Understanding Probiotics' Interaction with Intestinal Cells

This assignment provides an overview of Nestle Singapore's performance, highlighting its strengths in customer satisfaction, product diversity, and quality control management. The company has developed a new method for malt extract Milo products with less sugar and more complex carbohydrates. Additionally, it focuses on environmental sustainability through waste minimization and recycling initiatives. In the legal segment, Nestle operates in over 100 countries, complying with local laws and regulations. A Porter's Five Forces analysis reveals moderate threats from new entrants, high substitutes, and a strong bargaining power of suppliers. The company has a strong position in the food processing industry, but faces competition from rivals like Kraft Foods and Groupe Danone.

1 Introduction
Nestle is a focus on nutrition and health food company, to ensure the quality of life of customers, Nestle has branches in Singapore and a
number of countries. Nestlé Singapore (Pte) Ltd is a wholly owned subsidiary of Nestlé SA. With its headquarters in Vevey, Switzerland,
Nestlé has more than 450 factories spread over 75 countries. it aims to be the leading Nutrition, Health & Wellness company. Today, Nestlé
Corporation has grown to become the world's largest food company offering more than 8,500 brands and 10,000 products in different
packaging and distribution market. It offers products such as breakfast cereals, confectionery & chocolate, and coffee. The most famous
product is Milo. In addition, Nestle is one of the world's largest major shareholder of L'Oréal cosmetics company.
Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and
Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle). The company grew significantly
during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant
formula products. The company has made a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963,
Libby's in 1971, Rowntree Mackintosh in 1988, and Gerber in 2007.
Research hints that Nestlé has been trying with the internal and external environment. The plan and purpose of this written
opinion are to figure out the worth the current the situation of Nestlé Singapore and the current Food industry, also research the general
environment follow by PESTAL analysis, Porter five force, and strategic recommendations
2 Pestel Analysis
2.1 Political Segment
The policies that the government has put in place for the various companies to abide by is being determined by the political
stability of the country. One of the causes is changes in the regulation surrounding food standard and marketing actions. Besides that, to
ensure that consumers do not buy any fake products, Nestlé's products have always come with the seal of guarantee. By having the seal of
guarantees, consumers are now more confident and trust of Nestlé's products. It means that Nestlé's products quality will not be different
with other countries. Consumers are guaranteed to the full satisfaction of the products all over the world.
2.2 Economic Segment
Economic Nestlé is leading food industry, it shares its knowledge and expertise with local small and medium companies. It helps
entrepreneurs to compete in the new free trade environment which will ultimately benefit the industry and the economy by making the
market growth. Besides that, Nestlé also collaborates with local government to provide technical assistance to farmers in planting and
harvesting crops. The farmer will get income and Nestlé will get to purchase good and fresh raw materials to produce their food. By having
own local productions, Nestlé should no longer need to import any raw materials from another country where they will save much more
money. It will also benefit the consumers whereby consumers could enjoy the local productions with low prices. More consumers will use
this product and therefore Nestlé will gain more profit from that.
2.3 Social Segment
A good diet and adequate food supply, the central for promoting health and well-being is the focus of every person even these
days; whether people tend to value products that incorporate them healthy benefits. Obviously, these types of goods are preferred more than
that of junk foods and its relative products. Moreover, generation Y cohorts, those born from 1980s-2000s, possess characteristics such as
acceptance to change and being technologically savvy. These kinds of characteristics should coincide to the firms' aggressiveness of using
technology especially that this is also the tie of the influx of technology in the Europe.
2.4 Technological Segment
Nestle companies can use Internet technology to use technology for these advanced technologies to promote their products
and services. They By using this technology, market information for each country to do research and development , to understand the
requirements of each country. In addition to Internet technology, food safety scientists, nutritious food and beverage research and
development , processes and technology while maintaining the cusp of a new food science and technology development . Nestle R & D,
and / or a number of different technology world leader . Nestle Research Center is the first to see the interaction between intestinal cells and
probiotic molecules of one . Some probiotic sequenced genomes , so that we can better understand their characteristics and mechanism of
action. Nestle Singapore have developed a new method of malt extract Milo products which means less sugar and more complex
carbohydrates. According to Malaysia, launched in mid-2006 , and was launched in 2007 in Asia.( Nestle.com,2016).
2.5 Environmental Segment
Singapore's integrated solid waste management system focuses on two key thrusts – waste minimisation and
recycling, or simply the 3Rs (Reduce, Reuse, Recycle). In land-scarce Singapore, waste-to-energy (WTE) incineration plants offer the best
technical solution by reducing waste volume efficiently to conserve landfill space. The 3Rs play a crucial role by preventing waste
generation at its source and bringing along numerous benefits.(Nea.gov.sg,2016). Nestle Singapore through 11 projects, reducing packaging
waste at source, recycling of packaging waste, use of green energy (steam), and to minimize packaging waste to educate the public. And by
reducing the height of the carton and the elimination of the carton transport bulk laminate, saving nearly 7 tons of paper. Also reduces the
height of the laminated packaging, thus saving 14 tons of PET and PE material of 380 kg. By recovering the bulk bags of cocoa by-products
containing soy sauce, saving 1.2 tons of PP and PE materials.
2.6 Legal Segment
The basic understanding of the political-legal environment is when the government implement's laws and or regulations which
effect the way a business operates. Not only do corporations in the food and beverage industry have to follow the political and legal aspects
of their home country, they are required to follow the political laws and regulations of other countries the corporation is doing business in.
Nestlé operates and sells their products in over a hundred countries. In each and every country they (Nestlé) are operating in, they are being
regulated by the specific country's laws and taxes, whether it is through their products or employment. By being equipped for the countries'
laws and regulations, Nestlé and other corporations create a good standing relationship with the countries' government for the future of their

