FINAL PROJECT

International Strategic Management

Team:
Denisse Garza Huerta A00802835
Ana Sofia Canseco A01195003
Maria Fernanda Marrufo A00807360

INDEX
Part 1: Introduction......................................................................................................... 3
Objective.................................................................................................................. 3
Project Management................................................................................................ 3
Part 2: Theoretical Analysis: International Marketing Management........................................4
History...................................................................................................................... 5
International marketing focusing in Branding, Promotion and Product
diversification........................................................................................................... 5
Part 3: Case Study: NESTLE............................................................................................ 7
Company Profile....................................................................................................... 7
Part 4: Analysis (Major problems/opportunities facing the company in the area of your interest:
International Marketing)................................................................................................. 10
a.

Brand: Image of the brand lessening in power..............................................10

b.

Promotion:.................................................................................................... 10

c.

Product Diversification :................................................................................ 10

d.

Causes of the Problems................................................................................ 10

e.

Solutions of each problem............................................................................ 13

f.

Implementation of the solutions...................................................................14

g.

Consequences of the solutions.....................................................................16

Part 5: Conclusion........................................................................................................ 17
References.................................................................................................................. 17

Part 1: Introduction
This paper seeks to understand the concepts learned in the class of International
Strategic Management, using a company to apply what we learned. As a team we will try
to understand the problems the company we chose is facing. With theory we already
know we seek to understand them and provide some solutions as consultants for the
company.
For the analysis we will use the NESTLE company, focusing in the problems related to
the area of international marketing.

Objective
The objective of this paper is to all we learned on the class of International Strategic
Management but focusing on understanding a real life situation, adapting the theories to
real actions and trying to demonstrate that we understood the concept and that we are
able to used them in a real analysis and real life situation of a company.
For the purpose of this paper, it is important we first recognize, what is project
management, since what we will be doing on this paper can be thought of as a project
for the company.

Project Management
Before defining what project management entails, we first need to define what a project
is. A project can be defined as a temporary group activity designed to produce a unique
product, service or result. It is temporary because it has a defined beginning and end in
time, and hence defined scope and resources. It is also unique because a project is not
a routine operation, but rather a specific set of operations that were designed with a
specific goal in mind. Project management, then, is the application of knowledge, skills
and techniques to execute projects effectively and efficiently (Project Management
Institute, 2014).
There are a variety of models project managers can use in an organization. But
regardless which model is used, project managers must give careful consideration to the
overall project objectives, timeline and cost, as well as the roles and responsibilities of
all participants and stakeholders.
The traditional model identifies five different stages: (1) the initiation of the project, (2) its
planning and design, (3) its execution and construction, (4) its monitoring and controlling
systems and (5) its completion. It is possible that a project does not undergo all five
different stages, since some projects are never completed and others go through steps
2, 3 and 4 more than once (Project Management Institute, 2014).
In the first stage, the nature and scope of the project is determined. This stage must
include a plan that encompasses a review of the current operations, a financial analysis,

an investigation of the business needs and a stakeholder analysis. The second step is
planning the project. Project plans are written documents that detail what is being done,
and what is needed to do it. They are useful for detailed task planning, risk analysis, and
definition of governance processes. Steps number three and four are execution and
control. As a project is executed, inevitably, stuff comes up. Project managers respond to
changes in the business, the scope, the audience, or any number of other factors.
Project execution simply means that the tasks listed in the plan are accomplished in the
way they were conceived. Good project controls ensures that this happens. Finally, all
projects should be formally closed by writing a summary of the project. The report should
include any notes on successful completion of each milestone, any changes in the
scope of work, differences with what was budgeted and what were the actual resources
needed, the impact of the project and the lessons learned (Metafuse, Inc., 2014).
In a company, each project management is defined for a certain area or department,
looking to establish more focus objectives and to achieve more individualized goals. As
an example, here is an image of how a company can divide their organizational structure
to manage each project of the company separately.

