Hoang Ngoc Minh

CONTENT
Vision & Mission General environment 5 forces model SWOT Business s
titors Problems and Solution Stake holders Acquisition Strategy Organizational S
tructure Strategic Leadership Strategic Entrepreneurship
Vision
³Nestlé's aim is to meet the various needs of the consumer everyday by marketing and
selling foods of a consistently high quality.´
Mission
³We strive to bring consumers foods that are safe, of high quality and provide opt
imal nutrient to meet physiological needs. Nestle helps provide selections for a
ll individual taste and lifestyle preferences.´
General environment
Demographic trends: - Nearly all age from young to old people. - All six contine
nts (customers) Economic trends: - Most countries all over the world are affecte
d by the global economic crisis.
General environment
Political/Legal trends: - More countries join WTO: allow more free trade across
the nations Sociocultural trends: - The world people care more about their healt
h, especially with foods and beverages.
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 company¶s busin
esses on a global scale. - ³We¶re now transitioning to become a genuinely global foo
d company, to behave as one´
Five forces model
New entrants Multinational companies More companies joint in domestic market Hig
h pressure Substitute products Diversity products Confectionery, instant foods N
ot many firms focus on pet foods Average pressure
Five forces model
Suppliers Sign contracts with farmers Stable suppliers Trust to the big firm Low
pressure Buyers Variety demands Different tastes Need to attract customers High
pressure
SWOT analysis
Strengths: - Very long history (over 140 years) - Operated factories in 77 count
ries (all six continents), a truly global company. - Considered the innovation l
eader in the global food and nutrition sector(3500 scientist in company R&D netw
ork) - Low cost operators (beat the competition by producing low cost products,
edging ahead with low operating costs) - Offering thousands of local products. -
Have a great CEO, Peter Brabeck, and a very strong workforces.
SWOT analysis
Weaknesses: - Not as successful as they thought they would be in some market (i.
e. France) - Some of their product were positioned as too scientific, and consum
ers didn¶t quite understand (i.e. LC-1 was a food and not a drug)
SWOT analysis
Opportunities: - Well-known company and strong brandname - Health-based products
are becoming more popular in the world, including in the United States - Ranked
first in nearly all the product segments in which it operated (market leader) -
Unaffected by current economic conditions (its share of the UK confectionery ma
rket rise to 15.6 per cent with a 0.5 per cent growth this year)
SWOT analysis
Threats: - Some markets they are entering are already mature - Global competitor
s. - There are intense competitions in the United States, especially yogurt mark
et (General Mills)
Business-level strategy
Nestlé business-level strategy is integrated cost leadership/differentiation - Wid
e range of products (over 20 categories: coffee, milk, mineral water, pet foods,
cereals«) - Low cost operators.
Competitors
Many competitors The same qualities The same prices Unilever, Kraft, Master food
s« High pressure
Problem
High market share Low growth Competitive pressure Want to expand Don¶t have enoug
resources
Solution
Cut investment budgets, overheads, frill Maximizing existing assets, capacity, d
istribution Target internal growth rate Improve supply chain, productivity, opti
mize planning
PROBLEMS TO NESTLE
Storm of Melamine in 2008 + Melamine: increasing high protein affectedly => kidn
ey stone, cancer Relate with Nestle ???
 2/10/2008 : Finding Melamine in Nestle powdered milk at Taiwan => 6 kinds of Nes
tle milk products : having Melamine poisoned chemical substance ( little percent
) Nestle in Switzerland :force to take back baby milk products in France, Spain,
Italy
However
42 Nestle samples tested in Measured Quality Standard Technique Center: No Melam
ine
Nestle products at Vietnam or imported from America, Europe, New Zealand, absolu
tely not from China
Stakeholders
Shareholders: profits Employees: stable job, promotion Consumers: high quality p
roducts, reasonable price Business partners: long-term, trusted relationships Lo
cal environment: need Nestle has responsibilities
Acquisition Strategy
90¶s year: Baby product¶s of Nestle were not concerned 1998: Peter Brabeck became Di
rector
=> Begin biggest A&M cases: + Drerer¶s Grand ice-cream Company + Rlaston Purina- P
et food biggest NorthAmerican : 11 billion USD
Why acquisition???
Diversifying size of economic: + Baby milk + Nutrition + Cafe + Food product Exp
anding the size of company
The most successful A&M
Buy Gerber, Baby food brand name from Novartis corporation : 5.5 billion $ => No
.1 in Baby food largest market, America.
----->
Not only buy but sell
Selling the Milk manufacturing Industry in BaVi to Anco Company ( during 1 year)
Are they right when selling ??? + The truth : spend money to focus on different
field Invest 4 million$ ( maybe money from selling Milk industry 1 year) to Mag
gi produce industry
Organizational Structure
National Sales Manager Zonal Sales Manager
Regional Sales Manager
Customer Service Manager
Area Managers
System Support Executive
Event Management
Customer Service Officer
Territory incharge
System support Officers
Sales Associates
Event Management Officer
Chiller Technician
DSR
Loader
Strategic Leadership
To force the businesses to become more efficient. To create a regional manufactu
ring network. To integrate the company¶s business on a global scale. To reduce mar
keting expenditures by exploiting the synergies between brands.
Nestle¶ strategic entrepreneurship
Develop R&D network Acquisition
Develop R&D network
>3,500 scientists work on improving existing products and creating tomorrow¶s nour
ishments Two thirds of company¶s R&D activities are dedicated to renovating existi
ng products, the remaining third is reserved for radical product innovations. Im
prove on operational level A number of organizational changes.
Acquisition
Reaching a critical mass in terms of market share + the acquisition of Dreyer¶s +
the acquisition of Ralson Purina + the acquisition of Jenny Craig Gain expert kn
owledge for further expansion into new product segments. + Life Ventures fund +
The Nestle Growth fund
THANK YOU FOR LISTENING!!!!