PHÂN TÍCH CHIẾN LƯỢC KINH DOANH CỦA NESTLÉ NESTLÉ'S BUSINESS STRATEGY TABLE OF CONTENT TABLE OF CONTENT INTRODUCTION RESEARCH OF CONTENT Introduction of the Nestlé company 1.1 Overview of the Nestlé company 1.2 Establishment history and development 1.3 The business philosophy .6 1.4 The values and principles, business standards of Nestlé: Introduction to Nestlé Vietnam .8 Nestlé's business strategy Studies coffee products of NESCAFÉ 10 4.1 Formation and development 10 4.2 The position current .11 Analysis of the business environment 12 5.1 Interests of consumers 12 5.2 Pressure from governments 12 5.4 Technological innovation, access to supplies 13 CONCLUSION 14 INTRODUCTION Currently the company in Vietnam is also facing challenges enormous Conceived in a young economy, companies in Vietnam has not had much experience against the crisis and the increasingly fierce competition from rivals in the world Therefore, we need to look closely at the strategies of large companies have much experience to learn and to find alternatives to deal in order to maintain and grow the business With head adept in recognizing the opportunities and challenges before the global recession now, the operator of Nestle - one of the giant transnational corporations in the world- are implementing powerful transformation step for the company and earned a lot of success The Nestle study will give us the ability to make decisions and proper measures for development company, holds a competitive advantage Moreover, Vietnam be accorded the abundant raw materials for manufacturing, where international companies (including Nestle) is heading to exploitation Nescafe is one of the flagship brands of Nestle Nestle spent a lot of resources and support for the development of this brand With construction projects Nescafe factory in Vietnam, the company Nestle is set production and processing of coffee in Vietnam in a difficult position If not equip themselves with the necessary knowledge, set out the appropriate strategy, the company in Vietnam will quickly fail in their home market I decided to study coffee is found as this is one of the strengths of Vietnam should be used to put the country's economy going up Although the company is currently focused on developing world field marketing but marketing strategies will never work if the other parts are not operating effectively Each department in a company are decisive factors of success of the company In individual assignments, I would mention the business strategy This strategy plays a very important role In the current crisis, the production company business with particular emphasis of this strategic adjustment There is an appropriate business strategy will put the company ahead of the competition, bringing the cost advantages, advantages in customer satisfaction for the product RESEARCH OF CONTENT Introduction of the Nestlé company 1.1 Overview of the Nestlé company Nestlé (Nestlé S.A or Société des Produits Nestlé SA) is headquartered in the city of Vevey, Switzerland, is a multinational food and nutrition world's largest with a total of 250,000 employees and 500 plants worldwide Founded in 1866 by Henri Nestlé, currently the company's products have been worn in most countries around the world The scope of the company's product line from coffee, water, ice cream, baby food and to implement health and nutrition care, pet care, confectionery and pharmaceuticals The main brands include Nestle Nescafe, Perrier, Nestea, PowerBar, Cuisine and Toll House By experience and business strategies, the leaders of Nestle cope with the challenges brought growing corporations and powerful nations themselves reach out across the continent and around the world Nestle has always had a breakthrough in business as well as in market research to increasingly demonstrate its number one position in the food sector in the world 1.2 Establishment history and development - In the period 1866-1905: In 1860, pharmacist Henri Nestlé invented a food for babies can not be breastfed His first success was rescued a preterm baby can not be breastfed food or other common alternative The value of this new product quickly recognized since the new formulation of Nestlé premature babies survived Since then, Nestlé infant formula Farine Lactée Henrie has been widely sold in Europe - In the period 1905-1918: 1905, Nestlé merged with the company producing Anglo-Swiss milk Since early 1900, the company was operating factories in the United States, Britain, Germany and Spain World War I created a new source of demand for dairy products in the form of government contracts End the war, Nestlé's production level was more than doubled - In the period 1918-1938: After of World War, the government contracts with consumers run out and quickly returned with fresh milk However, Nestlé team has responded quickly, organizing effective operations and reduce debt In the 1920s, Nestlé began expanding into the manufacture of new products and chocolate become an important sector of the Nestlé second - In the period 1938-1944: Nestlé immediately notice the effects of World War II Profits fell from 20 million dollars in 1938 to million dollars in 1939 The factory was located in the developing countries, particularly Latin America Surprisingly, the war has helped the company to introduce new products, Nescafé drinks mainly of the US military The output and sales of the Nestlé rose quickly in wartime - In the