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 the value adding activities the ********** ***** developed, in the form of a value 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 ***** supply chains and distribution networks. China is a perfect ***** ***** ***** successful 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, ***** once economic improvement matured, and citizens were found to have more disposable income, Nestle would then be able to expand their product line to *****s beyond essential food items. Yet it was dis***** that the infrastructure of the region would not support the necessary delivery of milk are the distribution of the final products.

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

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

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

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

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