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 ***** 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 ***** pre-requisite *****. 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 distribution networks. China is a perfect ***** of this successful 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 *****come, Nestle would then be able to expand ***** product line to *****s beyond essential food items. Yet it was discovered that the infrastructure of the region would not support the necessary delivery of milk are the distribution of the final products.

Nestle unders*****od ***** to capture the value in both the supply chain and in ***** distribution network, and therefore add value ***** the entire enterprise, someth*****g had to be d***** about the ***** of ***** region. As such, they establishe***** what would become kn***** as milk roads, between 27 villages, located around the *****, ***** collection points for milk. This allowed the farmers ***** 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 tons in 1990 to more than 10,000 *****ns four years later.

In *****ition, this newly built infrastructure ***** useful for ***** as well. Finished product could now be delivered to the ***** with greater ease and efficiency ***** previously. This ***** for reduced distribution costs, thanks ***** the new infrastructure. This 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-requis*****e modules that can be illustrated by an example provided in Nestle's case study is that ***** market share. Although in some geographic regions, ***** certain ***** segments, Nestle holds a considerable market share presence, in ***** areas, ***** as Jap*****, Nestle h***** not been able to adapt quickly enough and has lost valu***** market ***** ***** the process.

***** had become com*****table as ***** dominant coffee product in Japan, as such when the cold canned 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 ***** n*****med Georgia *****

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