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Nestle Mature Markets Growth Essay

1166 words - 5 pages

1. Describe the characteristics of each of the following elements in the Current Competitive Landscape:
a. Globalization - Nestle’operates in 77 countries and sells its products in all 6 continents. Its global position is further enhanced by acquisition of companies which have an established global presence.
b. Technology – As part of the GLOBE initiative, Operation Excellence program was implemented which deals with creating concepts & systems to optimize productivity, improving supply chain, eliminating overhead & reduce product complexity. Installation of common information systems in order to integrate all ...view middle of the document...

This resulted to higher margins, the products occupy more shelf space, help retailers generate top-line growth and by exploiting brand synergies resulted to reduced marketing expenditures. Further expansion into new product segment through the creation of the Life Venture Fund. Acquisition of business with established market share in order to reinforce its poor business segment is the key action to fulfilling Nestle’s objective of reaching critical mass in terms of market share.
2. Discuss the Vision and Mission of Nestle
Nestle’is a company that is not only after of generating sales and profit but also looks after the welfare of its stakeholders (e.g. consumers, employees). Over the years, it has exerted relentless effort in product innovation and renovation in order to meet consumers’ needs or to improve existing products by adding nutritional value. Nestlé strives to be a leader in nutrition, health and wellness, with the belief that good food is central to health and wellness. Nestlé products bring consumers the vital ingredients of taste and pleasure.  As consumers continue to make choices regarding foods and beverages they consume, Nestlé helps provide selections for all individual taste and lifestyle preferences.
3. Identify and describe the fundamental principles that guide the company’s strategy
Nestle’s strategy evolved from the company’s vision of providing Good Food for Good Life. It is a human company providing a response to individual human needs throughout the world with specific concern for the wellbeing of both its consumers and employees. The company aims to increase sales and profits, but, at the same time, to raise the standard of living everywhere it is active and the quality of life.
4. Explain how Nestle establishes & manages relationships with its primary stakeholder.
For over 130 years, the company has acquired the knowledge of the markets all over the world and is enjoying success in adapting its products to the local taste. The company employs continuous product innovations and renovations of its existing products in order to suit its consumers ‘needs. As part of the strategic initiative, Nestle’ has ventured and invested heavily on nutrition and wellness products and to develop nutrition and wellness as a value added feature in its existing products. The creation of Nestle’ Nutrition Unit to provide products for consumers whose primary purchasing motivation is it’s nutritional value.
5. Discuss the leadership tasks that are fundamental to Nestle’s success.
When Brabeck took over the reins of Nestle as CEO, the company is already enjoying success in terms of generating sales & hitting profit targets. But...

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