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 ********** has developed, in the form of a ***** 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 ex*****mple of this successful strategy.

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

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

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

A second concept covered in the pre-requisite modules that can ***** illustrated by an example *****d in Nestle's ***** 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 has not been able to adapt quickly enough and has lost valuable market ***** in ***** process.

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


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