Nestle Company Case Study

[pic 1][pic 2][pic 3][pic 4]

Nestle

College of Business Administration

Strategic Management (BUSI 4362)

(Proejct)

Group Members:

Fatima Alibraiem | 2009800025

Zainab AlNasser | 200900165

Manal Alsaif | 200800621

Instructor: Dr. Shaikh Arifusalam

Section: 201

Summer 2012

[pic 5]

Table of contents

Introduction. ………….………………………………………………………….……………..3

Mission and Vision………...…………………………….………………………….…............5

Description of the Products and Services……...…………………………..…….…..7

Marketing and Sales Strategy………………………………. …………..…….……………9

Nestle Strength and Weaknesses……………….. …………..………………….....…12

Financial Management………………………………………………………………………15

Organizational Structure…….….………………………………………………….….…..17

External Assessment………………………………………………………………………..20

Nestle Opportunities and threats……………………………………………………22

External factors Evaluation……………………………………………………….…….24

Strategy formulation………………………………………………………………………..24

BCG matrix………………………………………………………………………..……………27

SPACE matrix………………………………………………………………………………….28

Strategy Implementation………………………………………………………………..29

Conclusion and Recommendations…………………………………………………34

Executive Summary………………………………………………………………………..35

References……………………………………………………………………………………..38

Business Description and Vision

Introduction:

This project will attempt to analyze Nestle Company, on many levels.  The main points of concern are to discuss the Nestlé?s mission and vision, conduct both internal and external assessment of the company, formulate a strategy that is well-suited to the company's nature, implement it, and finally try to evaluate the outcome.        To better understand the company and all information collected, one must first introduce it.  Nestle was first founded in 1866 by Henri Nestle, and it is today the largest food and beverage company on an international level.  Nestle is constantly invested in product innovation and business acquisition, which is precisely why it is where it is now.  Their company grew over the years to include many products, some of which are chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other food products.  However, by the start of the 1970's Nestle expanded its product portfolio to include pet foods, pharmaceutical products, in addition to cosmetics as well.  Currently, and with all the products it holds, Nestle still maintains its image as a company concerned with high quality.                At Nestle various fundamental principles guide the company's strategies.  There is a maintained balance between keeping the product continually innovative while keeping geographic activities and product lines intact.  Their main goal is to provide the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.         Nestle works on the principle of decentralization, meaning that the tastes of products differ from one place to another, as the efficacy responsibility and the process of recruiting falls on each region's management.        However, it is important to realize that each management is not free to do as it wells completely.  Headquarters in Vevey decides how the overall strategy should be implemented and practiced.  This approach can be said in different words as 'centralize what you must, decentralize what you can'.  Nestle seek to think about its company globally, however deal with issues on a local level when interacting with people.