PHÂN TÍCH CHIẾN lược KINH DOANH của NESTLÉ e

Introduction of the Nestlé company...4 1.1 Overview of the Nestlé company...4 1.2 Establishment history and development...4 1.3 The business philosophy...6 1.4 The values and principles,

PHÂN TÍCH CHIẾN LƯỢC KINH DOANH CỦA NESTLÉ.

NESTLÉ'S BUSINESS STRATEGY.

TABLE OF CONTENT

TABLE OF CONTENT 2

INTRODUCTION 3

RESEARCH OF CONTENT 4

1 Introduction of the Nestlé company 4

1.1 Overview of the Nestlé company 4

1.2 Establishment history and development 4

1.3 The business philosophy 6

1.4 The values and principles, business standards of Nestlé: 7

2 Introduction to Nestlé Vietnam 8

3 Nestlé's business strategy 8

4 Studies coffee products of NESCAFÉ 10

4.1 Formation and development 10

4.2 The position current 11

5 Analysis of the business environment 12

5.1 Interests of consumers 12

5.2 Pressure from governments 12

5.4 Technological innovation, access to supplies 13

CONCLUSION 14

Currently the company in Vietnam is also facing challenges enormous Conceived

in a young economy, companies in Vietnam has not had much experience against the crisis and the increasingly fierce competition from rivals in the world Therefore, we need

to look closely at the strategies of large companies have much experience to learn and to find alternatives to deal in order to maintain and grow the business With head adept in recognizing the opportunities and challenges before the global recession now, the operator of Nestle - one of the giant transnational corporations in the world- are implementing powerful transformation step for the company and earned a lot of success The Nestle study will give us the ability to make decisions and proper measures for development company, holds a competitive advantage Moreover, Vietnam be accorded the abundant raw materials for manufacturing, where international companies (including Nestle) is heading to exploitation

Nescafe is one of the flagship brands of Nestle Nestle spent a lot of resources and support for the development of this brand With construction projects Nescafe factory in Vietnam, the company Nestle is set production and processing of coffee in Vietnam in a difficult position If not equip themselves with the necessary knowledge, set out the appropriate strategy, the company in Vietnam will quickly fail in their home market I decided to study coffee is found as this is one of the strengths of Vietnam should be used

to put the country's economy going up

Although the company is currently focused on developing world field marketing but marketing strategies will never work if the other parts are not operating effectively Each department in a company are decisive factors of success of the company In individual assignments, I would mention the business strategy This strategy plays a very important role In the current crisis, the production company business with particular emphasis of this strategic adjustment There is an appropriate business strategy will put the company ahead of the competition, bringing the cost advantages, advantages in customer satisfaction for the product

RESEARCH OF CONTENT

1 Introduction of the Nestlé company

1.1 Overview of the Nestlé company

Nestlé (Nestlé S.A or Société des Produits Nestlé SA) is headquartered in the city

of Vevey, Switzerland, is a multinational food and nutrition world's largest with a total of 250,000 employees and 500 plants worldwide Founded in 1866 by Henri Nestlé, currently the company's products have been worn in most countries around the world

The scope of the company's product line from coffee, water, ice cream, baby food and to implement health and nutrition care, pet care, confectionery and pharmaceuticals The main brands include Nestle Nescafe, Perrier, Nestea, PowerBar, Cuisine and Toll House

By experience and business strategies, the leaders of Nestle cope with the challenges brought growing corporations and powerful nations themselves reach out across the continent and around the world Nestle has always had a breakthrough in business as well as in market research to increasingly demonstrate its number one position in the food sector in the world

1.2 Establishment history and development

- In the period 1866-1905: In 1860, pharmacist Henri Nestlé invented a food for babies can not be breastfed His first success was rescued a preterm baby can not be breastfed food or other common alternative The value of this new product quickly recognized since the new formulation of Nestlé premature babies survived Since then, Nestlé infant formula Farine Lactée Henrie has been widely sold in Europe

- In the period 1905-1918: 1905, Nestlé merged with the company producing Anglo-Swiss milk Since early 1900, the company was operating factories in the United States, Britain, Germany and Spain World War I created a new source of demand for dairy products in the form of government contracts End the war, Nestlé's production level was more than doubled

- In the period 1918-1938: After of World War, the government contracts with consumers run out and quickly returned with fresh milk However, Nestlé team has responded quickly, organizing effective operations and reduce debt In the 1920s, Nestlé

began expanding into the manufacture of new products and chocolate become an important sector of the Nestlé second

- In the period 1938-1944: Nestlé immediately notice the effects of World War II Profits fell from 20 million dollars in 1938 to 6 million dollars in 1939 The factory was located in the developing countries, particularly Latin America Surprisingly, the war has helped the company to introduce new products, Nescafé drinks mainly of the US military The output and sales of the Nestlé rose quickly in wartime

- In the period 1944-1975: End of World War II was the beginning of an active period of Nestlé Nestlé Continuous rapid development and acquisitions many companies In 1947 approaching merger with manufacturer Maggi seasoning and soup In

