INDUSTY

ANALYSIS
TABLE OF CONTENTS
CHAPTER 1
Introduction . . . . . . . . 1
CHAPTER 2
Objective . . . . . . . . 2
CHAPTER 3
Conceptual Framework . . . . . . 3
CHAPTER 4
Methodology of data gathering . . . . . . 4
CHAPTER 5
Summary Findings . . . . . . . 5
Recommendation . . . . . . . 6
Appendices . . . . . . . . 7

CHAPTER 1
Introduction

Founded in 1866, Nestlé is the largest food and beverage company in the world. Initially,
the company sold only infant’s cereal but they quickly diversified to include a variety of
products including chocolate, coffee, soup, yogurt, water and frozen foods in their portfolio.

The organization employs nearly a quarter of a million people from 70 different countries
around the world. Nestlé operates in almost every part of the world. They have reached an
impressive global audience both through their own efforts and through joint ventures with
companies like Coca-Cola. Nestlé ‘s success has been driven by a combination of product
innovation and business acquisition. It is their motivation for growth and diversity that has
allowed Nestlé to become the key player in nutrition that it is today.

In 1866, the first condensed milk factory in Europe opened in Cham, Switzerland. The
company was called the Anglo-Swiss Condensed Milk Company. The factory was owned by
two American men, brothers Charles and George Page. They had see the growth of
condensed milk in the United States and wanted to manufacture milk near to a large,
quality source. Switzerland produced a large amount of high-quality fresh milk and had
been the center of production for many milk based products since the early 19th century.
The business owners created their milk products in Switzerland, but it was always intended
for the English market. They opened a British factory in England in 1873.

Henri Nestlé, the company’s founder, worked as an assistant to a local pharmacist early in
his career. He was trained in science and chemistry. Henri was an innovator by nature, and
he experimented with everything from food to cement. In 1867, Henri Nestlé produced a
nutritious combination of milk, wheat, and sugar. This cereal was so nutritious that it saved
the life of a child. He called it Farine lactee. The product took off, and he began producing
his baby food on a large scale. He started out buying the milk he needed to make the Farine
lactee fresh each morning. By 1869, this method was no longer practical, and he began to
purchase his milk supply from a collection center to have it delivered to his factory. Nestlé
‘s business acumen combined with his quality products resulted in an impressive growth of
his business. By 1875, only 8 years after his initial launch, Nestlé products could be found
across the globe in countries like Indonesia, Argentina, Egypt and even the United States.

The first Nestlé logo was created in 1868 and Henri Nestlé based it upon his family’s coat of
arms. Henri had immigrated to Switzerland from Germany. The first logo was a play on his
family name, Nestlé, which means ‘nest’ in the German language. The first logo included
his familial origins by incorporating a nest and adding young birds being fed to link the
logo to his baby food products. The logo has been reimagined and simplified over the years,
but it has retained the same basic structure that Henri Nestlé developed in 1868.
Throughout the last decades of the 19th century, the two Swiss companies, Nestlé and the
Anglo-Swiss Condensed Milk Company had become incredibly competitive. In 1905, Nestlé
merged with Anglo-Swiss Condensed Milk Company.

CHAPTER 2
Objective

“Marketing objectives are compatible with the overall corporate objectives of Nestle.
Company’s objective is to be the world’s largest and best-branded food manufacturer while
ensuring that nestle name is synonymous with the products of the highest quality”.

Nestlé’s business objective is to manufacture and market the Company’s

products in such a way as to create value that can be sustained over the

long term for shareholders, employees, consumers, and business

partners.

 Nestlé does not favor short-term profit at the expense of successful long-

term business development.

 Nestlé recognizes that its consumers have a sincere and legitimate

interest in the behavior, beliefs and actions of the Company behind

brands in which they place their trust and that without its consumers the

Company would not exist. So the needs & wants of consumers should be

considered.
 Nestlé believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct, although in certain areas, additional

guidance to staff in the form of voluntary business principles is beneficial

in order to ensure that the highest standards are met throughout the

organization.

 Nestlé is conscious of the fact that the success of a corporation is a

reflection of the professionalism, conduct and the responsible attitude of

its management and employees. Therefore recruitment of the right

people and ongoing training and development are crucial.

 Nestlé continues to maintain its commitment to follow and respect all

applicable local laws in each of its markets

CHAPTER 3
Conceptual Framework

CHAPTER 4
Methodology of Data Gathering

This research is been conducted to survey the product performance and buying behavior of
consumer in selection of chocolates. The relevance of the study is to survey the product
performance and buying behavior of two famous brands of chocolates – Nestle and
Cadbury, which are consumed by people of all ages. During this research I have interacted
with people of JUMBO DARSHAN AREA. This research is to know which particular
brand of chocolate is most preferred by people of different age groups. Research Problem
Every research has their own problem and limitation but good researcher have to overcome
that problem by their skill. In this research problem I would like to understand and
analyze about the chocolates products available in jumbo Darshan area and collect the
feedback from group of people and I wanted to know the developments made in direction
of chocolates industry. Objective of the study The purpose of this report is to evaluate
Nestle Company industry based on the case study and comprehend how the company
develops strategic intent for their business organizations following the analysis of external
and internal business environments. I will analyze the strategic management process as
firm used to achieve strategic competitiveness and earn above-average returns. I will
discuss the strategy formulation that includes business-level strategy and corporate-level
strategy. -To study on consumer preference towards Cadbury and Nestle chocolates. -To
know the consumers view towards the chocolates. -To know which category of chocolate is
most preferred.

