Nestle case study Assignment Help

What is Nestle Case Study?

Case studies are methodical and analytical essays about any business. Case studies help us to know about the company in detail – about its history, products, challenges, solutions, etc. Marketers use case studies to get detailed insight about a company and lay out their own business plans. Nestle's case study analysis and answers have been a great source of information for many marketers. On that note, let’s learn about some of the important aspects of Nestle –

Company Overview

Nestle is one of the largest F&B companies in the world with a strong global presence. In terms of revenue, Nestle leads the chart among the food companies globally. Since its inception in 1866 by Henri Nestle, it has expanded its operations tenfold. Currently, it produces almost 2000 different types of products, although foods and drinks have always been its main foray. Some of the notable brands from the house of Nestle are –

• Maggi
• Nescafe
• Kit Kat
• Nespresso and many others

Nestle has a strong global foothold globally with 418 factories and more than three lakhs employees working currently. They have its factories in 86 countries and a customer base in 191 countries. This humongous operation base helped Nestle to notch an insane approx. 100 billion dollars turnover in recent times.

Nestle runs on their mission, "Good Food, Good Life." So they have developed 17 state-of-the-art laboratories, and they are a leader in researching nutritional sciences. They spend almost 2 billion dollars each year on their R&D alone and work relentlessly to maintain and increase the nutritional value of the foods.

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History of Nestle

Nestle has a long and rich history which started in 1866 when a Swiss pharmacist, Henri Nestle, founded the brand. Mr. Henri Nestle had strong values, and he propagated the vision of the company as, “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.”

In 1872, condensed milk was the first Nestle product launched in South Africa. However, they didn't formally establish the company's presence in the country until 1916, when it finally registered itself as a company. With increasing demand, they started expanding their operations and purchased South African Condensed Milk Company Ltd.

They started experimenting apart from their condensed milk business and also started to manufacture milk powders from their factory in Standerton in the year 1937. However, they got their first major break the next year when they started manufacturing Nescafe, an instant coffee powder that became the world's highest-selling coffee brand.

Soon, they started diversifying the products, and in 1947 they launched Maggi bouillon cubes that quickly became a household name. Gradually, over the next two decades, they made several other notable products like Nestle Lactogen, Molico, Cerelac, Nestum, etc.

The 1970s was a significant decade for Nestle, as they launched one of their hugely popular products, Nestle Milo, along with essentials like Nestle Everyday Milk Powder and Neslac. They also shifted their base to Randburg from Johannesburg. Over the next two decades, they acquired Carnation, a food giant of that time, Rowntree, and some of Borden Brands’. These decisions made their market hold even stronger.

In the 90s, they continued to launch other products like Maggi Relish Mix, Soups, etc. In the January of 2002, they partnered with Coca Cola to form BPW and introduced Nestea Ice Tea, which revolutionised ready to drink market. After a chain of other acquisitions and collaborations, they are currently playing a vital role in ESAR with their vast portfolio and market share.

Go through our Nestle case study introduction to learn about more detailed history of Nestle.

Product Portfolio

Our Nestle case study solutions can help you shed a better light on the vast product portfolio of Nestle. With more than 2000 brands under their umbrella, it is not an easy job to list all of them. Some of them are –