Part 2: Theoretical Analysis: International Marketing Management

As a team, we decided that the area in which we are going to analyze and work with
NESTLE is International Marketing. In the general organization chart of NESTLE there
is not an International Marketing area by itself but Strategic Business Units, Marketing
and Sales which is the one that we are going to work with.

History
From the early 90's local businesses worldwide had to think in global terms because the
time and distance were reduced dramatically with new media (internet, satellite TV, cell
phone, etc.); with globalization the products produced in one country became very
popular in other countries. It is true that the presence of foreign firms in all countries
dates back many decades and they have developed international marketing. Companies
like Toshiba, Nestle, Bayer, Shell, McDonalds, Starbucks and many multinationals are
known and recognized by the majority of consumers around the world, but with the birth
of the "global village" competition intensifies and becomes a fight of strategies, as in
many cases national companies that never thought about foreign competitors suddenly
find these in their backyard.
Marketing is the discipline through the study of the behavior of markets and consumers,
trying to stimulate demand and increase trade. Marketing experts provide various
strategies for the commercial management of companies with the intention to build
customer loyalty. The international adjective, on the other hand, refers to two or more
countries, different nations than your own or what has transcended national boundaries.
The international marketing, therefore, is linked to the application of marketing in
different cultures and at the same settings. It's about working with realities that are
outside the usual environment and, therefore, require the attention of many factors that
may affect the introduction and demand for products.
International marketing: where the marketing activities of an organization include
activities, interests or operations in more than one country and where there is some kind
of influence or control of marketing activities from outside the country in which the goods
or services will actually be sold. Sometimes markets are typically perceived to be
independent and a profit center in their own right, in which case the term multinational or
multidomestic marketing is often used. (Doole & Lowe, 2008)

International marketing focusing in Branding, Promotion and

Product diversification.
International Marketing is thus the set of tools and activities that combine to facilitate the
exchange of tangible and intangible goods between buyers and sellers in an
international manner, grouping countries and considering regional economic blocs and
international markets needs to satisfy.
Entering a country must be mainly oriented by a strategic decision in principle of the
necessary organizational structures to operate international markets such as: The
creation of a department of exports and imports, the appointment of agents or
representatives abroad, depending on the type of operations of the company, support of
foreign trade experts, among others; All this is important to understand the international
environment and marketing strategies to be implemented for a successful product
positioning. Regardless of the company, the key to success in international marketing is
focusing on developing a good product mix.
For Philip Kotler and Gary Armstrong Marketing Mix "is the set of controllable tactical
marketing tools that the firm blends to produce a desired response in the target market.
This mix includes everything the firm can do to influence the demand for its product The
elements in Marketing Mix are the following:
Product - tastes and habits differ between markets
Price - consumers have different incomes
Place - systems of distribution vary widely
Promotion - Consumers' media habits vary, as do language skills and levels of
literacy.
A very important aspect of international marketing is focus in branding. Branding is the
idea or image of a specific product or service that consumers connect with, by identifying
the name, logo, slogan, or design of the company who owns the idea or image. Branding
is when that idea or image is marketed so that it is recognizable by more and more
people, and identified with a certain service or product when there are many other
companies offering the same service or product. (Brick Marketing, 2014)
Branding is fundamental to a business because even though their product is not unique,
the brand by itself gives them a special recognition in the customers mind. Branding is
a combination between marketing mix elements product, price, promotion and place
because all of these characteristics are what makes a brand have their unique style.
Promotion, on the other hand, is an element of the marketing mix by itself. Promotion is
the advertising message, creative presentation, media strategy, personal selling, and

sales promotion (Hultman, Katsikeas, & Robson, 2011) of a product and is what
communicates a brand to the customer. Promotion is a key element in International
Marketing and involves all communication within the company and its clients.
International promotion can be standardized or customized, but many international
cases standardization has proven to be more effective in matters of message ads media
strategy. This standardization/adaptation decision is particularly relevant to exporting
because the deployment of apposite promotion strategies is widely perceived as
beneficial for export performance.
Product diversification is another area that marketing focuses a lot, more specifically in
order to achieve greater success and more brand power. International organizations
need to decide when to initiate involvement to measure the possibilities of success of
new products or new countries to enter in the mix.