To study on various parameters on which the consumer purchases the chocolates. - To

increase customer satisfaction and recapture the market share by fulfilling the customer
needs. - To study the factors affecting the consumption pattern. It also aims to identify
market place opportunities and threats in the external environment and to decide how to
use their resources, capabilities and core competencies in the firm’s internal environment
to pursue opportunities and overcome threats. In order to strengthen this assignment about
Nestle, there are several methods of gathering data has been conducted, such as PEST
analysis, Porter’s 5 forces model, value chain analysis and SWOT analysis. By the end of
this assignment, future strategy will be mentioned as well as my recommendations about
Nestle that will fit into strategic orientation in order to perform better in their business
world. And continue to develop and implement its learning approach as the chosen large
company by using different strategies.
 CHAPTER 5
Summary Findings

Nestle company is health, nutrition and wellness firm that supplies, manufactures and
produces ready dishes and cooking aids, pharmaceuticals and ophthalmic goods, milk
based products cereals and baby foods. The company operates across six zones that include
zone America, zone Oceania, zone Africa and Asia. Nestle was formed in 1866 by Henry
Nestle and its main headquarter is in Switzerland. With employment of different business
strategies and introduction of new products line, Nestle boosts of employing approximately
339,000 personnel with operations in all regions all over the globe. The company aims to be
the leader in the food industry more specifically health, wellness and nutrition. Despite its
success in the market, Nestle still faces internal and external challenges thatthey need to
overcome in order to reach their goals. With the dynamism in the market Nestle tends to
embrace change and comes up with products suitable for its customers while still
improving on the quality of its original products line. Improvements on the technology,
organizational structure, marketing mix, operations as well as human resource
management led to more profit margins of the company. Nestle has a lot of challenges
especially external ones that seem to grow each day. But with thesecomes opportunities that
need to be explored. Nestle enjoys high credibility among customers because of its quality
products and loyalty and trust among its customers. It also has the chance to be able to
cooperate and forge partnerships with other local industries to boost their image in
whichever region they are based. With dynamism comes new trends that need embracing to
be able to conquer certain markets. Competition is good as it makes companies think and
come up with strategies that enable them stay above competition.Every organization is
established in a society; with goodwill at heart, these companies can easily forge good
relations that will go a long way to market their products. Corporate social responsibility
can be to improve customer relations, saving the environment.

Recommendation

For a company that will turn one hundred in a decade, Nestle has almost tried all of the
strategies there can be. Nestle company has expanded internationally, helped countries’
economies grow, be environmentally conscious and create joint ventures with other
companies in which enhanced Nestlé’s and these companies’ performance positively.
Followed are a couple of recommendations in which might enhance their performance
which are: •Avoid actions that are bound to fail

Even though there is no way that someone can know the future, but a good management
team should be able to extrapolate if a plan they have might back fire such as the
scandalous event resulting from their oil practices, for cosmetics, activities mentioned
earlier. They should’ve expected that dealing with such activities might result in leakage
and that they should’ve taken precautions before head. •Invest on R&D

Nestle should concentrate on that in order to come up with new products. Since the
company started out to serve infants in need for nutrition, Nestle should enhance and find
way to enrich their product with substances and vitamins that will provide children their
daily needs of calcium and even mothers. Because they should start from mothers’ health in
order to provide infants’ health. Especially now when children suffer diabetes amongst
other things, they need more care than before. •Joint ventures

Nestle should carry on with their partnership activities that will increase their competitive
advantage more. However, they shouldn’t venture their business with companies that can’t
sustain the pressure of the market and in which waver under the scrutiny of competitors.
They should choose qualified companies and companies that show promising performance.
Even though the future can’t be told by looking at numbers and financial performance,
companies should extrapolate what might happen and look at all the angles of matters in
both ways, positively or negatively.
 Appendices

As a result of the adoption by the 34th World Health Assembly of the International Code of
Marketing of Breastmilk Substitutes recommended by the World Health Organization
(WHO),
Nestle has determined to:
1. continue to comply with National Codes for the marketing of infant formula; and
2. apply the internal Nestle Instructions, which have been developed to implement the
WHO Code, except for those provisions that are inconsistent with national or local
requirements or established governmental policy, as the government deems appropriate to
their social and legislative framework and their overall development objectives.
In order to assure that this commitment is translated into practice, Nestle has issued
preciseinstructions to its managers, employees, and agents and is reinforcing its internal
monitoring procedures.
The health authorities in each country where the internal Nestle Instructions are to be
applied have been duly informed. Nestle is responsible to the government in each country
where it sells infant formula for the strict application of the Code in force--whether it be
the National Code or the Nestle Instructions for implementing the WHO Code.
Prominent church leaders have proposed that Nestle invite a group, composed of
prominent clergymen, medical authorities, civic leaders and experts on international policy
issues to form the Nestle Infant Formula Audit Commission. The objective of this
Commission is to examine complaints and allegations about Nestle's marketing practices
and to satisfy itself that Nestle is honoring its publicly stated commitments in relation to the
application of the WHO recommendations.
Article I. Composition
The Nestle Infant Formula Audit Commission (the Commission) shall be composed of a
chairman and no more than eight members. Nestle (the Company) shall choose the
Chairman of the Commission and consult with the Chairman, church leaders and other
responsible entities in selecting the members of the Commission.
Article II. Mission
The mission of the Commission shall be to apprise the Company of any problems it
discovers in the internal investigation and control systems of the company in its application
of the WHO or National Codes. It shall answer inquiries from the public, as it deems
necessary, regarding Nestle's implementation of the WHO Code or compliance with the
applicable National Code.
Article III. Procedures
1. Nestle will provide the Commission with up-dated lists of those countries where National
Codes apply and those where Nestle Instructions have been accepted by the authorities. It
will place at the disposal of the Commission copies of the National Codes in operation, as
well as the Nestle
Products