1960 the Cross & Blackwell and in 1963 to turn Findus, Liffy's in 1971 and Stouffer's in

1973 Nestlé began to diversify products while holding shares in L'Oréal in 1974

- In the period 1975-1981: The development of Nestlé in market developing country partially helped offset the decline of the Company on the traditional market Nestlé speculative conduct a second outside the food industry by acquiring Alcon Laboratories Inc Company

- In the period 1981-1995: Nestlé gave up some business from 1980 - 1984 In

1984, the key improvements in the operation of the company has allowed Nestlé to conduct new acquisitions, the most important is the acquisition of "giants in the US food industry" Carnation

- In the period 1996-2002: In the first half of the 1990s was a period favorable for Nestlé: trade barriers were lifted, world market development into regional trade integration Since 1996 the company has acquired companies such as San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002) Two acquisitions largest in North America took place in 2002: in July, Nestlé merged businesses their cream in the United States in the company Dreyer's, and in August, announced acquisitions Corporate Chef America with price is 2.6 billion dollars

- In the period of 2003 - up to now: in 2003 was a good start by acquiring Mövenpick ice cream manufacturing company, strengthening its position in the world Nestlé's head in this sector In 2006, Nestlé invested in Jenny Craig and Uncle Toby's, and until 2007, Novartis Medical Nutrition companies, Gerber and Henniez also be merged into Nestlé

1.3 The business philosophy

1.3.1Recklessness and daring to develop

"When you stop growing means you start dying," said Peter Brabeck, Nestlé's business manager confirmed Over 20 years, Nestlé has not stopped growing and expanding worldwide, crush many competitors and a turnover of USD 98 billion, profit before tax of 11 billion Swiss francs in 2003 Brabeck became CEO of Nestlé in 1997 still want corporations continue to expand further His goal is to increase annual sales to

90 billion Swiss francs

1.3.2 No change to change all

The first thing to go was decentralized Nestlé began to consolidate the leadership

of the factory in each country in the region, combined supervision of similar products in the "unity of business strategy."

Executive Nestlé to the global consensus without losing the ability to adapt products to each market Currently, the company produces more than 200 different kinds

of coffee Nestlé to suit the taste of customers worldwide

Nestlé is one of the largest companies in the world, turned into a global corporation effectively with strong management, Nestlé will continue far longer

1.3.3 The quality

Product quality is the top priority of Nestlé As a company that nutrition, health and healthy living, Nestlé is committed to providing consumers with high quality products suitable for each age group Nestlé not interested in taste but also focus on the nutritional aspects of the product to deliver to the consumer's health

Currently, Nestlé is a multinational food budget and nutrition research centers the world's largest The scientific know-how combined with experience over 140 years in manufacturing various foods under the brands reputation gave Nestlé a unique position in the field of global nutrition Nestlé brands in each product is a commitment to food safety, compliance with all current regulations and standards of quality

1.3.4 Environment

Nestlé commitment to doing business with awareness of environmental protection and contribute to the sustainable agriculture initiatives Nestlé pays great attention to the environment protection, considering it as a responsibility to society and the community

The factory of Nestlé aims to minimize the amount of water and energy used in production

1.4 The values and principles, business standards of Nestlé:

1.4.1 The common principles

The principle business of the Group will continue to be developed before the changes going on in the world, however, these principles are expressed the basic ideas of fairness, honesty and relationships common interest for everyone

1.4.2 Principles of management and leadership of Nestlé

Is a very human company, Nestlé always meet the essential needs of man on Nutrition and Health This view is reflected in the style and encourage managers and leaders throughout the company Besides, respect for different cultures and values of all foundation staff is essential for success in business and for the company culture Nestlé is also a Swiss company inherited many values are developed in Switzerland in the past century

Accordingly each Nestlé managers are required motivate and mobilize employees, seeks to improve the way you work, create the atmosphere change, promote innovation They are experiencing personal experience working in an international environment, always respecting the cultures of the world, respect towards the long-term strategic approach, rather than the short term

1.4.3 Principles of communication to consumers

In the communication, Nestlé has always respected cultural and local values, always honest and uphold the healthy nutritional habits This is especially important for small children Nestlé is committed to the principle of not advertising directly to children

6 years of age With products for ages from 5 to 12, only communication to children if products meet strict nutritional standards and most have adequate nutrition category with this age Nestlé accelerate the reduction of sugar, salt and fat without health benefits of these products while promoting balanced diet and healthy lifestyle

1.4.4 The standards of business ethics:

Business ethical standards give specific guidance for each employee on how to implement business rules This standard emphasizes further the need to act lawfully and honestly, putting corporate interests above personal interests, fight against bribery and corruption, has always shown integrity at highest

2 Introduction to Nestlé Vietnam

Nestlé arrived in Vietnam for the first time in 1916 Over the decades, products such as: GUIGOZ, MONT- BLANC LAIT, MAGGI have become familiar to generations

of consumers Vietnam Nestlé returned to Vietnam in 1990, and opened a representative office in 1993

