BUS6005 International Business

BUS6005 International Business T1 2022
Assessment 3: Project Report
Title: Expansion of Nestle in Eritrea
Student Name:
Student Number:
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Executive Summary
The report states the international business development of Nestle Australia Ltd. in Eretria. It has
focused on providing a detailed discussion of company, product and country profiles referring to
the international expansion. The report has included a PESTEL analysis that has helped to
identify opportunities and threats in Eritrea. Trade and agreement for import process and other
business aspects have been addressed here. Australian trade for Eritrea has been explained in this
report. International market entry strategies have been analysed and based on that one strategy
has been chosen. A SWOT analysis has been portrayed of the brand to highlight its core
competencies. SAP has been denoted as the brand. Several studies have been portrayed regarding
the exporting policies of Australia and importing of Eretria. Market segmentation, targeting and
positioning have been done for the organisation in Eretria and the company will target young
customers. Marketing mix for the organisation to be fowled in Eretria has also been done in this
report.
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Table of Contents
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................5
1. Company Profile..........................................................................................................................5
2. Product/Service Profile:...............................................................................................................6
3. Country Profiling.........................................................................................................................7
4. SWOT Analysis of the Company:.............................................................................................10
5. Government Policy Study..........................................................................................................12
6 International Market Entry Mode...............................................................................................14
7 International Marketing Plan......................................................................................................16
8 International Business Plan.........................................................................................................19
Conclusion.....................................................................................................................................21
Reference List................................................................................................................................22
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Introduction
International business can be referred to as the commerce of goods and services across national
borders and can lead to the increment of productivity of the respective organisation (Ferraro,
2021). Nestle Australia Ltd. can be referred to as the multinational manufacturer of nutrition,
health and food items and is popular in Australia (Nestle, 2022). This project will highlight the
key strategies to be adopted by the brand to gain market attraction and increment productivity in
the market of Eritrea. It will discuss the company, product and country profile of the brand and
perform a PESTLE analysis. The next part of the report will highlight SWOT, SAP, government
policies, international market mode and plan along with business planning.
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Main Body
1. Company Profile
The chosen company for the report is Nestle Australia Ltd. In the nation, Nestle Australia Ltd. is
headquartered in Building D, 1 Homebush Bay Drive, Rhodes NSW 2138 (Nestle, 2022). The
brand is recognised to be the world’s largest food and beverage brand and has provided the
consumer with diversified products. It specialised in dairy, confectionery, frozen food and
healthcare nutrition goods. The brand is operating in the food and beverage services sphere and
was founded in the year 1867 by Henri Nestle (Nestle, 2022). It has over 339,000 employees and
it has been available in the Australian market since the 1880s. In 1906, the country had become
the second-largest expert territory and the majority of operations are structured around Oceania
since 1999. During the year 1908, the brand referred to a nationwide sale and distribution
network and led to the creation of an effective market in the same. In the year 1934, the brand
catered to the invention of Milo, which led to the creation of the sale of 500 million USD
(Nestle, 2022). The organisational structure of the brand resides in the hierarchal attribution
where roles and responsibilities are delegated according to the capabilities of the staff.
Information is commuted through the top-down approach and leads to the union of distribution
centres.
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2. Product/Service Profile:
Nestle Australia Ltd. is attributed with over 2000 brands that have transferred from being global
icons to a local favourite of the target market. Nescafe, Nespresso, Nesquik, Cheerios, Maggi,
Carnation, Milo and Kitkat are some of its recognisable brands (Nestle, 2022). Moreover,
customers are engaged to enjoy the products of OptiFast, Cerelac, Purina, Felix, Nancare
Soothers and others. In the Australian sphere, the brand has gained a sales increase of 3.5% to
the CHF of 45.5 billion USD (Nestle, 2022). It has allowed the brand to make significant
development towards the attainment of goals based on the revenue inculcated and smooth cash
flow of the same. In 2018, the sales accounted for about 43 Billion USD (Nestle, 2022). The
organic growth rate of the brand has been attributed to 3.6%. Products carted by the brand have
gained recognition from the masses owing to their attractive packaging and good quality and
taste. Moreover, the nominal pricing of the products has helped it to gain a large consumer base.
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