period 1944-1975: End of World War II was the beginning of an active period of Nestlé Nestlé Continuous rapid development and acquisitions many companies In 1947 approaching merger with manufacturer Maggi seasoning and soup In 1960 the Cross & Blackwell and in 1963 to turn Findus, Liffy's in 1971 and Stouffer's in 1973 Nestlé began to diversify products while holding shares in L'Oréal in 1974 - In the period 1975-1981: The development of Nestlé in market developing country partially helped offset the decline of the Company on the traditional market Nestlé speculative conduct a second outside the food industry by acquiring Alcon Laboratories Inc Company - In the period 1981-1995: Nestlé gave up some business from 1980 - 1984 In 1984, the key improvements in the operation of the company has allowed Nestlé to conduct new acquisitions, the most important is the acquisition of "giants in the US food industry" Carnation - In the period 1996-2002: In the first half of the 1990s was a period favorable for Nestlé: trade barriers were lifted, world market development into regional trade integration Since 1996 the company has acquired companies such as San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002) Two acquisitions largest in North America took place in 2002: in July, Nestlé merged businesses their cream in the United States in the company Dreyer's, and in August, announced acquisitions Corporate Chef America with price is 2.6 billion dollars - In the period of 2003 - up to now: in 2003 was a good start by acquiring Mövenpick ice cream manufacturing company, strengthening its position in the world Nestlé's head in this sector In 2006, Nestlé invested in Jenny Craig and Uncle Toby's, and until 2007, Novartis Medical Nutrition companies, Gerber and Henniez also be merged into Nestlé 1.3 The business philosophy 1.3.1Recklessness and daring to develop "When you stop growing means you start dying," said Peter Brabeck, Nestlé's business manager confirmed Over 20 years, Nestlé has not stopped growing and expanding worldwide, crush many competitors and a turnover of USD 98 billion, profit before tax of 11 billion Swiss francs in 2003 Brabeck became CEO of Nestlé in 1997 still want corporations continue to expand further His goal is to increase annual sales to 90 billion Swiss francs 1.3.2 No change to change all The first thing to go was decentralized Nestlé began to consolidate the leadership of the factory in each country in the region, combined supervision of similar products in the "unity of business strategy." Executive Nestlé to the global consensus without losing the ability to adapt products to each market Currently, the company produces more than 200 different kinds of coffee Nestlé to suit the taste of customers worldwide Nestlé is one of the largest companies in the world, turned into a global corporation effectively with strong management, Nestlé will continue far longer 1.3.3 The quality Product quality is the top priority of Nestlé As a company that nutrition, health and healthy living, Nestlé is committed to providing consumers with high quality products suitable for each age group Nestlé not interested in taste but also focus on the nutritional aspects of the product to deliver to the consumer's health Currently, Nestlé is a multinational food budget and nutrition research centers the world's largest The scientific know-how combined with experience over 140 years in manufacturing various foods under the brands reputation gave Nestlé a unique position in the field of global nutrition Nestlé brands in each product is a commitment to food safety, compliance with all current regulations and standards of quality 1.3.4 Environment Nestlé commitment to doing business with awareness of environmental protection and contribute to the sustainable agriculture initiatives Nestlé pays great attention to the environment protection, considering it as a responsibility to society and the community The factory of Nestlé aims to minimize the amount of water and energy used in production 1.4 The values and principles, business standards of Nestlé: 1.4.1 The common principles The principle business of the Group will continue to be developed before the changes going on in the world, however, these principles are expressed the basic ideas of fairness, honesty and relationships common interest for everyone 1.4.2 Principles of management and leadership of Nestlé Is a very human company, Nestlé always meet the essential needs of man on Nutrition and Health This view is reflected in the style and encourage managers and leaders throughout the company Besides, respect for different cultures and values of all foundation staff is essential for success in business and for the company culture Nestlé is also a Swiss company inherited many values are developed in Switzerland in the past century Accordingly each Nestlé managers are required motivate and mobilize employees, seeks to improve the way you work, create the atmosphere change, promote innovation They are experiencing personal experience working in an international environment, always respecting the cultures of the world, respect towards the long-term strategic approach, rather than the short term 1.4.3 Principles of communication to consumers In the communication, Nestlé has always respected cultural and local values, always honest and uphold the healthy nutritional habits This is especially important for small children