Nestle Case Study
Nestle Case Study
Nestle Case Study
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Raw materials in the food processing industry makes a huge difference, and nestle is well aware of
this fact since majority of its products are made from agricultural and dairy raw materials. The fruits
used for nestle juices and other products are of high quality and are purchased at good rate. Fruits
collected from different are first examined by the international standard authority officers. The
company goes great measures in order to retain their suppliers and maintain high standard in seeking
quality. • Nestlé's sales in emerging markets up 8.5% last year So let’s start by understanding a little
more about Nestle’s company profile. This case study will examine how this mega-corporation in the
Indian market has maintained a unique brand image for itself through innovative marketing
campaigns and strategy that has created a strong brand connection among consumers even in this
increasingly digitized world. • Largest nutrition and foods company in the world Determinants of
bargaining power of supplier are similar to that of bargaining power or buyers. The only difference is
that in this case it’s the firm in the industry is the buyer and the producers of raw material and input
are the supplier. The important factor is the ease with which the firm can switch between the
different suppliers of input and their relative bargaining power. Considering how vast the food and
beverage industry is, there are many suppliers available to purchase from. Therefore the bargaining
power of suppliers is low, especially in the countries which are economically backwards. Since
suppliers are aware that big companies like nestle will bring them a lot of business, they therefore
produce the raw materials as per the outlines given by the company. towns and villages offering a
Nestle - Blyk. Nestle Rowntree reach 16-24s through Blyk and Getmemedia.com. Title of Campaign:
Nestle Rowntree Targeting 16-24 year olds Advertiser: Nestle Rowntree Agency: Client Direct
Media Owner: Blyk Media Channel: Mobile WHAT HAPPENED Read complete case study by best
Australian assignment help on Nestle headquartered in Vevey, Switzerland managing wide range of
brands in different kinds of food products. It first arrived in India in 1956. Since then, from selling
its first milk product in the 1960s to offering a wide range of quality products in the Indian market,
Nestle has grown exponentially in India. Japanese • “Glocal” philosophy and creating value 11.
· Expected retaliation: HIGH The Key strategy: Portuguese 4. Brief Summary of Case ∗ Nestlé
was in a good position, but needed to grow internally ∗ The company was able to increase its
competitive advantage by continuing to innovate or renovate products, acquire firms that fit its
brand, and divest itself of lines that were not contributing to earnings • Sales from those regions
totaled $33.15 Billion, more than any order to approach the market in the appropriated . 9.
Competitive Advantages and Growth Drivers Nestlé’s growth drivers are: ∗Nutrition, health, and
wellness ∗Emerging markets ∗Out-of-home consumption ∗Premiumization Competitive Advantages
11. means a company should employ locals in order lower Long videos aren’t a turn off; on the
contrary, when the audience is engaged, longer videos work better to support a strong brand
message. • Ethnocentric behavior must be avoided in any circumstances in 17. After having seen the
factors affecting the MNC now we will see what are Nestlé’s strategies to go to public. Strategy
think they know what they are buying. 25%
Privacy Policy 13. Recommendations Specific ∗ Continue to strengthen presence in frozen and
convenience food industry, as well as the area between health food and pharmaceuticals ∗ Strengthen
the connection to Nestlé’s commitment to ‘green’ movement and sustainable farming to brands ∗
Tighten up brand cohesion; may be necessary to continue to divest product lines that are not a good
fit for the company starting a new 10 billion-franc buyback programme, though • Total Assets 110.9
billion • Founded and headquarterd in Vevey, Switzerland 22. Findings and Future 9. Population
Growth Distribution Strategy to work effectively • Flexibility is another distinctive competencies
which Nestle company was able to achieve to react as quickly as possible to changing environments.
