Nestle is a large multinational food and beverage company that was founded in Switzerland in 1866 and has grown to operate worldwide. It has a wide range of food products and is a leader in categories like coffee, bottled water, and pet food. The document discusses Nestle's history, organizational structure, strategies, and financial performance to provide an overview of the company.

2. WHY NESTLE?
Several reasons
 European
 Truly international
 Food industry
 Huge product range
Interview with Bart VANDEWAETERE - Responsible for
European affairs
 Works not only in finished products but also close to the
farm and farmers worldwide.
 Has an enormous multinational workforce and a great
reputation.

3. Nestlé's Timeline
1866 Switzerland
Founder Henri Nestlé
German Pharmacist
1867 Launch of Farine lactée (cow’s
milk, wheat flour and sugar)
Nutrition has been Nestle’s cornerstone ever
since

4. Nestlé's Timeline
1868 First Logo representing
nutrition
WWI created new demand for dairy
products
By the end of the war Nestlé had 40
factories worldwide
1938 Nescafé coffee was launched
1940 launch of Nestea
1943 WWII helped popularise
Nescafé (American servicemen)

5. Nestlé's Timeline
1945 WWII ends & marks the beginning of a dynamic phase
of Nestlé’s history
New products, growth accelerates.
1948 “Quik”, the instant chocolate milk was invented. We
know it as Nesquik
1986 Nespresso - enable anyone to create the perfect cup of
espresso.
1988 Italian brand Buitoni-part of Nestlé’s Portfolio

6. 2001 Nestlé Purina PetCare Company
2006 - Concept of Shared Value  Nestlé can only be
successful over the long term if it creates value for
shareholders & society.
2011 Partnership Chinese food company Yinlu and Hsu Fu Chi
a confectionery and snacks manufacturer

7. Logos

8. Products

9. Nestle Strategy

10. “Our objective is to be the recognised
and trusted leader in Nutrition,
Health and Wellness,
and the industry reference
for financial performance.“

11. Nestle Strategy
Three main categories
Competetive advantages
Growth drivers
Operational pillars

12. Competetive advantages
Unmatched product and brand portfolio
Unmatched research and development capability
Unmatched geographic presence
People cultures, values and attitudes

13. Growth drivers
Nutriton, Health and Wellness
Emerging markets and Popularity Positioned Products
(PPP)
Premiumisation
Out-of-home consumption

14. Operational pillars
Innovation and renovation
Operational efficiency
Whenever, wherever, however
Consumer Communication

15. Key Numbers
• Total revenue over 83 billion CHF
• Organic growth 7.5 %

16. Nestle Switzerland
Vevey, Headquarter of Nestle
17 locations
9699 employees of 80 nationalities
Revenue 2.1 billion CHF

17. Organisation
Nestle is organised in a matrix system, by products and
geography
Products – in terms of the business units
They define the strategy of each of the products
EG: Ice cream, coffee, nutrition (infants), etc.
Geographies – The businesses have their central head unit
Zone Europe, Zone Americas, Zone Asia/Oceania/Africa

19. Organisation
The matrix structure serves Nestlé well
For a global organisation, the ability to organise around
geographical markets and also around products is an
advantage
It has a manager in charge of a product line, but each
product line is also coordinated with a manager in charge of
a specific geographical area

20. Organisation
Nestle is very decentralised, and has a polycentric approach
to the way they do business
The regions decide which products should be put on the
market, and how they communicate with the consumers
Of course, there are some exceptions, such as:
Nestlé Nutrition – needs of babies are the same everywhere in
the world
Nestlé Purina Petcare
Nestlé Waters
Nespresso
Nestlé Professional
Nestlé Health Science
These are known as GMB – Globally Managed Businesses

21. Pest Analysis
Political
Nestle is in full support of the Government's efforts to
encourage healthier diets and active lifestyles to help
counter problems associated with obesity, diabetes and
cardiovascular diseases
We have made significant change to improve our
products' profile to complement the Government's
efforts to create a healthier population

22. Pest Analysis
Economic
Organic growth of 7,5 % in 2011

23. Pest Analysis
Social
Nestle was founded on social responsibility, sound
human values and principles more than 140 years ago
Though it is a global brand, Nescafe is locally produced
to meet the taste preferences of local consumers