• Baby Foods
• Cerelac
• Ceregrow
• Lactogen
• Nan Pro
• Water
• Nestle Pure Life
• Glaciar
• Charmoise
• Valvert
• Carola
• Pellegrino
• Theodora
• Selda
• La Vie
• Acqua Panna
• Cereals
• Nestle Fitness
• Nestle Nesquick
• Cheerios
• Lion Cereals
• Chocolates
• Kit Kat
• Smarties
• Aero
• Les Recettes De L’Atelier
• Milkybar
• Confectionery
• Baci Perugina
• Quality Street
• Coffee
• Nescafe
• Nespresso
• Nescafe Dolce Gusto
• Starbucks
• Blue Bottle Coffee
• Frozen and Ready-to-Make foods
• Maggi
• Hot Pockets
• Stouffer’s
• Thomy
• Di Giorno
• Lean Cuisine
• Buitoni
• Mezeast
• Dairy products
• Carnation
• Nido
• Coffee Mate
• La Laitiere
• Drinks
• Nesquick
• Nestea
• Milo
• Nescafe
• Food Service
• Chef
• Chef-mate
• Sjora
• Minors
• Lean Cuisine
• Healthcare and Nutrition
• Nestle Health Science program
• Meritene
• Ice Cream
• Dreyer’s
• Movenpick
• Haagen Dazs
• Nestle Ice Cream
• Nestle Extreme
• Petcare
• Purina
• Purina One
• Purina Alpo
• Purina Felix
• Purina Proplan
• Purina Cat Chow
• Purina Fancy Feast
• Purina Gourmet
• Purina Bakers
• Purina Friskies
• Purina Dog Chow
• Purina Beneful
• Plant-based Solutions

Most of the brands of Nestle are now starting to offer plat-based solutions due to the rising trend of veganism. For example, Sensational VUNA, Wunda, Kit Kat V, etc., are their prime vegan options.

Our case study analysis of Nestle helps you to know in detail about all these products.

Organisational Structure

The organisational structure of Nestle is divided into 3 levels –

• Top-level Management

The top-level consists of the Board of Directors, CEO, and the MD. They are the apex body and manage all the decision making and policy implementation.

• Middle-level Management

Middle-level management consists of the departmental and branch managers. They look after their respective stores and branches. However, they remain answerable to the CEO and MD.

• Low-level Employees

This is the largest sect of the hierarchy, and all the employees and factory workers who work towards the betterment of the employee fall under this level. They are only paid to work as the top, and mid-level management asks them to do. They do not have any decision making powers.

You can learn about the organisational structure in more detail with our Nestle case study strategic management help.

What is SWOT Analysis, and Why Do We Use It?

SWOT analysis is a formal study used to determine the internal and external factors of a company. Strengths and weaknesses are the company's internal factors, while threats and opportunities are the external factors.

SWOT analysis is a vital tool for any company because managers use it for strategic planning and brainstorming. They use it for –

• Responding to new trends
• Taking advantage of a new business opportunity
• Implementing new technology
• Adapting to changes caused by their rivals

You can use SWOT to address various individual level issues as well. Companies use SWOT analysis to solve –

• Staffing issues
• New product development
• Business culture and image
• Advertising
• Optimise financial resources
• Increase operational efficiency

Take our Nestle case study assignment questions and answers to learn more details about SWOT analysis and how it works.

SWOT Analysis of Nestle

Strengths of Nestle

• Largest Food Company
• Reputed Brand Name
• Internationally recognised brand
• Billion dollar brand valuation
• Vastly diversified company
• Extensive product portfolio
• Well established corporate relationships
• Efficient R&D system
• Practices environmental sustainability
• Large and well-connected distribution system

Weaknesses of Nestle

• Price fluctuations by rival retail giants
• Controversy about water wastage
• Organisational structure and span of control
• Maggi Noodles controversy
• Social criticisms
• Racially insensitive product names
• Unhealthy products

Opportunities of Nestle

• Increase in online shopping
• Venturing into small food start-ups
• Market penetration for breakfast cereals
• Strategic partnerships with other F&B giants
• Expanding ready-to-drink markets
• Smart acquisitions
• Authentic labelling
• Refocusing on profitable ventures

Threats of Nestle

• Scarcity of water
• Controversy about destructing rainforests illegally
• Unfavourable Government regulations and prices
• Rising competition
• Racist accusations from the past
• Economic uncertainty

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Conclusion of SWOT Analysis of Nestle

After going through the entire Nestle case study summary, we have seen that although the company is the biggest retailer in the F&B market and consistently remains among the top 50 valuable brands of Forbes, they have faced certain challenges over the years. Issues from various sectors have plagued them, but that has not impacted the stability of the brand, and it is still profitable.

