Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created Nestlé Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumer’s primary motivation for a purchase is the claims made by the product based on nutritional content.
In order to reinforce their competitive advantage in this area, Nestlé created Nestlé Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and ...view middle of the document...
In Asia, Nestlé’s strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans. Nestlé’s strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently, Nestlé acquired Indofood, Indonesia’s largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries.
Nestlé has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country. For example, Nestlé produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution.
Starting in 2007, a number of stakeholder convenings have been held in Washington, Geneva and Kuala Lumpur to help us better understand the changing needs and expectations of society as it relates to Creating Shared Value.
In particular, the convening discussions aimed to:
* reflect on Nestlé’s current commitments, policies and performance;
* determine how effectively Nestlé bridges and aligns the Company’s business and Creating Shared Value strategies and initiatives;
* identify opportunities and challenges, and within that, implications and specific expectations for Nestlé reporting, looking back as well as ahead.
The convenings were designed, organised and facilitated by AccountAbility, and were attended by a total of more than 50 experts from a wide range of social and environmental impact areas relevant to Nestlé’s business activities and operations. The participants were invited by Nestlé to share their perspectives candidly. Sessions were also attended by senior managers and decision-makers from Nestlé functional business areas and public affairs.
Stakeholder convenings – expert participants*
Washington, October 2008
Population Council, Conservation International, International Center for Research on Women, International Food Policy Research Institute, UN Foundation, Global Health Council, Pew Center for Climate Change, Calvert, The Nature...