international business project

            Nestle is a food and beverage company with its headquarters being located in Switzerland. It has revolutionized the food and beverage industry through its chocolate brands with brands such as Kit-Kat being globally synonymous. Nestle came into existence through the merging of two companies in 1905, Anglo-Swiss Milk Company which was owned by brothers George Page and Charles Page with Farine Lactee Henri Nestlé which was formed by Henri Nestle, with both companies having been formed in 1866.

            In 1988 Nestle acquires Rowntree which was the producer of Kit Kat chocolates and this ensures that it increased its productivity while at the same time continuing with its policy of treating the Rowntree employees with care. Nestle has ensured that its stays in touch with the market and society and by paying attention to the market needs and wants it has been able to satisfy the market needs while at the same time retaining its traditional taste and outlook which has ensured a continuity and brevity that most companies do not enjoy.

            Peter Brabeck is probably the longest serving employee of nestle having joined in 1968 and he is currently the highest paid director and also the chairman of the board of directors although he was the CEO before he relinquished the seat in 2008 to Paul Bulcke. Magdi Batato also makes it to this list by virtue of being the head of one of the most important departments in the company. He is in charge of the operations department and he joined the company in 1991 and has worked his way up to management.

            Patrice Bula is among the highest paid personnel at Nestle as he is in charge of the Nestle Marketing and sales department. He has mead a career for himself at Nestle starting as an intern in 1980 and rising through the ranks. Francois-Xavier Roger is the other highest paid individual at Nestle as he is the Chief Financial Officer. He has made his career as a financial officer in various sectors and industries ranging from pharmaceuticals to accounting and audit firms and companies. He joined the company in July 2015.

            Stefan Catsicas is the head of the research and development department and he is the third highest paid individual. He has worked as a lecturer in numerous universities while at the same time co-founding Tilocor Life Science. He joined the company in September 2013.

            Nestles has numerous brands which it can rely on in order to boost its sales. Some of these brands are considered to be household brands and those most households which are accustomed cannot fail to purchase the Nestle products. This leads to brand loyalty while at the same time its high and always improving quality ensures that the customers are loyal and that more and more people purchase it.

            Dues to its numerous brands and increased contribution to society which has enabled to create a household name and a brand, Nestles is in contract with multiple multi-national products such as Coca-cola in ensuring that its brands are successful and have a more powerful performance in the market.

            For a long time Nestles has ensures that markets research is essential to its products and their productivity. It is believed that Nestle was he pioneer of market research. This ensures that Nestles is in touch with what the market expects and the demands of the market at large which leads to customer satisfaction. (Bertelsen, 2012)

            By ensuring that it produces goods that are used in different areas, Nestle s is ensuring that it produces goods that can cover the losses incurred by other departments and this hence sees it not suffer during the recent market crisis.

            By ensuring that it has a string relationship with retailers ensures that they are honest with each other and also ensuring that the different regional preferences are noted and incorporated in different and specific regions in order to boost production.

            Nestles relies on few brands in order to ensure it remains relevant. This is through brands such as Kit Kat while at the same time brands such as Kit Kat ensures that the organization remains  relevant and a prominent player in the market while at the same being under heavy competition due a to a lack of cohesion and simplicity. This makes its other products which are not yet popular with the employees. This means that if some brands fail, the organization is bound to end the relation or contact.

            Some of its brands such as the Carnation Kid are outdated while at the same time that they lead to maligning if individuals. This negates the effect on the revenue which leads to the organization incurring due to in disposable stock while at the same time facing competition from evolved and up to date products.

            In the past few years the cost of marketing has gone up although companies are free to market their products, Nestles finds it hard in creating marketing programs which are cost effective as some of the market keeps on changing and they don’t conform to a particular behavior.

            The cost of introducing a new product in the market is also quite high especially the launching parties as they include numerous expenses and charges that makes the whole process strenuous and regrettable at times.

            Some third parties influence the pricing mechanism through dictating the price that they are willing to make and also the charges of editing and creating the avenues for sales. This is the case with chain stores such as Wal-Mart which have even gone a step further by not stocking their products and stocking other products which are cheap but not determined of the are user friendly. (Bertelsen, 2012).

