Hoang Ngoc Minh
CONTENT
Vision & Mission General en environment 5 forces model SWOT Business st strategy Competitors Pro Problems ems and Sol Solutio ution n Stake holders Acq Acquisi uisiti tio on Stra trateg tegy Organizational rganizational Structure Stra Strate tegi gic c Lea Leadersh ership ip Stra Strate tegi gic c Ent Entre repr pren eneu eurs rshi hip p
Vision ³Nestlé's aim is to meet the various needs of the consumer everyday by marketing and selling foods of a consistently high quality.´
Mission ³We 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.´
General environment Demo Demogr grap aphi hic c tre trends: nds: - Nearly Nearly all age age from from young young to old old people. people. - All six six contin continent ents s (cust (custome omers) rs) Economic trends: - Most Most countries countries all over over the world world are are affected by the global economic crisis.
General environment Poli Politi tica cal/ l/Le Lega gall tren trends ds:: - More More cou count ntrie ries s joi join n WTO: allow more free trade across the nations Socioc ciocul ultu tura rall tren trends ds:: - The world world people people care care more more about about their health, especially with foods and beverages.
General environment Tech Techn nolog logica ical tre trends: - Use most of latest latest techno technology logy(( in researchi researching, ng, producing«) - Try to find find new new way way of create create new new product product - Improve Improve the the quality quality of of produ products. cts. Global trends: - Improve operational operational efficiency efficiency by integrating integrating the company¶s businesses on a global scale. - ³We¶re now transi transition tioning ing to become become a genuinely global food company, to behave as one´
Five
forces model
New entrants Multinational companies More companies joint in domestic market High pr pressure
Substitute products Dive Divers rsit ity y prod produc ucts ts Confectionery, instant foods Not many firms focus on pet foods Aver verage pressure
Five
forces model
Suppliers Sign ign cont contra ract cts s with ith farmers Stable supplier iers Trust to to th the bi big fi firm Low pressure
Buyers Variety demands Diffe fferent tastes Need to attract customers High pr pressure
SWOT analysis Strengths: - Very long long history history (over (over 140 140 years) years) - Operated factories in 77 countries (all six s ix continents), a truly global company. - Considered the innovation leader in the global food and nutrition sector(3500 scientist in company company R&D network) - Low cost operators (beat (beat the competition by by producing producing low cost products, edging ahead with low operating costs) - Offering thousands of local products. - Have Have a gre great at CEO, Peter Brabeck, and a very strong workforces.
SWOT analysis Weaknesses: - Not as successfu successfull as they thought thought they would be in some market (i.e. France) - Some of their their product product were were positioned positioned as too scientific, and consumers didn¶t quite understand (i.e. L C-1 was a food and not a drug)
SWOT analysis
Opportunities:
- Well-known Well-known company company and strong strong brand brandname name - Health-b Health-based ased produ products cts are becoming becoming more more popular in the world, including in the United States - Ranked Ranked first in nearly nearly all all the product product segments in which it operated operated (market (m arket leader) leader) - Unaffecte Unaffected d by current current economic economic conditi conditions ons (its share of the the UK confect confectione ionery ry market rise rise to 15.6 per cent with a 0.5 per cent growth this year)
SWOT analysis Threats: - Some markets markets they they are entering entering are already mature - Globa Globall compe competit titor ors. s. - There are intens intense e compe competition titions s in the United States, especially yogurt market (General Mills)
Business-level Business-level strategy Nest Nestlé lé bus busin ines esss-le level vel stra strate tegy gy is integrated cost leadership/differentiation - Wide range range of of produc products ts (over (over 20 categories: coffee, milk, mineral water, pet foods, cereals«) - Low Low cost cost oper operat ator ors. s.