Part 3: Case Study: NESTLE

Company Profile
Nestle S. A. is a Swiss multinational food and beverage company headquartered
in Vevey, Switzerland. It is the largest food company in the world measured by revenues.
Nestl has around 450 factories, operates in 86 countries, and employs around 328,000
people. They have their headquarters in Switzerland and their objective is to To be the
leader in Nutrition Health and Wellness, and the industry reference for financial
performance, trusted by all stakeholders.
They have the Philosophy of value for each individual in the company: We believe that
it is only possible to create long- term sustainable value for our shareholders if our
behavior, strategies and operations are also creating value for the communities where
we operate, for our business partners and, of course, for our consumers. We call this
Creating Shared Value (Strategy-Nestle Roadmap to good food, good life).
The NESTLE company is one of the most powerful known brands in the world and
dominates their market easily.

a.

The General Organizational Structure

Illustration 1. Corporate Governance, obtained from Corporate

Governance Report 2013.

b.

Products/Services

Nestl's products include baby food, bottled water, breakfast cereals, coffee,
confectionery, dairy products, ice cream, pet foods, and snacks.

Illustration 2. Nestle brands, obtained from Convergence

Alimentaire

c.

Competitors

Nestle competes with other packaged foods companies as well as store brands from
retailers such as Safeway, Wal-Mart Stores and Walgreen Company (Hoovers, 2014).
Nestls major competitors are:

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 Unilever: a Dutch company that produces packaged foods and products for

the home and personal care markets. Unilever is one of Nestls largest
international competitors.
Kraft Foods: a U.S. company that produces packaged foods products. Kraft

is one of Nestls largest U.S. based competitors. In early 2010, Kraft

bought Cadbury Schweppes, creating the largest candy company in the
world and strengthening Kraft's international presence. Cadbury
Schweppes is a U.K. company that produces products for the
confectionery and non-alcoholic beverages markets; they compete with
Nestls beverage and confectionery products internationally and in the
U.S.
GROUPE DANONE: a French company that produces packaged foods

and beverages. Group DANONE competes with Nestle internationally and

in the U.S.
Hershey Foods: a U.S. company that produces chocolate and sugar

confectionery products. Hershey Foods competes

confectionery brands mostly in North America.

with

Nestls

Part 4: Analysis (Major problems/opportunities facing the company

in the area of your interest: International Marketing)
a.

Brand: Image of the brand lessening in power.

Nestls brand is a powerful one right now. They are the biggest food company in the
world by revenues and everywhere around the globe the brands of their products are
well known and respected. The problem starts when different difficulties in products with
their quality had started to emerge, making the company an ethical threaten corporation,
with their moral question and brand affected.
Morality and Ethics in their products are starting to affect the brand but also competition
is affecting the brand. Now a days, there are a lot of companies with the same standards
and quality measures as Nestl which makes the brand lessen their power. Examples
come from new products or equally powerful brands attacking Nestls marketing area,
such examples as Starbucks coffee now selling their product for homemade threatening
Nescafe coffee.
Accentuate the brand and maintaining their name as successful and standard for quality
has to be a priority.

11

b.

Promotion:

Whether to standardized or localize their promotions is a very good question for the
future of Nestl. In the actual operational concept, Nestl has made their marketing
strategy to localize everything in an aura of a brand that is international which has had
many problems.
c.

Product Diversification :

Nestl has a grand quantity of different brands and products, involve in making of
different and very diverse food and health products. Now their focus is starting to evolve
into cosmetics, acquiring all Galderma which is a market that they dont understand. In
the future, the company will start evolving in that line of products (cosmetics) which is
something that the company have to take carefully because that market is very
saturated. Also, the possibilities of more products is a possibility which is an opportunity
for the company to take.
d.