Nestlé is committed to the principle of not advertising directly to children years of age With products for ages from to 12, only communication to children if products meet strict nutritional standards and most have adequate nutrition category with this age Nestlé accelerate the reduction of sugar, salt and fat without health benefits of these products while promoting balanced diet and healthy lifestyle 1.4.4 The standards of business ethics: Business ethical standards give specific guidance for each employee on how to implement business rules This standard emphasizes further the need to act lawfully and honestly, putting corporate interests above personal interests, fight against bribery and corruption, has always shown integrity at highest Introduction to Nestlé Vietnam Nestlé arrived in Vietnam for the first time in 1916 Over the decades, products such as: GUIGOZ, MONT- BLANC LAIT, MAGGI have become familiar to generations of consumers Vietnam Nestlé returned to Vietnam in 1990, and opened a representative office in 1993 In 1995, Vietnam Nestlé Company Limited (100% foreign capital) was established, under Nestlé SA Also in 1995, Nestlé licensed establishment Dong Nai plant, specialized in manufacturing NESCAFÉ soluble coffee, instant tea and packaged drinks NESTEA MILO, NESTLÉ nutritious cereal powder, MAGGI seasoning and dipping sauce, COFFEE-MATE cream powder Vietnam Nestlé Company is headquartered in Ho Chi Minh City and sales offices in Hanoi Nestlé has Dong Nai factories in southern Currently total employees of Nestlé Vietnam up to 1000 people Over the years, Nestlé has attracted and trained a person workforce Vietnam qualified to meet the needs of business development of the company Activities in Vietnam: - Office of Nestlé's first business in Saigon was founded in 1916 Here are the milestones recorded the rapid development of the company in Vietnam: - In 1992: La Vie Company, a joint venture between Nestlé and Perrier Vittel under a trade company Long An was established - In 1993: Nestlé Vietnam officially back and opened a representative office in Ho Chi Minh City - In 1995: Nestlé Vietnam born Officially started construction of factory in Dong Nai - In 2002: Putting into operation the second plant of La Vie in Hung Yen - In 2007: Selection Dielthem official distributor for chocolate products and confectionery - In 2008: Establishment of Special Nutrition Division Nestlé's business strategy To be able to sustainable development and exploiting the opportunities and overcome the difficulties of globalization, Nestlé has adopted many international business strategy for each type of product and each market As a large multinational company with many international brands, Nestlé is not too rigid in applying their strategies According to some documents, Nestlé has applied multi-domestic strategy The following strategies can help Nestlé to adapt to each specific market, to meet the different needs of consumers and thus enhance competitiveness, the SBU of Nestlé has high independence In the case of Nescafé, the factory, the company's branch in the country is entitled to make decisions on many aspects such as price, output, product type, raw material supply, distribution systems,etc, adapting a domestic brand or product to suit local market conditions, sometimes resize package or product innovation to make it more appealing to local consumers Monitoring of excessive or directives from the headquarters will not only limit the discretion of the local administration, but also affect the local brand Nestlé intensive use of local managers to diverse activities around the world together, companies based include 700 managers who spend most of their careers on foreign assignments, moving from one country to "foreign troops" The company owns 8,500 brands, but only 750 people of which registered in many countries, and only 80 registered in more than 10 countries While other companies will use a global brand in many developing markets, Nestlé focused on trying to optimize the components and processing technologies to local conditions and then use a name brand resonates locally And globalization are key to the company's strategy in the emerging markets The conclusion Nestlé applied such strategy for Nescafé domestic market as shown by the company only put 11 out of 27 plants in the coffee producing countries Thus 16 factories in other markets not meet the needs of cost savings the company that primarily because adapting to the local market However, Nestle closed 38 factories demonstrates companies are interested in reducing the cost to bring greater competitiveness in crisis, recession and fierce competition today Today, multinational companies global reach by acquiring local brands with very large portfolios, unbalanced The other point that is applied Nestlé's global strategy to make use of material resources in the country These are measures to help Nestlé to cope with the difficulties ahead Evidence that in recent years, two-thirds of Nestlé's growth came from acquisitions But besides that also brings some problems for Nestlé because the large portfolio from the acquisition and development of global distribution and marketing network, ie on the basis of brand powerbrands market Leading been recognized in almost every country around the world The main aspects of the global strategy include: - Stable global markets as the domestic market - Create a global marketing