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Nestlé's globalization

Introduction to Nestlé Company, history with a focus on the globalization story, products and company culture

Théo Aiolfi

on 26 March 2013

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Transcript of Nestlé's globalization

1866: Foundation in Vevey, Switzerland, by Henry Nestlé By 1868, Nestlé was already operating in France and in Germany By 1874, Nestlé was already a global brand, selling its products in Austria, Belgium, Italy, Russia, Spain, Serbia, Sweden, the Netherlands, the United Kingdom,... But also in the United-States, Australia, Argentina, Dutch Indonesia and in Mexica History Henri Nestlé creates a new product called "Farine Lactée", an alternative to breastfeeding developed in order to fight infant mortality due to malnutrition 1866-1905 In 1905 Nestle. and Anglo-Swiss Milk Company merged to form what is now known as 'Nestle'.

In response to an increase in import duties in Australia (Nestlé's second largest export market), the company decided to begin manufacturing there in 1906 through acquiring a major condensed milk company, the Cressbrook Dairy Company, in Brisbane.

In the next few years production and sales continued to increase as the company began to replace sales agents with subsidiary companies, particularly in the rapidly growing Asian markets.

By 1913, the Company was operating factories in Singapore, Hong Kong, Calcutta, Bombay, Colombo...

However, most production facilities remained in Europe and the onset of World War I brought severe disruptions, despite the demand created for dairy products through the government contracts in Europe. The end of World War I brought with it a crisis for Nestlé because of the suspension of the partnerships with governments. In 1921, the Company recorded its first loss. 1905-1918 In 1947 Nestlé merged with a swiss firm, Alimentana S.A., the manufacturer of Maggi seasonings, bouillon, and dehydrated soups, and the holding company changed its name to Nestlé Alimentana Company 1918-1945 1974-2013 1945-1974 In response, the 1920s also saw Nestlé's first expansion beyond its traditional product line. The manufacture of chocolate became the Company's second most important activity.

New products appeared steadily: malted milk, a powdered beverage called Milo in 1934, Nescafé in 1938 and Nestea in 1944. Nestlé entered the nonfood business for the first time in 1974 by becoming a major shareholder in the French company L'Oréal, a leading cosmetics company. The company diversified further in 1977 with the acquisition of Alcon Laboratories, a pharmaceutical company from Texas that specialized in ophthalmic products.

The company adopted its present name Nestlé S.A. in 1979 and, with the acquisition of several major brands (Friskies, Herta, Perrier, Movenpick...), the firm became the largest food company in the world. To his great surprise, the expansion of its product is dramatically fast.

In 1900, Nestlé opened a factory in the United States, and quickly followed this by entering Britain, Germany, and Spain. The company takes over several important firms from the agri-food sector (Findus, Vittel, Libby,...) and extends its factories in most parts of the world, even though the most important part of the management remains located in Europe and in the United States In 2011: The company recorded revenues of CHF 83,642 millions (approximately $94,774.8 millions) Corporate
culture Our vision and values Our Mission Statement Nestlé’s mission, in the words of our founder Henri Nestlé, is to: “...positively influence the social environment in which we operate as responsible corporate citizens, with due regard for those environmental standards and societal aspirations which improve quality of life.” -- Henri Nestlé, 1857. To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products. Thank you for your attention
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