The paper "Analysis of Nestle Company" is a great example of a case study on management. Nestle is known to be the largest company that monopolizes the food industry. It is a popular multinational company involved in the production of a number of food, senior drinks, and nutrition. In the beginning, it was known as the Swiss Condensed Milk Company until 1949 when it was changed to its present name- Nestle. Generally, Nestle has become one of the most successful global companies under the leadership of its current CEO Paul Bulcke.
In the company’ s headquarters – Switzerland, the turnover of the company is less than one percent and the product has its presence in almost every part of the world. Nestle has been ranked as being top sixty among the best five hundred companies globally. The company has an operating income of about $99, 114 million, a profit of about $9,604, has over 500 firms globally, and about 280, 000 workers (Kendrick & Vershinina, 2010). EXTERNAL ANALYSISGeneral Environment AnalysisPoliticalIn the food and beverage industry, globalization is an important political factor.
Nestle is a global business. In the recent past, globalization has become a real part of a business and it affects a number of things including the accessibility of emerging markets. The vice president of Nestle Jose Lopez observed that; “ the impact of globalization has been different than we thought it would be. For those of us in the West, globalization meant developing countries opening their markets for us to sell to. Yet that is not how it turned out… instead of being globalized, we are learning to react to global markets” (Bell & Shelman, 2009, p. 10).
As pointed out by Nestlé ’ s Environmental Impact (2008), one issue that the food and beverage industry confront on the global scale includes the issues of regulations. In the case of Nestle, it operates in several highly regulated sectors thus, the product is highly affected by several tiers of regulation e. g. food and beverage safety, cross- border trade, environmental regulations, and others. EconomicEven when there is an economic downturn, the demand for food supplies usually continues but change appears on eating and drinking patterns in such that; the possibility of consumers preparing and consuming foods at home increases.
Considering that Nestle operates in different parts of the world, it is forced to adjust according to fluctuations in demand and price sensitivities.
Bell, D.E. & Shelman, M. (2009). Nestlé in 2008. Harvard Business School Case Study. Boston: Harvard Business School Publishing.
Colin, M. (2008, April 14). A town torn apart by Nestle. Business Week, pp. 42-47.
Datamonitor (2008, January). Company spotlight: Nestle. Food Market Watch, pp. 41-40.
Farschtschian, F. (2011). The Secret of Successful Acquisitions. London: Routledge publishers
Hitt, M.A.(2009). Strategic Management: Competitiveness and Globalization, Cases. New York: Springer publishers
Kendrick, D. N. & Vershinina, N. (2010). Management International Edition. New York: John Wiley & Sons
Nestlé’s environmental impact (2008). Diary Industries International, April, p. 10.
Porter, M.E. (2008, January). The five competitive forces that shape strategy. Harvard Business Review, pp. 1-18.
Sand, C. (2010). The Packaging Value Chain. Cambridge: Cambridge university press