Essay on The Globalization of Nestle - 1612 Words

Globalization is the dominant force by which the world has become interconnected significantly as a result of extremely increased trade and decreased cultural differences. Globalization has made crucial changes in the production and trade of goods and services. The giant companies are now multinational corporations with subsidiaries in many countries. They are no longer national firms with their operations limited to the boundary of just one country. Such companies’ growth and operations are not constrained by any geographical, economical or cultural boundary. One of these multinational corporations is â€Å"Nestle†; that has gained world-class recognition in recent times. Nestle has made significant use of globalization in the last decade in†¦show more content†¦Economic Globalization: Because of the geographical expansion of the company, its focal point shifted from the national market to the global market. This shift was driven by important changes in their management team that leads to new and different practices of managing and organizing production and distribution processes of goods globally. Geographical Globalization: Geographical expansion of the company was a result of â€Å"Mergers and Acquisitions†. Nestle has made over 50 acquisitions since 1985. Initially, Nestles’ growth strategy used acquisitions to diversify the company’s product offering. Then, in the early 1990s, it used acquisitions to expand geographically. More recently, it has focused its acquisitions on growing a selective number of very attractive businesses in different geographical markets where it can achieve leadership positions. Since the year 2003, it has made 31 acquisitions. Some of them are extremely crucial to Nestles’ growth. It is really important to trace the pattern of Nestles’ MA. The company was losing market share in the developed countries at a fast pace due to increasing competition. As a result of this, the company decided to shift its focus from developed to developing countries. Since developing countries are emerging markets for goods and services. In today’s scenario, developing countries are considered potentially higher than developed countries. This was the reason the company started focusing on Countries like Africa, IndiaShow MoreRelatedGlobalization Nestle Essay3797 Words   |  16 Pagesserve as a conveyor of this global phenomenon and one such company is Nestle, which is the subject of this report. Initially, the globalisation phenomenon and its dominant factors will be described. Subsequently, the Nestle multinational corporation will be introduced. The report will then delve into the means by which globalisation has developed in recent history and how this influenced Nestle. It will also discuss how Nestle has responded to these influences and how it has come to be the globalRead MoreNestle : The Largest Food And Beverage Multi National Corporation1741 Words   |  7 PagesGlobalization is the dominant force by which the world has become interconnected significantly as a result of extremely increased trade and decreased cultural differences. Globalization has made crucial changes in the production and trade of goods and services. The giant companies are now multinational corporations with subsidiaries in many countries. They are no longer national firms with their operations limited to the boundary of just one country. Such companies’ growth and operations are not Read MoreHow KitKat Works to Globalize Their Product and Still Manage Success984 Words   |  4 Pagesyet this paper will mainly focus on some aspect such as the manufacturing process including labor system and distribution. Kit Kat production in Thailand is manufactured under the influence of the multinational corporation, Nestlà ©, thus making it a production of globalization and New International Divisions of Labor. â€Å"Every five minutes enough KitKats are manufactured to outstack the Eiffel Tower, while a year’s production would stretch around the London Underground more than 350 times and thatRead MoreNestle: Macro Environment and Micro Environment Analysis1003 Words   |  5 PagesAnalysis of Nestle: Nestle in the Global Environment: Nestle operates in over 130 countries and in order to understand the business environment they operate in analysis on the external factors that lie outside the control of Nestle has to be conducted (Grant et al. 2011, 101). The tool tasked with conducting an external analysis of the macro environment is PEST while the external micro environment will be analysed with the help of Porters Five Forces. However it is worth mentioning that Nestle is notRead MoreNestle - Global Strategy Case1650 Words   |  7 Pages1.What is the company’s strategy with regard to business development in emerging markets? Does this strategy make sense? From the NESTLE : GLOBAL STRATEGY case, it can be seen that Nestle generally operates worldwide with the strategy of customization rather than globalization. It moves into consumer markets by using Niche market strategy to become the market leader in each of the niches. It mainly focuses on European markets, which make up 70 percent of its sales. As mentioned, these markets areRead MoreGlobalization Of The International Labour Organization1763 Words   |  8 PagesOrganization (2003), the term ‘globalization’ is used in diverse ways, but the major idea behind the term is progressive integration of societies and economies; the progressiveness is motivated by new economic relationships, new technologies, and various national as well as international policies of an array of players and entailing international organizations, governments, labor, business, and civil society. This implies that there are two aspects to the globalization process; first, it refers toRead Morenest le in ghana1018 Words   |  5 PagesGSM5200 MARKETING MANAGEMENT - GROUP STUDY Nestlà © (Ghana) Ltd. â€Å"An Analysis on Situation and Marketing Strategy Proposal to Maintain Brand Equity and Expand Brand Penetration of Nestle Products in Ghana, West Africa† â€Å"How to effectively expand market in least developing countries† is the major issue found in the case. This consists of derived issues faced by the company which can be correlated with marketing studies. By The American Marketing Association, marketing is defined as the activityRead MoreSwot Analysis Of Nestle1302 Words   |  6 PagesExternal Environment General Environment Overall, the general environment for Nestlà © is very good. Considered the world’s largest packaged food and beverage manufacturer in the world, Nestlà © operates in 12 different segments of the consumer products market, including baby foods, bottled water, cereals, candy, coffee, prepared and prepackaged foods, dairy, drinks, food service, healthcare and nutrition, ice cream and pet care. Its stable of brands includes some of the best-known names in the industryRead MoreTell Me What You Eat, and I’ll Tell You Who You Are1279 Words   |  6 PagesBrillat-Savarin. With the growth of food import/export around the world and the opportunities of expansion in foreign coutries: Could Brillat-Savarin’s statement still be possible today or has it completely lost ground? Food is one of the fields in which globalization has faced and is facing very strong and persistent resistance across the globe. How do firms work past this? With climate, flora and tastes changing from one region to another, our blue planet houses a plethora of different grains, which areRead MoreGlobalization and Human Resources2045 Words   |  9 PagesNestle’ Company Leona Parks For Dr. Larry Byrd BUS325-001 February 1, 2013 Nestle’ Company The Enterprise This paper will discuss Nestle’ concerning globalization and its HRM strategies. With instant coffee, baby food, and bottle water in the mix, Nestle’ crunches more than just chocolate. The world’s #1 food company in terms of sales, Nestle’ is also the world leader in coffee (Nescafe’). It also makes coffee for the home-brewing system; Nespresso. Nestle’ is one