|
|
May
2013
|
|
|
|
|
TABLE OF CONTENTS
|
No.
|
Description
|
Page
|
|
|
1.
|
Overview ……………………………………………………….…..……
|
3
|
|
|
2.
|
Introduction ………………………………………………………..……
|
3
|
|
|
|
•
|
Nestle in Words …………………………………………………...
|
3
|
|
|
•
|
History …………………………………………………………….
|
3
|
|
|
•
|
Scope of Report …………………………………………………...
|
3
|
|
|
•
|
Why Nestle? ………………………………………………………
|
3
|
|
3.
|
Body 1 ……………………………………………………………………
|
|
|
|
|
•
|
Company’s Growth ……………………………………………….
|
4
|
|
|
•
|
Statistics …………………………………………………………..
|
4
|
|
|
•
|
Recognition of Nestle ……………………………………………..
|
5
|
|
4.
|
Body 2 ……………………………………………………………………
|
|
|
|
|
•
|
Company’s Brands ………………………………………………..
|
5
|
|
|
•
|
Challenges and Solutions …………………….…………………...
|
6
|
|
5.
|
Body 3 and Conclusion ……………………………..…………………..
|
|
|
|
|
•
|
Future of the Company ……………………………………………
|
7
|
|
|
•
|
Nestle’s Future Challenges ……………………………………….
|
7
|
|
|
•
|
My Opinion about Nestle’s Future ………………………………..
|
7
|
|
6.
|
References ……………………………………………………………….
|
8
|
|
|
7.
|
Appendix: Listening Notes ……………………………………………..
|
9
|
|
OVERVIEW
This report sheds light on the history of Nestle, a world leader in
food and beverage products. It also highlights the company’s growth,
recognition, brands, and some key statistics. In addition, the report states a
few problems that Nestle faced, along with their solutions, as well as a
narration of future challenges. Finally, I conclude with my own opinion about
the company’s future.
INTRODUCTION
·
Nestle in Words
|
|
Nestle is the
world’s leading nutrition, health, and wellness company. It aims at improving
the quality of consumers’ lives by offering tastier and healthier food and
beverage choices. Their mission is “Good Food, Good Life”.
The company’s
logo illustrates a nest occupied by parent bird which feeds its two baby birds.
It stresses the company’s commitment towards a healthy lifestyle.
·
History
|
|
|
Henri Nestle (1814 – 1890)
|
The Anglo-Swiss
Condensed Milk Co. was established in 1986 and Nestle was founded in 1897.
Henri Nestle, a
German pharmacist and the founder of the company, launched the company’s first
product “Farine Lactee”, a mixture of cow’s milk with wheat flour and sugar, to
save the life of a neighbor’s child.
In 1905, Nestle
and the Anglo-Swiss Condensed Milk Co. merged after a couple of decades as
fierce competitors.
·
Why Nestle?
We selected
Nestle because of its efforts to make the world a better place. It embraces the
“Creating Shared Value” approach which makes it committed to noble causes such
as rural development, responsible sourcing, and environmental sustainability.
(Creating
Shared Value Pyramid)
BODY 1
·
Company Growth
During World
War I, there was a demand for dairy products; therefore, Nestle bought several existing
factories in the United States. By the war’s end, the company had forty (40)
factories around the world.
Nestle faced a
lot of challenges during the 1920’s as it was a time of deep economic hardship.
However, it was during this period that chocolate became an integral part of
its business.
In 1938,
Nescafe, the popular coffee product, was launched. The year 1974 witnessed
Nestle’s first diversification outside the food industry as it became a major
shareholder in L’Oreal, the cosmetics brand. Then in 1977, Nestle acquired
Alcon Laboratories Inc. which is a U.S. manufacturer of pharmaceutical and
ophthalmic products.
Several Nestle
products were launched into the market during the 1980’s and 1990’s. Starting
2000 onwards, Nestle has acquired many organizations such as Chef America Inc.
and Mövenpick Ice Cream.
·
Statistics
According to
Nestle’s “Annual Report 2012”, the following statistics were highlighted:
|
Sales by
Geography
|
||
|
Europe
CHF 26
billion
2.4%
Organic
growth
|
Americas
CHF 41 billion
5.9%
Organic
growth
|
Asia, Oceania
and Africa
CHF 25
billion
10.3%
Organic
growth
|
|
Emerging Markets
|
||
|
CHF 39
billion
|
43%
Of group
sales
|
11.0%
Organic
growth
|
|
Developed Markets
|
||
|
CHF 53 billion
|
57%
of Group sales
|
2.5%
organic growth
|
|
Billionaire brands
|
Popularly Positioned Products
|
|
|
7%
organic
growth
|
11.0%
organic
growth
|
|
·
Recognition of
Nestle
The company was recognized many times for its efforts to make the
world a better place. Some of the achieved recognitions are:
|
2010
|
The
International Union of Food Science and Technology honoured Nestlé with its
prestigious President’s Award which is given in recognition of efforts to
advance global food science and technology for the benefit of everyone.
