NESCAFE

Nescafe

Nescafe

Nescafé began to go abroad since 1996. international connections can build a strong foreign presence, which helps to increase brand awareness and increase domestic business. Nescafé has more stores around the world, more loyalty and familiarity can be built between existing and potential customers.

The following are the macro environmental variables that may affect the international Nescafé pass "geographical Factors Nescafe has carefully analyzed the different strategies for the placement of their stores. They have developed cost-saving options for these stores to satisfy the need to adapt to every geographic region. It is also necessary to take into account the tastes and preferences of each area. For example, in New Orleans customers prefer their bagels toasted and Atlanta need more seats for a rest "social" coffee.

Nescafe start in the U.S., which is the sector in question of demographics. In July 2005 the U.S. population is estimated at 295,734,134 (CIA World Factbook). Population facts are important for Nescafé, Nescafé and statistics that can provide value as the basis of U.S. population Nescafé by store. People between 15 and 64 constitute the largest percentage of the population (67%), and therefore have greater control of the market than any other sector (CIA World Factbook). This implies that the most important target market for Nescafé are people within this age group. The two main ethnic groups in the U.S. are 81.7% white, 12.9% black and 4.2% in Asia. (CIA World Factbook) Ethnicity is important for a company, as it influences tastes, trends, perceptions, values and beliefs of an individual.

Estimated GDP in 2004 was $ 11,750,000,000,000. growth rate of real GDP was 4.4% (CIA World Factbook). The GDP growth rate suggests the economy is growing, and therefore the opportunity exists to expand the business Nescafé. A very big purchasing power parity per capita of $ 40,100 suggests that Americans have the opportunity to purchase specialty coffee drinks expensive organization, quality of work, such as Nescafé (CIA World Factbook).

Nescafé in the future are related to its tight control and lack of flexibility, organizational structure, and diversification. First, Nescafé is vertically integrated, buying and roasting the beans, send them to the stores, produce and sell coffee. They may have difficulty or need to raise the price of your coffee if the cost increases in raw beans, or if there is a decrease in available labor.

The second question is that is centralized around to control every step of the distribution process, creating joint ventures that can lead to problems of quality control locations.

Another issue is the capacity for growth. Nescafé continue to grow in its core business, but the more they spread in international companies and joint ventures that are facing increasing problems of quality control.

Los Angeles City Hall was considering an ordinance requiring licensing of coffee shops open until after midnight. This shows how the government's efforts can be profitable for business. In addition, antitrust laws would prevent future expansion Nescafé, as the company is locally owned with other ...