Vous êtes sur la page 1sur 13

Topic: Impacts of change in environment on the business of NESTLE Jamia Hamdard FMIT New Delhi

Submitted to: Syed un Nissa maam

Submitted by: Mohd Asif Sofi Sanya Zaidi Zubair Hamid Mohammad Ali Fayaz Ahmad

NESTLE OVERVIEW
Nestle is a Swiss-German word which means little nest which is its trademark. It is the worlds npo.1 food company ,founded by Henry Nestle in 1866 in Switzerland. 5th largest company I the world according to its turnover. 2 million and 31 thousand employees base. 522 factories spread across 82 nations. 700 products innovated or renovated in the past 5 yaers. Lactogen formula was its first product.

About Nestle
Nestl, the worlds largest food company, markets over 11,000 brands of processed foods, and controls approx. 40% of the baby food market. Nestls 2001 Annual Report states, Infant nutrition is a truly global Nestle business and sales grew vigorously in all regions of the world."

The History
Nestl is celebrating a century of deep engagement in a country which over that period has proven its potential to be one of Asias economic superpowers. Nestls first sales agents in India began work in Chennai and Kolkata in 1912. Today, the company directly employs 6,000 people in India and more than half a million indirectly. Its products are sold in more than 3.5 million outlets across the country.

Growth potential
Nestl recorded sales of CHF 1.4 billion in India in 2010. Its most popular brands are Maggi, the countrys leader in instant noodles, and Nescaf instant coffee. Nandu Nandkishore, Nestls Executive Vice President and Zone Director for Asia, Oceania, Africa and the Middle East thinks there is much potential for further growth. India is a success story in the making, he said. It has a large, progressive population.

Consumers trust our products for their high quality. Opportunities will continue to grow as more and more people want to buy nutritious, branded food and beverages.

Rural development
Nestl built its first Indian factory in Moga, Punjab in 1961, developing milk production in the region. The company now has seven factories in the country. Over the years, Nestl has helped to develop the area around that first factory, setting up milk collection points and training farmers to improve productivity and quality. The companys agronomists provide farmers with technical support to improve sustainable water management, including help with irrigation and rainwater harvesting. Nestl India has built more than 160 drinking water fountains in schools near its factory in Moga, providing about 65,000 students with access to clean water. The company has also improved the sanitation facilities in girls schools close to the factory to encourage young women to continue with their education. These efforts are part of what Nestl calls Creating Shared Value, an approach to business that aims to create value for shareholders at the same time as for those communities where the company operates.

The Environments of Nestles Existence


Nestle is operating in a society which is very large in nature thus placing the organization in an external environment where there is a huge number of forces which can potentially influence the functioning of nestle in many ways. The external elements with which the Nestle has to deal are the elements that are directly related to it in conducting its daily operations and the forces that may create uncertainties that can not be predicted. These elements may have differentiated impact on Nestle indifferent countries of the world Following are the components of Nestl's Mega environment: Political Economic Social

Political Environment
Nestls mega environment in India initially consists of the political restraints and the objections that the Indian Government has placed on Nestle on the way it conduct its business in the country. Another way in which the Indian government may influence the way nestle conducts its business is by placing quotas on the amount of products that it can supply, which will limit the amount of revenue that nestle can generate. These constrains may include the amount of a specific tax that nestle pays to the government in order to conduct the business and this may have a resulting impact on the consumers of nestle products in the shape of higher prices, than what it may be offering to the other countries mainly because of a lower tax it has to pay, and it is depended on the policy of the country.

Economic Environment
The second mega external environmental factor that influences the organization is the economical factor, which controls the mechanism(contraction and expansion) of production, consumption and distribution. Nestl makes a significant contribution to the economic sector of India. Through generation of tax revenue, import substitution of milk powder, export and infusion of over 4.6 billion rupees in the rural economy through milk purchases, the company plays an active role in promoting economic growth. The capitalist economic system consists of firms owned privately by individuals or by corporations. In such an economy there is a great scope for the company to take favourable decisions and move towards abetter organizational environment. Social economic structure, then the rights of owner ship and decision-making will be transferred to the state (government)

Social environment
In analysing the social factors that can influence Nestls course of business activities in India, we come across the demographical statistic of Indian which includes, gender specification, age specification and religious specification, how a social and cultural values of a certain geographical area can influence the important shifts in the demand of the product, which may result in nestle changing some of its strategies accordingly in order to maintain its sales in India. Nestle lays a great emphasis in penetrating into the market keeping the cultural and traditional values of the geographic area in which it is conducting its operation. Before nestle begins its operations in any country its main emphasises on studying the cultural values of that country, in order to get it's products warmly welcomed and make it highly preferred among other companys operating at the same level.

Technological factors
Research indicates that technology tend to evolve through periods of incremental change through technology breakthroughs that either enhance or destroy the competence of firms in an industry. At nestle technological factor is of vital importance since many new techniques may change the methods of production of food and make them more efficient. Therefore nestle have to spend some of its earnings in these arch of new technologies. If it ignores this factor and do not respond to it accordingly then there is a possibility that rival firms may take its place.

The Allegations
Nestle has been dogged by criticism of its baby food marketing policy and practice for over two decades, and more recently about its impact on the environment. Worldwide independent monitoring consistently shows that the company systematically violates the International Code and Resolutions, promoting its products in many ways which harm infant health and at the same time lobbying for weak legislation and trading standards.

Effect on NESTLE
Because of this Nestle has curbed some of its more blatant malpractice, removing pictures of babies on infant formula tins and stopping some media advertising.

Vous aimerez peut-être aussi