|
|
2011
|
Nestle
was awarded the Stockholm Industry Water Award for its leadership,
performance, and efforts to improve the water management in its supply chain.
|
|
2012
|
Nestle
was awarded the World and Business Development Award for its efforts to
assist farmers successfully grow coffee in a remote region of China.
|
BODY 2
·
Company’s
Brands
Nestle is
well-known for its diversified food and beverage offerings. Some of its brands
are the following:
|
Baby Foods
|
Cerelac,
Gerber, Gerber Graduates, NaturNes, Nestum
|
|
Bottled Water
|
Nestle Pure
Life, Perrier, Poland Spring
|
|
Cereals
|
Chocapic,
Cini Minis, Cookie Crisp, Estrelitas, Fitness
|
|
Chocolate and
Confectionery
|
Aero,
Butterfinger, Crunch, Kit Kat, Orion, Smarties, Wonka
|
|
Coffee
|
Nescafe,
Nescafe Cappuccino, Nescafe Dolce-Gusto, Nescafe Gold
|
|
Culinary,
Chilled and Frozen Food
|
Herta, Hot
Pockets, Lean Cuisine, Maggi, Buitoni
|
|
Dairy
|
Carnation,
Coffee-Mate, Nido
|
|
Dairy Drinks
|
Juicy Juice,
Milo, Nesquik, Nestea
|
|
Food Service
|
Chef,
Chef-Mate, Maggi, Lean Cuisine
|
|
Healthcare
Nutrition
|
Boost, Nutren
Junior, Resource
|
|
Ice Cream
|
Dreyer’s,
Extreme, Haagen-Dazs, Nestle Ice Cream
|
|
Pet Care
|
Alpo, Dog
Chow, Fancy Feast, Felix, Purina, Pro-Plan
|
|
Sports
Nutrition
|
PowerBar
|
|
Weight
Management
|
Jenny Craig
|
|
|
|
|
|
|
|
|
|
|
·
Challenges and Solutions
Since
establishment Nestle encountered several challenges; however, it succeeded in
overcoming them. The beginning of World War I caused disruption to the
company’s operations because of shortage of fresh milk throughout Europe. To
resolve this, the company purchased several milk factories worldwide.
Moreover,
Nestle faced some difficulties in the trading environment in the developed
world. Despite this, it worked hard on its innovation, products, systems, and
routes to market until it succeeded in growing its sales figures.
BODY 3 AND CONCLUSIONS
·
Future of the
Company
Nestle aims at
attaining leadership and earning the trust of consumers all over the world. It
is also committed to creating a long-term sustainable value for its
shareholders through its commercial behavior, strategies, and operations.
The company is
investing in the future (i.e. capacity, technology, capabilities, people,
brads, as well as research and development) without jeopardizing the ability of
future generations to meet their needs.
·
Nestle’s Future
Challenges
Like any other
business, Nestle most challenges fall in the area of meeting consumer’s
expectations in the nutrition and health food industry. Furthermore,
competition is growing up and competitors such as the Anglo-Dutch consumer
goods group Unilever and the French Danone group are gaining ground and
achieving good sales growth in the past years.
·
My Opinion
about Nestle’s Future
I
think that Nestle will have a successful journey ahead as long as it continues
its commitment toward the “Creating Shared Value Approach”. It is vital as part
of corporate social responsibility to ensure that the company’s practices
creates and maintains a balance between the shareholders and the society’s
needs.
REFERENCES
·
Annual Report
2012. (2013). Retrieved May 15, 2013, from http://www.nestle.com/assetlibrary/documents/library/documents/annual_reports/2012-annual-report-en.pdf
·
Chief Executive
Officer. (Sep. 2011). The Nestle Management and Leadership Principles.
Retrieved May 15, 2013, from http://www.nestle.com/assetlibrary/documents/library/documents/people/management-leadership-principles-en.pdf
·
Confino, J.
(Feb.2013). Nestle Peter Brabeck: our attitudes towards water needs to change.
The Guardian, 55,893-896.
·
Katrina, B.
(2000). Interview: Leadership, global management, and future challenges: An
interview with Peter Brabeck, chief executive officer of Nestle SA. Thunderbird
International Business Review. Doi: 10.1002/1520-6874 (200009/10).
·
Maucher, H.
(Apr.1994). Leadership in Action: Tough-Minded Strategies from the Global Giant.
New York City: McGraw-Hill.
