Nestle

NESTLE AND DRIVERS
OF
INTERNATIONAL
BUSINESS
SHRI RAM MURTI SMARAK INTERNATIONAL
BUSINESS SCHOOL

PRESENTATION OVERVIEW
GROUP 9 GROUP 10
GAURAV KUMAR VIKRANT ARORA
RAVINDRA VISHVAKARMA YATISH MITTAL
RAHUL SINGH ARUN JOSHI
RAHUL CHAWLA AMIT KUMAY YADAV
SUMIT KUMAR SUDHIR KUMAR
MANISH KUMAR RAJNISH KUMAR

BUSINESS SCHOOL

INTRODUCTION
Definition and Meaning
•To move about in one's place, like a bird when
shaping the interior of her nest or a young bird
getting close to the parent; as, a child nestles

•To cherish, as a bird to her young.

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• It is like when a mother bird provide food and
care of her babies in her nest, in the same way
nestle take care the babies just like their
mothers.
• In the second definition CHERISH means to be
attached , mother always to be with their
babies just the same way nestle to be with us.

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• Nestle was founded in 1866 by Henri nestle.
• It’s headquater is in “vevey” Switzerland.
• It is the largest food and nutrition company in
the world.
• It’s first product was for babies and it also
deals in many products like coffee, dairy
product, breakfast cereals, confectionary,
bottled water, ice-cream, etc.

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History
• In the 1860s, Henri Nestle developed a food
for babies who were unable to breastfeed.
• By the early 1900s the company was
operating factories in US, UK, Germany and
Spain
• After the 1st world war the production had
become doubled

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History
• After the 2nd world war company’s profit
dropped
• The end of 2nd world war was the beginning of
a dynamic phase for Nestle
• After the war, The company launched its
newest product Nescafe(“Nestle Coffee”)
which became the staple drink of the US
military.

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Mergers and Acquisition
• 1947 :- Maggie
• 1950 :- Croose and Blackwell
• 1963 :- Findus
• 1977 :- Alcon Laboratories Inc
• 2005 :- Bought the Greek company Delta Ice
Cream for 240 million
• Jan 2006 :- Took full ownership of Dreyer’s. Thus
it became the world’s largest Ice Cream maker

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Mergers and Acquisition
 Nov 2006 :- Purchased the medical nutrition
division of Novartis Pharmaceutical for $ 2.5
billion
 2007 :- Acquired milk flavoring product
Known as Ovaltine
 April 2007 :- Returning to its root Nestle bought
US baby food manufacturer ‘Gerber’ for $ 5.5
billion
 Dec 2007 :- Partnership with Belgian chocolate
maker ‘Pierre Marcolini’.

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BUSINESS PRINCIPLE
• Value Of Goodwill
• Wide Focus
• Absolute Customerisation
• Corporate Convergence
• Appropriate Man Power Planning
• Observes The Legal And Regulatory
Framework

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GENE TECHNOLOGY

•Responsible Application Of
G.M.O
•Improve Nutrient Value Of
Food
•Confirm Positive Effect On
Health
•Enhance Sustainable Agricultural
Practice
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COMMITMENT TO SOUTH AFRICA
• Good Food Good Life
• Localization
• PPP Strategy
• First Factory Was Established In 1927 In South
Africa And Has Been Operating For The Past 94
Years.
• To Succeed It Requires Patience , Dedication ,
Perseverance.
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CONTRIBUTION TO ECONOMIC
GROWTH AND DEVELOPMENT
• Job Opportunity
• The Millennium Development Goals
• Innovation
• Partnership With UNHCR.

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CONTEMPRARY SCENARIO
The current status of the company can be
explained by the following heads :-
• Brands
• Services

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BRANDS OF NESTLE
• Baby Products
• Milk Products And Nutrients
• Beverages
• Chocolates
• Prepared Dishes And Cooking Aids

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SERVICES
• Nestle Family

• Nestle Start Healthy Stay Healthy

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NESTLE DONATIONS
• Lip service on ethics
• Voluntary sector
• Water donation
• Financial donation
• Cultural activity
• Contributes to program

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STRENGTH

•Parent support
•Brand strength
•Product innovation
•Strong financial
position

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STRENGTH

•Model operation facility
•Compensate losses
•Own distribution
network

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WEAKNESS

•Raw material
• Packaging
•Export
•Supply chain

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OPPORTUNITY

•Backward Integration
•Expansion
•Product Offering
•Global Hub

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THREAT

•Competition
•Changing Consumer
Trend
•Sectoral Woes
•Political Scenario

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CONTROVERSY AND CRITICISM
• Marketing Of Formulas
• Ethiopian Debt
• Chinese Milk Scandal
• Green Washing Advertising Campaign
• Child Labor - Dark Side

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WHY DID NESTLE FOLLOWED A
VARIETY OF STRATEGY OF MERGER
AND EXMANSION
• To expand business beyond its home country
• To overcome competition
• To overcome the fluctuation in demand

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WHY DID NESTLE DIVERSIFY ITS
PRODUCT BASED ON RELATED
DIVERCIFICATION STRATEGY
• They had rich experience in the field
• Nestle is based in innovation and renovation
• To use their technical expertise

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HOW DID THE DRIVERS OF
GLOBALISATION HELP NESTLE TO
GROW AT A FAST RATE
• In 1990 trade barriers crumbled thus allowed
company to use less costly import and export
duties.
• World market developed into more or less
integrated trade areas.

BUSINESS SCHOOL

WHY DID NESTLE CONCENTRATE ON
RESPONSIBILITY TO THE COMMUNITY
• The aim of company is to build business based
on sound human values and principles.
• Basic foundation of company remains to
reflect the basic ideas of fairness , honesty
and general concern for people.

BUSINESS SCHOOL

Nestle

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