Causes of the Problems

Brand:
Morality and Ethics involved in future appreciation of the brand:

Infant food controversy: Nestls controversy in the involvement of their products in the
deaths of third world babies is something that has weaken the brand.
The pamphlet was entitled Nestl Kills Babies, and accused Nestl of unethical and
immoral behavior involving the selling of breast milk substitutes that where contributing
to the death of babies. Most of the charges set upon Nestle and other companies that
sell this products involved bad advertising: marketing of these products had discourage
breast feeding among third world countries leading to poor alimentation of babies,
malnutrition and death.
This controversy has made Nestl not only a criticized company but also has made the
brand less trustworthy, which has made many people to stop using not only this product
but all products involve in the brand.
Horse Meat Scandal: Another scandal in the products of Nestl, when there were found
more than 1% of horse meat in products sold by the company Nestle has withdrawn products in
Italy, Spain and France after tests revealed traces of equine DNA. This condition in the quality of
their product had made the brand suffer by making people suspicious of what there are eating
and making them stop buying the products of the brand.

This two example of morality problems in the brand are threaten to the power of the
brand continuing in the future. Nestl has to foresee their possible problems and start
working in eliminating every questionable opportunities to become bad seen by moral
standards of customers.

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 Quality Standardized in the market

In time, food market standard quality has become less and less differentiated. This
condition has made the brand loose a little of its power because there is no special
distinction in their quality.
Promotion:
Moral and Ethically promoting advertising:

As in the causes of brand lessen power, and example of morally question promotion that
have consequences in the marketing of products of Nestl is the Infant food controversy;
bad advertising marketing of these products had discourage breast feeding among third
world countries leading to poor alimentation of babies, malnutrition and death.
This is just an example of bad promotion that can affect the products their trying to sell
and Nestl has to be careful to stop from happening.
Local promotion problems:

The marketing mix of Nestl differs from country to country, making Nestl a company
with local marketing adaptations. Products like the Kit Kat are produced in flavors
specially designed for a country making their economies of scale lose their power.
Customization is the key to Nestls global brand identity rather than universalism, which
means Nestl uses global brand identity but, from the internal point of view, it uses local
ingredients and other technologies that resonate with the local environment and brand
name that is known globally. The problem with these is that not all local ingredients have
had the quality needed internationally which has lowered the standards of the brand.
Nestl gives autonomy to its local branches based in different countries to make pricing
decisions, and distribution decisions. The customization of Nestls products causes
many hindrances in carrying out its distribution of products from local farmers to
factories. Finding the perfect combination between standardized marketing and local
marketing has been a difficulty for Nestl operations. To maintain a well-known global
brand but a local emphasized strategy its the goal to achieve.
New innovative ways to promote the product :

As every good company in the world, Nestl has to innovate in their promotion with their
customers. Because the competition is increasing and the advertising and distributional
channels are becoming more uniform, the challenge for Nestl is to find better, more
innovative ways to get to their clients.
Product Diversification:
Galderma/New cosmetic approach

13

Nestle SA paid $3.6 billion yesterday to take full control of Galderma, the dermatology
business that revives skin. Galderma will become part of a new division known as Nestle
Skin Health SA giving Nestle market development into health care, a sector that
promises faster growth and wider profit margins than the Swiss companys main food
business.
New product markets undeveloped:

The actual products develop by Nestle in expertise include food and health with a new
spin off in Cosmetic. Taking this into account, theres a world of possibilities for Nestl to
introduce themselves to a new development of market products. Even more, Nestl
could take advantage of their expertise in these areas to start developing products that
accompany the actual ones to get to the same customers with more products.
Constant leadership in their existing industries:

The leadership of Nestle in the areas they are present is unquestionable. It seems
evident, after maintaining market leadership they look to the opportunities other
industries present for them. When a company is successful with all the products they
have, growth can only came from diversifying its portfolio, trying to aim at new potential
markets, that result from and strategic analysis of their opportunities.

e.

