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 the food stuffs industry has been due, in large part, to ***** value adding activities the *****ganiz*****ion ***** developed, in the form of a value 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 distri*****ion ne*****rks. China is a perfect example of ***** *****ful strategy.

More than a decade of talks found Nestle finally invited to set up shop in China. 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, and once economic improvement matured, ***** citizens were found to have more disposable income, Nestle would then ***** able to expand ***** product line to ***** beyond essential food items. Yet it was discovered that the infrastructure of the region would not support ***** necessary delivery of milk are the distribution ***** the final products.

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

***** *****ition, this newly built *****frastructure ***** useful for ***** as well. Finished product could now be delivered to ***** ***** with greater ease and efficiency than previously. This ***** for reduced distribution costs, ********** ***** the new infrastructure. ***** commitment to adding value throughout ***** chain has given Nestle a competitive advantage in *****, that it otherwise ***** not have.

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

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

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