Company\'s Background - Lim Jia Jia PDF

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A very good morning I bid to Madam Teo and my respected colleagues. As you can tell from this slide, we will be talking about the company Nestle and their signature product, Milo. My group consist of our leader, Cindy, myself, Azim, Zi En and Wen Han. (next slide please) Before we start, I’d like to introduce you to our table of contents. On my part, I will be discussing on the history of the company, Azim on the social responsibilities, Cindy on the marketing strategies and last but not least, Zi En and Wen Han on the future challenges. (next slide please) First and foremost, let me give a little bit of context regarding the company itself. (next slide please) Nestlé is the largest food and beverage company in the world. Initially, the company sold only infant cereal but they quickly diversified to include a variety of products including chocolate, coffee, soup, yogurt, water, and frozen foods in their portfolio. The organization employs nearly a quarter of a million people from 70 different countries around the world and operates in almost every part of it. They have reached an impressive global audience both through their own efforts and through joint ventures with companies like Coca-Cola. Nestlé ‘s success has been driven by a combination of product innovation and business acquisition. It is their motivation for growth and diversity that has allowed Nestlé to become the key player in nutrition that it is today. Now that you know what exactly is the Nestle company, let me enlighten you with how the Nestle company is established. (next slide please) The history of the Nestle company begins in the year 1866, with the foundation of the Anglo-Swiss Condensed Milk Company. Henri Nestlé develops a breakthrough infant food in 1867, and in 1905 the company he founded merges with Anglo-Swiss, to form what is now known as the Nestlé Group. During this period cities grow and railways and steamships bring down commodity costs, spurring international trade in consumer goods. (next slide please) In the year 1866, US brothers Charles and George Page help establish the Anglo-Swiss Condensed Milk Company. Using abundant supplies of fresh milk in Switzerland, they apply knowledge gained in their homeland to establish Europe’s first production facility for condensed milk in Cham. They start supplying Europe’s industrial towns with the product under the Milkmaid brand, marketing it as a safe, long-life alternative to fresh milk.

In the year 1867, Nestlé’s founder, German-born pharmacist Henri Nestlé, launches his ‘farine lactée’ (‘flour with milk’) in Vevey, Switzerland. It combines cow’s milk, wheat flour, and sugar, and Nestlé develops it for consumption by infants who cannot be breastfed, to tackle high mortality rates. Around this time, he starts using the now iconic ‘Nest’ logo. In the year 1875, Henri Nestlé sells his company and factory in Vevey to three local businessmen. They employ chemists and skilled workers to help expand production and sales. In the year 1878, fierce competition develops between Nestlé and Anglo-Swiss, when both companies start selling rival versions of the other’s original products: condensed milk and infant cereal. Both firms expand sales and production abroad. In 1882, Anglo-Swiss expands into the US, but the death of George Page frustrates its plans. In 1902 it sells its US-based operations, which paves the way for an eventual merger with Nestlé. (next slide please) Last but not least, in the year 1904, Nestlé begins selling chocolate for the first time when it takes over export sales for Peter & Kohler. The Nestlé company also plays a role in the development of milk chocolate from 1875, when it supplies his Vevey neighbour Daniel Peter with condensed milk, which Peter uses to develop the first such commercial product in the 1880s. (next slide please) To conclude my part of the presentation today, I’d like to update everyone regarding the latest developments of the Nestle company. Today, nestle has 447 factories, operates in 189 countries, and employs around 333, 000 people. Nestle sells products in 195 countries, which means that Nestle sells products to every country in the world with the exception of North Korea. Nestlé has over 2,000 brands comprising a wide range of products across a number of markets, including coffee, milkshakes, bottled water, and other beverages; breakfast cereals, infant food products; performance and healthcare nutrition; soups and sauces, seasonings, frozen and refrigerated foods, and pet food. Nestle was ranked 46 th on Forbes Most Valuable Brand List, and was ranked 20th in profit. In the year 2020, Nestle is again the world’s largest food company, holding onto the top seat in the industry as sales of its frozen staples like Hot Pockets, Stouffer’s and DiGiorno surge alongside coffee brands like Nespresso. Without any further ado, I’ll pass the floor to my good friend, Azim.

Questions: As one of the largest conglomerates in the food and beverage industry, what are the biggest competitors right now that can potentially threaten Nestle’s future operation? A: Internationally, one of Nestle’s biggest competitors is Mondelez and I believe that it always will. It is a foremost snack company of Illinois. The company produces various products like chocolate, beverages, cookies, and confectionary; brands such as Cadbury, Oreo, Vegemite and etc. Their business operations are spread across the world and their source of revenue is from outside the United States as well. Their operations are seen in approximately 1655 countries and have revenue of about $30 billion which is generated across all their brands. Mondelez main products categories are chocolate, biscuit, candy, grocery, and cheese. The company keeps innovating new products that provide great taste and is liked by all. The products are prepared in such a way that the taste suit to the particular place. The company has great market dominance and it periodically modifies its products. The brand’s fastest growing categories are gum, candy, cookies, and chocolate. Due to their great and attractive categories, Mondelez is considered as one of the tops Nestle competitors. I hope that answers your question. Thank you....