            Nestle is yet to take full advantage of the online platform in ensuring that their products reach numerous individuals through advertising online or creation of an online platform where customers can purchase its products. This has led to loss of income to internet companies who provide this service but if Nestles were to create such a platform it would be highly successful as people would be engaging with the producers.

            With Nestlé being a global company and most of its revenues coming from global expenditure, it will be quite pleased with the emerging and increasing trend of increased disposable income which means that the organization has more people to consider as potential consumers.

            With people increasingly yearning for more exercise and people taking long journeys and road trips due to the reduce price of fuel and gasoline makes it more demanding for travelers to purchase items such as candy and water for refreshment purpose which leads to a derived demand for products that are made by Nestle. (Bertelsen, 2012)

            With the increased health awareness it has led to people being discouraged from eating junk and hence eating healthy and this means that they have to buy groceries and other inputs which are found and produced by Nestlé in supermarkets. This leads to the individuals to lead a healthy life and this is an opportunity that presents itself to Nestle to come up with more energy drinks.

            Although it enjoys a good relationship with retailers some of the retailers are pushing for low prices which would reduce the profit margin that Nestles enjoys drastically leading to a loss of income, this is through retail shops such as Wal-Mart threatening to pool out of their products from the shelves and work areas and sell those of its revenues.

            In recent times people have become too busy and so they prefer readymade food rather than buying groceries at groceries shops and o prepare a meal for themselves, this has led to a reduced sources of income due to the loss of its customers. This means that Nestlé will have to go back to the drawing board and formulate a plan with which to win back the customers and yet reduce the time they spend in making a meal.

            Numerous retailers have taken advantage of the lack of an online retailer in grocery merchandise with Amazon being the most notable entrant into the market which brings about the possibility that the company will continue loosing income. Also the fact that Wal-Mart is entering into new contacts with nestles competitors in some areas due to the discrepancy in price will see nestle loose a substantial market share to its rival.

            With the increased awareness regarding nutrition and how healthy people are, packed food have come under scrutiny largely due to the fact that they are believed to be the contributors to obesity which was recently declared a world issue that the world needs to tackle it. This has led people to be more observant and picky of what they are going to take.

            Nestles needs to change tact and although it has been  having increase revenues year in year out, it needs to take care of its weaknesses and also its threat in order to ensure that it continues being profitable keeping the shareholders happy. This is largely due to the fact they are competing with various firms in different industries which makes it hard to fully account and be dominant in all sectors.

            Nestles has a worldwide presence while its food brands are of high quality which ensures that it will retain is loyal customers and keep on attracting others. By taking advantage of the opportunities that are between it and realization of new profits, Nestle should ensure that it creates awareness s while continuing with its market analysis in order to determine the strategies that it should engage in the market and what effective according to different markets. This will also help in ensuring that the brands and commodities that were viewed as being old school are handled and dealt with.

References

(n.d.). Retrieved October 17, 2015, from http://www.nestle.com/media/newsandfeatures/nestle-rowntree-chocolate

Bertelsen, B. (2012). Everything you need to know about SWOT analysis. Newmarket, Ont.: BrainMass.

Fine, L. (2009). The SWOT analysis: Using your strength to overcome weaknesses, using opportunities to overcome threats. Place of publication not identified: Kick It.

Garrison, B. (2014, July 1). Innovation's Every Angle: Prepared Foods Will Showcase New Food and Beverage Ideas, Consumer Insights at 32nd Annual New Products Conference. Prepared Foods

Makos, J. (2015, October 14). SWOT Analysis of Nestle, the popular food brand. Retrieved October 17, 2015.

Nestle S.A. ADR. (n.d.). Retrieved October 17, 2015, from http://www.marketwatch.com/investing/stock/nsrgy/financials

Nestlé USA Salaries. (n.d.). Retrieved October 17, 2015, from http://www.glassdoor.com/Salary/Nestlé-USA-Salaries-E4283.htm

Rep. Tom Reed on Keeping Jobs, Manufacturers in Nys with Visit to Dunkirk Nestle-Purina. (2013, August 9). States News Service. Retrieved October 17, 2015, from http://www.highbeam.com/doc/1G1-339445457.html?