24. Pest Analysis
Technology
Innovate & renovate nutritious and healthier products using
R&D expertise
Every Nestle product undergoes as extensive R&D process and
a stringent quality standard before it is launched
benefit from world-class manufacturing facilities, best private
R&D capability in food and nutrition, international quality and
safety standards

25. Layers of the Environment
- Industry -
Food & Drink Industry
Complex, global collective of diverse businesses
Processed food sales worldwide are approximately US$3.2 trillion
(2004)
Over 16.5 million people are employed in the food industry (4.1 million
people in the EU)
More people in the world are involved in agriculture as their primary
economic activity than in any other
It only accounts for twenty percent of the world's Gross Domestic
Product (GDP)
Regarding technology, it is hard to find an area that does not have a
direct impact on the food industry – agricultural machinery;
biotechnology; nanotechnology; etc. computing such as networks
and special software etc.
For example, the GLOBE tool: has been able to track the advantages
that decentralisation brings in terms of benefits

26. Layers of the Environment
- Industry -
Pet Food Industry
Four companies—Procter & Gamble, Nestlé, Mars, and Colgate-
Palmolive—are thought to control 80% of the world's pet-food
market, which in 2007 amounted to US$ 45.12 billion for cats
and dogs alone
Leading Exporters: 2004 were France ($993 million), United
States ($786 million) and the Netherlands ($511 million)
Leading Importers: Japan ($718 million), Germany ($617 million)
and the UK ($563 million)

27. Competition
Nestle‘s competitors may be categorised in two main
types:
Packaged food companies
Store brands form retailers

28. Packaged food companies
Unilever NV
Kraft Foods
(Cadbury)
Schweppes
Groupe Danone
Hershey Foods

29. Store brands from retailers
Safeway
Wal-Mart stores
Walgreen Company

30. Porter’s 5 Forces
Created to act as structure for industry analysis and business
strategy development.

31. Threat of New Entrants
Food Industry large & competitive
Companies enter this market every year in attempt to
gain a portion of profitable market
Nestlé has been around for over a century
Its long history, product quality, consumer
satisfaction allowed Nestlé to obtain a considerable
share of the market
New entrants should capture a portion of Nestlé’s
Market to survive

32. Threat of Substitute Goods
Nestlé is surrounded by the threat of substitute
goods
Wide range of similar products that compete directly
with Nestlé
Competition is fierce
Nestlé’s responsibility to improve its products
Nestlé focused on health and wellness in order for its
products to stay competitive.

33. Bargaining Power of Suppliers
Creates and maintains positive relationship with its
suppliers
Nestlé holds large purchasing power
Nestlé holds more bargaining power than its suppliers
The company prefers Long-term relationship with its
suppliers which ensures quality of products
Offers advice to suppliers on how to perform more
effectively and minimize cost

34. Bargaining Power of Customers
Customers have large amount of power in regards to
Nestlé’s products consumption
Nestlé’s understands the power of customers and has
taken specific steps to meet their needs
Society is more health conscious Nestlé is
incorporating health and wellness in its products.

35. Competitive Rivalry within the Industry
Nestlé is a powerhouse in the Food Industry
They are in constant and continuous battle to
outperform one another
These companies spend hundreds of millions to
appear more desirable.
Companies continue to strive in order to stay
competitive but consumer will continue to enjoy ever-
improving products.

36. VIDEO

37. Why would we invest?
CSR (corporate social responsibility)
 CSV (creating shared values)
Stability
Growth (6% - 7%)
R&D in Nutritional Foods
Water  Stockholm Industry Water Award

38. Sources
Vandewaetere, Bart. Responsible for European
Affairs, Nestlé. Personal Interview. 28th November 2012
Nestlé’s Website, November 2012, www.Nestle.com
Wikipedia, http://en.wikipedia.org/wiki/Food_industry
Hickman, Leo. Britain's problem with pets, The
Guardian, November 13, 2009.
Bond, Jessica Taylor. Top 10 global petfood
leaders, PetfoodIndustry.com, accessed November 13, 2009.
"Pet Food Exports: Country by commodity". FAO. 2004.
Retrieved 2008-02-24

39. Sources
http://www.nestle.com/
http://www.nestle.com/asset-
library/Documents/Library/Documents/About_Us/Quic
k-Facts-2011-EN.pdf
http://www.nestle.com/asset-
library/Documents/Library/Documents/Annual_Report
s/2011-Annual-Report-EN.pdf