Competitors
Many competitors tors The sa same qu qualiti ities The same prices Unile Unilever ver,, Kraf Kraft, t, Mast Master er food foods« s« High pr pressure
Problem
High market share Low growth Competitive pressure Want to ex expand Don¶ Don¶tt have have eno enoug ugh h reso resour urce ces s
Solution Cut investment budgets, overheads, frill Maxim Maximizi izing ng existin existing g assets assets,, capaci capacity ty,, distribution Targ Target et inte intern rnal al gro grow wth rat rate e Impr Improve ove supp supply ly chai chain, n, pro produ duct ctivi ivity ty,, optimize planning
PROBLEMS TO NESTLE Stor Storm m of Melam elamin ine e in in 200 2008 8 + Melamine: increasing high protein affectedly => kidney stone, cancer Rela Relate te with ith Nes Nestle tle ??? ???
2/10/2008 : Finding Melamine in Nestle powdered milk at Taiwan => 6 kinds of Nestle milk products : having Melamine poisoned chemical substance ( little percent) Nestle in Switzerland :f :force to take back baby milk products in France, Spain, Italy
However 42 Nest Nestle le sam sampl ples es tes teste ted d in Mea Measu sure red d Quality Standard Technique Center: No Melamine
Nest Nestle le pro produ duct cts s at Vie Vietn tnam am or or impo importe rted d from America, Europe, New Zealand, absolutely not from China
Stakeholders Shareholders: profits Employ ployee ees: s: stab stable le job, promotion Consumers: high quality products, reasonable price
Busin usines ess s partn artner ers: s: long-term, trusted relationships Loca Locall envi enviro ron nment ment:: need Nestle has responsibilities
Acquisition Strategy 90¶s 90¶s year: ear: Baby Baby prod product uct¶s ¶s of Nest Nestle le were were not concerned 1998 1998:: Pet Peter er Bra Brabe beck ck bec becam ame e Dire Direct ctor or => Begin biggest A&M cases: + Drerer¶s Grand ice-cream Company + Rlaston Rlaston Purina Purina-- Pet food food bigge biggest st NorthNorth American : 11 billion USD
Why acquisition??? Dive Divers rsify ifyin ing g size size of econ econom omic ic:: + Baby milk + Nutrition + Cafe + Food product Expa Expand ndin ing g the the siz size e of com compa pany ny
The most successful A&M Buy Buy Gerb Gerber, er, Baby Baby food food bran brand d name name from from Novartis corporation : 5.5 billion $ => No.1 in Baby food largest market, America.
----->
Not only buy but sell Sellin Selling g the the Milk Milk manuf manufact acturi uring ng Indust Industry ry in BaVi to Anco Company ( during 1 year) Are Are they they right right when hen sel sellin ling g ??? ??? + The truth : spend money to focus on different field Invest 4 million$ ( maybe money from selling Milk industry 1 year) to Maggi produce industry
Organizational
Structure
National Sales Manager
Zonal Sales Manager
Regional Sales Manager
Customer
Service Manager
Customer
Service Officer
Area Managers
Territory incharge
System Support Executive
Event Management
System support Officers
Sales Associates
Event Management Officer
DSR
Loader
Chiller
Technician
Strategic Leadership To forc force e the the busi busine ness sses es to to beco become me mor more e efficient. To crea create te a regi region onal al manu manufa fact ctur urin ing g network. To integra integrate te the compan company y¶s busin business ess on a global scale. To red reduc uce e mark market etin ing g expe expend ndit itur ures es by exploiting the synergies between brands.
Nestle¶ strategic entrepreneurship entrepreneurship Deve Develo lop p R&D R&D net netw work Acquisition
Develop R&D network >3,5 >3,500 00 scie scient ntis ists ts wor work k on imp impro rovin ving g existing products and creating tomorrow¶s nourishments Two Two third thirds s of com compa pany ny¶s ¶s R&D R&D activi activitie ties s are dedicated to renovating existing products, the remaining third is reserved for radical product innovations. Impr Improv ove e on on oper operat atio iona nall leve levell A numb number er of of orga organi niza zati tion onal al cha chang nges es..
Acquisition Reac Reachi hing ng a criti critica call mass mass in ter terms ms of of marke markett share + the acquisition of Dreyer¶s + the acquisition of Ralson Purina + the acquisition of Jenny Craig Gain Gain exp expert ert know knowled ledge ge for for furth further er exp expan ansio sion n into into new product segments. + Life Ventures fund + The Nestle Growth fund
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