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 modules. Not only have they mastered this concept within their own organization, but have also extended it beyond their company to include their supply chains and distri*****ion networks. China is a perfect ex*****mple of ***** successful strategy.

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

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

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

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

***** had become comfortable as the dominant coffee product in Japan, as such when the cold *****ned coffee market opened up, Nestle dismissed ***** idea, secure in its market share lead. As *****, they did not enter the canned coffee market. However, Coca-Cola saw the potential and developed a product named Georgia *****


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