Solutions of each problem

Brand
Evidently, the problems regarding their brand with Nestle are rooted to deeper issues in
the company than just single and simple mistakes. In both cases, horse meat and milk, if
the company had thought about their customers and the general well being of the
community, these problems would not have occurred. Nestle should be extra careful
regarding their reputation, since it is a company with a strong market position and with
high expectations from its customers. Also, some of the products the company sells,
such as food and baby products, are more sensitive and customers are more health
concerned about them. This is the reason why Nestle should not sacrifice quality, or in
the baby milk example: trust, for more sells and profits.
In this case, what Nestle can do to avoid future problems and to regain customer trust
and confidence, is to implement a rather recent mentality or set of values for the
company called Conscious Capitalism.
Conscious capitalism is defined as the reorientation of business focused solely on the
pursuit of profits to one focused on integrity, higher standards, and serving all
stakeholders such as employees, suppliers, customers, investors, the community, and
the world at large. Conscious Capitalism embodies the pursuit of a higher purpose than

14

just business as usual. Conscious Capitalism assumes that the fundamentals of

capitalism must change if global businesses, communities and governments are going to
thrive (Conscious Capitalism, 2014).
Kip Tindell (CEO of the Container Store) and John Mackey (co-CEO of Whole Foods
Market) co-founded Conscious Capitalism Alliance in 2007.

Promotion:
Because the mayor problem in promotion is that the message of the products or
campaigns gets bad interpreted (whether because of morality problems or local
interpretations) the most fitted solution would be standardized their promotion in every
country so that they can make sure that the message they want to convene is the same
to everyone.
An standardized promotion (with the same advertising, sales force approach,
presentation and media strategy) would make not only the message easily to distribute
but also easily to produce and it will make sure that what is say is not misunderstood.
The key to this standardization would be make each of these advertising localized in
actors.* (To further explanation go to implementation of the solutions, Promotion)

Product Diversification:
We see this as an opportunity of growth for the company. A successful product
diversification strategy requires proper and accurate targeting of market to be able to
increase the overall sales of the company.
Effective product diversification needs accurate target market as well as product
differentiation.
Brainstorming the potential markets can help obtain the best possible strategy for
product diversification. They have to consider the demographic differences like age and
gender and features as well as the geographic differences. Then, based on the
brainstorming, they can make a research about the viability of the new products. Ensure
that the new products are aligning with the different markets. Conduct product trials,
focus surveys, and surveys to ensure the success of the product prior its launch.
Another option to make an efficient product diversification is with an strategic alliance. If
Nestle is entering a new market and doesnt know anything about it, a partnership whit a
company that has experience in the field and knows about the client preferences and
needs.
f.

Implementation of the solutions

Brand

15

The core principles of a conscious business are:

Deeper Purpose: every business has a deeper purpose than merely profit
maximization.

Stakeholder Model: focuses on delivering value to all of its stakeholders and

works to align and harmonize the interests of customers, employees, suppliers,
investors, the community, and the environment to the greatest extent possible.

Conscious Leadership: management embodies conscious leadership and fosters

it throughout the organization. (Conscious Capitalism, 2014).

Managers of Nestle Company must reinforce the company values to the greatest extent:
We believe in people rather than systems
We are committed to creating value for our shareholders but we wont
favour quick-wins at the expense of long-term business development
We are committed to continuous improvement
Above all, we are pragmatic (Nestl, 2014)
These values call for a greater commitment to society as a whole. In the case of horse
meat, for example, they were valuing short term gains, which is completely against the
companys philosophy. It must be top priority for managers to reinforce these values
through the entire company, in order to make sure that there will not be any more
tradeoffs in decision making where customers safety or quality of the products are being
compromised.

Promotion
Standardized advertising: To make the same production of advertise with the same idea,
same or partially same script and same message of the product. This will make the
misunderstandings reduce.
It is important to maintain the idea of localize product to include in this advertising
local actors to make the idea of the advertising being only for the country or for
the region.
Standardized message: to make sure that the message of the product is for the same
kind of customer, same kind of social class and same kind of personality in every
country. To brand the product as something of a special class of people. To make sure
that the message is universal.

