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 dr*****wn from at least two pre-requisite modules.

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

More than a decade of talks found Nestle finally invited ***** set up shop in *****. Their powdered milk and infant formula plant was opened in 1990. Although the region ***** still relatively poor, ***** 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 *****come, Nestle would ********** be able to expand their product line to ***** beyond essential food items. Yet it was dis***** that the infrastructure of the region would not support ***** necessary delivery of milk are the distribution of the final *****s.

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

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

A second concept covered in the pre-requisite ***** that can be illustrated by an example provided in ***** ***** study is that of market share. Although in some geographic regions, ***** certain ***** segments, Nestle holds a consider***** market share presence, in ***** areas, ***** as Jap*****, Nestle has not been able to adapt quickly enough and has lost valuable market ***** in ***** process.

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

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