Nestle

Nestle

BUS 499

Professor Craig

Dayna L. Moody (Wingert)

October 20, 2012

Nestle

Nestle was created by Henri Nestle, a Swiss pharmacist in 1866. It started as a small company selling infant formula for babies that were unable to tolerate natural milk and nowadays it is one of the biggest companies in the world. Indeed Nestle is the world leading nutrition, health, and wellness company counting more than 280,000 employees in more than 100 different countries. The total sales of the brand in 2010 achieved 120 billions of dollars.

Globalization increases economic interdependence among countries and their organizations as technology alters the nature of competition and contributes to an unstable competitive environment. Nestle’s ability to compete in developing markets in third world nations strengthens the overall financial sustainability of the corporation. Nestle was established as a global company so the recent globalization efforts of much of their competition has been to achieve the level of success globally that Nestle has already achieved.

Nestle is best suited to apply the resource-based model to achieve above average returns. I find this to be true since Nestle has a proven method through low-cost, highly efficient operations, renovation and innovation of the Nestle product line, universal availability, and improved communication with consumers through better branding. These capabilities combined with their numerous resources give them the competitive advantage that has helped them to achieve their current status.

Nestle is not only Switzerland's largest industrial company, but it is also the world's largest food company. The mission statement emphasizes on the fact that Nestle products are available in nearly every country around the world. Especially, people on the move want to be able to find good food wherever they may go. They are often reassured that they will find well-known brands away from home. This statement also reflects the image...