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SM - NESTLE REPORT FULL - TOPIC 1-2 INTRODUCTION TO THE...

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TOPIC 1-2 INTRODUCTION TO THE NATURE OF STRATEGIC MANAGEMENT AND DEVELOPING ORGANIZATIONAL VISION AND MISSION HISTORY (SURAYA) HISTORY OF NESTLE In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe. In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s; the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production had more than doubled. After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the Company's second most important activity. The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L’Oreal in 1974.The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Pet foods (1998) and Ralston Purina (2002). There were two major acquisitions in North America,
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both in 2002. In July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6billion acquisition was announced of Chef America, Inc WORLDWIDE PRESENCE Today, Nestlé SA is the world's largest Food and Beverages Company, and a global leader in health, nutrition and wellness. Consumers around the world, from village squares in Nigeria to the skyscrapers of New York and Chicago, are united by the Nestlé promise of quality, taste, nutrition and convenience. Though headquartered in Vevey, Switzerland, Nestle now have 487 factories dotted around the globe, employing over 250,000 people in 86 countries. Their products are available in almost every country, and in 2005 their global sales reached $73 billion. Nestle operations are spread across three global zones covering Europe, the Americas, Asia, Oceania and Africa. Recognizing that every region has its special needs, the three zones operate locally, but are united by a common vision and priorities. The voices of even the smallest local markets are heard at Nestle headquarters in Vevey, Switzerland.
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