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Friday, October 4, 2019

Research Paper based on company of your choice except Walmart

Based on company of your choice except Walmart - Research Paper Example Next section of the study will discuss the major milestones for the company. Time Period Milestones 1905 Nestle took over Anglo-Swiss Condensed Milk Company. 1920-1944 Nestle shut down operation in many plants and invested capital in launching Nescafe. 1945-1974 In this era, Nestle took the strategic decision to diversify its product portfolio. They took over Alimentana in order to launch Maggi. Nestle invested money for becoming one of the largest shareholder in L'Oreal. 1975-1979 Nestle took initiative to enter in pharmaceutical industry with the help of buyouts and strategic acquisition decisions. The company acquired Alcon Laboratories in order to enter American pharmaceutical industry. 1980-1994 Nestle used the acquisition strategy in order to increase height, breadth and depth of its food product portfolio. The Vevey based organization acquired food giant Carnation in order increase depth of the product line. Nestle enhanced the strength of the Nescafe brand by launching Nespre sso which was a form of espresso coffee. 1996-2005 Nestle diversified its business into nutritional and health division. The Swiss company entered into of health, nutrition and wellness business segment with the help of series of merger and acquisition activities. 2006-2009 Nestle took few major steps like acquiring nutritional division of Novartis, establishing shared value forum in different countries, trimming down the value chain for bottled water segment in order to increase sustainability and profitability of business. 2010-2012 Nestle launched Cocoa Plan for supplying disease defiant plantlets to their value chain partners. (Source: Nestle, â€Å"History†) SWOT Analysis & Impact of External Environment Strengths Strong Brand equity is the major strength for Nestle. The company has established strong brand presence with the help of its diversified product portfolio. The Swiss giant offers more than 4000 brands to customers which talks about the product diversification c apacity of the company. The company is the market leader in more than twenty five product categories like confectionery, pet care, coffee, bottled water, frozen meal, nutritional division and dairy products. Nestle has achieved leadership position in non-alcoholic beverage market with the help of products like Milo (energy drink), Nestle Pure Life (bottled water), Nescafe (coffee) etc. Nestle Pure Life is the highest selling bottle water brand in the world. Top brands of the company are growing at a rate of 10-20% annually which proves the strong brand equity of Nestle (Market Line, â€Å"Nestle S.A†). Research and development capability is the major strength for Nestle. The company has established more than thirty two research and development centers across five continents in order to incorporate high degree of diversification in product offering. The Vevey based company operates business with the help of three hundred application groups in order to develop products in accor dance with the local market preference. Weaknesses Major weakness of Nestle is its inability to generate revenue from all the markets it caters to in equal proportion. For example, 58% of Nestle’s revenue comes from its operation in developed countries like USA, UK and other European countries (Market Line, â€Å"Nestle S.A†). The company is facing problem in maintaining its revenue growth in European

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