Business Analysis of NESTLE by Irina Violina

Essay by i_violina March 2005

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CONTENTS

page

1. Introduction...........................................................3

2. Describe the context in which selected company is operating (economics, market, politics, other useful information)...........................................................4

3. Describe the style of management adopted by the firm...5

4. Describe the type of organisational structure adopted by the firm................................................................7

5. Describe the major challenges for the firm in terms of motivating and managing human resources.................8

6. Describe how firm's customers buy its products..........13

7. Describe the pricing and distribution strategy adopted by the company........................................................14

8. Conclusion..........................................................16

9. Bibliography........................................................19

INTRODUCTION

Nestlè is the world's largest food company with the headquarters in Switzerland. It is the 7th largest corporation in Europe and the 36th largest in the world. Nestlè is a leader among Western companies in penetrating the developing markets in central and Eastern Europe and Asia. Its products are available in nearly every country around the world.

The company has been a leading manufacture for over 130 years. It employs approximately 230, 929 people, has 509 factories world-wide and produces healthy, enjoyable food products for every stage of life.

Analysing Nestlè organisational structure, its strategies, policies, and activities we can understand the best ways on developing business on international arena. Nestlè takes stock not only of all novelties introduced in management of business but adopts them to the conditions of concrete country, level of its development, its culture, and its economic interests.

THE CONTEXT IN WHICH NESTLÈ IS OPERATING

We have to emphasise again that Nestlè is a transnational corporation that conducts its business in almost all countries of the world. This characteristic can lead to some difficulties but also to many advantages.

Nestlè had to learn to respect social, political and cultural traditions of all countries in which the products are produced and sold. Carrying out its global social responsibility Nestlè takes a long term approach to strategic...