WHAT IS MNC?

A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management. Very large multinationals have budgets that exceed those of many small countries.

WHY MNC IN INDIA

Following are the reasons why multinational companies consider India as a preferred destination for business:
Huge market potential of the country. FDI attractiveness. Labour competitiveness. Macro-economic stability.

Advantages
There are certain advantages that the underdeveloped countries like and the developing countries like India derive from the foreign MNCs that establishes. They are as under:
Initiating a higher level of investment. Reducing the technological gap The natural resources are utilized in true sense. The foreign exchange gap is reduced Boosts up the basic economic structure.

Disadvantages
Roses does not come without thrones. Disadvantages of having an MNCs in a developing country like India are as under Competition to SMSI Pollution and Environmental hazards me MNCs come only for tax benefits only Exploitation of natural resources Lack of employment opportunities Diffusion of profits and Forex Imbalance Working environment and conditions Slows down decision making Economical distress

NESTLE
Nestl is the world's leading Nutrition, Health and Wellness company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

Nestle India Limited

A subsidiary of Nestle; was founded by Henri Nestle in Switzerland in the year 1867. The company was established in India in 1961, in an effort to upgrade the existing standards of the Indian milk industry at that period. The first production unit was launched in Punjab.

Facts about Nestle India

Nestle India Limited has grown over the years into the most desired brand in the food and beverage sector in India. The company has succeeded in meeting the expectations of the Indian government in bringing a marked change in the milk industry through its suggestion on latest dairy farming techniques and upkeep of cows to improve the milk yield. Nestle India Limited gave directions to the farmers in incorporating the advanced technological methods with regard to crop maintenance and irrigation. The company proposed the set up of centers that not only catered to the storing and selling of milk, but also maintained contacts with the farmers.

Manufacturing Units of Nestle India

Nestle India Limited initiated its workings in India with the Moga unit in Punjab in 1961; succeeded by the Choladi unit located in the state of Tamil Nadu. The Moga unit dealt entirely with the proper management of dairy products whereas the Choladi unit diverted its interests to the tea industry. The main purpose behind the set up of Choladi unit was to treat the tea crop to produce soluble tea. Nestle India Limited is also the proud of owner of Nanjangud unit in Karnataka; Samalkha unit in Haryana; Ponda and Bicholim units in Goa; and Pant Nagar unit in Uttarakhand.

Latest Financial Figure (Figure in Rs. Crores) ET 500 Rank(2011) Industry Turnover Profit after Tax(PAT) MCAP (Market Capitalization) Assets 106 Food Processing Dairy/Fruits/Others 6925.43 891.5 40630.8

855.42

Products of Nestle India

Nestle India Limited has spread its wings to significant areas within the food and beverage industry. It has various products like chocolates, infant food, confectionery, prepared dishes and so on. The company produces delicious chocolates of varied tastes, quality, make, and ingredients to allure the taste buds to the level of indulgence with such widely known chocolates as Milky Bar and Kit Kat, which differ in their hues. The beverage section offers refreshing Nescafe, and health drinks such as Milo, Nestle Milk and the mouth-watering condensed milk, known as Milkmaid. Maggi noodles, Nestle Jeera Raita fall under the category of prepared dishes, whereas the latest additions of Nestle India like Nestle Fresh "n" Natural Dahi and Nestle Slim Milk have won million hearts with their exquisite flavors.

Performance of Nestle India

Nestle India's popularity is visible in its financial figures published for the second quarter starting from April and ending in June 2007. The net profit for this quarter records a growth of 18.1%, amounting to `95.7crores, and the net sales figure marks a rise of 23.2%; whereas the exports delineate improvement by 15.6 %, which is calculated as ` 82crores. The net domestic sales have also grown at a very fast pace to `756.9 crores, showing a jump of approximately 24 %, when compared with the financial figures of the same period, that is, from April to June in the previous year.

Marketing Mix
The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives

 Nestle Product

Four Ps

Nestle is the world's largest food manufacturer, operating in 77 countries with 480 factories. Naturally, Nestle's range of products varies greatly from one area of the world to another, which is why we make all of the great Aussie Nestle brands available here!
Violet Crumble (Honeycomb bar covered in milk chocolate, rival of the Crunchie !) Milo (A healthy malt extract powdered chocolate drink) Nesquik (Banana/Caramel/Chocolate powdered drink. Add milk) Milo Bar (A chocolate bar with Milo malt-powder centre) Aero Bar* (Chocolate bar with a honeycomb-like texture (filled with air bubbles). Flavours: Chocolate, White Chocolate, Peppermint)

 Nestle Price
Nestle again decides it price on the basis of competition. The best think about the company nestle is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed. But this risk taking attitude has also earned nestle losses. Though lowering the price would attract the customers but it would not help them cover up the cost incurred in production hence causing them losses. This was the situation earlier but now nestle is a full-fledged and growing company. It has covered all its losses and is now growing at a rapid rate.

 Nestle place
Nestle again has spread worldwide. Nestle when entering a new market does not go in alone but it looks for partners and mergers. Till now nestle has collaborated with companies many mncs etc. Nestle like Cadbury has spread all over the world. It is because of this worldwide spread that now it is coming up with Advertisements which can be broadcasted in the different nations in the world. The recent example with would be the Nestle advertisements having pretty zinta as it brand ambassador.

Nestle - Promotion
Nowadays Nestle going in for Brand Ambassadors to promote their product. These brand ambassadors are famous people who usually people idolize and people can relate to them. The following pictures do not need any explanation as people are familiar with the celebrities and can thus quickly identify with the product.

Key Strategy
Nestl is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America. Nestl recognizes the profitability possibilities in these high-risk countries, but pledges not to take unnecessary risks for the sake of growth. This process of hedging keeps growth steady and shareholders happy.

SWOT ANALYSIS
Nestl is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America. Nestl recognizes the profitability possibilities in these high-risk countries, but pledges not to take unnecessary risks for the sake of growth. This process of hedging keeps growth steady and shareholders happy.

Conclusion