Nestle presentation
-
Upload
deniz-niyazi -
Category
Business
-
view
6.917 -
download
2
description
Transcript of Nestle presentation
Nestlé Presentation
Aslı BildikMelih ZerenHanife Armutİlkan GençDeniz Niyazi
Industry AnalysisFood Processing Industry
CanneryMeat ProcessingPackagingetc.
From raw to processed foodsLengthening shelf lifeHygiene and health standards
Big market with major rivals•Intense competition
Dieting & ObesityAllergensQuality IngredientsIncreasing demand for Organic/Health Products
Largest food company in the world
Core competency for Nestlé:Health, Nutrition & Wellness“Good food good life”
Economics of scale is a good advantage
Products are sold to wholesalers or retailers for distribution
End consumers aimed(Individuals)
Nestlé
Nestlé Corporate and organizational culture
- Different stakeholders’ expectations and interactions with
the company and with each other shape the culture of Nestlé.
- Fairness, honesty and concern for people
- Respect for diverse cultures, and developing long term relationships with suppliers and customers.
- Commitment to a strong work ethic,integrity, honesty and quality
Flexibility
Stability
External focus
NESTLE CULTURE
Internal focus
Clan- family type (collaborative)
Adhocracy(creative)
Hierarchy(controlling)
Market(competitive)
Creative Culture : -less functional barriers -team working -risk taking -encouraging innovation and flexibility - employee can take initiative - opennes and curiosity for market trends
Market Comptitive: - profit-priented business - expanding market share -result-oriented and competition - market research to reduce uncertainty
Nestlé Corpoarte Strategy
- Expectations and needs of consumers affect business strategy and operations
- Strengthening their leadership in the global market is key element of their corporate straregy
- series of strategic business units based around geography and product.
-‘CREATING SHARED VALUE’ -
Differentiation Strategy
-renovation and innovation of the Nestlé product lineex: FIRST infant formula, Farine Lactée spread chocolate, Chokella instant coffee, Nescafé chocolate powder drink, Nesquik coffee creamer, Coffee Mate coffee mix, Nescafé 3 in 1
-
the largest R&D network of any food company in the world; with 32 R&D centers and over 5,000 people directly involved in R&D
- market resarch to provide deep consumer understanding to create and deliver products, systems and services that its competitors cannot -Nestlé uses product differentiation strategy rather than cost-leaderhip. Why? Product Quality and Reputation
- the largest R&D network of any food company in the world; with 32 R&D centers and over 5,000 people directly involved in R&D
- market resarch to provide deep consumer understanding to create and deliver products, systems and services that its competitors cannot -Nestlé uses product differentiation strategy rather than cost-leaderhip. Why? PRODUCT QUALITY AND REPUTATION
Acquisitions and joint ventures
• With the increase in competition, Nestlé has had to both acquire other companies and
be prepared to enter into joint venture ex: - alliances with Coca Cola and two Chinese companies(1993) - Nestlé and L'Oréal have two successful joint ventures(2009) -Nestlé and Colgate-PalmoliveCompany(2003)
MISSION AND VISION
• Mission : The mission of Nestlé nowadays – “Good Food, Good Life” – is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions and to put a strong emphasize that leadership is not just about size; it is also about behavior and trust earned over a long period of time by consistently delivering on promises .
Vision : Whether it is in terms of convenience, health or pleasure, it is committed to create trustworthy products, systems and services that contribute to improving the quality of consumers’ lives.
ORGANAZITIONAL STRUCTURE OF NESTLE
GLOBAL NESTLE
• Nestlé has a Board of Directors, led by Chairman Peter Brabeck-Letmathe, who was the former Nestlé CEO.
• The Nestlé Group is managed by geographies (Zones Europe, Americas and Asia/Oceania/Africa) for most of the food and beverage business.Globally managed businesses
• Vertical oraganazition structure
- Its global center office is in Switzerland but it is not Swish company but it is a worldwide company in a sense that Nestlé has about 250 000 shareholders, none of whom individually own more than 3% of the shares
NESTLE TURKEY
• the center of Nestle Turkey is in Maslak,İstanbul.
