2. CONTENT
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General Information
Vision & Mission
Environmental Analysis
SWOT Analysis
Organization
Porter’s 5 Forces
Business Level Strategy
BCG Matrix
Competitive Advantages/Core Competency
Social Responsibilities
Ethics
3. General Information
• Nestlé is a Swiss company, founded in 1866 by Henri
Nestle.
• World’s biggest Food and Beverage Company.
• Approximately 254,000 people working.
• Operating in more than 70 countries.
4. Vision-Mission
VISION
• “Nestlé's aim is to meet the various needs of the consumer
everyday by marketing and selling foods of a consistently high
quality.”
MISSION
• “ We strive to bring consumers foods that are safe, of high
quality and provide optimal nutrient to meet physiological
needs. Nestle helps provide selections for all individual taste
and lifestyle preferences.”
5. Environmental Analysis
Economic trends
• Most countries all over the world are affected by the global
economic crisis
• Economic fluctuations in the world
• Economic development of countries
• Exchange rate
6. Environmental Analysis
Technological trends
• Most of latest technology
(in
researching, producing…)
• Developing production
systems
• Technological developments
in supply chain
management&logistics
Global trends
• Improving import&export
in the world
• Accessibility to products
easily
7. Environmental Analysis
Political/Legal trends
• More countries join WTO: allow more free trade across the
nations.
• Government controls and certificates in food and beverage
industries
Sociocultural trends
• The world people care more about their health, especially with
foods and beverages.
• Concern about recycling
8. SWOT ANALYSIS
STRENGHTS
•Very long history (over 140
years)
•Operated factories in 77
countries (all six continents)
•Distribution channels and
geographic presence
WEAKNESSES
•Inability to provide consistent quality in
food products
•Weak implementation of CSR
•Limited presence in organic food
•Established many
acquisitions
•Slow growth rate of chocolate&dairy
products
•Brand reputation valued at
$7 billion
•Not as successful as they thought they
would be in some market (i.e. France)
9. SWOT ANALYSIS
OPPORTUNITIES
• Acquiring startups
specializing in producing wellbeing products
•Continuous growth in US
coffee market
• More request to establish
joint ventures
THREATS
• Many competitors
• Trend towards
healthy eating
• Growth of private
labels
•
Rising raw material
prices in some
periods
10. Organization
• Nestle is organized in a matrix system, by products and
geography.
• Products – in terms of the business units
-They define the strategy of each of the products
-EG: Ice cream, coffee, nutrition (infants), etc.
• Geographies – The businesses have their central head unit
- Zone Europe, Zone Americas, Zone Asia/Oceania/Africa
12. Organization
• The matrix structure serves Nestlé well
• For a global organization, the ability to organize
around geographical markets and also around
products is an advantage
• It has a manager in charge of a product line, but each
product line is also coordinated with a manager in
charge of a specific geographical area
13. Porter’s Five Forces
THREAT OF NEW ENTRANTS
• Food Industry large & competitive
• Companies enter this market every year in attempt to gain
a portion of profitable market
• Nestlé has been around for over a century
• Its long history, product quality, consumer satisfaction
allowed Nestlé to obtain a considerable share of the market
• New entrants should capture a portion of Nestlé's Market
to survive
14. Porter’s Five Forces
THREAT OF SUBSTITUTE GOODS
• Nestlé is surrounded by the threat of substitute goods
• Wide range of similar products that compete directly
with Nestlé
• Competition is fierce
• Nestlé’s responsibility to improve its products
• Nestlé focused on health and wellness in order for its
products to stay competitive.
15. Porter’s Five Forces
BARGAINING POWER OF SUPPLIERS
• Creates and maintains positive relationship with its
suppliers
• Nestlé holds large purchasing power
• Nestlé holds more bargaining power than its suppliers
• The company prefers Long-term relationship with its
suppliers which ensures quality of products
• Offers advice to suppliers on how to perform more
effectively and minimize cost
16. Porter’s Five Forces
BARGAINING POWER OF CUSTOMERS
• Customers have large amount of power in regards to
Nestlé’s products consumption
• Nestlé’s understands the power of customers and has taken
specific steps to meet their needs
• Society is more health conscious---Nestlé is incorporating
health and wellness in its products.
17. Porter’s Five Forces
COMPETITIVE RIVALRY WITHIN THE INDUSTRY
• Nestlé is a powerhouse in the Food Industry
• They are in constant and continuous battle to outperform
one another
• These companies spend hundreds of millions to appear
more desirable.
• Companies continue to strive in order to stay competitive
but consumer will continue to enjoy ever- improving
products.
18. Business Level Strategy
Nestlé business-level strategy is integrated cost
leadership/differentiaton.
• Wide range of products (over 20 categories:
coffee, milk, mineral water, pet foods, cereals…)
• Low cost operators
