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 ***** food stuffs industry has been due, in large part, to the value adding activities the *****ganiz*****ion ***** developed, in the form of a ***** 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 ***** include ***** supply chains and distribution ne*****rks. China is a perfect ex*****mple of ***** *****ful 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 ***** 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 then be able to expand their product line to products beyond essential food items. Yet it was discovered that the infrastructure of the region would not support ***** necessary delivery of milk are the distribution ***** the final products.

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

***** *****ition, this newly built infrastructure was useful for distribution as well. Finished product could now be delivered to ***** ***** with greater e*****e and efficiency than previously. ***** ***** ***** reduced distribution costs, thanks ***** the new infrastructure. This commitment to adding value throughout ***** chain 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 ***** illustrated by an example provided in Nestle's case study is that of market share. ***** in some geographic regions, ***** certain ***** segments, Nestle holds a consider***** market share presence, in ***** 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, ***** such when the cold canned coffee market opened up, Nestle dismissed the idea, secure in its ***** share lead. As *****, they did not enter the canned coffee market. However, Coca-Cola saw the potential and developed a product named Georgia that


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