Company analysis: "Nestle"

Henri Nestle, a Swiss Chemist, founded the Nestle company in 1866 in order to produce high quality milk food for babies. By 2006 it had become the world’s largest food and beverage company, with market value of $117bn and yearly sales of $91bn. It employs 25,000 people in 487 factories spread over 80 countries. With reference to Nestlé’s annual reports (and any other relevant sources), undertake a SWOT analysis of the company.
Nestle defines itself as the world’s leading nutrition, health and wellness company. The company’s headquarters are in Vevey, Switzerland the same place where the company was originally founded in 1866. According to the latest reports, the total group sales are currently at 107,6bn CHF ($108,66bn) and it has a net profit of 10,8bn CHF ($10,9bn). The company currently emoloys 276 050 people in 86 countries worldwide where it has 480 factories. The ammount of factories by continent and the percentage of employess by geographic area (both in the year 2007) can be seen in the charts below.
• Continuous innovation
• Leading supplier of dairy products
• Has acquired customer loyalty over the years
• Worldwide offices
• Operating costs are quite low
• Very good people, finance and marketing management
• Made good relationships with customers and business partners
Weaknesses
• Inability to sustain good product quality in every country
• Is known for not being very polite in the marketing sector while considering developing countries
• Was known for bribing local health officials to promote their products as being a great source of staying healthy
Opportunities
• Products that are considered to be organic are getting more and more attention all around the world and people appear to be interested in consuming them
• Opportunity to “capture” a bigger percentage of the market in all countries
• Applying innovations in new and existing markets
• Improving in manufacturing technology thus lowering the final...

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