After doing the SWOT analysis of Nestle, we can understand that their extremely diverse portfolio helps them to hedge the risks and capitalises on these factors to expand their market share. Their product portfolio is ever growing, and their ability to focus on the latest trends like veganism aligns their core strengths with the available opportunities. At the same time, Nestle is always prompt to identify and address their threats and takes necessary measures to minimise their threats. This makes them one of the most efficiently run companies in the world.

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• Promoting Employee Engagement and Trustworthiness in Nestle
• CMS Practices in Nestle
• Case Study on SAP implementation in Nestle
• Case Study on the Control Models of Nestle
• Case Study on Nespresso and its Impact Among the Leading Food Companies
• Pros and Cons of Having Extreme Product Diversification – A Case Study

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Year-wise SWOT Analysis of Nestle Case Study

• SWOT Analysis of Nestle 2020

Strengths

• Global presence
• Increased cash flow
• Innovative approach
• Strong supply chain operations
• Digital transformation

Weakness

• High attrition rate
• Too much focus on advertisement
• Wrong product marketing
• Organisational structure

Opportunity

• Transparency
• Emerging AOA
• Ever-growing Product Portfolio
• Sustainability

Threats

• Covid 19
• Climate impact
• Wrong investment choices
• Quality and safety
• Intense competition

Go through our SWOT analysis of Nestle 2020 to learn about the details of the SWOT parameters.

• Nestle SWOT Analysis 2021

Strength

• 140 years of market experience
• Recognisable brand name
• Efficient distribution system
• Hi-tech Research and Development facility

Weakness

• Failing lab tests
• Fluctuating prices by the retailers
• Conflict of interest due to brand structure
• Legal issues about child labour

Opportunities

• Changing breakfast patterns
• Transparency with the customers
• Focus on rural markets
• Expanding market share in instant products

Threats

• Emergence of competition
• Government regulations
• The increasing cost of raw materials

Are you searching for more details about these individual parameters? Take our Nestle SWOT analysis of 2021 and learn about it in details.

• Nestle SWOT Analysis 2022

Strength

• Consistently among the Fortune 5000 companies
• Presence across metropolitan cities and rural markets
• More than 2000 brands under the name
• Strong worldwide labour for all market segments

Weakness

• Decreases in consumption after controversies
• Too many brands are causing cannibalisation for their own brands

Opportunities

• Compensating for the loss of brand image with new products
• Flexible supply chain enabling to move into emerging areas
• Joint ventures with proving to be successful General Mills, Palmolive, Coca Cola, Fronterra, and Snow Brad Mills Products.

Threats

• Too many fake products are threatening the brand image of Nestle
• Shortage of raw materials
• Excess brand rivalry makes it difficult to retain a customer

Go through our Nestle SWOT Analysis 2022 and get a detailed insight into the recent SWOT analysis of Nestle.

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Most Important Frequently Asked Questions Searched By Students:

Q1. Reasons why the company moved intentionally?

Ans: Consumers have loved Nestlé's products across the world since their inception. With the customer base rapidly growing, they decided to move internationally to cater to the worldwide customer base.

Q2. What is the SWOT of Nestle?

Ans: The SWOT of Nestle refers to its strength, weakness, opportunities, and threat. There are a lot of factors that you can only know after a lot of research. Transfer your worries to our experts and let MyAssignmenthelp.com help you get the perfect SWOT solutions for Nestle.

Q3. What makes Nestle unique?

Ans: Nestlé always operated worldwide while respecting the local roots. They also have an excellent R&D centre that gives them a unique ability to understand and adapt to the local preferences.

Q4. What is Nestlé’s completive advantage?

Ans: Nestlé’s unique research and development facility gives them a competitive advantage over its rivals. They can understand the products' issues and promptly work toward improving them.

Q5. Why is Nestle so successful?

Ans: Nestlé has managed to cater to local audiences successfully achieved in the globalised food industry. They have become successful because of efficient product planning and production accompanied by strategic marketing and administrative decisions.

Q6. How does Nestle satisfy their customers?

Ans: Nestlé spends a good amount of time studying the consumer's needs at regular intervals. They focus on their financial strength, strong research and development, effective strategic marketing, and great leadership capability to soar above the obstacles.