Business Environment NESTLE Assignment

Added on - 09 Oct 2019

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1IntroductionNestle is a focus on nutrition and health food company, to ensure the quality of life of customers, Nestle has branches in Singapore and anumber 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, NestléCorporation has grown to become the world's largest food company offering more than 8,500 brands and 10,000 products in differentpackaging and distribution market. It offers products such as breakfast cereals, confectionery & chocolate, and coffee. The most famousproduct 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 andCharles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle). The company grew significantlyduring the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infantformula 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 writtenopinion are to figure out the worth the current the situation of Nestlé Singapore and the current Food industry, also research the generalenvironment follow by PESTAL analysis, Porter five force, and strategic recommendations2Pestel Analysis2.1 Political SegmentThe policies that the government has put in place for the various companies to abide by is being determined by the politicalstability of the country. One of the causes is changes in the regulation surrounding food standard and marketing actions. Besides that, toensure that consumers do not buy any fake products, Nestlé's products have always come with the seal of guarantee. By having the seal ofguarantees, consumers are now more confident and trust of Nestlé's products. It means that Nestlé's products quality will not be differentwith other countries. Consumers are guaranteed to the full satisfaction of the products all over the world.2.2 Economic SegmentEconomic Nestlé is leading food industry, it shares its knowledge and expertise with local small and medium companies. It helpsentrepreneurs to compete in the new free trade environment which will ultimately benefit the industry and the economy by making themarket growth. Besides that, Nestlé also collaborates with local government to provide technical assistance to farmers in planting andharvesting crops. The farmer will get income and Nestlé will get to purchase good and fresh raw materials to produce their food. By havingown local productions, Nestlé should no longer need to import any raw materials from another country where they will save much moremoney. It will also benefit the consumers whereby consumers could enjoy the local productions with low prices. More consumers will usethis product and therefore Nestlé will gain more profit from that.2.3 Social SegmentA good diet and adequate food supply, the central for promoting health and well-being is the focus of every person even thesedays; whether people tend to value products that incorporate them healthy benefits. Obviously, these types of goods are preferred more thanthat of junk foods and its relative products. Moreover, generation Y cohorts, those born from 1980s-2000s, possess characteristics such asacceptance to change and being technologically savvy. These kinds of characteristics should coincide to the firms' aggressiveness of usingtechnology especially that this is also the tie of the influx of technology in the Europe.2.4 Technological SegmentNestle companies can use Internet technology to use technology for these advanced technologies to promote their productsand services. They By using this technology, market information for each country to do research and development , to understand therequirements of each country. In addition to Internet technology, food safety scientists, nutritious food and beverage research anddevelopment , 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 andprobiotic molecules of one . Some probiotic sequenced genomes , so that we can better understand their characteristics and mechanism ofaction. Nestle Singapore have developed a new method of malt extract Milo products which means less sugar and more complexcarbohydrates. According to Malaysia, launched in mid-2006 , and was launched in 2007 in Asia.(Nestle.com,2016).2.5 Environmental SegmentSingapore's integrated solid waste management system focuses on two key thrusts – waste minimisation andrecycling, or simply the 3Rs (Reduce, Reuse, Recycle). In land-scarce Singapore, waste-to-energy (WTE) incineration plants offer the besttechnical solution by reducing waste volume efficiently to conserve landfill space. The 3Rs play a crucial role by preventing wastegeneration at its source and bringing along numerous benefits.(Nea.gov.sg,2016).Nestle Singapore through 11 projects, reducing packagingwaste at source, recycling of packaging waste, use of green energy (steam), and to minimize packaging waste to educate the public. And byreducing the height of the carton and the elimination of the carton transport bulk laminate, saving nearly 7 tons of paper. Also reduces theheight of the laminated packaging, thus saving 14 tons of PET and PE material of 380 kg. By recovering the bulk bags of cocoa by-productscontaining soy sauce, saving 1.2 tons of PP and PE materials.2.6 Legal SegmentThe basic understanding of the political-legal environment is when the government implement's laws and or regulations whicheffect the way a business operates. Not only do corporations in the food and beverage industry have to follow the political and legal aspectsof 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 beingregulated 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
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