In 1995, Vietnam Nestlé Company Limited (100% foreign capital) was established, under Nestlé SA Also in 1995, Nestlé licensed establishment Dong Nai plant, specialized in manufacturing NESCAFÉ soluble coffee, instant tea and packaged drinks NESTEA MILO, NESTLÉ nutritious cereal powder, MAGGI seasoning and dipping sauce, COFFEE-MATE cream powder

Vietnam Nestlé Company is headquartered in Ho Chi Minh City and sales offices

in Hanoi Nestlé has Dong Nai factories in southern Currently total employees of Nestlé Vietnam up to 1000 people Over the years, Nestlé has attracted and trained a person workforce Vietnam qualified to meet the needs of business development of the company Activities in Vietnam:

- Office of Nestlé's first business in Saigon was founded in 1916 Here are the milestones recorded the rapid development of the company in Vietnam:

- In 1992: La Vie Company, a joint venture between Nestlé and Perrier Vittel under a trade company Long An was established

- In 1993: Nestlé Vietnam officially back and opened a representative office in Ho Chi Minh City

- In 1995: Nestlé Vietnam born Officially started construction of factory in Dong Nai

- In 2002: Putting into operation the second plant of La Vie in Hung Yen

- In 2007: Selection Dielthem official distributor for chocolate products and confectionery

- In 2008: Establishment of Special Nutrition Division

3 Nestlé's business strategy

To be able to sustainable development and exploiting the opportunities and overcome the difficulties of globalization, Nestlé has adopted many international business strategy for each type of product and each market As a large multinational company with many international brands, Nestlé is not too rigid in applying their

strategies According to some documents, Nestlé has applied multi-domestic strategy The following strategies can help Nestlé to adapt to each specific market, to meet the different needs of consumers and thus enhance competitiveness, the SBU of Nestlé has high independence In the case of Nescafé, the factory, the company's branch in the country is entitled to make decisions on many aspects such as price, output, product type, raw material supply, distribution systems,etc, adapting a domestic brand or product to suit local market conditions, sometimes resize package or product innovation to make it more appealing to local consumers Monitoring of excessive or directives from the headquarters will not only limit the discretion of the local administration, but also affect the local brand Nestlé intensive use of local managers to diverse activities around the world together, companies based include 700 managers who spend most of their careers

on foreign assignments, moving from one country to "foreign troops" The company owns 8,500 brands, but only 750 people of which registered in many countries, and only

80 registered in more than 10 countries While other companies will use a global brand in many developing markets, Nestlé focused on trying to optimize the components and processing technologies to local conditions and then use a name brand resonates locally And globalization are key to the company's strategy in the emerging markets

The conclusion Nestlé applied such strategy for Nescafé domestic market as shown by the company only put 11 out of 27 plants in the coffee producing countries Thus 16 factories in other markets do not meet the needs of cost savings the company that primarily because adapting to the local market However, Nestle closed 38 factories demonstrates companies are interested in reducing the cost to bring greater competitiveness in crisis, recession and fierce competition today

Today, multinational companies global reach by acquiring local brands with very large portfolios, unbalanced The other point that is applied Nestlé's global strategy to make use of material resources in the country These are measures to help Nestlé to cope with the difficulties ahead Evidence that in recent years, two-thirds of Nestlé's growth came from acquisitions But besides that also brings some problems for Nestlé because the large portfolio from the acquisition and development of global distribution and marketing network, ie on the basis of brand powerbrands market Leading been recognized in almost every country around the world The main aspects of the global strategy include:

- Stable global markets as the domestic market.

- Create a global marketing mix, while recognizing regional differences and countries, such as differences in language and tastes

- Creates production and global distribution systems, such as superfactories include large areas of the world

- Focus on powerbrands - most successful brands and products Because the global market is huge there are significant benefits gained from economies of large-scale marketing, manufacturing and distribution Instead of producing thousands of different products, narrowing the scope of a much smaller amount to support this global brand

However, Nestlé does not just stop at the standardized products that offer multiple product lines with many different categories to provide greater customer satisfaction So the book Foundations in Strategic management, the authors see Nestlé as an example of companies implementing transnational strategies Adopting strategies allow transnational companies can pursue two objectives that meet the needs of consumers and cost savings This strategy has the advantage of learning and mutual transfer of experience in the global system However, resource companies scattered across the board makes it difficult for management Really the Nestlé is working on what strategy is difficult to determine But the results of the application of this strategy is to grow market companies and provide optimal profit

4 Studies coffee products of NESCAFÉ

On average in the range of Nestlé, Coffee is considered a successful product line and bring more profits for the company The evidence is that its introduction has created a revolutionary coffee-drinking habits of people around the world and has been rated as one of the types of instant coffee powder leading drink

4.1 Formation and development

In the world's only brand Nescafé value is quantified by a much larger amount than the value of the corporation that owns it Nescafé officially born on April 1, 1938 and is now the most expensive brand of all brands of Switzerland However, the launch

of Nescafé have originated from Brazil

In the 20s of the 20th century, coffee in South America, particularly in Brazil are rich harvest To keep the coffee price is reduced by oversupply, measures often used as coffee dumped into the sea In 1930, the Brazilian government trust Nestlé find out how