Product Diversification

16

Before deciding for product diversification is necessary to do an analysis to know the

reasons behind it. This analysis will help to understand if the company has the
necessary elements to carry out the plan, and deciding on whether or not is a viable
option.
Choosing the area of diversification is a tricky process, but the company has to keep in
mind the best way to be successful is choosing areas that are related or are supporting
industries to the industry of their existing products. Also, target growing markets with a
free competition and low level of substitute products is a good strategy because that
means there is not a lot of brand loyalty and the clients can be lured if they are offered a
different product that offers the same things.
For the strategic alliance part, we think a good way to implement this will be partnering
with a relative small-medium company that has had presence in an industry for several
years and know the market. In this case, Nestle will put all the capital requirements they
need to do it and the other company will put the knowledge and expertise in the industry.
Perhaps doing a strategic alliance with a big company of the industry they plan to enter
will not be a good idea, specially because the big companies probably would not be
attracted by this.
g.

Consequences of the solutions

Brand
By implementing the conscious capitalism philosophy in the daily operations and
decision making of the company, Nestl will be able to avoid future problems in which
the quality and name of its brand wont be compromised.
Some people argue that implementing conscious capitalism may be expensive and may
lower profits, and hence it is better to follow the classic philosophy that the main purpose
of the company is to increase the value for their stockholders. However, there are other
experts that believe that it is better otherwise: according to Nielsens Global Survey on
Corporate Social Responsibility, 43% of global consumers said they are willing to spend
more for a product or service that supports a cause (King, 2014).

Promotion
If the promotion gets standardized most of the localize jokes, the special cultural
references and interpretations to the information will be missed. If you see any language
or country oriented advertise you would have seen all the varieties of that commercial
because every one of them would be the same.
Morally undesired interpretations of the promotion would stop happening. Also,
commercials and panoramic would be better think of because of the impact they would
have making them. Nestl could argument that if anything goes bad in a country is

17

because of the culture and not of the message because the other countries did get the
message right and that would stop their fault.

Product Diversification
The immediate consequence will be a reduction of capital, because they are going to
need it to implement the product trials, surveys, focus groups and everything necessary
for the new product to be launch.
A long term consequence wil be an increase in the companies revenues assuming the
product is succesful, or on the other hand a decrease in it if the product fails.
A consequence of and strategic alliances will be access to new and different technology,
as well as knowledge of the industry they are planning to enter. As well as new channels
of distribuiton, all these to final mean of increasing brand awareness as well as having
access to a new customer base.

Part 5: Conclusion
This project was an interesting work for us to made, because it involved not only our
learning of the class but also our interpretation of how to solve this problems and our
creativity to look for future problems and solutions.
We enjoy the challenge of thinking we were managers in International Marketing of
Nestl (or more accurately in the company, Strategic Business Units, Marketing and
Sales) and that every decision we took could have consequences for the company,
whether good or bad.
We also loved that we got to know more about Nestl because we are fans of the brand
(mostly of Kit Kat) and the area of International Marketing which we have a particular
like.
We think that these project make us understand better the theory seen in class and
made it more tangible for us, more real. Now we think we understand more what a
project for the future means, what it means to be an international manager (or a
manager which happens to have international affairs in their area) and to look for
solutions of things before the problem occurs. We are better students of international
project managing because now we understand our capacities to decide and the
implications of that decisions in a company.

References
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Amstrong, G. &. (2008). Fundamentos de Marketing. Mexico: Pearson.

