Essay - Case Study: Nestle Company with Reference to the Nestle Case...


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Case Study: Nestle Company

With reference to the Nestle case study, provide one example, which clearly illustrates a link between topics or concepts drawn from at least two pre-requisite modules.

Nestle's success in the food stuffs industry has been due, in large part, to ***** value adding activities the *****ganiz*****ion has developed, in the form of a ***** chain, which is one concept covered in ***** pre-requisite *****. Not only have they mastered this concept within their own organization, but have also extended it beyond their company ***** include their supply chains and distribution ne*****rks. China is a perfect example ***** this *****ful strategy.

More than a decade of talks found Nestle finally invited to set up shop in *****. Their powdered milk and infant formula plant was opened in 1990. Although the region was still relatively poor, Nestle knew that these basic products would be most applicable to the local citizen's needs, ***** once economic improvement matured, and citizens were found to have more disposable income, Nestle would ********** ***** able to expand ***** product line to *****s beyond essential food items. Yet it was dis***** that the infrastructure of the ***** would not support the necessary delivery of milk are the distribution of the final products.

***** unders*****od ***** to capture ***** value in both the supply cha***** and in the distribution network, and therefore add value to the entire enterprise, something had to be d***** about the infrastructure of ***** region. As such, ***** establishe***** what ***** become kn***** as milk roads, ***** 27 villages, located around the *****, ***** collection points for milk. This allowed the farmers ***** bring *****ir milk more quickly to the collection centers. ***** convenience, coupled with Nestle's prompt payment ***** the farmers ***** *****ir product, encouraged the farmers to produce even more milk and allowed Nestle ***** increase ********** from 316 tons in 1990 to more than 10,000 ********** four years later.

In addition, ***** newly built infrastructure ***** useful for distribution as well. Finished product could now be delivered to the villages with greater e*****e and efficiency than previously. This allowed ***** reduced distribution costs, thanks to the new infrastructure. ***** commitment to adding value throughout the ********** has given Nestle a competitive advantage in China, that it otherwise would not have.

A second concept covered in the pre-requisite modules that can ***** illustrated by an ***** ********** in ***** ***** study is that ***** market sh*****. ***** in some geographic regions, and certain market segments, Nestle holds a considerable market share presence, in some areas, ***** as Japan, Nestle has not been able to adapt quickly enough and has lost valu***** market share ***** ***** process.

***** had become comfortable as the dominant coffee product in Japan, as such when the cold canned coffee market opened up, Nestle dismissed ***** idea, secure in its market share lead. As such, they did ***** enter the canned coffee *****. However, Coca-Cola saw the potential and ***** a ***** named Georgia *****

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