Nestle Strategic Management

Executive summary

This report provides a clear picture of Nestlé’s strategy management which includes the analysis, formulation and implementation that enable a company to sustain for longer period. Under strategy analysis there three major things a company should know which is SWOT, PESTLE and Porter’s five forces in order to identify the consumer needs and demands. Therefore under strategy formulation there is market penetration, market development, competitive strategy and product development this may let us know how well a company organized their product level or market. Finally strategy implementation contains CSR and empathy. It tells us about how well the company support their country citizen by donating or creating a charity to people.

History and background of Nestle

Nestle is the largest food and beverage company in the world. Its main centre of operation placed in Vevey, Switzerland. A German pharmacist called Henri Nestle was the one found Nestle in 1866. He first produce baby milk product for those babies that can’t accept mother’s milk and market his findings. His product has become very success and formed extreme requirement all over Europe.

 After two three years later Henri Nestle develop his business by introducing his milk chocolate items. In 1905 Nestle merge with the well-known Anglo- Swiss condense Milk Company. In 1938 Nescafe coffee was initiated which we can find in every grocery stalls all over the world and every individual’s house. Moreover after few years nestle come up with many products such as milk, chocolates, ice-creams, coffee, breakfast cereals, milo, and they also produce milk kind of product for adults and elderly people. Nestle launched Penang, Malaysia in 1912 as per Anglo- Swiss condense Milk Company. Later on they expand to Kuala Lumpur which is the capital state of Malaysia in 1939.

Nestle won gold medal for the 27th World Environment Centre (WEC) because they well committed towards environment. This year 2015 they won the Corporate Water Stewardship award. Nestle bought US baby-food producer Gerber for 5.5billion USD in April 2007.  Nestle has wide range of product which is 8,000 brands all over the world. Nestle is hugest food organization in the world with market value over 200 billion USD.  3000 cup of Nescafe has been sold in 1938 in every second after Nestle come up with an advertisement to launched Nescafe. Nestle is one of the major shareholder of   L’Oreal. Nestle merge with the famous Maggi company in 1947.In 2003 Nestle increased the total of employees to 253,000 with $88 billion in sales. In 2011 Nestle began Health Science institute to give the scientific base for nutritional methods that help modify the way of healthiness. Nestle have been sponsor many sport teams  such as Tour de France and Australia Institute of sports. This shows how well Nestle is organized and going in right track towards a better future in business.