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 the value adding activities the organiz*****ion ***** developed, in the form of a ***** chain, which is one concept covered in the pre-requisite modules. 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 ***** of this *****ful str*****tegy.

More than a decade of talks found Nestle finally inv*****ed to 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 then be able to expand their product line to ***** 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 ***** to capture ***** value in both the supply chain and in ***** ***** network, and therefore add value to the entire enterprise, something had ***** be done about the ***** of ***** region. As such, they established what ***** become known as milk roads, ***** 27 villages, located around the *****, and collection points for milk. This allowed the farmers to bring *****ir milk more quickly to the collection centers. ***** convenience, coupled with Nestle's prompt payment ***** the farmers ***** their product, encouraged the farmers to produce even more milk and allowed Nestle to increase production from 316 tons in 1990 to more ***** 10,000 tons four years later.

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

A second concept covered in the pre-requisite modules that can ***** illustrated by an example provided in Nestle's ***** study is that of market sh*****. 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 valuable market ***** ***** ***** process.

***** 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 *****, they did ***** enter the canned coffee *****. However, Coca-Cola saw the potential and ***** a ***** n*****med Georgia *****

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