Nestle and Its Coffee Kingdom

Corporate Strategy and Renewable Advantage

Course 45-971 / Final Paper

Nestlé and Its Nescafé Kingdom in China

Shuang (Susan) Xu

Zhuoqi (Gavin) Li

Section A

Executive Summary

Nestlé is a leading company in food industry. We choose to analysis this company’s corporate strategy to reflect what we learned through the course. This report is composed with two part of analysis. In the first part, we analyze this multinational company as a whole, by looking at its scale orchestration across product lines and across market place around the world. We also analyze Nestlé’s corporate strategy and its standard cycle business. In the second part, we focus on one of its brand - Nescafé in specific market place (China) as a case study, to exam if it also falls under standard business cycle and chances to turn into other types of business cycle.

PART ONE: NESTLE AND ITS STANDARD CYCLE BUSINESS

Nestlé Quick Fact

Nestlé S.A. is the largest food and nutrition company in the world. Founded and headquartered in Vevey, Switzerland. Founded by Henri Nestlé in 1866, the company operates in 86 countries around the world, and employs over 280,000 people today.

Nestlé’s Scale Orchestra

Standard cycle business falls into scale orchestration, which has four sections – Product, Process, Leaning and Scale. As the leader in food industry, Nestlé’s strategies meet a standard cycle business.

Product

Nestlé has some 6,000 brands, with a wide range of products across a number of markets, including coffee, bottled water, milkshakes and other beverages, ice cream , breakfast cereals, infant foods , performance and healthcare nutrition , seasonings, soups and sauces , frozen and refrigerated foods, confectionery, and pet food. Nestlé ranks as the top 2 players in most of those markets in the world.

“Good Food, Good Life” is the slogan Nestlé used around the world. The company also provides consistently high quality product in each country. Nestlé has its own corporate quality...