• As a consequence, company was able to respond to changes in local demand, cultural barriers and
political fluctuation. • Ethnocentric behavior must be avoided in any circumstances in order to
approach the market in the appropriated . • ice cream · Expected retaliation: HIGH • Sales from
those regions totaled $33.15 Billion, more than any • Profit 10.43 billion • Strong local
responsiveness, but production, training, and • Raise revenue from developing countries from 33%
to 45% of · Relative price performance of substitutes: HIGH Portuguese Building on this
practical approach, we are now introducing a new dimension for our online digital marketing course
learners - the Campus Immersion Experience. Since the late 1990s, Corporate Governance (CG) has
gained momentous attention within the Asia-Pacific region. Whilst Small and Medium Enterprises
(SMEs) still play a major role in most economies, particularly in emerging economies which
contribute around 33 percent of Gross Domestic Products (GDP). The CG compliance codes has
become the norm for listed firms across the globe. This study purposed to compare and analyse the
Disclosures and Transparency (D&T) of CG items between Malaysia and Indonesia's SMEs' listed
firms. The design and methodology used in this study is a descriptive analysis approaches based on
secondary data sources, i.e the SMEs Annual Report and the companies' website. Strategic
Conclusions regarding the five forces described above include various strategic initiatives that could
be taken to accomplish strategic objectives in the presence of industrial forces. One of the major
strategic objective of the company is to satisfy the needs of customers of all age groups, but the
presence of high competitive rivalry and threat of substitution resist the company to accomplish the
objective. Nestle can develop products which satisfy the needs of all the age groups and introduce
new features in its products which cannot be substituted easily. Nestle Case Study Group 8: Sohum
Mehta, Johannes Matthias, Rahil Poojara, Austin Cunningham, Xiaoya Li • Infrastructure / Political
difficulties ?! - Religiously meeting the deadlines 2. MNC…… • According to Stuart Wall, Sonal
Minocha and Bronwen Rees (2010), MNC (Multinational corporate) is a company that has
headquarters in one country but has operations in other countries. According to an analysis by
McKinsey Global Institute, as many as 158 global large companies have their headquarters in India
with a combined revenue of $ 898 billion. The US topped the chart with 2,123 large firms followed
by Japan (1,028 firms, $ 7,347 billion), China (577, $ 5,449 billion), Germany (462,$ 3,788 billion)
and United Kingdom. MNC • Company grew significantly during the WWI and WWII 87%
Advances in Economics and Business Management My name is Aditya Shastri and I have written
this case study with the help of my students from IIDE's online digital marketing courses in India.
• Total Equity 53.63 billion (2009) 17. Executing the strategy In Nigeria: the company Nestle India’s
Youtube channel has about 95K subscribers. On this platform, they post all the advertisements of
their brands. However, Nestle maintains the same strategy of maintaining a separate profile for its
various brands.j And in the process, Nestle also highlighted to millennials that “It all starts with a
Nescafe”. Thus promoting Nescafe and once again establishing that Nescafe plays a vital role in
keeping the youth alive and fresh. Md. Jubair Bin Kibria 3-09-17-022 Md. Sayful Islam 3-09-17-
020 Qulsum Akter 3-10-18-042 Tahmina Akter Nestle – Global Strategy 3-08-14-008
www.company.com Nestle • • • Nestlé was foun… Nestle has rolled out several campaigns all these
years but here are the few marketing campaigns that have left a lasting impression on the Indian
audience. It first arrived in India in 1956. Since then, from selling its first milk product in the 1960s
to offering a wide range of quality products in the Indian market, Nestle has grown exponentially in
India. 1. Case Study of Nestle: Training and Development
Introduction
Nestlé is today the world’s leading food company, with a 135-year history and operations in
virtually every country in the world. Nestlé’s principal assets are not office buildings, factories, or
even brands. Rather, it is the fact that they are a global organization comprised of many nationalities,
religions, and ethnic backgrounds all working together in one single unifying corporate culture.
Culture at Nestlé and Human Resources Policy
Nestlé culture unifies people on all continents. The most important parts of Nestlé’s business strategy
and culture are the development of human capacity in each country where they operate. Learning is
an integral part of Nestlé’s culture. This is firmly stated in The Nestlé Human Resources Policy, a
totally new policy that encompasses the guidelines that constitute a sound basis for efficient and
effective human resource management. People development is the driving force of the policy, which
includes clear principles on non-discrimination, the right of collective bargaining as well as the strict
prohibition of any form of harassment. The policy deals with recruitment, remuneration and training
and development and emphasizes individual responsibility, strong leadership and a commitment to
life-long learning as required characteristics for Nestlé managers.
