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Nestl can trace its origins back to 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One year later, Henri Nestl, a trained pharmacist, launched one of the worlds first prepared infant cereals Farine lacte in Vevey, Switzerland. The two companies merged in 1905 to become the Nestl you know today, with headquarters still based in the Swiss town of Vevey. The Nestl Group operates more than 456 factories in over 86 countries, with about 280,000 employees world-wide. Nestl Vienam is part of Nestl. Established in March 1995, Nestl Vietnam Ltd. has factories in Bien Hoa Industrial Zone 2, produces NESCAFE, MILO, COFFEE-MATE, NESTEA, MAGGI, etc. and repacks milk powders such as LACTOGEN, NESTLE GAU, NESTL Infant cereals, etc. 1. Mission statement Nestl is the world's leading nutrition, health and wellness company. The 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. They believe that leadership is about behavior, and we recognize that trust is earned over a long period of time by consistently delivering on their promises. Nestl believes that it is only possible to create long-term sustainable value for our shareholders if our behavior, strategies and operations also create value for the communities where they operate, for our business partners and of course, for their consumers. They call this creating shared value. 2. Company objectives Nestl business objective is to manufacture and market its products in a way that creates value that can be sustained over the long term for shareholders, employees, consumers, business partners and national economies in which Nestl operates. The aim of the creating values for the company include with improve business condition for the firm. To obtain more reliable and high qualify source of raw material s, improved government functioning and regulatory, employed skill and loyal workforce and superior quality products which successfully complete. II. ENVIROMENTAL ANALYSIS (Early stage of entering the Vietnam market, before 2003) 1. Economic environmental: The economy of Vietnam is a developing planned economy and market economy. i Mi policy combined government planning with free-market incentives and encouraged the establishment of private businesses and foreign investment, including foreign-owned enterprises. GDP growth of 8.5% in 1997 fell to 6% in 1998 and 5% in 1999. Growth then rose to 6% to 7% in 2002 even against the background of global recession. GDP: purchasing power parity - $183 billion (2002 est.)

GDP - real growth rate: 6% (2002 est.) GDP - per capita: purchasing power parity - $2,250 (2002 est.) GDP - composition by sector: agriculture: 24% industry: 37% services: 39% (2001 est.) Inflation rate (consumer prices): 3.9% (2002 est.) Unemployment rate: 6.1 %( 2003 est.) Exchange rates: dong per US dollar - 15,325.8 (2002), 14,725.2 (2001), 14,167.7 (2000), 13,943.2 (1999), 13,268 (1998) Demographic:
Vietnam is a potential market, the population stands on the fifth in Asia, accounting for 81,6 million people (2003). Vietnam has Asias first youngest population, and ranks the second highest of the world. Vietnams population growth rate is 1.2%, making up the sixth of Asia. However, the Vietnamese population still increases strongly every year. The reason for it is that the process of rapid urbanization, population from rural to urban and scale in large cities is becoming more popular. Big cities will have larger scale and tend to expand in terms of area and population, especially in Hanoi and the satellite cities. Along with this, urban population has increased. Rapid urbanization rate will motivate increased sales in restaurants, catering services and hotels. That is a good opportunity for Nestle to focus on commercial marketing to large cities.

81,624,716 (July 2003 est.)

Age structure
0-14 years: 30.2% (male 12,699,002; female 11,967,674) 15-64 years: 64.2% (male 25,776,600; female 26,599,005) 65 years and over: 5.6% (male 1,902,464; female 2,679,971) (2003 est.)

Median age
total: 24.5 years male: 23.6 years female: 25.5 years (2002)

Population growth rate

1.29% (2003 est.)

Sex ratio

at birth: 1.08 male(s)/female under 15 years: 1.06 male(s)/female 15-64 years: 0.97 male(s)/female 65 years and over: 0.71 male(s)/female total population: 0.98 male(s)/female (2003 est.)

Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer; mountain area languages (Mon-Khmer and Malayo-Polynesian)

definition: age 15 and over can read and write total population: 94% male: 95.8% female: 92.3% (2003 est.) 2. NATURAL ENVIRONMENT Viet Nam is located in the tropical and temperate zone. Viet Nams climate is characterized by high temperature and humidity all year round. There are two major climate regions in Viet Nam. Northern Viet Nam has a tropical monsoon climate with four distinguishable seasons (spring, summer, autumn and winter). Southern Viet Nam has a rather moderate tropical climate given the weak influence of monsoons and is characterized by dry and rainy seasons and warm weather all year round. Vietnam natural conditions have some advantages for agricultural development. There are two vast, rich, and flat deltas: Red river delta and Mekong river delta; which consequently base the two largest cities in the country- Hanoi and Ho Chi Minh City. Main products of Vietnam agriculture are rice, coffee, tea, rubber, sugar and cashew nut. 3. TECHNOLOGICAL Business enterprises caf chains in the domestic have not reached the standard of high technology. Machinery has not been good investment to make sure power and excellent quality. This is a competitive advantage for Nescafe when making a line with international standards to ensure product flavor. New products and new processes will bring new market opportunities for Nescafe by pace of technological change. 4. SOCIAL/ CULTURAL
The culture of drinking in Asia is not about alcohol its about coffee and tea. In Vietnam, tea is said
to appear in almost every social activities. It is also an essential accompaniment to a discussion at work, a visit from a friend, or just about any other conversation that involves sitting down. Vietnamese coffee is made from Robusta beans, and is very strong. Most of the minorities of Vietnamese who drink coffee take it with condensed milk. Coffee drinking has become fashionable among young people, and a host of coffee houses franchised by the Central Highlands coffee producers have sprung up to meet the demand.

Vietnamese drink 0.83 kilograms of coffee each, far lower than consumers in other exporting countries such as Nicaragua, whose citizens imbibe 2.2kg per capita. Brazilians consume 5.7kg each. This is a great opportunities for Nescafe join Vietnam market.