Yaprak Angay

Selim Erim
Mehmet Avar

CONTENT

General Information
Vision & Mission
Environmental Analysis
SWOT Analysis
Organization
Porters 5 Forces
Business Level Strategy
BCG Matrix
Competitive Advantages/Core Competency
Social Responsibilities
Ethics

General Information
Nestl is a Swiss company, founded in 1866
by Henri Nestle.
Worlds biggest Food and Beverage
Company.
Approximately 254,000 people working.
Operating in more than 70 countries.

Vision-Mission
VISION
Nestl'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.

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

Environmental Analysis
Technological trends

Global trends

Most of latest
technology (in
researching,
producing)
Developing production
systems
Technological
developments in supply
chain
management&logistics

Improving
import&export in the
world
Accessibility to
products easily

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

SWOT ANALYSIS
STRENGHTS
Very long history
(over 140 years)
Operated factories in
77 countries (all six
continents)
Distribution channels
and geographic
presence
Established many
acquisitions
Brand reputation
valued at $7 billion

WEAKNESSES
Inability to provide consistent
quality in food products
Weak implementation of CSR
Limited presence in organic food
Slow growth rate of
chocolate&dairy products
Not as successful as they thought
they would be in some market (i.e.
France)

SWOT ANALYSIS
OPPORTUNITIES
Acquiring startups
specializing in producing
well-being 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

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

Organization Chart

Organization
The matrix structure serves Nestl 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

Porters 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
Nestl has been around for over a century
Its long history, product quality, consumer
satisfaction allowed Nestl to obtain a
considerable share of the market
New entrants should capture a portion of Nestl's
Market to survive

Porters Five Forces

THREAT OF SUBSTITUTE GOODS
Nestl is surrounded by the threat of
substitute goods
Wide range of similar products that compete
directly with Nestl
Competition is fierce
Nestls responsibility to improve its products
Nestl focused on health and wellness in
order for its products to stay competitive.

Porters Five Forces

BARGAINING POWER OF SUPPLIERS
Creates and maintains positive relationship with
its suppliers
Nestl holds large purchasing power
Nestl 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

Porters Five Forces

BARGAINING POWER OF CUSTOMERS
Customers have large amount of power in
regards to Nestls products consumption
Nestls understands the power of customers
and has taken specific steps to meet their
needs
Society is more health conscious---Nestl is
incorporating health and wellness in its
products.

Porters Five Forces

COMPETITIVE RIVALRY WITHIN THE INDUSTRY
Nestl 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.

Business Level Strategy

Nestl 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

Product Differentiation

BCG Matrix
STARS
Nestlebeverages
CASH COWS
Baby food products
DOGS
Pharmaceutical products
QUESTION MARKS
Breakfast cereals

Competitive Advantage

Innovation
R&D capabilities
Sufficient experience
Workforce

Core Competency
Different types of tastes are
combined to create new products.

Social Responsibilities

Ethics

Ethics

Ethics

Ethics

THANK YOU FOR

ATTENDING!

References

http://www.ukessays.com/essays/marketing
www.nestle.com
www.nestle.com.tr
http://mamminurture.com/25-reasons-to-boycott-nestle/
http://www.nytimes.com/2013/02/20/world/europe/nestlepulls-2-products-in-horse-meat-scandal.html
http://www.nestle-family.com/our-company/english/assets/
downloads/The-World-of-Nestle.pdf
http://sustainable-stella.blogspot.com/2013/02/the-horse-m
eat-controversy.html