Training Programs at Nestlé
The willingness to learn is therefore an essential condition to be employed by Nestlé. First and
foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each
manager and is crucial to make each one progress in his/her position. Formal training programs are
generally purpose-oriented and designed to improve relevant skills and competencies. Therefore they
are proposed in the framework of individual development programs and not as a reward.
Literacy Training
Most of Nestlé’s people development programs assume a good basic education on the part of
employees. However, in a number of countries, we have decided to offer employees the opportunity
to upgrade their essential literacy skills. A number of Nestlé companies have therefore set up special
programs for those who, for one reason or another, missed a large part of their elementary schooling.
These programs are especially important as they introduce increasingly sophisticated production
techniques into each country where they operate. As the level of technology in Nestlé factories has
steadily risen, the need for training has increased at all levels. Much of this is on-the-job training to
develop the specific skills to operate more advanced equipment. But it’s not only new technical
abilities that are required. It’s sometimes new working practices. For example, more flexibility and
more independence among work teams are sometimes needed if equipment is to operate at maximum
efficiency. “Sometimes we have debates in class and we are afraid to stand up. But our facilitators
tell us to stand up because one day we might be in the parliament!” (Maria Modiba, Production line
worker, Babelegi factory, Nestlé South Africa).
Nestlé Apprenticeship Program
Apprenticeship programs have been an essential part of Nestlé training where the young trainees
spent three days a week at work and two at school. Positive results observed but some of these soon
ran into a problem. At the end of training, many students were hired away by other companies which
provided no training of their own. “My two elder brothers worked here before me. Like them, for me
the Nestlé Apprenticeship Program in Nigeria will not be the end of my training but it will provide
me with the right base for further advancement. We should have more apprentices here as we are
trained so well!” (John Edobor Eghoghon, Apprentice Mechanic, Agbara Factory, Nestlé Nigeria)
“It’s not only a matter of learning bakery; we also learn about microbiology, finance, budgeting,
costs, sales, how to treat the customer, and so on. That is the reason I think that this is really
something that is going to give meaning to my life. It will be very useful for everything.” (Jair
Andrés Santa, Apprentice Baker, La Rosa Factory Dosquebradas, Nestlé Columbia).
Local Training
Two-thirds of all Nestlé employees work in factories, most of which organize continuous training to
meet their specific needs. In addition, a number of Nestlé operating companies run their own
residential training centers. The result is that local training is the largest component of Nestlé’s people
development activities worldwide and a substantial majority of the company’s 240000 employees
receive training every year. Ensuring appropriate and continuous training is an official part of every
manager’s responsibilities and, in many cases; the manager is personally involved in the teaching. For
this reason, part of the training structure in every company is focused on developing managers’ own
coaching skills. Additional courses are held outside the factory when required, generally in
connection with the operation of new technology.
The variety of programs is very extensive. They start with continuation training for ex-apprentices
who have the potential to become supervisors or section leaders, and continue through several levels
of technical, electrical and maintenance engineering as well as IT management. The degree to which
factories develop “home-grown” specialists varies considerably, reflecting the availability of trained
people on the job market in each country. On-the-job training is also a key element of career
development in commercial and administrative positions. Here too, most courses are delivered in-
house by Nestlé trainers but, as the level rises, collaboration with external institutes increases. “As
part of the Young Managers’ Training Program I was sent to a different part of the country and began
by selling small portions of our Maggi bouillon cubes to the street stalls, the ‘sari sari’ stores, in my
country. Even though most of my main key accounts are now supermarkets, this early exposure were
an invaluable learning experience and will help me all my life.” (Diane Jennifer Zabala, Key Account
Specialist, Sales, Nestle Philippines). “Through its education and training program, Nestlé manifests
its belief that people are the most important asset. In my case, I was fortunate to participate in
Nestlé’s Young Managers Program at the start of my Nestlé career, in 1967. This foundation has
sustained me all these years up to my present position of CEO of one of the top 12 Nestlé companies
in the world.” (Juan Santos, CEO, Nestlé Philippines)
Virtually every national Nestlé company organizes management-training courses for new employees
with High school or university qualifications. But their approaches vary considerably. In Japan, for
example, they consist of a series of short courses typically lasting three days each. Subjects include
human assessment skills, leadership and strategy as well as courses for new supervisors and new key
staff. In Mexico, Nestlé set up a national training center in 1965. In addition to those following
regular training programs, some 100 people follow programs for young managers there every year.
