Part A: Introduction of the Company
Company Founder and CEO
Nestlé was begin in 1866, when the first European condensed milk factory was opened in
Cham, Switzerland by the Anglo-Swiss Condensed Milk Company. The founder of Nestlé
was Henri Nestle in Vevey, Switzerland which he is a German pharmacist that had
launched his Farine lactee, a combination of cow’s milk, wheat flour and sugar, saving the
life of a neighbour’s child. Nutrition has been the cornerstone of Nestlé Company.
The management of the Nestl Company has a Board of Directors, which is leaded by the
Chairman Peter Brabeck-Letmathe, who was the former Nestl CEO. The currently CEO
would be the Paul Bulcke which is also the members of Nestl BOD. The day-to-day
management of the business is taken care of the Executive Board. The Nestle Group is
managed by geographies (Zones Europe, Americas and Asia/Oceania/Africa) for most of
the food and beverage business with the exceptions of our globally managed businesses,
which include Nestl Waters, Nestl Nutrition, Nespresso, Nestl Professional and Nestl
Health Science. Nestl Company also has joint ventures such as Cereal Partners Worldwide
and Beverage Partners Worldwide.
Range of Products
Nestlé brands is the most people know and a famous brands in almost every food and
beverages category which giving the consumers tastier and healthier products to enjoy
every eating occasion and including times special nutritional need. The slogan of the brand
Nestlé which is “Good Food, Good Life” represent every nutrition needs by the
consumers. Nestl company comprises of 14 different ranges of products which are:
a) Baby foods
b) Bottled water
c) Cereals
d) Chocolate & Confectionery
e) Coffee
f) Culinary, chilled and frozen food
g) Dairy
h) Drinks
i) Food service
j) Healthcare nutrition
k) Ice-cream
l) Pet care
m) Sports nutrition
n) Weight management
Popular/Profitable Products
There are lots of popular items in Nestl products for example in candies, chocolate, cocoa,
cookies, ice-cream, milk, nutrition drinks, biscuits and a lots more. In Malaysia, Nestl
products are among the most popular food products it includes snacks, cereals, milk and
much more. No matter who, old or young everyone will recognise nestle brand and know
about the brand.
Profit at Nestlé is the world’s largest food company, rose 12% to $12billion on demand for
its main brands this include Nescafe soluble coffee, KitKat chocolates bars and Maggi
soups in emerging markets. Mostly the profits rose is because from the beverages- dairy
products which the sales reached SFr92.2 billion in 2012, up from SFr83.6 billion in 2011.
In Malaysia, MILO and Nescafe are the most famous beverages that consumers choose.
This is because MILO and Nescafe provide added benefits catering to young working
adults who are health conscious and looking for healthy options in their daily diet.
International Markets
Nestlé products can be found to worldwide country and we all know that Nestlé Company
is the world’s largest food company. They are truly international organization and face the
challenges that come with in terms of controlling and monitoring on the one hand and
achieving full market potential on the other. Nestl Malaysia marked its centennial in
Malaysia with another year of solid financial performance, underlined by consecutive good
quarterly growth. This was driven by strong domestic sales with several of the product
categories recording impressive double-digit growth.
Nestl Company has several main competitors which are Unilever NV, Hershey Foods,
Kraft Foods, Cadbury Schweppes and GROUPE DANONE. Nestl have its competitive
advantages by keeping doing research and development of introducing new and redesigned
products every year. Besides that, Nestl runs in more than 100 countries and has extensive
distribution channel all over the world, which supports its operations globally.
Market Share
The sales of the Nestl Company have growth up to 8.6 billion which is increased 10.2%
while the earning per share are up to 12.2%. The proposed dividend also increased to CHF
15.8 billion. In 2013 outlook the organic growth of 5% to 6%, improved trading operating
profit margin and underlying earnings per share in constant currencies.
Industrial Ranking
In 1 March 2013, Nestlé has been named the number one consumer food products
company for the eight year running in Fortune magazine’s annual survey of the top 50
World’s Most Admired companies. The company which ranked 32nd overall score in every
category rated, including innovation, people management, social responsibility, quality of
management, quality of products and services, and global competitiveness. It is the
sixteenth consecutive year Nestlé has been named one of Fortune’s ‘Most Admired Food
Companies’.
In Nestl Company, we can see that Nestl is increasing demand for healthier food products
and acquiring startups specializing in producing well-being products. Establishing new
joint ventures are also one of the opportunities. Thus, Nestl is focusing on providing more
well-being products and this is a great opportunity to expand its portfolio.
Part B: International Operation
(i) Two Business strategies
Multidomestic strategy
Nestl has been to enter emerging markets early before its competitors and build a
substantial customer base by selling products which suit the unique needs of each country
local population such as infant formula, milk, and noodles. Although Nestl has become a
global brand, it uses local identity to gain exposure in local markets. Customization is the
key to Nestlé’s global brand identity rather than universalism, which means Nestlé, uses
global brand identity but, from the internal point of view, it uses local ingredients and other
technologies that resonate with the local environment and brand name that is known
