired milk flavoring product Known as Ovaltine  April 2007 :- Returning to its root Nestle bought US baby food manufacturer ‘Gerber’ for $ 5.5 billion  Dec 2007 :- Partnership with Belgian chocolate maker ‘Pierre Marcolini’. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 10. BUSINESS PRINCIPLE • Value Of Goodwill • Wide Focus • Absolute Customerisation • Corporate Convergence • Appropriate Man Power Planning • Observes The Legal And Regulatory Framework SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 11. GENE TECHNOLOGY •Responsible Application Of G.M.O •Improve Nutrient Value Of Food •Confirm Positive Effect On Health •Enhance Sustainable Agricultural Practice SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 12. COMMITMENT TO SOUTH AFRICA • Good Food Good Life • Localization • PPP Strategy • First Factory Was Established In 1927 In South Africa And Has Been Operating For The Past 94 Years. • To Succeed It Requires Patience , Dedication , Perseverance. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 13. CONTRIBUTION TO ECONOMIC GROWTH AND DEVELOPMENT • Job Opportunity • The Millennium Development Goals • Innovation • Partnership With UNHCR. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 14. CONTEMPRARY SCENARIO The current status of the company can be explained by the following heads :- • Brands • Services SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 15. BRANDS OF NESTLE • Baby Products • Milk Products And Nutrients • Beverages • Chocolates • Prepared Dishes And Cooking Aids SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 16. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 17. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 18. SERVICES • Nestle Family • Nestle Start Healthy Stay Healthy SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 19. NESTLE DONATIONS • Lip service on ethics • Voluntary sector • Water donation • Financial donation • Cultural activity • Contributes to program SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 20. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 21. STRENGTH •Parent support •Brand strength •Product innovation •Strong financial position SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 22. STRENGTH •Model operation facility •Compensate losses •Own distribution network SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 23. WEAKNESS •Raw material • Packaging •Export •Supply chain SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 24. OPPORTUNITY •Backward Integration •Expansion •Product Offering •Global Hub SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 25. THREAT •Competition •Changing Consumer Trend •Sectoral Woes •Political Scenario SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 26. CONTROVERSY AND CRITICISM • Marketing Of Formulas • Ethiopian Debt • Chinese Milk Scandal • Green Washing Advertising Campaign • Child Labor - Dark Side SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 27. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 28. WHY DID NESTLE FOLLOWED A VARIETY OF STRATEGY OF MERGER AND EXMANSION • To expand business beyond its home country • To overcome competition • To overcome the fluctuation in demand SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 29. WHY DID NESTLE DIVERSIFY ITS PRODUCT BASED ON RELATED DIVERCIFICATION STRATEGY • They had rich experience in the field • Nestle is based in innovation and renovation • To use their technical expertise SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 30. HOW DID THE DRIVERS OF GLOBALISATION HELP NESTLE TO GROW AT A FAST RATE • In 1990 trade barriers crumbled thus allowed company to use less costly import and export duties. • World market developed into more or less integrated trade areas. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 31. WHY DID NESTLE CONCENTRATE ON RESPONSIBILITY TO THE COMMUNITY • The aim of company is to build business based on sound human values and principles. • Basic foundation of company remains to reflect the basic ideas of fairness , honesty and general concern for people. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL
  • 32. SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL