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NYU, Stern: Nestle Powerpoint Presentation

Powerpoint presentation on the Nestle Corporation which was executed in May, 2011.

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NYU, Stern: Nestle Powerpoint Presentation

  1. 1. Behind the Scenes: Nestlé Carola Trinkle • Andrea Restrepo • Christine Lee Jason Schron • Jesse C. Vaughan May 2, 2011
  2. 3. Strategic Analysis
  3. 4. SWOT Analysis <ul><li>Internal Environment </li></ul><ul><li>Strengths : Strong reputation, largest global food company, brand equity, historical expertise </li></ul><ul><li>Weaknesses : labor condition controversy, coordination and communication problems </li></ul><ul><li>External Environment </li></ul><ul><li>Opportunities : health conscious consumers, organic markets, new technology </li></ul><ul><li>Threats : rising commodity prices, many strong competitors for each brand product, government regulation </li></ul>
  4. 5. General Strategy <ul><li>Product Differentiation Strategy </li></ul><ul><ul><li>“ Renovation and Innovation” of products and brands. Their portfolio ranges from baby foods, bottled water, coffee, chocolate, drinks, ice cream, and petcare </li></ul></ul><ul><ul><li>Mergers and Acquisitions with Peter, Cailler, Kohler Chocolats Suisses S.A and joint ventures with L’Oreal, Coca-Cola, and General Mills </li></ul></ul><ul><li>Low Cost Strategy </li></ul><ul><ul><li>Majority of products are produced in-house </li></ul></ul><ul><ul><li>Operational Effectiveness </li></ul></ul><ul><ul><ul><li>Nestlé Continuous Excellence (NCE) program addresses increasing efficiency in standard operating procedures, consistency and manufacturing management </li></ul></ul></ul>
  5. 6. Current Strategy <ul><li>Premiumisation </li></ul><ul><ul><li>Promoting premium products like high-end coffee and chocolate brands </li></ul></ul><ul><ul><li>Launched a new tea-brewing system called Tpresso </li></ul></ul><ul><li>Emerging Markets </li></ul><ul><ul><li>45% of sales by 2020, $7 billion over 2 years </li></ul></ul><ul><ul><li>Asia, Latin America and Africa </li></ul></ul><ul><ul><li>Growing population, rising disposable income </li></ul></ul>
  6. 7. Current Strategy (Cont.) <ul><li>Health Science & Nutrition </li></ul><ul><ul><li>Concerned with health problems, obesity and aging </li></ul></ul><ul><ul><li>$500 million over 10 years </li></ul></ul><ul><ul><li>Nestlé Institute of Health and Science </li></ul></ul>
  7. 8. Organizational Structure
  8. 9. Organizational Structure <ul><li>Divisional Structure in senior management </li></ul><ul><li>Matrix Structure in levels below senior management </li></ul><ul><li>Senior members of Nestlé are of diverse origins and backgrounds </li></ul><ul><li>Corporate HQ in Vevey, Switzerland, offices around the world </li></ul>
  9. 10. Organizational Chart
  10. 11. Corporate Culture
  11. 12. Creating and Pursuing Shared Values <ul><li>Sustainable Agriculture Initiative of Nestlé (SAIN) </li></ul><ul><li>Creating Shared Value key performance indicator 2009 2010 </li></ul><ul><li>Rural Development: </li></ul><ul><li>Farmers trained through capacity-building programs 165 500 144 900 </li></ul><ul><li>Markets covered by SAIN programs   35 45 </li></ul><ul><li>Direct procurement markets covered by SAIN programs (%) 89 100 </li></ul><ul><li>Educational and apprenticeship programs: In 2002, 65% of all Nestlé employees worldwide followed an educational program </li></ul><ul><li>“ The opportunity for growth is not always presented. It is possible to stay in one job for a long period of time” Anonymous, Nestlé supply chain worker </li></ul>“ Creating Shared Value is a fundamental part of Nestlé's way of doing business that focuses on specific areas of the Company's core business activities – namely water, nutrition, and rural development – where value can best be created both for society and shareholders.”
  12. 13. Corporate Culture (cont.) <ul><li>“ To communicate is not only to inform; it is also to listen and to engage in dialogue.” </li></ul><ul><li>A requirement of all employees is to be open and willing to learn </li></ul><ul><li>Nestlé is willing to enter dialog with diverse stakeholders, not just shareholders (e.g. consumers, employees, suppliers, governments and residence of host countries) </li></ul><ul><li>The results of their cultural integration are products better targeted to segmented markets (e.g. Nestlé is largest halal food manufacturer, milo) </li></ul>
  13. 14. TRIVIA
  14. 15. TRIVIA!!! <ul><li>Which of these chocolate brands does Nestlé own? </li></ul><ul><li>Butterfinger </li></ul><ul><li>Milky Way </li></ul><ul><li>Snicker’s </li></ul><ul><li>Reese’s Peanut Butter Cups </li></ul><ul><li>All of the above </li></ul><ul><li>None of the Above </li></ul>
  15. 16. TRIVIA!!! <ul><li>Which of these brands does Nestlé NOT own? </li></ul><ul><li>Cookie Crisp </li></ul><ul><li>Poland Springs </li></ul><ul><li>Häagen-Dazs </li></ul><ul><li>Cat Chow </li></ul><ul><li>Jenny Craig </li></ul><ul><li>All of the above </li></ul><ul><li>None of the Above </li></ul>