These are based on a series of modules that allows tailored courses to be offered to each participant.
Nestlé Pakistan runs 12-month programs for management trainees in sales and marketing, finance
and human resources, as well as in milk collection and agricultural services. These involve periods of
fieldwork, not only to develop a broad range of skills but also to introduce new employees to
company organization and systems. The scope of local training is expanding. The growing familiarity
with information technology has enabled “distance learning” to become a valuable resource, and
many Nestlé companies have appointed corporate training assistants in this area. It has the great
advantage of allowing students to select courses that meet their individual needs and do the work at
their own pace, at convenient times. In Singapore, to quote just one example, staff is given financial
help to take evening courses in job-related subjects. Fees and expenses are reimbursed for
successfully following courses leading to a trade certificate, a high school diploma, university
entrance qualifications, and a bachelor’s degree.
International Training
Nestlé’s success in growing local companies in each country has been highly influenced by the
functioning of its international Training Centre, located near our company’s corporate headquarters in
Switzerland. For over 30 years, the Rive-Reine International Training Centre has brought together
managers from around the world to learn from senior Nestlé managers and from each other.Country
managers decide who attends which course, although there is central screening for qualifications,
and classes are carefully composed to include people with a range of geographic and functional
backgrounds. Typically a class contains 15–20 nationalities. The Centre delivers some 70 courses,
attended by about 1700 managers each year from over 80 countries. All course leaders are Nestlé
managers with many years of experience in a range of countries. Only 25% of the teaching is done
by outside professionals, as the primary faculty is the Nestlé senior management. The programs can
be broadly divided into two groups:
Management courses: these account for about 66% of all courses at Rive-Reine. The participants
have typically been with the company for four to five years. The intention is to develop a real
appreciation of Nestlé values and business approaches. These courses focus on internal activities.
Executive courses: these classes often contain people who have attended a management course five
to ten years earlier. The focus is on developing the ability to represent Nestlé externally and to work
with outsiders. It emphasizes industry analysis, often asking: “What would you do if you were a
competitor?”
Conclusion
Nestlé’s overarching principle is that each employee should have the opportunity to develop to the
maximum of his or her potential. Nestlé do this because they believe it pays off in the long run in
their business results, and that sustainable long-term relationships with highly competent people and
with the communities where they operate enhance their ability to make consistent profits. It is
important to give people the opportunities for life-long learning as at Nestle that all employees are
called upon to upgrade their skills in a fast-changing world. By offering opportunities to develop,
they not only enrich themselves as a company, they also make themselves individually more
autonomous, confident, and, in turn, more employable and open to new positions within the
company. Enhancing this virtuous circle is the ultimate goal of their training efforts at many different
levels through the thousands of training programs they run each year.
A Demographics-wise Breakdown of Nestle’s Offerings · Informational complexity: HIGH 10.
PESTLE analysis…… • Political factors. • Economical factors. • Social factors. • Technological
factors. • Legal factors. • Environment factors. Pestle Analysis Advances in Economics and Business
Management Nestle should spend more on its R&D sector to cope with the intense competitive
rivalry and secure its rank in the long run. It should modify its current products and introduce new
health and related tasty products to attract customers. 23. For every company be it a MNC or a non-
MNC there will be strengths and weaknesses, let’s see those ..…. · Supplier concentration:
HIGH English (US) It enjoys about 27.8K followers on Instagram 22. Findings and Future Arts &
Humanities Company which was founded by Henri Nestle in 1866 Investing In Emerging Markets •
“Nestle will receive $28.1 billion from Novartis for its majority stake in Alcon, the maker of Opti-
Free contact lens cleaners, giving it a cash pile exceeding the $26.5 billion that Google had on its
books at the end of March. The Swiss company is starting a new 10 billion-franc buyback
programme, though Nestle would rather invest in its business or make acquisitions” • CFO Jim Singh
said on June 22 87% hired local singers to go to • Does it make sense for Nestle to focus on
emerging markets? • ice cream Leads the Learning & Development segment at IIDE. He is a Content
