Nestle

International Business Strategy

NESTLÉ

Market Analysis

By

Mula Chandra Sekar Reddy

Supervisor: Dr. Rajiv Mehta

Professor of Marketing

Preface

This is the final project for the course INTERNATIONAL BUSINESS STRATEGY in eMBA Program of NJIT. I did this project under the guidance of Professor Dr. Rajiv Mehta. I want to thank my professor for great guidance and support in writing this paper. Working on this paper, was very productive and professor’s support was very important throughout my course.

Contents

Preface 2

Executive Summary 5

Company Overview 5

Introduction 5

History 5

Vision and Values: 6

Company’s internal strengths and weaknesses 6

Strengths 6

Weaknesses 6

Opportunities 6

Threats 7

Products and Brands 7

International Expansion 8

Production 8

Organizational Design and Structure 9

Organization Structure 9

Organizational decentralization, differentiation and localization 11

Organization Chart 11

Current Status 11

Nestlé Policies 11

Ethical Approach 12

Ethical Policy on Nestlé 13

Nestlé boycott 13

Preamble 13

Application of Food Safety Policy Statement and Other Ethical Precedents 14

Overcharged prices 14

Securing Customers Interests 14

Strategy to work effectively 14

Responding to market demands 15

Strategic development 15

Ensuring strategic fit 15

Implementing the strategy 16

Findings and Future 16

Emerging Markets 16

Investing In Emerging Markets 18

Strategic posture at the corporate level 19

Application Plan. 20

Defining Application priorities: 20

Change in Strategy System. 20

Recommendation 21

Conclusions 22

References 22

Executive Summary

Nestlé is the largest food and drinks manufacturer based in Switzerland. It is a global company with its headquarters located in Vevey, Switzerland. The company was inaugurated in 1866 (Nestlé 2012) and since its inception has grown through leaps and bounds to become the world’s largest food and nutrition...