nestle-business-presentation.ppt

5/19/2018 Nestle-Business-Presentation.ppt

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Hoang Ngoc Minh


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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


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Vision

Nestl's aim is to meet the various needs

of the consumer everyday by marketing

and selling foods of a consistently highquality.


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Mission

We strive to bring consumers foods that

are safe, of high quality and provideoptimal nutrient to meet physiological

needs. Nestle helps provide selections forall individual taste and lifestyle

preferences.


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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.


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General environment

Political/Legal trends:

- More countries join WTO: allow morefree trade across the nations

Sociocultural trends:

- The world people care more about their

health, especially with foods andbeverages.


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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 asone


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Five forces model

New entrants

Multinationalcompanies

More companiesjoint in domesticmarket

High pressure

Substitute products

Diversity products

Confectionery,instant foods

Not many firms

focus on pet foods Average pressure


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Five forces model

Suppliers

Sign contracts withfarmers

Stable suppliers

Trust to the big firm

Low pressure

Buyers

Variety demands

Different tastes Need to attract

customers

High pressure


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SWOT analysis

Strengths:

- Very long history (over 140 years)

- Operated factories in 77 countries (all six continents), atruly global company.

- Considered the innovation leader in the global food andnutrition sector(3500 scientist in company R&D network)

- Low cost operators (beat the competition by producinglow cost products, edging ahead with low operating

costs)- Offering thousands of local products.

- Have a great CEO, Peter Brabeck, and a very strongworkforces.


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SWOT analysis

Weaknesses:

- Not as successful as they thought theywould be in some market (i.e. France)

- Some of their product were positioned astoo scientific, and consumers didnt quite

understand (i.e. LC-1 was a food and not adrug)


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SWOT analysis

Opportunities:- Well-known company and strong brandname- Health-based products are becoming more

popular in the world, including in the UnitedStates

- Ranked first in nearly all the productsegments in which it operated (market leader)

- Unaffected by current economic conditions

(its

share of the UK confectionery market rise to15.6 per cent with a 0.5 per cent growth thisyear)


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SWOT analysis

Threats:

- Some markets they are entering arealready mature

- Global competitors.

- There are intense competitions in the

United States, especially yogurt market(General Mills)


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Business-level strategy

Nestl business-level strategy isintegrated cost leadership/differentiation

- Wide range of products (over 20categories: coffee, milk, mineral water, petfoods, cereals)

- Low cost operators.


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Competitors

Many competitors

The same qualities

The same prices Unilever, Kraft, Master foods

High pressure


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Problem

High market share

Low growth

Competitive pressure Want to expand

Dont have enough resources


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Solution

Cut investment budgets, overheads, frill

Maximizing existing assets, capacity,distribution

Target internal growth rate

Improve supply chain, productivity,

optimize planning


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PROBLEMS TO NESTLE

Storm of Melamine in 2008

+ Melamine: increasing high proteinaffectedly

=> kidney stone, cancer

Relate with Nestle ???


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2/10/2008 : Finding Melamine in Nestlepowdered milk at Taiwan

=> 6 kinds of Nestle milk products :having Melamine poisoned chemicalsubstance ( little percent)

Nestle in Switzerland :force to take backbaby milk products in France, Spain, Italy


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However

42 Nestle samples tested in MeasuredQuality Standard Technique Center: NoMelamine

Nestle products at Vietnam or importedfrom America, Europe, New Zealand,absolutely not from China


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Stakeholders

Shareholders:profits

Employees: stablejob, promotion

Consumers: highquality products,reasonable price

Business partners:long-term, trustedrelationships

Local environment:need Nestle hasresponsibilities


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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


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Why acquisition???

Diversifying size of economic:

+ Baby milk

+ Nutrition+ Cafe

+ Food product

Expanding the size of company


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The most successful A&M

Buy Gerber, Baby food brand name fromNovartis corporation : 5.5 billion $

=> No.1 in Baby food largest market,America.

----->


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Not only buy but sell

Selling the Milk manufacturing Industry inBaVi to Anco Company ( during 1 year)

Are they right when selling ???

+ The truth : spend money to focus ondifferent field

Invest 4 million$ ( maybe money fromselling Milk industry 1 year) to Maggiproduce industry

O i i l S


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Organizational Structure

Zonal Sales Manager

Regional Sales Manager

National Sales Manager

Area ManagersSystem Support

Executive

System supportOfficersTerritory in-charge

EventManagement

Officer

LoaderDSR

Sales Associates

Event Management

ChillerTechnician

Customer ServiceManager

Customer ServiceOfficer


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Strategic Leadership

To force the businesses to become moreefficient.

To create a regional manufacturingnetwork.

To integrate the companys business on a

global scale.

To reduce marketing expenditures byexploiting the synergies between brands.


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Nestle strategic entrepreneurship

Develop R&D network

Acquisition


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Develop R&D network

>3,500 scientists work on improvingexisting products and creating tomorrowsnourishments

Two thirds of companys R&D activitiesare dedicated to renovating existingproducts, the remaining third is reservedfor radical product innovations.

Improve on operational level

A number of organizational changes.


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Acquisition

Reaching a critical mass in terms of marketshare

+ 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


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THANK YOU FOR LISTENING!!!!

nestle-business-presentation.ppt

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