• Gebze: distributing center• Karacabey ,Bursa: manufacturing center• Horizontal oraganazition structure
SWOT ChartStrengths Weaknesses
Unmatched product and brand portfolio
R&D capabilities
Distribution channels and geographic presence
Competency in mergers and acquisitions
Brand reputation valued at $7 billion
Inability to provide consistent quality in food products
Weak implementation of CSR
Opportunities Threats
Increasing demand for healthier food products
Acquiring startups specializing in producing well-being products
Establishing new joint ventures
Food contamination
Trend towards healthy eating
Growth of private labels
Rising raw food prices
High
LowHigh
Many buyers Substitutes
High costsStrong brand name
Competitive marketLoyalty expected but prices with quality important Medium
Global firm/Easy to access local suppiersQuality hard to achieve
High
Major RivalsHuge industry/market
Suppliers all over the worldShareholdersCustomersDistributors(global-local)Advertising PartnersGovernments
Quality products for food-processing markets all over the world.
ShareholdersProducers Dairy, grains, palmoil, cacao, peanut, nuts, pistachio, etc.
Focused on “Quality” and “Convenience in market”
New Focus:“Health Conciousness”
Loyalty: 1st Chocolate Factory in Turkey, Private names(Chokella, Damak),Brands (Nescafe, Nesquick)5th most loved
Reailers/Wholesale“Bim” issueDistribution throughout country/world
End ConsumersQuality seekersNot children orientedHealth- concious
Main costs:DistributionProduction with qualityAdvertisement
Pricing higher than rivals but not extreme due to industy and substitutesPayments from wholesales to retailers/shopping malls, etc.
Nestlé first major multi-national to launch human rights white paper
Social Responsibility• Nestle’s education programs have reached 9 million people
•Nestle India supports local schools, themaintenance of public parks
and green belts.
•By changing the recipes of its products, it has eliminated
•75,000 tons of trans fat,
•15,000 tons of salt,
•638,000 tons of sugar
• Water Education Programme in India,
informed the farmers on the
proper use of water.
• Nestle provides rural farmers with
technical support via Chilli
Farming Project.A proud farmer from Kelantan, Malaysia, whose chillies
are used in Maggi chilli sauce.
Continual improvement of the environmental performance along the value chain
Packaging Source Reduction Program
Shift from corrugated container to shrink film
From twin to single sachet
Reduced cut off length
Nestlé tops global corporate responsibility survey
‘Transparency helps us address problems, and there’s no doubt it contributes to better interactions with external stakeholders.’
Janet Voûte, Global Head of Public Affairs at Nestlé
Challenges of Nestlé
Large Company
• Has issues about flexibility• Time lost through decision periods
Solutions:• Regional management empowerment• Glocalization
Supplier Issues
• Cacao going exstinct in the world• Natural diseasters such as flood• Primitive agricultural methods
Solutions:• Education to farmers• R&D about seeds and agricultural methods• Being prepared to crisis
Image Problems
• Child Labor Issue• Suggestion of privatization of water sources• Working conditionsAll above creating a very bad image
Solution:• Legal issues• Charity and Social Projects• PR projects• Better working conditions througout the world
Social Media Usage
• Not much effective in social media• Losing a channel for customer relationships• Even not having social media pages is better(!)
Solution:• Having more appropriate social media usage
Sources• http://blsciblogs.baruch.cuny.edu/mgt4880nestle/2013/04/03/nestle-industry-ana
lysis/• http://www.slideshare.net/arif587/management-of-change-a-study-of-problem-
and-challenges-in-nestle• http://blogs.position2.com/nestles-pr-crisis-management-nightmare• articles.castelarhost.comhttp://www.nestle.co.uk/• manuscriptservices.co.uk/extras/examples/nestle.pdf• http://www.nestle.com/• http://www.rankia.com/blog/mundodelaempresa/1110186-empresas-nestle-feeds
-the-world-in-english• http://en.wikipedia.org/wiki/Nestl%C3%A9• http://businesscasestudies.co.uk/nestle/doing-better-by-the-environment/ways-in
-which-nestle-is-doing-better-by-the-environment.html#axzz2oQrqLiZX
Thanks for Watching!