Goup 2

Background of Nestle
1866: the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. 1905 : merged with Nestl to form the Nestl and Anglo-Swiss Milk Company. 1938 : Nescaf coffee was launched. 1947: The Maggi products, from seasoning to soups, become part of the Nestl family following the merger with Alimentana S.A. 1974: we became a major shareholder in L'Oral, one of the world's leading makers of cosmetics. In 1977, we made our second venture outside the food industry by acquiring Alcon Laboratories Inc., a U.S. manufacturer of pharmaceutical and ophthalmic products. 1984: to make new acquisitions to Carnation, the largest acquisitions in the history of the food industry 2001: We merged with the Ralston Purina Company, to form Nestl Purina PetCare Company. 2002: merger of our U.S. ice cream business with Dreyers, a leading frozen food product business. 2007: We acquired Novartis Medical Nutrition, Gerber and Henniez.

Africa Central-West Aftrica East Africa Egypt Morocco South Africa

Europe Austria Belgium Bosnia & Herzegovina Finland Italy Bulgaria Croatia Czech Republic Greece Macedonia

Denmark Hungary

Estonia Ireland

France Latvia

Germany Lithuania

Netherlands Serbia

Norway Slovakia

Poland Slovenia

Portugal Spain

Romania Sweden

Russia Switzerland

UK

Ukraine

Asia & Australia Australia China Hong Kong India Indonesia Iran

Israel Pakistan

Japan Philippines

Korea Singapore

Malaysia Taiwan

Middle East Thailand

New Zealand Turkey

Vietnam

Americas Argentina Brazil Bolivia Canada Caribbean Central America

Global operating
June, 2012: Opens new unit to centralise global clinical development work. June, 2012: Marks first phase of new dairy training institute in China May, 2012: Reaffirms investment in Egypt to boost growth May, 2012: Nestl steps up European production with investment in Spain April, 2012: Sports enthusiasts can meet their match with new Milo mobile apple. April, 2012: Contributes to fight against noncommunicable diseases. April,2012: Professional skills up future chefs.

Vietnam operating
May, 2012: Milo Cup. May, 2012: Activation Nescafe 3 in 1 May, 2012: Protect clean water program. May, 2012: Vietnam Nescafe shake 2011: Good food, good life.

Formula of Nestle
Customers in new places and their lifestyle, the problem they have
Charging and new twists States

Defense base on invidual opinion Partial analysis

Trying to reducie rejudice Combine with a reliable organization to benefit the community

Changing policies

Links and supporting

Oganizations everyone know and belive Support implementing to build standards Establish introductions

What did Nestle make mistakes?

Advertising and marketing have discouraged breast feeding And lead to misuse fo the products No have any introduction for using water sources with milk Diluting the formula to strechis believed itself has nutrient qualities

The way of giving statements for products

How do intend? What should or not? Dont believe that infant formula has a vital role. Foods in addition to breast milk => supplemental feeding often harmful children ( the age of three months) by herbal teas, concoctions of rice water or corn water and sweetened, condensed milk, especially dont mind serving in unsanitary conditions

The way of giving statements for products

Mothers in developing nation # mother in a poor family in Third world? Decreasing in the incidence of breast feeding as white mans powder that will make baby grow and glow. Although Nestle has encourages breast feeding, they didnt have teaching people how to prepare and use safely other replace products ( milk or grain)

Overcome and recover

Links and supporting Change policies

RESOLUTION
In 1974, Nestl aware of changing social patterns in the developing world and reviewed its marketing practices on a region-by-region basis Carry out more comprehensive health education programs to ensure that an understanding of the proper use of their products reached mothers The eight-page code urged a worldwide ban on promotion and advertising of baby formula and called for a halt to distribution of free product samples or gifts to physicians who promoted the use of the formula as a substitute for breast milk. Nestl fully supports the WHO [World Health Organization] Code. Nestl will continue to promote breast feeding and ensure that its marketing practices do not discourage breast feeding anywhere, besides it intends to maintain a constructive dialogue with governments and health professionals in all the countries it serves with the sole purpose of servicing mothers and the health of babies. Nestl consulted extensively with WHO, WHO recommendations , consulted with expert and firms experiences before issuing its label warning statement but still not universal agreement with it in developing and field testing educational materials, ensure that those materials met the code.

Creating Shared Value

NESTL SUPPORTS WHO CODE

Immediate support for the WHO code, May 1981, and testimony to this effect before the U.S. Congress, June 1981. Issuance of instructions to all employees, agents, and distributors in February 1982 to implement the code in all Third World countries where Nestl markets infant formula. Establishment of an audit commission, in accordance with Article 11.3 of the WHO code, to ensure the companys compliance with the code. The commission, headed by Edmund S. Muskie, was composed of eminent clergy and scientists. Willingness to meet with concerned church leaders, international bodies, and organization leaders seriously concerned with Nestls application of the code. Issuance of revised instructions to Nestl personnel, October 1982, as recommended by the Muskie committee to clarify and give further effect to the code. Consultation with WHO, UNICEF, and NIFAC on how to interpret the code and how best to implement specifi c provisions, including clarifi cation by WHO/UNICEF of the defi nition of children who need to be fed breast milk substitutes, to aid in determining the need for supplies in hospitals.

NESTL POLICIES
No advertising to the general public No sampling to mothers No mothercraft workers No use of commission/bonus for sales No use of infant pictures on labels No point-of-sale advertising No fi nancial or material inducements to promote products No samples to physicians except in three specifi c situations: a new product, a new product formulation, or a new graduate physician; limited to one or two cans of product Limitation of supplies to those requested in writing and fulfi lling genuine needs for breast milk substitutes A statement of the superiority of breast feeding on all labels/ materials Labels and educational materials clearly stating the hazards involved in incorrect usage of infant formula, developed in consultation with WHO/UNICEF

Face to THE NEW TWISTS

3.8 million children around the world had contracted the human immunodeficiency virus (HIV) at their mothers breasts. 90 percent of the child infections occur in developing countries AND the most infected areas, 70 percent of the mothers do not carry the virus. Bottle feeding becomes a badge of HIV infection, mothers may continue breast feeding Nestl now participate in the battle against the spread of HIV and AIDS in developing countries.

More question?
How can a company deal with a worldwide boycott of its products? More important issue concerns the responsibility of a multinational corporation (MNC) marketing in developing nations, dont they?. Have Nestles marketing activities had an impact on the behavior of many people?

Questionaires for discus

Main lesson:
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What are the responsibilities of companies in this or similar situations? What could Nestle have done to have avoided the accusations of killing Third Word babies and still market its product? After Nestles experience, how do you suggest it, or any other company, can protect itsefl in the future? Assume you are the one who had to make the final decision promote any formula for any product with social responsible and their ethical business. what advice would you give to Nestle now in light of the new problem of HIV inflection being spread via mothers milk

Conlusion
To create value for our shareholders and our company, we must create value for people in the countries where we are present. This includes the farmers who supply us, the employees who work for us, our consumers and the communities where we work. The following case studies of Nestles efforts in the areas of nutrition, water, rural development provide an interactive view of what the concept of shared value looks like in action.