NESTLE Global Strategy

Nestle is one of the oldest of all multinational business. Nowadays, Nestle is

one of the biggest food and nutrition companies in 86 countries in the world.
(Hill, 2009 pp. Nestle was in!ol!ed with a range of ac"uisitions in the last
years in order to e#tend its line of products and try to e#pand on a
geographical scale. $ince its sales are reducing in de!eloped mar%ets, Nestle
has the opportunity to e#pand business in up and coming countries, which is
going to generate more profit for the company. &p and coming countries is
one sector that Nestle is going to in!est money in because it has the potential
to be a strong and attracti!e mar%et. Nestle feels confident in doing so
because in such countries population economy and technology has
e#perienced a rapid growth. ('atamonitor, 2006.
Nestles long(term strategy is to identify the "uic%ly e#panding countries first
and get into the mar%et as soon as possible in order to ta%e ad!antage of
other competitors. Howe!er, it first has to hold the leading position in the
de!eloped mar%ets where it is currently placed. )lso Nestle has to hire local
managers and staff in the de!eloping mar%ets that understand the local
mar%et dynamic and culture.
)s e#plained abo!e there is a lin% between Nestl*+s strategy and the $trategic
management, because companies employ managers from respecti!e
countries in the local companies due to the fact that they understand the local
mar%et dynamics. ,y hiring local manager they can ta%e ad!antage of the
local %nowledge and own culture of the country.
-t is a huge ad!antage that Nestle wor%s with local managers in fast rising
emerging countries. )s a result, Nestle will ha!e "uic% results which lead to
"uic% profits. )s we can see in .-/&01 2 abo!e, Nestle is closely related to
the $trategic management module because companies will ha!e a range of
research(reports on fast growing countries. 3herefore, they will ha!e the
ability to balance the ser!ices they are able to pro!ide (food, cereals, coffee,
chocolate, drin%s, ice cream, etc (Nestle 2022, with the price that customers
are willing to pay. .or e#ample, if people cannot afford the Nestle products
then they will not e#pand in such countries but focus their attention and in!est
in countries where people are able to buy their products.
)lso, Nestle is connected with methods of en"uiry with 1merging mar%ets.
4ompanies will ha!e less space to roam around and ma%e decision
considering that much of their mo!ements are controlled by the mar%et
reaction. 3his means that emerging mar%ets are countries with social or
business acti!ities in the process of rapid growth and industriali5ation.