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Nestle-business-presentation

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Manmeet Singh
Manmeet Singh

This document provides an overview of Nestle's business including their vision, mission, general environment, five forces model, SWOT analysis, business strategy, competitors, problems, solutions, stakeholders, and acquisition strategy. It discusses Nestle's aim to meet consumer needs with high quality foods. It also analyzes their strengths as a global leader, weaknesses in some markets, opportunities in health trends, and threats from competition. The document outlines Nestle's strategy of cost leadership and differentiation across product categories.

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

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Nestle-business-presentation

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