The Business Strategy Of Nestle

“Corporate strategy can be characterized as "the procedure of deciding an association's essential targets and developing strategies that will accomplish these goals". A Corporate strategy assumes a basic part in guaranteeing long haul development of the business.

With Nestle being recognized worldwide, providing a wide variety of products ultimately results in greater flexibility and leverage for organizational decisions. In addition, existing products are prone to become stronger and gain greater value through innovations and R&D. The stronger Nestlé’s brands are the more value they can create, not only for their consumers, but also for their shareholders.

Nestlé has to face huge competition from broad range of product categories. The competition, all the rougher as, Nestlé has to deal with multinational organizations competitors with similar range of products. Moreover, the company

The Company 's strategy is guided by several fundamental principles. Existing Nestle products grow through innovation and renewal while maintaining a balance in geographic activities and product lines. The long-term potential is never sacrificed by short-term performance. The Company 's priority is to bring the best and most relevant products to people, wherever they may be, whatever their needs may be, throughout their lives. The taste of Nestlé in each of the countries where Nestlé sells products. Nestlé is based on the principle of decentralization, which means that each country is responsible for the efficient operation of its business, including the hiring of its staff.

According to Slack et al. The corporate strategy or business strategy is the guide lines for the whole corporation’s businesses in relation to its markets, customers, and the competitors (2007). In the same context, the same authors discussed the link between the corporate strategy and

A strategy is a plan that is targeted over the long run. Business level strategies refers to strategic alternatives that an organization chooses from as it conducts business in a particular industry or market (Griffin,2002). A corporate level strategy means that a company manages its operations simultaneously across many industries and markets. Netflix operates across both a business and corporate level strategy. The main areas across which Netflix operate on in their corporate level are business portfolio and partnerships.

Nestlé is a Swiss multinational founded in 1866 by the Anglo-Swiss Condensed Milk Company. The company merged with Farine Lactée Henri Nestlé in 1905 to form The Nestlé and Anglo-Swiss Condensed Milk Company, headquartered in Vevey, Switzerland. Mainly founded by Henri Nestlé, Charles and George Page, the company started performing its activities in the food processing industry in the mid-20th century, more specifically during the first and second war, when they enlarge their aids

Overview of the concept of corporate level strategy Corporate level strategy is to the basis for strategic business decisions made by the top management to influence the corporation as a whole. Concentration strategy is used when the company focuses on one business field. Vertical integration occurs when the company controls the supply chain that produces products by itself or distributes the products directly to the markets. Diversification, also known as, horizontal integration is related to acquiring or merging different or similar businesses to increase market share.

A corporate strategy is an organizations ability to define where they are headed in the future. This can be accomplished through an Internal Analysis and SWOT Analysis which will facilitate sound business decisions.

In a nutshell therefore, the corporate-level strategy would make decisions regarding strategic alliances, diversification, resource allocation, acquisition, and new business ventures formulation (Thomas, n.d).

Corporate Strategy has been defined by numerous authors. Grant (1995) claims corporate strategy deals with the way a corporation manages a number of different businesses. Lynch, R, in both his third and fourth edition books on corporate strategy refers to Penrose (1959) definition of corporate strategy as “the pattern of major objectives, purposes or goals and essential polices or plans for achieving those goals, stated in such a way as to define what business the company is in or to be in and the kind of company it is or to be”

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

Nowadays, corporate strategy is about participating in different business units and is defined as a process of diversification across structurally different industries. It is about participating in multiple businesses grouped under a corporate parent and creating common strategic unifying

For a business company like Nestle the important thing is understanding their successful work among the other companies and competitors in present market. Nestle was founded in 1867 by a German pharmacist Henry Nestle, who launched his product Farine lactee a mixture of wheat flour, sugar and cow’s milk to save the neighbour’s child. They concentrated on nutrition from the beginning. Nestle merged an Anglo-Swiss Condensed Milk Company , founded by Americans Charles and George Page to form a Nestle and Anglo-Swiss Milk Company. Nestle started organising several training programmes regarding various important components of corporate business principles since 2011. These programmes were held in order to teach the employees about the material they use and how they function, and also many efforts were made to know about management and leadership skills.

The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develop strategic intent for their business organisations following the analysis of external and internal business environments. I will analyse the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will discuss the strategy formulation that includes business-level strategy and corporate-level strategy.