Nestle Company Case Study Essay Example

1. Decision Making Situation NHW (Nutrition, Health and Wellness) Industry: Due to the rise in health concerns and changes in the preferences of food of consumers, the market for nutrition, health and wellness products was increasing. The sales of food and drink products in the same industry reached $570 billion in 2009 and were predicted to rise at 5 % per year over the next few years. Company: Nestle: World’s largest food company with sales of $116. 62 billion in 2010 and the products marketed in 130 countries.

Its motto is “Good Food, Good Life” which is also reflected in the mission “to provide consumers with best tasting and most nutritious choices in wide range of food and beverage categories”. Vision: “To become the leading nutrition, health and wellness firm in the world”. All the strategic decisions related to M&A and product improvements were guided by NHW strategy adopted for 13 years from 1997. The focus was more on achieving long term growth than to bring radical short term changes. Changes in alignment of NHW strategy:

Acquisition of Powerbar in 2000 Creation of a nutrition strategic business division formed from the executives of different product teams. The division developed the 60/40 + metric in 2003 to measure and improve the product so that at least 60% of the time the consumers prefer Nestle product to competitors in blind test. Later in 2005, healthcare nutrition, performance nutrition, infant nutrition and weight management divisions were brought under Nestle nutrition. Investments in R&D and marketing increased.

Rolled out a cross company packaging innovation: Nestle Nutritional Compass to educate consumers about 4 aspects: nutrition info, guidelines for intake and links for consumer service. Corporate Wellness Unit was also created internally to drive NHW across all companies. Acquisitions: May, 2006: Health and cereal manufacturer Uncle Toby’s June 19, 2006: Jenny Craig, US brand which sold diet foods and operated weight- loss centers which led to access to $30 billion weight loss management industry December, 2006: Medical Nutrition Arm of Novartis for $2. billion which made it the second largest firm in the category.

April, 2007: Gerber baby foods from Novartis for $5. 5 billion. This division fit into infant nutrition group. In 2007, Nestle nutrition sales grew to $11 billion per year. The company became the world leader in infant nutrition, performance nutrition, and number 2 in healthcare nutrition. It built the industry’s largest R&D network and largest publisher of nutritional information for scientists Strategies not in alignment of NWH strategy:

The firm had significant presence in indulgence categories. The company also acquired few Kraft’s’ frozen pizza business brands for $3. 7 billion. The vision was to provide pleasurable food that was healthier and efforts were made to achieve the same. Vision was broadened: To also look into deeper scientific solutions to personalized nutritional problems and chronic diseases to achieve better margins 2010: Acquired Vitaflo, a British company which manufactures food for metabolic disorders. The comapny also planned to invest more in R&D.

Created two units: Nestle Health Science SA to bring food with health benefits to market quickly Nestle Institute of Health Sciences to deepen research into products that could prevent chronic ailments and to bring what is already being invented. 2. Decision Sheet Identify key decision questions (issues which requires/required strategic intervention) Sales missed the targets in 2010 so what should be the strategy to increase sales in next few years Refined vision to create markets for medicinal food for chronic ailments might be difficult step.

The consumers’ perceptions about the firm changes gradually so entry into unrelated category could be dangerous. Increasing competition in NHW category demands to seek for sustainable competitive advantage My decisions (its rationale, feasibility, effects, and tradeoffs): What are my decisions (qualitative and quantitative)? Rationale and feasibility of implementing my decision What is the impact of my decisions and how will it make a difference to my inheritance? What are the trade-offs in the decisions (qualitative and quantitative)? To sell the holdings in indulgence categories

Vision to become leader in nutrition, health and wellness industry could be better attained in a sustainable manner. The funding could be used to invest further in finding cures and building the existing business Focused vision than broad based vision. Consumers would perceive the company well as health focused company The business in the category would be affected Introduce more products with health benefits Will cater to increasing health concerns of public Large network of inbuilt R&D network and the autonomous nutrition business unit will further help in improvements Reinforce the vision of the company

Huge investments required to manufacture new products which might go waste if sales are not in alignment with forecasts. Acquire more health business or startups in the same category Acquiring more health business that is doing well will help to acquire more customers for the existing business too Less investments would be required to acquire the technology expertise of startups Risk- reward continuum (The more companies acquired might dilute the vision as well as internal capabilities would never be improved)

Expand in all developing markets 75 billion opportunity in NHW category Sales would increase Global presence Some emerging countries might have high entry level barriers Specify measures to mitigate the negative consequences Operational efficiency should not be compromised in the process of growing further in order to attain long term advantage. Also more investments in marketing should be made to promote new products More investments in Nestle Health Science SA would help in expanding the product portfolio to achieve the desired sales.