Marketing Expert and has trained 6000+ students and working professionals on various topics of
Digital Marketing. He has been a guest speaker at prominent colleges in India including
IIMs......[Read full bio]
This is how Nestle India strategically uses its social media as a tool for its marketing and campaign-
related activities. Let us now examine how it is doing on its website in the next section. 22. • Place
Place means how does any company place its product or distributes. This step is difficult because
the company is based in home country but has to control the overseas subsidiaries. For ex. Nestlé
may hire a local person to take the charge of the subsidiary if any problem arises with regard to
warehousing or selling markets. 4Ps 4Ps - Inhouse team of MBAs and CFAs (not reliant on
freelancers) • Management practices – spread knowledge, create learning 3. Case Study. Deirdre
Downes. My Father: My Siblings Mother, and Mom likes me best. Many Siblings One Health Care
Proxy: the story of Mr. L 15. Sources ∗ Course text’s Nestle case ∗ www.nestle.com ∗ Nestle 2010
Annual Report ∗ http://www.economist.com/node/14744982 ∗ www.hoovers.com 3. ABOUT
NESTLE Nestle is the world’s largest food and drink corporation. The company was established in
1886 when Henri Nestle developed a baby food formula. Merged with an Anglo- Swiss condensed
milk business and formed the Nestle Group. Revenue 92.15 billion Dollar (2018) · Expected
retaliation: HIGH Executing the strategy • As a consequence, company was able to respond to
changes in • Moving from Localization strategy to Transnational strategy The Nestle FOCUS video
campaign combined three features that helped bring amazing results: Education has a long-lasting
impact on the managerial behavior of a business unit and in order to examine whether this claim
holds true in case of saffron, the present study analyses the impact of education on the saffron
business in Kashmir Valley. The Purposive-Stratified-cum-Proportional sampling method was
followed and the sample size determined for the growers was 201. As far as other intermediaries are
concerned, they were randomly selected making the total sample size for the present study 229.
Likert-type-scale was used to measure the attitudes of the respondents regarding the role of
education in the growth and progress of their business. Many statements were posed to them and
they were asked to rate their responses on a five-point Likert scale. The quantitative and statistical
treatment to the collected data reveals the fact that the performance, achievement and prospective
earnings of the saffron growers, Dalals, firms, retailers/wholesalers, like any other economic doings,
depend upon their level of education because majority of the respondents regarded education as the
vital factor in improving saffron income, choosing profitable marketing channel, developing wide
social contacts, availing benefits from National Saffron Mission etc. (worldwide production
divisional structure) Nestle India has designed its Facebook and Instagram profiles moreover the
same. It shares posts related to what Nestle India is currently up to. It also announces its new
launches, talks about its corporate social responsibility (CSR) measures, etc. • Largest nutrition and
foods company in the world three decades of the 20th century. three decades of the 20th century.
· Buyer concentration: LOW 0% • ice cream • Has created a global matrix structure Long
videos aren’t a turn off; on the contrary, when the audience is engaged, longer videos work better to
support a strong brand message. Preservation of religion, life, family, humanity, and wealth are the
main purpose of business management in perspective of Islamic management and Quranic view. This
study was motivated by the interest to know about how the Islamic banks, being an Islamic entity,
are fulfilling the purpose of Islam. CSR activities was selected to explore this knowledge regarding
three selected banks in Malaysia, namely, Bank Islam Sdn. Bhd. (full-fledged Islamic bank), CIMB
Islamic Bank Berhad(Subsidiary), and Al Rahji Bank(foreign). The objective of the study was to
identify and compare the CSR activities of these three banks in Malaysia and have a generalized
view about the financial institutions in Malaysia in respective to CSR activities. Data was collected
from secondary sources, the annual financial report of the banks, websites of the banks, and
conversing to banking officials. It was found that all the three banks have their CSR activities and
contributing to society. All the three banks also pay zakat. But, regarding zakat disclosure they
should become more transparent and detail oriented. To establish Zakat accounting standard in
Malaysia by using the Saudi Arabia’s example as model to develop a Malaysian ZAS. Islamic banks
in Malaysia need to have their independent annual reports to disclose their CSR programs. CIMB
Islamic Bank Berhad, should disclose the specific amount of paid zakat separate from the amounts
paid for tax. · Access to distribution: HIGH