corporation. For example, Nestlé operates in Saudi Arabia and the United Arab Emirates among others. In these two countries, Nestlé faces
the Islamic Law and has created the Nestlé Halal Committee to foresee the Halal products produced by Nestlé Malaysia. (Ahmadnawi &
Nestlé)
3 Porter ‘S 5 Force Analysis
3.1 Threats of new entrants. The food industry is very viable and profitable. It has a huge and ready market which makes it very
attractive. However, new entrants have to battle with long existing products from Nestle and other food companies. This makes it difficult to
penetrate the market. Additionally, there are many government policies that have to be met in as far as manufacture of food products is
concerned. Getting the red light from inspectoral agencies such as the FDA can be more difficult for new entrants.
3.2 Substitutes have always been in line whenever we talk about products market, every kind of product has a substitute present
which leads it to the heights of competition when taken seriously. As the product is very common and daily use product so the threat of
substitutes is very high here. Like if we take the example of bottled water so the substitute of this is lean pockets that serve as a competition.
So Nestle has to innovate its products tremendously to stay in the market and to work efficiently for removing the threat of substitutes. We
can take the example of recent innovation which is health consciousness and wellness factor that has been introduced in all products of
Nestle. Such initiatives would make it easier for Nestle to go beyond the substitutes.
3.3 Bargaining power of suppliers is very important factor to be considered in any industry as they are the main strength of the
company. Nestle is known for strong relations with the suppliers around the globe due to its immense buying power and also because of the
fact that in such dairy and agricultural products quality is always important. Nestle as always focused over strong and sturdy business
relations to make the ongoing quality stronger. Additionally, Nestlé also presents helpful guidance to its suppliers on how to work more
proficiently to decrease redundant expenses. And thus it cares of its suppliers which I return pays them off in the form of quality products.
3.4 The bargaining power of customers has always been an important factor in terms of company’s performance so this should be
given reasonable value while accessing the company’s position. Customers carry huge quantity of bargaining power concerning their
utilization of different Nestlé products. Although a lot of substitute products and competitors Nestle customers have very influential choices
but still the quality that has been maintained by Nestle has made it very successful among the users. It is very important to understand the
power of the customers and also their needs so that they can be better satisfied. This is what Nestle always cares about and that is reflected
in Nestle health and wellness programs that ar being used wile creation of new products as society has in progress of becoming more health
conscious.
3.5 Competition if healthy would bring huge success but if negative would destroy the whole industry so it should be critically
analyzed for better future of the company. Nestle has a very strong position in the food processing industry but few major rivals do exist in
the industry like Kraft Foods and Groupe Danone. Above mentioned companies are fighting continuously to get on to each other and avoid
any sort of competition but I is still there. If we talk about marketing and advertising these companies have spent hell of their expenditures
for the purpose of effective marketing and advertising and in competition they have always ut performed each other. Competition is violent
in the food processing industry, and this is a plus point for consumers. Provided that these companies carry on in competing with each other,
consumers will persistently enjoy improving product qualities.
5 Conclusion
In conclusion, we know Nestle Singapore is stable and emphasizes customer healthy company. After research all the analysis of
Nestle Singapore, they can continue to be conscientious business and ensure customer satisfaction because they have a diverse and healthy
product to grow their business, they also have their quality control management to ensure that their product maintains in good condition.
Nestle Singapore will closely follow the development of the market and to remain higher than the competitor to achieve their brand
development as the whole world knows.