mix, while recognizing regional differences and countries, such as differences in language and tastes - Creates production and global distribution systems, such as superfactories include large areas of the world - Focus on powerbrands - most successful brands and products Because the global market is huge there are significant benefits gained from economies of large-scale marketing, manufacturing and distribution Instead of producing thousands of different products, narrowing the scope of a much smaller amount to support this global brand However, Nestlé does not just stop at the standardized products that offer multiple product lines with many different categories to provide greater customer satisfaction So the book Foundations in Strategic management, the authors see Nestlé as an example of companies implementing transnational strategies Adopting strategies allow transnational companies can pursue two objectives that meet the needs of consumers and cost savings This strategy has the advantage of learning and mutual transfer of experience in the global system However, resource companies scattered across the board makes it difficult for management Really the Nestlé is working on what strategy is difficult to determine But the results of the application of this strategy is to grow market companies and provide optimal profit Studies coffee products of NESCAFÉ On average in the range of Nestlé, Coffee is considered a successful product line and bring more profits for the company The evidence is that its introduction has created a revolutionary coffee-drinking habits of people around the world and has been rated as one of the types of instant coffee powder leading drink 4.1 Formation and development In the world's only brand Nescafé value is quantified by a much larger amount than the value of the corporation that owns it Nescafé officially born on April 1, 1938 and is now the most expensive brand of all brands of Switzerland However, the launch of Nescafé have originated from Brazil In the 20s of the 20th century, coffee in South America, particularly in Brazil are rich harvest To keep the coffee price is reduced by oversupply, measures often used as coffee dumped into the sea In 1930, the Brazilian government trust Nestlé find out how 10 to prepare coffee to preserve the quality that keeps the flavor and taste for a long time At that time, coffee was common and widespread, but has formed groups to enjoy gourmet coffee and caste discrimination in coffee Therefore, keep the aroma and taste characteristics of the coffee quality is the most decisive factor in the long-term preservation rather café diversification instant coffee product The problem faced by Nestlé requires solution combines term solution with long-term sustainable solutions After years of research and experimental tinkering, its research group around Max Morgenthaler chemists have succeeded with a very simple idea, but deserves to be considered a genius of soluble coffee: use material protected was almost entirely full of flavor and taste of the coffee, make coffee and easy long-term storage medium is very convenient to use 65 years later, in the world every second clock instant coffee cup 4100 so the people drink A new brand was born from orders of Brazil Café continued conquest of the human world and the brand Nestlé get help earn extra money and more fame Nescafé is a composite name from the name Nestlé and Café Early, soluble coffee product is mainly used in the military to help soldiers awake, especially for pilots and drivers After the war, new Nescafé became popular in the country, first in the country with the presence of the US military From the 50s of last century, the youth discovered Nescafé and fans, primarily because of the convenience to use and has even been said that real coffee flavor than filter coffee maker The road became brightest brands in the world brand almost no obstacles anymore for Nescafé 4.2 The position current In the most recent ranking of brand value in the world by Interbrand agency announced, Nescafé No 30 with 12,115 billion value while Nestlé owns it No 55 with 6,613 billion in value Start with the Brazilian government contacted Max Morgenthaler, a coffee expert, in the early 1930s with the request is seeking to create a cheaper type of coffee you can drink immediately by just adding water boiling, for all the coffee consumed yearly surplus grain in this country Since then, the brand has always focused on breakthrough innovation in coffee enjoyment with types such as pure soluble coffee only use roasted coffee beans, in 1952), the coffee drying - frozen soluble (with label type Nescafé gold, in 1965) and coffee grain 11 (in 1967) In 1994, they invented the process retain the aroma, a significant quality improvement for drinking instant coffees This breakthrough innovations have secured the leading position of the brand Nescafé instant drink coffee market in the world It is also the brand's second largest water world after Coca-Cola, with about 3,000 cups consumed each second However, the breakthrough can not be the only factor bringing overwhelming success, Nescafé must also its utmost with the marketing and advertising campaigns aimed at niche markets in order to maintain its position This brand is regarded as an expert in employment increased more among brand values For example, in the UK, both Nescafé and Nescafé brand Gold Blend Analysis of the business environment 