NESTLE CASE ANALYSIS

Nestle Case Analysis

Nestle Case Analysis

1. Introduction

Nestle company a Switzerland based company was founded by Henri Nestle in 1866. It is a recognized world leader in nutrition and health business. Growing product line of Nestle through innovation and renovation maintains a balance in their geo-environmental activities and production lines, opted for long-term performance rather than short-term goals. The company gives priority to bring the most relevant products to consumers in accordance with their needs, which will be useful throughout their lives. Nestle company had started from a single man's idea and developed into a giant corporation. In 1866, Henri Nestle, a pharmacist, developed a formula for milk for infants who were unable to get their mother's milk. The product was a success and created a huge demand in Europe. Nestlé's popularity grew and more companies merge and become partners with business of Henri Nestle (Pfiffner, 1995, 141).

1.2. Mission of Nestle Company

Nestle believes that research can help them in bringing better food for people so that the life of people can become better. Good food is the primary source of good health throughout life, which is why Nestle ensures that the food that reach to the consumers are safe, of high quality and will fulfil optimal nutritional needs. Besides food, health and wellness, Nestlé is bringing products for consumer with fundamentals of flavour and fun. Consumers will as long as they are concerned about their health will consumer Nestle's products for maintaining health lifestyle. Whereas; to ensure the delivery of products full of nutrition Nestle consider research as an important part and this appraoch was also the reflection of heritage of Nestle, and also consider research as an important element of the future. Nestle believes that there is still much to learn about health, wellness and the role of nutrition in our lives and which is why Nestle continues to research for the creation of more and more nutritional products. (Nestle, 2010)

2. Environmental Analysis: External

Nestle has been part of the international community since it was first founded in 1866 and marketing its products in 130 countries across the world. Due to such a long history of 130 years, Nestle had acquired insightful knowledge of markets all over the world and enjoyed great success in adapting its products to local tastes (Hitt & Hoskisson, 2009, 147). Doing this Nestle has retained the reputation as a champion company who “thinks globally but acts locally” (Hitt, Ireland, & Hoskisson, 2009, 147). Nestle has not only succeeded in the food industry but the company also has taken leads in nutrition, health and wellness. Nestle continues to stay competitive within the global market while continually working with a failing economy. Nestle international profile shared with existence of other businesses provides good resilience in a decline. This strategy is based on a price positioning that should remain competitive. Releasing his efficiency programs MH97 and Target 2004+ Braback was able to generate savings to the Nestle Food Company of approximately 7 billion dollars creating the foundation ...