Entrepreneurship Assignment: In-depth Analysis of Nestlé's Business

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Added on  2021/08/04

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This report provides an in-depth analysis of Nestlé, a leading food and beverage company founded by Henri Nestlé. It examines Nestlé's history, vision, mission, and values, highlighting its evolution into a global giant with a diverse product portfolio. The report includes a detailed SWOT analysis, identifying Nestlé's strengths such as its brand reputation and efficient R&D, as well as its weaknesses, opportunities, and threats. It discusses Nestlé's strategic marketing capabilities, leadership, and commitment to consumer needs. The conclusion emphasizes Nestlé's efforts to maintain its position as a leader in nutrition, health, and wellness. The author expresses a positive opinion about purchasing shares in Nestlé, citing its proven success and global market presence. This assignment provides insights into Nestlé's business model and its strategies for success in the competitive food industry.
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Entrepreneurship – Small Productive Enterprises
LECTURER NAME
DR. ADEL QARAIN
TOPIC NAME
Nestlé
SUBMISSION DATE: 20/12/2020
STUDENT NAME: Fatima Dodeen
STUDENT ID: 19010991
INTRODUCTION :
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Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company.
Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestlé employ around 250,000
people from more than 70 countries and have factories or operations in almost every country in the world.
The history of Nestlé began in Switzerland in 1867 when Henri Nestlé, the pharmacist, launched his product
Farine Lactée Nestlé, a nutritious gruel for children. Henri used hissurname, which means ’little nest’, in both
the company name and the logotype. The nest, which symbolizes security, family and nourishment, still plays
a central role in Nestlé’s profile. Since it began over 130 years ago, Nestlé’s success with product innovations
and business acquisitions has turned it into the largest Food Company in the world. As the years have passed,
the Nestlé family has grown to include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral
water and other food products. Beginning in the 70s, Nestlé has continued to expand its product portfolio to
include pet foods, pharmaceutical products and cosmetics too. Today, Nestlé markets a great number of
products, all with one thing in common: the high quality for which Nestlé has become renowned throughout
the world.
Our Vision, Mission, and Value Statements of Nestlé:
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Our vision is “to be a leading, competitive, Nutrition, Health and Wellness Company delivering improved
shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling
preferred products.”
Our mission is to:
1- "Good Food, Good Life" to provide consumers with the best tasting, most nutritious choices in a wide
range of food and beverage categories and eating occasions, from morning to night.
2- Research can help us make better food so that people live a better life.
3- Good Food is the primary source of Good Health throughout life.
4- We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet
physiological needs.
Our values are to:
1- Full legal compliance
2- Honesty
3- Fair dealings
4- Integrity, and respect
SWOT Analysis of Nestlé:
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Strengths Weaknesses
Reputed brand name.
Globally recognized brand.
Highly diversified company.
World’s most valuable brand.
Well-established relationships and popular
brands.
Efficient R&D system.
Environmental sustainability practices.
Large distribution system.
Price fluctuations by retail giants.
Span of control and organizational structure.
Water controversy.
Social criticisms.
Maggi Noodles controversy.
Opportunities Threats
Venturing small food start-ups.
Online shopping.
Market penetration for breakfast cereals.
Expanding ready-to-drink tea and coffee
market.
Partnerships.
Authentic labelling.
Illegal rainforest destruction controversy.
Water scarcity.
Rising competition.
Government regulations and prices.
Conclusion
3 Entrepreneurship – Small Productive Enterprises
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Nestlé exerts great efforts to achieve its visions to be the leader in Nutrition, Health, and Wellness Company by
producing better quality of products to the consumers. Nestlé also study about the consumer’s needs from time
to time and satisfy the consumers as much as possible. Nestlé’s strengths such as high financial capability,
effective strategic marketing capability, strong research and development, as well as great leaderships have
helped them through the obstacles. Above all, Nestlé focuses on its missions and ensures consistency by
making the right decisions to manage and build its business to deliver the promise of Good Food, Good Life
all over the world.
My opinion, if there are shares to be purchased
Yes, because it is leading nutrition, health and wellness company, it is a well-known and successful company, it
has proven itself in all Arab and international markets and is not limited to one product, but has many products
that have proven its quality on the world level. And gives the employees a chance to shine after they become a
part of it and contribute something special.
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