5.1 Interests of consumers Ability to consume food products in general and coffee in particular were influenced by the preferences of local consumers These preferences are formed from the cultural history or from local natural features Moreover, different people have different tastes, but overall coffee in a given country, the majority of people who share a taste For example, in a small country like Switzerland, there are differences in taste middle Jurassic German speaking and French-speaking regions In French-speaking areas, customers prefer black coffee and darker while the German-speaking Switzerland (and German) enjoys mild milk coffees To meet the different conditions in the country, managing the global Nestle factory has a certain autonomy Decision procurement, production, marketing, and pricing is done locally in each country, whether it be Britain, Poland, Australia, or any other market Headquartered in Vevey only a coordinating role 5.2 Pressure from governments The political environment is the decisive factor in the ability of a company's successful international business, such as Nestle When involved in a potential market, Nescafe inevitable competition from rival companies or major multinationals from other domestic companies To protect the interests of their country, governments in some countries creates some barriers to trade, making it difficult for the market development So, for all to be able to enter the market better potential, while building good image of the brand Nescafe, Nestle has built factories in the country immediately Has recently taken 12 measures to deal with trade barriers and enlisted the support of the government and local people by exploiting local resources 5.4 Technological innovation, access to supplies Premises global technology generally equal between the companies, hence the technological innovation is too important not important above all to put that technology access and material supply source close consume Nestle change the factory has its long history to build high-tech factories in the country that offer the potential for material and product requirements The program "beyound the cups" of Nescafe is the best example of how companies generate their supply This can be considered as methods of ensuring effective quality materials and construction company image This support program for farmers in countries with Nescafe factory approach with similar scientific, technical and quality coffees Then the company acquired green coffee prices are relatively high compared to competitors 13 CONCLUSION To reach its current position in the market, Nestlé has gone through a long process of searching for the path consistent with the nature of the company as well as the general situation of the economy Therefore, every step of the food group leading the world, are a testament to the correctness of their strategy For international production strategy, success is a combination of process research and development, production positioning and decision logistics chain resources and global effectiveness Cause runaway success in the coffee industry that the team can be summed up as follows: First, locate the scattered production, in line with the organizational structure and nature (as multinationals food processing industry) of companies Secondly, adequate investment for R & D and focus on the diversity that international market demands Thirdly, apart from material acquisition strategy combined with measures to ensure sustainable supply Fourthly, outsourced logistics services serving the needs reality in each country and the application of new technologies in logistics From the footprints ahead of giants Nestlé, enterprises in Vietnam can fully draw lessons for themselves, for promoting production, development, and set the proper first steps when carrying penetration into the vast world market Here are some lessons that the team proposed for businesses in Vietnam today: + Option produce consistent strategy with resources and their availability status Considerations when choosing plants open position to exploit the comparative advantage of that locality, value chain optimization Constantly developing new products to diversify customer's choice and adapt to consumer culture of different localities If global manufacturing enterprise, it should pay more attention to the distribution of R & D + Link or acquisition of major brands to expand product lines, expanding the market More emphasis on the issue of secure supplies If funded entirely from outside, businesses need to take measures to ensure an annual purchasing volume, input quality assurance by close links with more farmers If companies are not enough resources, to consider a hire external logistics service to increase professionalism and decrease labor costs, warehousing,etc, 14 ... mobilize employees, seeks to improve the way you work, create the atmosphere change, promote innovation They are experiencing personal experience working in an international environment, always respecting... principles The principle business of the Group will continue to be developed before the changes going on in the world, however, these principles are expressed the basic ideas of fairness, honesty... Morgenthaler chemists have succeeded with a very simple idea, but deserves to be considered a genius of soluble coffee: use material protected was almost entirely full of flavor and taste of the coffee,