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 organization ***** developed, in the form of a value chain, which is one concept covered in the pre-requisite modules. Not only have *****y 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 ***** ***** this successful strategy.

More than a decade of talks found Nestle finally inv*****ed ***** set up shop in China. 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 *****come, Nestle would ********** ***** able to expand ***** product line to *****s beyond essential food items. Yet it was dis***** that the infrastructure of the ***** would not support ***** necessary delivery of milk are the distribution ***** the final products.

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

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

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

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

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