THE

BUSINESS STRATEGY OF NESTLE

INTRODUCTION TO NESTLE
Today, Nestle is the world leading Food Company Nestle headquarters is in Switzerland Its international R&D network supports the products made in more than 500factories in 86 countries Nestle factories are operating in the region of:

Africa America Asia Europe Oceania

MEANING OF NESTLE
Henri

Nestl endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird protecting her young, became the Company's logo and a symbol of the Company's care and attitude to life-long nutrition. The Nestl nest represents the nourishment, security and sense of family that are so essential to life

DYNAMIC EXPANSION

Nestl's history includes development of many different products as well as acquisitions, mergers and the purchasing of shares in companies, mainly abroad this enabled it to broaden its range of products and diversify its operations, while at the same time strengthening the economic foundations of the company Amongst the most important acquisitions were Carnation in Los Angeles (milk, culinary products and pet foods) and more recently Row tree Mackintosh in York (chocolate and confectionery), Biotin in Perigee (pasta) as well as Perrier in France (mineral water)

DYNAMIC EXPANSION

Nestle, which does 98% of its business outside Switzerland, also has interests in non-food sectors, in cosmetics (a large share holding in L'Oreal) and ophthalmic products (acquisition of Alcon Laboratories Inc.)while continuing to give priority to food products

INTERNATIONAL STRATEGY
Nestl is a global organization Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets Nestl recognizes the profitability possibilities in these high-risk countries, but pledges not to take unnecessary risks for the sake of growth

INTERNATIONAL STRATEGY
1.

When operating in a developed market, Nestl strives to grow and gain economies of scale through foreign direct investment in big companies

In the developing markets, Nestl grows by manipulating ingredients or processing technology for local conditions, and employ the appropriate brand

INTERNATIONAL STRATEGY
2.

Another strategy that has been successful for Nestl involves striking strategic partnerships with other large companies

INTERNATIONAL STRATEGY

European and American food markets are seen by Nestl to be flat and fiercely competitive.
Therefore, Nestl is setting its sights on new markets and new business for growth.

INTERNATIONAL STRATEGY
3.

In Asia, Nestls strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans.

Nestl acquired Indofood, Indonesias largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries

INTERNATIONAL STRATEGY
4.

Nestl has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country.

Nestl produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution.

END OF PRESENTATION THANK YOU.