Day: September 29, 2017

Nestle Company

Nestle Company

Background The dairy products at Nestle are a big driving force for the growth of the company’s sales. With the health kick of the many individuals around the world, it pushes the innovator and renovators of Nestle to reach new height in finding better and healthier products for their consumers. More recent, dairy division became a big portion of the company’s earnings, so it would be best for Nestle to focus a big portion of their core competences and resources on the fast growing dairy division. Which leads us into the most recent yogurt produced by Nestle’s, which is the LC1. I. Problem statement

Nestle maintain clear cut policies on where decisions will be made and what roles corporate and host country managers will pay. II. Statement of the objectives A major responsibility of Nestle’s corporate management is to give the company strategic direction. To do this, it decides in which geographic areas and to which products it plans to allocate efforts. III. Areas of consideration Internal environment Strength • Strong Brand Name and Local Brand Names Owned • Large Portfolio • Economies of Scale • Substantial Operating Cash Flow • Environmental Image • Strong R Team Weaknesses Little Differentiation between Nestle Brands • Too Much Products distract from Core business • Large Workforce Difficult to Manage • Subsidiaries Difficult to Manage • Rising Prices of Raw Materials External environment Opportunities •Further Development of Global Brands •Health Based Products •Partnerships & Farmer Support •Emerging Markets Penetration Threats •Global image may harm all brands if one brand fails •New Diet Trends •Recent Acquisitions Make Company Vulnerable •Rising Prices of commodities…