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Abstract

This structured assignment is to accompany the case ''605-044-1''. The abstract of the case is as follows: Nestle SA, the Switzerland based food and beverages company was the global leader in the industry. The first half year results of 2005 surpassed analysts'' predictions. The profits of the company were predicted to fall for the period due to the increasing raw material and packaging costs and the falling demand in France, Germany and Italy. Nestle was able to achieve higher profits mainly because of its: (1) operational reforms; (2) acquisitions; (3) divestments; and (4) product innovations for better market penetration. The company had set and achieved targets for considerable reduction in marketing, manufacturing and administrative expenses. The case discusses the various operational efficiency programmes and marketing strategies adopted by Nestle to counter the difficult market conditions in parts of Europe and to exploit the opportunities in the developing nations markets. The case provides ample scope for discussion on the effectiveness of Nestle''s strategies in retaining its leadership position. An analysis can also be done on whether exclusive strategies have to be evolved for developing markets, which provide ample growth opportunities.
Location:
Industry:
Size:
CHF87 billion

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Abstract

This structured assignment is to accompany the case ''605-044-1''. The abstract of the case is as follows: Nestle SA, the Switzerland based food and beverages company was the global leader in the industry. The first half year results of 2005 surpassed analysts'' predictions. The profits of the company were predicted to fall for the period due to the increasing raw material and packaging costs and the falling demand in France, Germany and Italy. Nestle was able to achieve higher profits mainly because of its: (1) operational reforms; (2) acquisitions; (3) divestments; and (4) product innovations for better market penetration. The company had set and achieved targets for considerable reduction in marketing, manufacturing and administrative expenses. The case discusses the various operational efficiency programmes and marketing strategies adopted by Nestle to counter the difficult market conditions in parts of Europe and to exploit the opportunities in the developing nations markets. The case provides ample scope for discussion on the effectiveness of Nestle''s strategies in retaining its leadership position. An analysis can also be done on whether exclusive strategies have to be evolved for developing markets, which provide ample growth opportunities.

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Location:
Industry:
Size:
CHF87 billion

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