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Boyle, M. (12 de february de 2014). Nestles Galderma Skin-Care Buy Shows Health
Challenge. Obtenido de http://www.bloomberg.com/news/2014-02-12/nestle-sgalderma-skin-care-buy-shows-health-challenge.html
Brick Marketing. (27 de abril de 2014). Obtenido de
http://www.brickmarketing.com/define-branding.htm
Business Monitor International. (09 de April de 2014). Global Company Strategy Nestl. Recuperado el 18 de April de 2014, de Business Monitor International:
www.businessmonitor.com
Convergence Alimentaire (2014).
Une poigne de compagnies contrle lindustrie alimentaire. Recuperado el 08 de April
de 2014, de Convergence Alimentaire: http://convergencealimentaire.info/

Doole, I., & Lowe, R. (2008). International Marketing Startegy. London: Cengage
Learning.
Galderma. (s.f.). Obtenido de
http://www.galderma.com/News/articleType/ArticleView/articleId/56/Nestle-SkinHealth-Is-Created-Targeting-Global-Skin-Health-Needs
General Organization. (s.f.). Obtenido de Nestle: http://www.nestle.com/assetlibrary/documents/library/documents/about_us/ebm-december-2013.pdf
Helfand, C. (12 de feb de 2013). Nestl plans to use its global marketing juju to rev up
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Horsemeat: Nestle Withdraws Products In Scandal. (19 de february de 2013). Obtenido
de Sky News: http://news.sky.com/story/1053906/horsemeat-nestle-withdrawsproducts-in-scandal
Hultman, M., Katsikeas, C., & Robson, M. (2011). Export Promotion Strategy and
Performance: The Role of International Experience. American Marketing
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19

Nestle International Strategy. (s.f.). Obtenido de

https://blsciblogs.baruch.cuny.edu/mgt4880nestle/2013/04/08/nestle-internationalstrategy/
Nestle Worldwide. (s.f.). Obtenido de Nestle:
http://www.nestle.com/aboutus/globalpresence
Nestle Corporate Governance Report. (s.f.). Obtenido de Nestle:
http://www.nestle.com/assetlibrary/documents/library/documents/corporate_governance/corp_governance_re
port_2013_en.pdf
Nestl: The Infant Formula Controversy. (s.f.). Obtenido de Case 1-2:
http://www.paceth.com/ibus/nestle_case.pdf
Project Management Institute. (2014). What is Project Management? Recuperado el 08
de April de 2014, de PMI: http://www.pmi.org/About-Us/About-Us-What-is-ProjectManagement.aspx
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http://www.nestle.com/aboutus/strategy
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2014, de Villanovau: http://www.villanovau.com/what-is-project-management/
What is creating share value? (s.f.). Obtenido de Nestle:
http://www.nestle.com/csv/what-is-csv

20

Annex 1 (SWOT)

Strengths
Key player in the majority of the
world's most important markets.
In latest financial year, generated
36.4% of its revenues from EMs.
Strong portfolio of brands and welldeveloped product development
facilities.
'Popularly positioned products'
well-placed to benefit from rising
affluence among low-income
consumers.
Predicted the rise in healthy eating
and functional food categories;
Particular hedge on nutritional
health trends from recent
acquisitions in the pharma space
and increasing R&D spending.
Low debt burden will help with
other acquisitions.
Threats
Private labels are stealing market
share in product categories with
less addedvalue.
Divestment from L'Oreal will limit
the company's exposure to
personal care products (apart from
Galderma).
Exposed to fluctuations in the
price of commodities and
currencies, with low incomes in
EMs limiting the extent to which
price increases can be passed on.
Secondary slowdown in China
and/or US and
longerthanexpected stagnation in
Europe would put pressure on
sales in many global markets.

Weaknesses
Bottled water sales have been hit
by the downturn and increased
concerns about the product's
environmental impact.
Nestl's presence in Asia is
perhaps not as impressive as
might be expected.
Spending on advertising and
marketing generally below that of
its peers.
Revenue growth has been less
dynamic than for several of
Nestl's smaller peers.

Opportunities
Potential to capitalise on the
ongoing health and wellness trend,
through the promotion of nutrition
and pharmaceutical products.
Strong opportunity to fill the gap in
consumption seen in some
categories (mainly coffee and milk
products) in large EMs.
Rising incomes will present greater
opportunity to expand sales
through premiumisation across all
categories.
Further acquisitions and expansion
in frontier markets, such as SubSaharan Africa and Central
America.

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