Nestlé as a well-known and at the same time controversial company having a revenue of about 80 billion Euros, founded and headquartered in Vevey, Switzerland.
Most of the people are not aware of it while consuming Nestlé products and 95% of the Japanese think it is originated there. Many products are already consumed in the third generation. With 449 factories in 83 countries with 278,000 employees, which is an indicator for an unusual decentralization, Nestlé is the largest food and beverage company in the world and the industry combine with the highest revenue in Switzerland and one of the 50 leading companies worldwide concerning revenue and number of employees. As a very global combine 28% of the food revenue comes from emerging countries in Latin America and Asia, 40% from Europe and 26% from the USA and Canada. Not only the size but also the globalization makes Nestlé be different than all other competitors. Owning six main brands and about 8,500 national and regional brands it gets 70% of the revenue by selling brands that rank on the first or second place in each product segment. Nescafé, as one of the main brands, is the most consumed coffee brand in the world with 3,000 cups a second and Nesquik, Milo and Nescau make Nestlé be number one in the chocolate and malt drink section.
All in all Nestlé is characterized by three important features: strong brands, high presence and a leading position in the markets.
Table of Contents
1. Introduction
2. Biography of Henri Nestlé
3. History of the Company after 1875
4. Development during the Seventies
5. Conception and Structure
5.1. Guideline
5.2. Corporate structure
6. Nestlé in Different Parts of the World
6.1. The “Old” Europe
6.2. Eastern Europe
6.3. Germany
6.4. Asia, Oceania and Africa
6.5. America
7. Variety of Products
7.1. Beverage
7.2. Milk and diet products, ice cream, cereals, baby care products
7.3. Instant products, products for the kitchen
7.4. Chocolate and Sweets
7.5. Products for Pets
8. Acquisitions and Mergers
9. Marketing through an Umbrella Brand
10. Criticism
10.1. Globalization
10.2. Artificially Produced Food
11. Nestlé on the Philippines
12. Current Issues
12.1. General Development in 2010
12.2. Investigations in India
12.3. Halal food
12.4. Medical Food
Objectives and Core Topics
This work examines the corporate development, global positioning, and marketing strategies of Nestlé, while critically analyzing the controversies surrounding its business practices, particularly in the baby food sector and globalization. It aims to evaluate the company's dual nature as a highly successful multinational entity and a frequent target of ethical criticism.
- Historical evolution from the company's founding to its current global stature.
- Comprehensive analysis of the product portfolio and brand structure.
- Strategic marketing approach as an umbrella brand across diverse international markets.
- Ethical assessment of criticisms regarding globalization and artificial food products.
- Case study of Nestlé’s operations and perception in the Philippines.
Excerpt from the Book
10. Criticism
Nestlé is one of the most criticized companies in the world concerning many different corporate divisions.
The International Baby Food Action Network (IBFAN) and their German partner organization Aktionsgruppe Babynahrung as one of the strongest critics of Nestlé justifies their criticism thusly (Aktionsgruppe Babynahrung e.V., 2010):
1. The stressed position on the world market (Nestlé controls about 40% of the world market of artificially produced baby food).
2. The growing public attention and the active role of committed non-governmental organizations.
3. Surveillance reports prove that Nestlé is the only originator of obvious offences against the International Code of Marketing of Breast-milk Substitutes worldwide.
4. The ideology, Nestlé sells his expansions policy with.
5. Nestlé’s attitude towards critics and criticism.
6. The conceited attitude and the economic power Nestlé tries to pressure governments with.
7. The systematic campaigns of information against all kinds of criticism and their diversionary tactic.
8. The link between firm activities in the baby food segment and the impacts on affected people.
The IBFAN promises to continue their boycott against Nestlé until the company ceases their “irresponsible marketing strategies and bows to the international code”.
Summary of Chapters
1. Introduction: This chapter provides an overview of Nestlé's global scale, its position as a leading food and beverage company, and its controversial reputation.
2. Biography of Henri Nestlé: This section details the life of the company's founder, his innovations in baby food, and the early years of the enterprise.
3. History of the Company after 1875: This chapter outlines the major milestones in the company's expansion, including significant mergers, acquisitions, and the development of key product lines.
4. Development during the Seventies: This chapter analyzes the company's strategic responses to global economic shifts, inflation, and changing consumer behaviors during the 1970s.
5. Conception and Structure: This chapter explores the foundational guidelines and the organizational structure that supports Nestlé's operations.
6. Nestlé in Different Parts of the World: This chapter provides an analysis of Nestlé's market presence and performance across various geographic regions, including Europe, Asia, and America.
7. Variety of Products: This chapter presents a categorized overview of Nestlé's extensive product portfolio, ranging from beverages to pet food.
8. Acquisitions and Mergers: This chapter provides a chronological list of major corporate mergers and acquisitions that have shaped the company's history.
9. Marketing through an Umbrella Brand: This chapter discusses the strategic use of the Nestlé umbrella brand and its communication impact on global consumers.
10. Criticism: This chapter addresses the major ethical arguments and criticisms directed at the company, particularly regarding globalization and baby food marketing.
11. Nestlé on the Philippines: This chapter investigates the perception of Nestlé in the Philippines, comparing local realities with international perspectives.
12. Current Issues: This chapter reviews contemporary topics such as 2010 financial performance, expansion in India, the halal market, and the move into medical food.
Keywords
Nestlé, Food and Beverage Industry, Corporate Strategy, Global Business, Globalization, Baby Food Marketing, Henri Nestlé, Brand Management, Ethical Criticism, Halal Food, Medical Food, Acquisitions, Market Expansion, Consumer Behavior, Sustainability
Frequently Asked Questions
What is the central focus of this publication?
This work provides an in-depth analytical overview of Nestlé, covering its history, global market structure, and the significant controversies it faces as a multinational corporation.
What are the primary themes discussed in the book?
The core themes include the historical development of the company, its complex organizational and brand structure, international marketing strategies, and ethical debates surrounding its business practices.
What is the primary objective of the author?
The objective is to objectively document Nestlé's evolution and strategic choices while providing a balanced view of both its commercial success and the criticisms leveled against it by various interest groups.
Which research methods are employed?
The paper utilizes historical records, corporate documentation, statistical data from 2009-2010, and reports from non-governmental organizations to synthesize its findings.
What topics does the main body address?
The main body treats the company's biography, its historical growth, regional market analysis, product categories, corporate acquisitions, marketing philosophy, and specific ongoing issues like Halal and medical food.
Which keywords define this document?
Key terms include Nestlé, globalization, umbrella branding, corporate acquisitions, ethical controversies, baby food, and market expansion strategies.
How does the author analyze the company's performance in the Philippines?
The author highlights the discrepancy between Western perceptions of the company and local realities, noting the positive role the company plays in local job markets and health initiatives, such as support for midwives.
What is the significance of the "Medical Food" sector mentioned in the work?
It represents Nestlé's strategic shift to bridge the gap between food and the pharmaceutical industry, focusing on products that address specific diseases like diabetes and Alzheimer's.
How does the work explain the criticism surrounding "Artificially Produced Food"?
It details specific grievances from groups like IBFAN, particularly regarding the marketing practices in health facilities and the potential impact on infant health in developing nations.
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- Laura Klöpping (Autor:in), 2011, Nestlé - A Global Company Comes Under Fire, München, GRIN Verlag, https://www.grin.com/document/189280