“The Snob” By: Morley Callaghan Short Summary

1. The reason that John ignores his father in this story is he thinks that Grace wouldn’t like him because, she only likes and appreciates the people in her “class”. When John first notices his father in the store “his coat was thrown open, two buttons on his shirt were undone, his grey hair was too long, and in his rather shabby clothes he looked very much like a working man, carpenter perhaps” made him resent his father more so than normal.

John and his mother told him over 100 times that when he was in public that he should be dressing in his nice clothes. He was worried that Grace is going to see him dressed like that and judge him and his family based on the appearance of his father. John wants to make a good impression on Grace and knows that if she was to meet his father in the state he was in the book store Grace would look at john a different way.

At the end of the story when john is taking his anger out on Grace because he is now regretting ignoring his father, Grace says “Who likes to spend very much time in a department store on a hot afternoon? I start to hate every person that bangs in to me, everyone near me. What does that make me? ” John says “That makes you snob”. John is accusing Grace of being a snob because of not wanting people to bump in to her. He doesn’t want to admit what he did he so he takes it out on her. I think that John is the actual snob in this story.

For making accusations about Grace not liking the way his father looks. Doing what he did to his father just to try and impress some girl was not right. By ignoring his father and pretending that he never saw him in the book store, just to avoid a potential awkward in counter with Grace seeing his dad like that makes John look like the snob. As well as Grace had no idea what was going on or why John was acting so angry at the end of the story. 3. In the two stories “The Snob” and “Two fishermen” both of the men’s integrity is tested.

In Two Fishermen when the man was put in the position of having to stand up for a new friend he has made that is innocent or act like the crowd did and was against him for what he did he was unable to stand up to the crowd witch lead him to flee the area never to seen again so his identity wouldn’t be taken from him. This also goes for John in the story The Snob. He has to choose whether he will introduce Grace to his father dressed the way he was or not. In the end he doesn’t end up doing it and John’s father has to walk away feeling hurt due his sons way of going about dealing with a situation.

What Does Nursing Mean To Me?

It is important to me that nursing is identified as an honorable and essential profession. I believe that nursing is a status that reflects the two equally important parts of nursing knowledge: Empirical knowledge and Esthetical knowledge. “It is the artful nurse’s interactions that can bridge the gap introduced by technology and science, thereby creating integrity and engagement rather than detachment in the personal encounter” (Johnson, 1994). Even when I am not at work, I sub-consciously carry that status with me all the time; and am ready to demonstrate it.

For example, at a family gathering, if someone asks me a health-related question, I not only provide the scientific answer and explanation in simple language, but will also give him or her health teaching related to that question in a caring, compassionate way. I can relate carrying this status with me just like how celebrities carry the glamorous status with them all the time and, how they are always ready to face the camera. Therefore, for me, nursing is a status that can only be maintained by the right combination of science and art.

It is important to me that nursing is identified as an honorable and essential profession. I believe that nursing is a status that reflects the two equally important parts of nursing knowledge: Empirical knowledge and Esthetical knowledge. “It is the artful nurse’s interactions that can bridge the gap introduced by technology and science, thereby creating integrity and engagement rather than detachment in the personal encounter” (Johnson, 1994). Even when I am not at work, I sub-consciously carry that status with me all the time; and am ready to demonstrate it.

For example, at a family gathering, if someone asks me a health-related question, I not only provide the scientific answer and explanation in simple language, but will also give him or her health teaching related to that question in a caring, compassionate way. I can relate carrying this status with me just like how celebrities carry the glamorous status with them all the time and, how they are always ready to face the camera. Therefore, for me, nursing is a status that can only be maintained by the right combination of science and art.

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